it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

>> welcome to daybreak asia, counting down to the major market opens. >> asia traits at eight cautious start following the worst week since march on stocks, recession warnings making sliding stocks. everbright has to -- orchard has to we visit its reduction plan, but keep concessions from ford in the automaker strike. >> auto futures trading early in the asian monday session, slightly in the green after falling for four consecutive sessions last week. of course, we had investors really repositioning as we continue to get this fed higher for longer, we did have tech outperforming in the previous session, adjusting because we had treasury yields slightly down, not to mention the 10 year

yield dropping after topping briefly. that 4.5% level for the first time since 2007. we will get indications of where the fed is going the rest of the year as we get their preferred inflation gauge data this week. we are also following oil prices at the moment, we had not actually fallen in the previous session we are seeing gains in the asian session about that $90 per barrel level, and they are trying to figure out what russia's temporary ban on diesel and gasoline exports will see mean for supplies. >> taking a look at how we are setting up when it comes to the start of trading in asia, a lot of inflation prints to watch out for, not to mention that trickle of chinese economic data, including industrial profits and pmi numbers expected to show uplift from the recent measures that we have seen on the seamless front from the government, this is a picture across the region looking muted as we get into the start of cash

trading in the next hour, up a quarter of a percent lower, new zealand up by .2% as we inched towards the election in a couple weeks time, we are watching some of the dollar pairs trading here in asia with the u.s. dollar on that second longest winning streak on the record when you take a look at the dollar index on that 10 week run going back to 1967. we are watching the implications when it comes to currencies in this part of the world and we are seeing a bit more weakness they are now reversing the muted gains that we had in the aussie dollar. after this, sherry, it goes back to what we get from the fed and that hawkish hold that we had. we are now getting more commentary when it comes to other fed speakers as to the readiness of the inflation five being over, we heard that from mary daly and other fed speakers, including susan collins from the boston fed saying that she expects rates might have to stay higher for

longer and that further hikes are not on the table. maid -- mary daly was really talking about this idea that if you are hoping that the fight against inflation is over, we are probably not quite there yet. >> there is a lot of information that we need to collect. we will not be satisfied that we will be where we need to be until we see inflation, we are confident on -- that it is on a path to price ability. as much as the american public is asking for release, -- relief, you're not just looking to color today, you want us to do our job. >> and we have clues on how they could go from the pce numbers, and the expectation is that chair powell's super court gauge likely grew on 82% pace, but despite what fed officials and economists are watching with this core measure that excludes

volatile items like energy and food, which they think provides better understanding of underlying prices, it's about how americans are feeling about prices, right. i mean, you go and fill up your car at the gas pump, you go shop at grocery stores. and prices are still high for food, gasoline, car insurance and other essentials. there is this going disconnect between policymakers and people, and that will not bode well for the president going into the 2024 election. >> investors debating whether the slide in stocks is a recession morning or an annoyance. let's bring in our contributor garfield reynolds. what do you make of this so-called recession flash warning? >> it's very interesting the way that these parts of the equity market in general last week were sliding, concerns there perhaps

reviving a recession. at the same time, bond yields are climbing. because bond investors optimism, without bond investors are, the optimism of recession has faded away. that leaves investors across u.s. assets in a very dangerous place. and this breakdown in small caps and in industrials started several weeks ago, it was paper overbite things like ai and leading the gains intact and leading gains in the broader index. those warnings from that part of the market are understandable because the profit outlook is very difficult, even with inflation relatively high still, there are signs of potential vulnerability in the u.s. economy. and the gorilla in the room, a

nasty one at that, is the debt ceiling battle, which continues. look at the funding battle. however we want to train that, we are facing a potential for another shutdown. quite likely the moment. we have some republicans talking about wanting us to have at least a few days in order to give it they want, and part of what they want is to reduce spending, which is both a potential headwind for the economy, and also emphasizing for investors that overall concern about the course of u.s. policy, the budget deficits, they are set to keep getting wider and how sustainable that is when yields are at multi-yield high -- year highs. there are a lot of concerns at their and there only growing. you even have the possibility that any debt market and debt

funding resolution that gets made is not going to help those pain traits go away because it is still going to emphasize the fractured nature of u.s. politics and it's still going to emphasize just how much debt the u.s. government has taken on. >> we are setting of -- out for another precedent -- an unprecedented third year of losses in the bond market? >> that is certainly looking feasible. we had bonds dropped into lossmaking territory over the last week, we can a half. held by terry stable losses directly after the fed. the big picture is that if they do squeeze out again, it is going to be an unimpressive one. and i mean, basically, unless we get a very surprising, massive turn to show that the u.s. economy is cracking, or a revival of the banking crisis

that hit in march, unless you get that, bonds are pretty much certain to face a third year of losses, or in -- and up very little changed. that is a tough situation for bond investors, many of whom were very, very certain at the beginning of this year, the fed was just about done hiking rates. and then with yields at the levels that they are, they just had to pile in and sit back and book their gains. instead, they have faced a very anxious 2023. >> our chief asia online contributor garfield reynolds there. let's turn to challenges that the chinese property market is facing because developer evergrande has grabbed -- scrapped key meetings with creditors as it casts doubt on its restructuring. we are tracking develop it's in hong kong. we had been expecting these sit

downs on monday. >> we had this market on monday and tuesday of this week, that evergrande would be meeting with key creditors for these so-called scheme meetings, quite a big agenda in focus because you know that evergrande is trying to pull off a major debt restructuring of his offshore liabilities. as you say, the plan have been scrapped. one of the reasons that they are pointing to this is sales prices or new home prices that have come out weaker than expected. you could see that gross area is still taking down on a meter square basis. those home sales being weaker than expected, evergrande says that has forced them to rethink the entire restructuring plan, but the other part that is playing into it is what else came out in their statement, saying that evergrande is reassessing the proposal to meet the demand of creditors. now, which creditors and what demands they are making, that was not clear.

but we do know that a key stakeholder at these meetings should have been class c editors. they are a major bondholder or major creditor for evergrande and so far we understand from sources that they have been largely unsupportive of the overall plans because for evergrande to push these restructurings through they need 75% response -- support from class c creditors, and it sits at 30% right now or at least that is what we heard last time we got a market update in april. >> to have a schedule for new meeting? >> that is not clear yet, evergrande says that it will be waiting to make any further announcements when it says it has an update to share with investors. the president that we do have for this sort of delay, because evergrande was supposed to meet with key creditors, including class c ones back at the end of august, but those were postponed. evergrande said that at that point they wanted to give creditors more time to consider or evaluate the restructuring

plan and because of recent developments because evergrande shares were starting to retrade after a very long -- prolonged trading halt. it does appear that they are emerging as a key hurdle, if evergrande cannot win them over, it would really risk or jeopardize the entire restructuring process, and it's difficult to get a sense check on what they're thinking because class c senator -- creditors are very opaque and not much is known about them, who makes up this group as well. >> annabel in hong kong with the latest. still ahead, president biden is reportedly set to announce the opening of new embassies in the pacific in a bid to curb chinese influence. we have those details a little bit later. >> first, hopes from the golden week holiday, the chances of a travel driven revival next, this is bloomberg. ♪

>> you are watching daybreak asia,. your week ahead. on the inflation front, keeping a watch on cpi prince from singapore up earlier in tokyo, inflation has been cooling in japan's biggest city but the weekend has the potential to stoke price pressure, keeping the boj on alert, we also get the u.s. core pc on thursday, underlying price growth is slowing to a 12 month low. the bank of thailand is expected to lift its key interest rates by 25 basis points and the bank has indicated its policy rate is not yet at the level that promotes it -- promotes priced ability and growth. in china, industrial profits and pmi manufacturing data will provide the latest snapshot of the economy, we expect policy

stimulus will probably lift the week pmi back into the growth zone for the first time since march. chartist travel industry is hoping for a bonanza during the golden week holiday, starting on friday, more than 21 million people are expected to take flights across the lake the break, travel will be in focus since china lifted group travel restrictions on almost all major overseas destinations in august. that is your week ahead. as we look ahead to the china golden week, our next guest expects increased domestic travel providing a temporary boost to the services sector. will take any boost we can get. are you exacting a strong turnout? >> definitely, with the ticket sales for both train and airplane sales, they have been

up a lot higher than even, it suggests that we could even see a pre-pandemic booster travel, which is a really positive thing, particularly given the sector has not seen a loss recently, any good news will be good, but it's going to be a temporary lift, unfortunately. >> if that systemic track from the property sector. >> what we see is that policymakers are deliberately not re-inflating the bubble, they are treading carefully what comes to stimulus regarding the property sector. we are not expecting that we will see much of a turnaround there. not until late next year, actually. it's going to be ongoing weakness for chinese pop -- china's property sector, which will mean that the domestic economic recovery continues to be soft, really. >> that is a conundrum, because they've built this property bubble to be so closely tied to over 40 different industries in china, it's a key component of gdp but also tied to household

sentiment and household wealth. that is a pretty major risk that you could get into long time drags. >> definitely, and what we see through this sustained property market weakness is just how much the tentacles of china's property market have manifested throughout the economy. what we are seeing is as far as local governments, looking governments have traditionally relied on the revenue from land sales and what we are seeing is that because they're not getting that revenue anymore, and that translates to a potentially weaker infrastructure spending. it's this long line of how important and central the property market still remains for china's economy. what is the transmission mechanism for what's -- from what is happening china's economy to those in his closest neighbors and those dependent on economic growth. where are we going to see the biggest impact if we don't see a quick turnaround? >> that is a really good question, what we see is that

the channels of impact are manifesting in different ways. we see weakness in commodity prices, iron ore prices have been not great. and energy prices as well, energy prices have risen on the back of supply disruptions globally, that we can demand environment in china is still a headwind as well. there are also seeing it in other areas, particularly southeast asia, from a service exports point of view, when china first abandoned its zero covert policy, it was the expectation that we would see international tourism really rebound and help southeast asia get back on its feet. we have not seen that same sort of international arrival materialize as much as expected. >> i wonder what is going to happen with golden week, especially because we are watching thailand very closely, with another central bank decision. your its dictation is a lengthy pause, although bloomberg

economics actually sees a hike this week. why the divergence here? >> that is an interesting question. what we are seeing in thailand is that we are seeing headline inflation and core inflation have come down quite substantially, and the fact that the mystic economic recovery has quite like, we're not seeing it at the same sort of aggressive desire from the bank of thailand to continue with rate hikes. if we are looking regionally as well, the pickup thailand has been one of the more dovish, because they have really emphasized the supply-side nature of inflation, and because we have seen supply-side factors receiving and headline inflation coming down, that has allowed them to really maintain the expectation that we will not see further rate hikes in thailand. >> we have plenty of data coming out of japan, that is an economy that has been pretty resilient despite the fact that the boj does want to keep things steady. given what happened last week with the boj and really no

policy change, what are your expectations for the next week? >> we expect that the barrage of data for japan will not be that crash hot really. what we see is that industrial production will actually be pretty mediocre because we have got this interesting situation at the moment where industrial production is getting impacted by weakened global demand, but also on the domestic front as well, domestic focus manufacturing has been subdued, and when it comes to the labor market we are expecting that the employment rate will actually take down to 2.6% from 2.7% previously, but it is still a bit above pre-pandemic levels. because the domestic economic recovery has lost a little bit of momentum recently, unfortunately. could you, always good to have you with this. you can wrap -- get the roundup

on daybreak, you can find it on dayb if you are a subscriber, or on the mobile anywhere app. you can customize the news to get the news on industries and assets that matter most to you. this is bloomberg. ♪ ♪ explore endless design possibilities. to find your personal style. endless hardie® siding colors. textures and styles. it's possible.

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>> the u.s. is said to be nomadic relations with the tiny pacific nations of the cook islands as china's influence grows -- grows. these are truly tiny places, but there is a big reason that we are watching them closely. >> they are very small, less than a population of 2000 and 18,000 respectively, they are small but strategically important. which is why president biden is entertaining these specifically,

at this specific summit, this is the second such one that has taken place. during this today form we are excited to hear that announcement that you mentioned, the diplomatic ties with the cook islands as well. china, of course, has been very active in this region for a number of years, issuing loans and building out infrastructure, more recently signing agreements with the solomon islands, and another group which will talk about in a moment. the white house says that it is interesting type and economic growth but china is very much in the backdrop. >> not all the pacific island leaders will be there, who is missing and why? >> a couple notable no-shows, the solomon islands prime minister, he was in new york for the assembly at the yuan general, but did not stick around. and it was the solomon islands who entered into a security agreement with china last year.

the u.s. has since opened amnesty in the solomon islands and in tonga, another in that a lot too,, that particular island government will be dealing with a no-confidence vote, he just recently came to power when he predecessor was ousted in a no-confidence motion after signing a non--- security agreement with australia. china then sent police experts to assist with the political crisis there. so, yes, these nations are small, but they are often overlooked in geopolitics. as mentioned, they are very much on the front line of this struggle between the u.s. and china. >> paul joining us from sydney. some of the other geopolitical stories we are watching, the pla has urged china's military personnel to be careful about who they associate with, the

statement pla daily says that congress should five their social circle -- that cadres should purify the social circles, and some people have been removed experts took -- after socializing the with the wrong people. this comes after the removal of the foreign minister and the disappearance of the defense minister from public view. armenia has explained the lack of support from regional allies insecurity blocks and its conflict with neighboring azerbaijan. the prime minister said in a televised address his country is no longer being protected by allies without directly naming russia. his remarks came days after moscow decided not to intervene in azerbaijan's military operation to take control of the disputed nagorno-karabakh region. christian mcnair -- christian lee merritt says that germany might need to rethink its

immigrant policy after so many undocumented arrivals. political asylum is guaranteed, and the tightening of restrictions would require a two thirds majority in parliament. more than 204,000 people have requested asylum in germany through august, a 70 7% increase from last year. president biden is set to head to michigan to support striking car workers as the ministration talks up a win-win outcome from contract negotiations. details ahead. this is bloomberg. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you?

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when you wave bye to the other guys. all on the most reliable 5g network nationwide. you really shouldn't walk out the front door without it. switch today at xfinitymobile.com. it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: you are watching daybreak

asia. annabelle: with a countdown to market opens at the top of the next hour you can see her from futures, we pointing toward a fairly cautious start to the trading week in asia. we've got indicators telling us that trading is going to be fairly range bound in the session but that is certainly a lot for investors to keep their eyes focused on so firstly we have the key inflation gauge due out later in the u.s. this week also those rising risks. of a government shutdown in the u.s. and a host of fed speakers that are due over the coming days so certainly a lot from the u.s. side that we have to be contending with. adding to that we saw the s&p 500 cap its worst week in the number of months. let's change on because all of this plays into the dynamics that are developing around the dollar and it is that king dollar story in focus once again. we have treasury yields pushing past the 4.5% mark for the 10 year yield and also that strength in the greenback.

when you take a look at history you can see that the dollar index, the broader dollar index, looking at its longest run here on record. we have not seen this sort of strength going back to 2014 and beyond that you are looking into the 1990's and even earlier. in terms of what else we are seeing from positioning, there is a sense coming through that this dollar run is not done just yet because when you take a look at leveraged funds, net dollar positions have now stretched to a net long on the greenback. again for the first time since going back to the end of june of this year. a lot of investors out there continuing to favorite the u.s. currency. shery: we will be watching carmakers here in the u.s. as well. president hyde and will travel to michigan on tuesday to support striking auto workers after the union expanded its

action to dozens more u.s. facilities. here is what union president said in a facebook livestream briefing going into the weekend. >> we can and will go all out if our national leadership decides the companies are not willing to move. gm install lantus are going to need serious pushing. all of the parts distribution facilities that these companies are being called to stand up and strike. we will be striking 38 locations across 20 states across all nine regions of the uaw. shery: for appeared to be spared from further pain after the uaw said it one key concessions. su keenan has the details. the union maintains its strike line for its michigan plant but will not necessarily escalate that. sue: this shows the new strategy that the uaw is using a carrot and stick rewarding lives automakers such as ford. they are making progression

negotiations and upping the ante of punishment and pain on those who do not. 38 more gm install lantus walkouts are now do to take place as you just heard in a 38 facilities. ford spared further action and biden planning to visit tuesday, we are told he is a strong supporter of union workers although the biden administration stopping short of supporting the 40% demand for a pay increase. but this current stick approach by the uaw has given it more leverage than in the past. while it did receive key concessions from forward, we are not told what the details are, gm and stellantis did pushback in separate statements on friday and questioned the union's interest in a quick resolution. but promised to continue talks. in terms of the escalation of the strike the uaw is adding

5600 more workers to a labor action that already had more than 1300 union members on picket lines from three assembly plants in michigan, ohio and missouri. meanwhile we have pete buttigieg the secretary of state speaking on cnn, one of the weekend political shows here in the u.s. saying that there could be a win-win strategy. if these automakers do with the president is calling for which is to say that record of profits should lead to record pay and benefits for the workers who are creating all that value. buttigieg very optimistic that there could be some progress here. general motors and stellantis have logged four years of record profits for its have been strong and the union it maintains they can afford to meet their demands of raises for 40%. board which made progress in their negotiations and made some concessions, their ceo has said the wage demand the uaw is

putting out there would put ford out of business. there is still significant distance in all of the sides here. haidi: when it comes to the writers strike in hollywood we might be pretty close to seeing the light at the end of this action. we are hearing from nbc that hollywood's writers strike could end at any moment. two sources familiar with the negotiations telling nbc news that the two sides of come to an agreement that are now haggling over the language used in the deal. we continue to wait for further developments in one of the main reasons, one of the issues writers had going into these drugs, ai, appear at the last point we looked at the still to be a sticking point. su: there was expected to be a resolution over the weekend, it appears to be getting closer but again ai is a sticking point because the studios want to use ai in writing scripts that would

clearly put some writers out of jobs. a person close to the matter telling us that some of the progress that has been made is that they have agreed that staff will be given a certain number of writers on their tv shows which will increase the number of episodes per season and the two sides also created a structure in which writers will get bonuses for popular shows on streaming services. that is significant progress, executives of netflix, walt disney and warner bros. have met with negotiators throughout the weekend. negotiators wrapping the writers killed america, meeting for five straight days to hammer this out and hopefully resolve the strike that began in may. for five months now the strike has paralyzed hollywood and many of the entertainment shows that are on streaming and television cable platforms. writers want higher pay and changers -- changes in the way they are paid for streaming

services. they want to be kept up with the way the industry has changed and it appears some of the concessions that have been knocked out over the weekend address that. haidi: bloomberg's su keenan there bringing the latest developments on that story as they get to us. we are hearing reporting from nbc news that they could end that strike at any moment. that the two sides have come to an agreement and are now haggling over the language of the deal. let's take a look at some of the top corporate stories we are following. -- we will settler the hedge fund after the collapse of mf global holdings. jvc and jsc -- new york based money management firm terminated his registration with the sec as of last friday. the firm's loan investment vehicle and gross assets of about $510 million including leverage at the end of last year. svb has agreed to sell a further stake in a portfolio of school buildings to brookfield asset management this struggling swedish landlord will sell a

1.6% holding in the education division to brookfield making the canadian investor the majority shareholder. the transaction will see svb adding a cash injection of $720 million it is unclear if it will help the firm stabilize its finances. to geopolitics now the european union's chief trade negotiator says the block is seeking a new strategy towards china calling the current relationship very unbalanced. -- wrapping up his trip to beijing tuesday so let's get over to our shanghai bureau chief for the latest. what did he say during the saturday speech and what was the main purpose of what they wanted to get out of this visit? charlie: right he was in shanghai this weekend and gave a speech at the annual summit on saturday and actually he did not say much about the china trade relationship during that speech. he said as you mentioned the china trade, china's trade with

the eu is very imbalanced with the eu is not seeking to disengage from china or decouple from china. based on what we are hearing from people in the area in europe, he is here to tell beijing may be concrete measures are needed to reset the relationship between the two trade partners. the reality is china and the eu, the tension has risen following recent eu's anti-subsidy investigation of chinese ev sales. in the trade imbalance is a huge problem. if you remember the trade deficit between the eu and china more than doubled to 277 billion dollars over the last three years to 2022.

the deficit has narrowed a bit but still running a record high around that level. haidi: even if we don't necessarily see a breakthrough during these negotiations could we at least be headed towards a high level summit. what is next for the relationship? charlie: the talks that he is holding with beijing officials this week is happening under something called eu china economic work dialogue and this is viewed as a steppingstone for the summit between president xi jinping and the eu president later this year. we don't know what exactly the eu official is going to tell beijing leaders this week, he is expected to meet a very senior committee mender -- member today or tomorrow.

the fact is the two countries, eu and china, are suffering a setback in terms of the trade. the eu is getting increasingly skeptical of china's practices, for example its relationship with russia. but beijing maintained that the trade imbalance was caused by eu's restrictions to china for example the dutch company restricting sales of chipmaking equipment to china. so beijing thinks it is the eu's fault. and what is more important is the background information in 2021, the eu and china suspended the eu investment act which is a major setback to trade between

china and the eu. the reason for that is eu regards china's behavior is a concern for them. haidi: our shanghai bureau chief there with the latest on the eu china relationship. shery: coming up japanese video game studio is planning to reach a wider audience by expanding their smartphone game line. will hear from coo of capcom next this is bloom. ♪ schedule one for y ou... or the whole crew. plus, they're free. really? healthier is getting a flu shot on your schedule. cvs. healthier happens together. oh, booking.com ♪ somewhere, anywhere... ♪ ♪ i just want to lie motionless in a chair! ♪ booking.com, booking.yeah

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shery: japanese videogame producer capcom says game should be more playable on a wider range of smartphones in the next few years. it is hoping that will unlock opportunities to reach gamers who do not have consoles and pcs. the coo told us more about the company's strategy to expand its library of games. >> in order to continue to grow it is important to introduce new aaa type products every year. it is also important to release repeated titles over a long period of time while considering price sensitivity. we are planning to achieve stable growth through sales of these repeated titles.

>> you have set a goal of selling 100 million copies of your games in a single year. which platform do you think will drive that growth? >> for many years pc has been our main platform. we are currently selling into hundred and 30 countries and regions through this pc platform. while we will continue to use the pc as our main platform i hope to achieve our 100 million copies goal with contribution from aaa type titles on smartphones. >> there has been some buzz around being able to play at resident evil on the new iphone 15 pro. now that you have this deal with apple, telus a bit more about that. do you feel it was a mistake not to get into mobile gaming sooner? >> capcom's high-quality games have finally become playable on smart phones with iphone 15 pro. of course we wanted to do it much earlier but our technology were not able to meet that

requirement. now that we have the technology we can continue introducing our games for the smartphones. we have built relationships with apple by participating in apple arcade. our title became available on the new iphone 15 pro as a result of this relationship. i look forward to continuing to work with apple as a strategic partner and grow together. >> we saw microsoft acquiring activision, there has been whispers in the industry about more deals. what is capcom's thinking when it comes to m&a? is there anything in the works? >> i think there had been many m&a talks in the game industry. there was once a time we were a target, but rather than acquiring an outside company we prefer organic growth. it is important to train and develop human resources in-house in order to carry out growth strategies. i also believe we can utilize external partners but we have no intention of acquiring companies. >> what if microsoft comes to

you and says we are interested in buying you out? would you entertain that? >> out -- i would gracefully decline the offer because i believe it would be better if we were equal partners. >> as a business leader what do you think is the one thing japan needs most in order to stay ahead in the world? >> i believe the industry that will help japan grow in the future is digital entertainment. we can respond to the global needs by utilizing our excellent human resources. part of this is what we believe is game. japanese games are very well received globally, these days game ip is being made into movies. it is also being merchandised. in order for japan to continue to grow i believe that the game industry will have to lead the way. capcom will work hard to increase corporate value and develop game talent. we will do our best to support the growth of japan. haidi: cap, coo they're speaking

to bloomberg, coming up next how fund managers are looking to -- the world's worst performer over the past few years and details are next. this is bloomberg. ♪ 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. 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

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worst performers over the last three years and that is the exact reason some funds arlooki. to unearth pockets of value. let's bring in asian stocks managingr, great to have you here in sydney. for some investors the risk peer mayor is worth it for some investors. >> for some after the relentless selloff they are seeing some opportunities. we have interviewed quite a few international funds and bernstein is saying china selloff is not systematic. it is actually seeing just a slowdown in growth and they see opportunities in the local share market versus offshore share market and for a monday -- amundi for the pharmaceutical and health care stocks it's actually at the bottom after the recent crackdown has been priced in already. they are looking for opportunities there in a couple others we are talking to.

one pointed out that pharmaceutical center is a buy it because china is entering this agent society and the government is really encouraging a lot of innovation and the other fund says that text here like the likes of alibaba and baidu, their earnings are not that bad. they are being sold systematically in a way that everybody wants to get rid of china risk. so they are actually presenting some kind of valuation opportunities there. haidi: how concerned are they about the property risks? >> property risk i think is more of a prolonged situation for a lot of investors. that is why nobody is mentioning that they are looking for any opportunities there and as you guys were talking about, like evergrande for example is postponing a cr all the signs are still not pointing up. the next catalyst people are looking out for is this golden week because that is usually a very popular period for people to buy properties. with the recent property sales data not being very encouraging

the next bet during the eight day golden week holiday could create some more direction for some of those investors as to whether to get in or not. haidi: our asia stocks managing editor there it joining us today from sydney. here are some of the other stories we are tracking in the tech space. chinese president xi jinping has reportedly called for enhancing the nation's manufacturing sector with digital and information technologies. state media quoted president xi saying china since -- should seek to lead a new round of tech revolution to modernize the industrial sector. premier li qiang added that china should focus on digital and green technologies to improve supply chains. a nasa capsule containing chunks of an asteroid that may hold clues to the development of our solar system has landed in the utah desert after a seven-year space mission. nasa says it marks the first sample return mission of its

kind. the mission called o smiley's rex launched in 2017 -- 2016 and scooped up rocks from a near earth asteroid in 2020. annabelle: these are the stocks will be watching when trade opens in korea japan and australia. qantas is saying overall travel demand is strong with the first quarter of 2024 set to be similar to the last quarter of 2023. haidi: keep an eye on other asian airlines stocks to after -- announced it expects the region to recover to 2019 passenger traffic levels next year. the nikkei reports that japan's health ministry is planning to formally approve an alzheimer's drug monday. plus chip stocks in focus after another nikkei report that the japanese government is considering tax breaks to cut production costs.

haidi: this is the picture across asia as we are heading into the start of cash trading. we are seeing this continued strength when it comes to the u.s. dollar. when it comes to the dollar index we are cut -- looking at that second-longest winning stretch on record since the start of that data being kept. we are seeing that pretty flat at the moment but still watch for implications when it comes to asian trading pears. at 6141 is where the aussie dollar is sitting. we did also really hear from some of these regulators here in australia, concerned about the impact of a continued china slowdown. the regulators quarterly statement talking about reduced appetite and financial markets, weaker trade in the deeper economic deterioration and china being mainly felt in australia through those mechanisms. watching aussie bonds we are seeing that tracking treasury futures edging higher, given extending that rebound that kicked off on friday. australian bonds are really climbing to echo's u.s. moves as well. this is a picture across the

start of trading here in asia as we get a week full of eco-data and inflation readings as well as pmi numbers and industrial profits out of china to see whether perhaps we have seen a bottoming of that slowdown in asian equities, a pretty cautious open with the dollar looking narrowly range bound. still, the fed is front and center that higher for longer stance with some of that commentary being echoed across some of the fed speak, adding to that narrative. coming up in the next hour -- shares their market strategy and why they see a remarkably strong rebound when it comes to the u.s. economy. we do have the market opens this monday morning in sydney, soul, and tokyo next. this is bloomberg. ♪

shery: this is daybreak asia we are counting down to asia's major market opens after the worst week since -- march in u.s. stocks as investors reposition on that higher for a longer narrative coming from the fed. we have the feds preferred gauge of inflation to watch out for this week and plenty more data out of asia. annabelle: including numbers out of china when it comes to industrial profits as well as pmi numbers which all could show the recent trip feet of stimulus may have started to take effect the question is whether that economy has bottomed with the continuing woes and the property sector. let's get to hong kong. certainly a lot for investors to be contending with this week we have those inflation gauges do, pmi readings from china and other factors at play but the open is now for japan, sydney and seoul. but kicking off with

japan and the start of trading for cash treasuries because it is those moves we have continued to see tech higher across the curve over the past week or so with investors still continuing to digest that higher for longer narrative which is playing out again and bond markets with investors deciding whether now is the time to pain. in terms of what we are focusing on over the course of this week said there is quite a lot for investors to be deciphering but the risk events training toward the end of the week so perhaps we can expect a little wait and see mode over the next few days. that is the state of play as we come online at the nikkei pushing higher here as we get underway. also continuing to get that focus on the japanese yen because we are above that 148 level. and continuing to see just a little weakness in the early part of trade. we have king dollar very much in focus now on the longest win streak for the dollar index, the

second-longest longest on record and hedge funds as well turning net buyers off the dollar. it tells us at least from a positioning percent -- perspective that dollar run not done yet. the 150 level very much in focus and for any further signs of intervention from japanese government officials. take a look at was happening in korea as we get underway, the focus is stocks. a little weaker at the start of trade even though we did see the nasdaq outperforming the s&p 500 over the past week. as you said the moves in the s&p 500, the worst week in stock since march but the nasdaq doing a little better because of apple that helped lift sentiment with its sales of its iphone in focus. the kospi here we had to tenths of a percent to the downside and we are seeing the korean won a little firmer but fairly flat for the most part. of course the other focus for korean markets and markets in asia this week will be on china travel demand given we have got

the mainland gearing up for a longer than normal golden week holiday in the estimates for travel with 21 million chinese people being expected to travel by plane for this holiday period. put that in perspective that's a little more -- a little less than the entire population of australia so a lot of people getting on planes and korea at one of the key destinations in focus as is japan. it is not just golden week that is the focus for china, there are the industrial profits numbers due and pmi readings that could show that relief from government support measures so the manufacturing gauge expected to come in at more than 50. signaling expansion when it does drop at the end of this week. a lot on the docket do toward the end of the trading week. oil meanwhile we are trading a little higher as we get trading underway near that key 94 in focus. shery: let's bring in our next

guest who says investment angles are plentiful in asia and it is not just about china macro. with us is the head of asia-pacific equities, great to have you with us. how cheap is asia right now? joshua: i think one of the good ways we try to look at this is -- over asia over the last 20 years of history and we are getting down not quite to the absolute lows but that sort of lows we have seen in the selloffs in 2009, and 2000 and even going back to the asian crisis. in that perspective we all have quite a few negatives around but a lot of that is reflected in the valuations we see in asia and that arguably is not the case we see in other markets. particularly the u.s., so a lot of negatives are priced in. haidi: there were some valuation opportunities across japan which has for a long time underperformed but given the recent rally that we have seen in japanese equities, do we still have room to run?

joshua: absolutely, japan is not as contrarian as it was at the end of last year. but we think there is a number of aspects to this. first of all we have the change in the inflationary outlook, we have the moves we are seeing around yield curve control, and that is the most important one is the restructuring element. i guess for a number of years, for lack of a better word there has been trapped value sitting in japan, cash sitting on balance sheets etc.. now what we have seen due to a number of measures and what's been happening with the voting proxy companies, what we have seen from the tsc, as we are starting to see management move to liberate that value. the positive is that one it, it takes a period of time and secondly it is less impacted by the global macro environment. we are seeing a lot of evidence that that is continuing. it more companies are seeing the success of companies that have done that so we think that will be ongoing. i guess that big jump up in

japan has not quite happened. it is not like it has much going forward but that stock selection opportunity will be quite significant. i think the other thing to consider from a japan perspective is the yen has been very weak. as we have seen around the rest of the world and not may be something we see more of a countertrend it to other central-bank action going forward. haidi: what is the risk premier when it comes to china at the moment? obviously you have got some bargain hunters with bigger risk appetite, probably quite intrigued by evaluations right now. are you in that camp? joshua: yes i think you hear a lot of people who think things turn around very quickly or are very pessimistic. we take more of a neutral ground we think there are a number of challenges that are pretty well known. what i find interesting is what we would normally deem high quality companies that are very expensive are now looking quite cheap. that is a precursor to being a good opportunity but were also

seeing more than that because despite the week macro environment some of these companies are starting to eat earnings. they are cheap, they're starting to be earnings and we are seeing a share holder friendly policies whether increasing in dividends or buyback activity. i don't think it's a simple as making a big call on what may or may not happen in the market but we do think from that bottom up stocks perspective there are opportunities. that being said -- china has got very cheap and if we remember back to the end of last year when people were quite pessimistic around the reopening and then when it happened we saw a 60% rally in the market, i think you do need to be a little mindful with these type of events. they do have fiscal room. haidi: it is also interesting because we have seen the d correlation between chinese assets and perhaps the rest of the emerging markets, particularly here in asia. there are some ems in south east asia you are quite constructive

on. joshua: absolutely i think it's very easy to get very concerned about what might happen from a macro or people might speak about the flows that happen within asia. but there are a number of other things going on. we are seeing diversification of supply chains. that plays very aggressively into the hands of places in southeast asia. i think what's more important around that it is not a zero-sum game because the multiplier effects that happen is economies that are very significant, it is not -- building a new factory in china to lure away existing labor it is often around building facilities, power generation, building roads, even under employed labor a new job so they can get a bank account so that they can then buy or make more consumption activity. from our perspective that is a great story. it has always been there but were getting a lot of that input is in as people look for a more diversified supply chain basis so we think that's another great opportunity within asia as well. shery: when it comes to emerging asia a strong dollar is not

necessarily helpful, we thought we are getting some relief on that strength but we are now up nine out of the past 10 weeks so where does the greenback go from here and what are the implications for asian markets? joshua: i am not a currency strategist so you have to take my views with a grain of salt that it is an interesting dynamic because clearly the u.s. has high prints quite aggressively and as a result we have seen a strong dollar. clearly, we're getting closer to the end of that process but that being said i think the interesting anecdote is u.s. inflation is still quite high. i think if we look at some of the labor negotiations going on now, they might have a little more longevity. if we come back to asia, because we did not see the fiscal and monetary stimulus the inflationary impetus is much lower. that means as the fed gets toward the end of its hiking cycle we could actually see rate cuts more aggressively happen in this part of the world. that might not be so wonderful

for currencies. but i think it would be very supportive for the economy. i find it difficult to get to bearish on the outlook in the short term. that being said as i mentioned before i think the one difference for that is probably japan. japan has not been hiking in the yen has been very weak. we are getting close to a point where they tend to be more defensive but you may end up with japan being more of a counter moving central-bank. so it is possible we see a stronger yen going forward and that is something we can counteract like a stronger dollar. bloomberg haidi: always great to chat with you, let's get you back to annabel and hong kong for a look at some of the early movers and qantas, the overtones towards displeased customers continue. how do investors feel? annabelle: does seem pretty much unimpressed right now with what we have out of qantas we just

had a trading update as well as overtures coming through this morning but the group is saying travel demand is strong. what they have flagged is that oil costs are becoming somewhat of a concern. we have seen that run-up in oil prices but qantas has been hedging for that. qantas saying it will absorb this higher cost for now but it will be monitoring the fuel prices over the weeks ahead and if current levels are sustained they will be looking to adjust their settings but trading conditions as i said, travel demand is strong. the first order of the four-year 24 is looking to be similar to the last year -- last quarter of the financial year 23. we are also keeping an eye on other airlines and focus. this morning mixed moves coming through, we heard from ada the travel group over the weekend saying that aipac, or the asia-pacific region has achieved 74% of 2019 passenger travel in

july so they are seeing that recovery in travel demand. what they are saying is leading that is the demand for china travel. they will be monitoring a golden week holiday, that is coming up in china. 21 million people expected to be traveling by train during this time. take a look at another group of stocks and focus. the japanese pharma company, the reason we are monitoring this is a couple different stories. the first is we have local media reporting that japan will approve their alzheimer's drug as soon as today. the strike has already been approved by the fda in the u.s.. the other story is more negative because they have another drug under development or a group of drugs being used for the treatment of lung cancer and we understand they have failed and a trial. so there price target has been cut to ¥9,100 a piece. down from jeffrey's prior price

tag of 9900 for the stock but we are still trading below that. finally if you change on another stock in focus at the open for tokyo, just over 10 minutes into the session is softbank. that is moving higher. citigroup has opened an upside 90 day catalyst watch of softbank. why they are doing that, they're saying the company may possibly approve another share buyback program when its second-quarter results are out so they are saying the net asset value discount is much larger than the 30% that softbank has considered to be appropriate. they have also opened an upside catalyst, or a 90 day catalyst watch on core the firm may announce a slight guidance hike with its second-quarter earnings so softbank is up nearly 10% over the course of this year. softbank as well, also bank core of 18% versus the 26% gain we have seen for the topix index.

perhaps for the upside ahead for these names. haidi: still ahead fresh uncertainties over what would be one of china's biggest ever restructurings. markets are watching evergrande as it cancels key creditor meetings, we get the latest next. this is bloomberg. ♪ at ameriprise financial, our advice is personalized, based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

haidi: chinese property developer evergrande has scrapped key meetings with creditors as it carves fresh doubt over the proposed restructuring. let's get more from bloomberg's credit editor kevin kingsbury. it comes at a time where investor sentiment is already so fragile. what have we heard from evergrande over the weekend? kevin: friday night evergrande said they will suspend meetings

they had planned for tonight and tomorrow night regarding its offshore debt restructuring plan. it said in the filing that because of contracted sales for new homes over the last six months along with discussions with both its creditors and advisers that they needed to reassess their debt restructuring plan. it sounds as if they will come back to the drawing board and reassess what they're going to do and figure out where they are going to go next with this plan and then on sunday night last night they said one of its key onshore units is under investigation. we are still trying to assess whether evergrande had said this previously but as a result of this investigation the company said they are not able to issue new debts because of regulations from onshore regulators. because of that issuing a new debt is a key factor in this old debt restructuring plan so it throws things into the mix as to where exactly evergrande goes if they are not able to issue new debt to offset the old debt that they have already defaulted on. shery: is this going to be a

learning point, a lesson for other developers? what are the implications not only for evergrande but other builders that are trying to do the same thing? kevin: you would think so. certainly evergrande has been looked at since late 2021 when it first defaulted that this would kind of be like the case study for other developers as they would run into trouble because evergrande being the world's largest developer as far as that goes -- it is also one of the most complex. so long as evergrande would be able to get to the debt restructuring process it should make it easier for other developers but as we have seen it has been really complicated for evergrande. it is not good for other developers. although we do not -- do have sunak who last week. creditor approval and they've had approval throughout their restructuring process and there is have gone much more smoothly and evergrande's. haidi: what is on your radar in the coming days for these developers? kevin: we have sunak, like i

just mentioned next week court in hong kong is supposed to certify the votes the creditors made last week. also this coming thursday, wednesday excuse me. we have a $40 million coupon bond from country garden, we talked about them not making the initial payments on a separate dollar bond so we may be in the case where a second bond enters a 30 day grace period from country garden. so that will be something to watch as to where country garden is going and then on friday we have monthly sales from china realist investment corps. they will give their monthly estimates as far as sales go for it we need to see where things are headed into this key weekend because obviously the golden week holiday in china starts next week and it has always been a key sales point for new homes. if things are we going into that holiday it does not bode well for how things are going to go during the holiday. haidi: the china credit editor kevin kingsbury there it let's

check some of the top corporate stories. -- will shatter the hedge fund after the collapse of an global holdings. corzine's new york based money management term -- terminated their relationship with the sec last friday, they had growth assets of about $510 million including leverage at the end of last year. svb has agreed to sell a further stake in a portfolio of school buildings to brookfield asset management. the struggling swedish landlord will sell off 1.6% holding in the education division to brookfield making the canadian investor in the majority shareholder. the transaction it will see svb get a cash injection of $720 million, a move that will help the firm stabilize its finances. president biden will travel to michigan on tuesday to support striking autoworkers after the

union expanded its action to dozens more u.s. facilities. ford meanwhile may be spared from further pain after the uaw said it had one key concessions. su keenan has the details. the union maintaining their picket lines for its michigan plant that will not necessarily be escalated. su: this is part of the carrot and stick approach that the uaw is taking and in other words rewarding those companies that are coming through with concessions like ford. and dancing up the pain for those who are not. with 38 more gm and stellantis walkouts will take place and ford is being spared further actions at various plants. now the uaw will consider the concessions that ford has made and biden is planning to visit michigan on tuesday.

he is being presented by his staff as the most pro union president ever although the bided administration stopping short of backing the union's 40% pay increase demand. what we have seen with this latest move by the uaw is they are adding 5600 maury workers to a labor action that already has 1300 union members in three states and is now going to 20 states. gm and stellantis pushed back in separate statements on friday questioning the unions interest in a quick resolution of this dispute but promised to continue talks and even though ford has said that it is giving some concessions in terms of that 40% pay demand that uaw is making, the ceo said that would put them out of business. we are seeing these union and companies still quite a bit apart and reaching a resolution. haidi: meanwhile much closer

when it comes to the end of the hollywood fight had nbc reporting in the last hour, i guess what it means they have reached a deal in principle and are now arguing over the language. su: nbc announcing they have two different sources that have told them that in these last five days of negotiations they have now come to a pact between studios. representatives for the writer skilled of america, a pact but they are haggling still on the language. that means they are very close. we do know this has been a five month strike that has literally paralyzed hollywood and many related industries. it has kept all new productions and movies, tv shows from coming back on the air. and what we do know in terms of key issues that were hammered out over the weekend, there was an agreement according to a source that bloomberg has to staff. a certain number of writers on

different tv shows that would increase the number of episodes per season and we know that the two sides have also created a structuring in which writers would get more bonuses for popular shows on streaming services. those were some of the key issues, more money and letting the benefits accrue to writers that come from the increased use of streaming services. shery: you can get a round up of all the stories you need to know to get your day going in today's edition of daybreak, bloomberg subscribers go to dayb also available in mobile in the bloomberg anywhere app. you can customize your settings the only get the news on the industries and assets that you care about, this is bloomberg. ♪

haidi: checking some of the top geopolitical stories, the eu's chief trade negotiator says block lance to strike a new in relations with china describing their trade is very imbalanced. he says the eu wants to reduce its dependency on china while maintaining access to its market. he is on a four-day visit to china and holding talks with officials after the european commission announced an antisubsidy investigation into chinese ev's. the people's liberation army has urged chinese military personnel to be careful about who they associate with. the state run pla daily says they should purify their social circle warning that some leaders have been removed after socializing with the wrong people. the commentary follows the removal of someone in late july, the defense minister. and his -- disappearance from public view. take a look at how we are tracking when it comes to the

start of trading in european futures. this as we see a muted start to the week when it comes to asia. hire for longer when it comes to the fed, still the top of the narrative there and a lot of uncertainty as we get some key inflation prints including out of the u.s. and asian economies this week as well. this is a picture across european session for futures trading euro stocks futures down about half a percent. the german dax futures also looking pretty muted. we do see a little more volatility ahead of it comes to skewed risk to the downside and potentially range bound when you speak to the strategists when -- about the outlook -- outlook for european stocks as we get to the european stocks as we get to the last leg of it's an amazing thing

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. haidi: this is "daybreak: asia."

su: i am well drillers with a check of the markets. so far, we have stopped looking a little bit weaker as we get trading underway. what is notable so far is just the lack of volume, or intercession because when you take a look at the 20-day moving average, we are 20% lower of the typical volumes we would see at this point in the day. this chart here is looking at the projection, that is the dollar line in blue versus what we see on the three week basis, the dark line above it. that gap tells us investors are in wait-and-see mode. of course there are quite a few events this week, key u.s. inflation gauge is due from a number of pmi data including from china later in the week, and industrial numbers from the mainland. fed speak is also in focus. we have the risk of a u.s. government shutdown. we have negotiations still going through with auto workers that

are on strike in the u.s. quite a lot for investors to consider as we get into a new trading week. let's change, because some of the optimism could come through from hong kong instead over the course of these days. futures are pointing toward slightly weaker start. we saw a bounce for the hang seng on friday and we pushed off that key $17,700 level. technical indicators tell us that perhaps these moves we are seeing for the hang seng could be sustained. you also have valuations in focus. stocks are just looking so cheap at this point. the question is are they cheap enough for traders and investors to come back in? shery: and we have been watching geopolitics around china. the european union's chief trade negotiator saying the bloc is seeking a new strategy towards beijing, calling the current relationship very imbalanced.

valdis dombrovskis wraps up his trip to beijing on tuesday. let's get more details from bloomberg's government reporter lucille liu in beijing. what was dombrovskis hoping to achieve during this visit, and how much progress did he make? lucille: he has been here for the high level economic and strategic dialogues. crucially, this could be a crucial step towards the meeting with ursula von der leyen this year. the stakes are really high coming after the probe on chinese subsidies for the av industry. he is expected to use this as an opportunity to calm down some of the fallout from that investigation that bloomberg reported earlier. everything from trade curbs coming from china to a full out tariff war if things get out of hand. so there is a lot of worry in

the business community and he is expected to address that and tell the chinese side that the e.u. investigation on their subsidies, that they will seek beijing's corporation. haidi: let's take a listen to what dombrovskis had to say when it comes to his idea of a win-win relationship, rather than what he perceived as being one-sided. >> broadening access to china's markets for foreign companies and maintaining a stable business environment is necessary to ensure fair and mutually beneficial trade relationships. it is also necessary to maintain our mutual trust as partners working together to address a number of global challenges. haidi: so, what is the reception like in terms of setting up the next leg of e.u.-china relations? because there is this view that may be with the domestic challenges economically, that they might be more willingness

for beijing to work with international partners. + absolutely. we have written a lot about how everybody wants stable u.s., stemple china-e.u. relations because of the economic slowdown and are -- and a lot of other domestic problems at home. there is the political will to keep things stable if that's possible. however, we have the french finance minister saying this could be a new era of china-e.u. relations. they are really changing tact on how they are approaching china. we will see if things will start at the subsidy probes forte if things will go further. we have seen that beijing tends to retaliate. in china put up those culture sanctions using the entity list. so it is something we are

watching closely and this visit will give us an indication where things are going. haidi: china government reporter lucille liu there in beijing. i was speak -- sticking with china, the countries electric carmaker zeekr is taking momentum to push into the european market. chinese carmakers are finding themselves at the center of these global trade tensions. for, let's bring in bloomberg's asia transport reporter linda lew. tell us about the zeekr brand. how does it fit within this market? linda: the brand is owned by gheely, one of china's largest av makers, the parent company of volvo. a very long-storied swedish brand. the company has set up design centers in sweden and china to help bring these european design philosophies as well as technical expertise to geely's

brand and that includes zeekr. a lot of zeekr's design style is influenced by the swedish designers, engineers, so they are hoping to help set them apart from all these other chinese ev brand that are expanding into europe, including other luxury brands like nio as well as more budget brands like byd and mg. shery: we were just discussing earlier the e.u. entered subsidy investigation. how will zeekr navigate this? linda: the biggest goal they really have to try to avoid any sort of accusation of subsidy that have helped them to achieve scale is to set the price high enough for the european market that really prices any subsidies that they may have received.

for example, the zeekr x compact suv is selling for as much as 20,000 euros more in europe than what it's price is in china. so they are hoping that by setting the price high enough, it can offset these accusations that the european commission is accusing these chinese ev makers of flooding the market with cheap evs. they would say, actually our prices are very reasonable compared to what it could have been selling. haidi: a lot of challenges there when it comes to know just the european market, but across the globe and some of these international markets that it is ambitious about trying to attack. yes, chinese ev brands are really trying to expand into all corners of the globe now that china is slowing economy is

seeing weakening demand. not just in europe, but southeast asia, middle east, south america. these brands are facing challenges that are not as well-known as other established american and european and japanese brands. so they will have to really invest into building their brands as well as overcoming the perception that may be china -made is not as good inequality. but we have seen chinese automakers spend a lot of time and effort into improving the quality, design into their vehicles. especially given evs where a lot of their technology has leaked from their competitors. haidi: bloomberg's asia transport reporter linda lew. coming up, next we explore how tech-four terms may benefit from the ai boom over the next decade. stay. this is bloomberg.

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♪♪ haidi: take a look at how asian markets are trading at the moment. shery: we are seeing the nikkei outperforming, up a quarter of a percent after the weekly loss last week. the japanese yen holding around that 148 level against the u.s.

dollar, around the levels with -- lowest level since november after the boj made no changes to its monetary policy. this week we have data out of japan including unemployment, industrial production and retail sales figures for the month of august. the kospi is extending its weekly loss. materials and industrials leading losses. the korean won also posting a weekly loss. a bit of strength at that 1.32 level. the asx 200 is losing the most. we saw gains for the aussie in the past couple of sessions, helped by small gains in the price of iron ore. we are also following qb assets, losing 0.3% -- we also following kiwi assets at the moment, losing 0.3%. bloomberg intelligence is estimating that the generative

ai industry is poised to become a $1.3 trillion market by 2023, massively benefiting funds focused on the space. for more, let's bring in bloomberg intelligence analyst rebecca sin. what is happening in the tech fund space, and how is ai changing this? rebecca: tech has really been supported this year by ai. globally we have seen huge inflows into this and as you mentioned, the airspace can reach $1.3 trillion. for rakbank specifically reestimate tech friends may reach 300 billion by year end. but if we look at the tech made specifically, they have had a huge impact on returns this year. the super seven have contributed to almost 20% of returns this year and almost 50% of funds hold these names. in the analysis we did, if we compare funds that held the

super seven versus those that didn't, on average, 43 percent outperformed their benchmark, versus only 20% that didn't. if we look at the tech space, we see a lot of interest into this, and it is all supported by ai. year-to-date performance of these funds has roughly matched the s&p 500. if we look at the tax base as a whole, there are the ai etfs which we expect will reach $35 billion by 2030. if we look at the ai space, there is a huge performance difference. ai etfs have performed 20% year-to-date, versus tech firms have performed roughly 40% in terms of difference. there is a gap between where tech firms have performed versus aa. one of the other things that is different is that when we compare the two, ai funds versus tech funds, with a tech fund, you can get as cheap as 10 basis points. for instance, the vanguard global tech fund charges 10

basis points. ai tech funds charge more, on average, 55 basis points. if we look at the tech space as a whole, even though they have done well versus the super seven, there is a lot of inflows into this. we are seeing a gap in where performance is, and where the fees are being charged, between ai and tech. haidi: when it comes to china, have we seen an impact when it comes to the recent regulatory changes? rebecca: china specifically, the csrc has made a lot of implementations and changes. one of the changes is they have reduced the fund approval time. previously the fund approval would take up to six months. but now, is not equity-based fund can be approved as quickly -- a non-equity-based fund can be approved as quickly as three months. etfs were already tax-exempt in mainland china. so as a result of the csrc's

implementation for funds, we can expect more fund margins. historically china has seen 11 fund launches on average. we expect that to go up to 18, because the approval time is quicker. they have also made a big push into equity funds. so this year, in terms of new launches most of them have been equity-based. we expect that to continue. china may surpass equities for a new launches this year. if we look at globally -- if you look at asia pacific specifically in terms of new launches, china is ranked second. south korea is currently number one, mainly because it is very cheap to launch eds in south korea, it only costs $4500 on average. but we expect that with all of these new changes and shortening of approval time, that mainland china may lead in launches in the asia-pacific.

, haidi: that was bloomberg intelligence etf analyst rebecca sin there. we should note that the generative ai industry is poised to become a $1.3 trillion market by the year 2032. although of course we have seen the markets really seize upon the future potential. coming up, next millions of chinese travelers are expected to take flight as golden week holiday as well as the mid-autumn festival, combined this year, are about to arrive. take a look at whether this will give a sustained boost to the economic recovery. this is bloomberg. ♪ welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr. how's your father doing? to help reach your goals with confidence. my sister has told me so much about you.

that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. all-day energy starts with clean hydration. lmnt. more electrolytes. zero sugar. you feel the difference when you get it right. stay salty.

haidi: the greek prime minister says that his country could benefit from a warming climate because it may extend the tourist season beyond the traditional summer months. kyriakos mitsotakis told us grease needs to focus on short-term adaptation to global heating while still trying to reduce its causes long-term. >> climate change is an opportunity for us to expand our tourism season. yes, it may be hard in july and august, but we always have people interested to come to greece during those two months. . we have more people interested to come in march or

april, more people interested in visiting our city,'s year-round and expanding our tourism season has always been an important part. there will be more people who, given the choice, will choose not to take their holidays in july or august, not just because it may be too hot, but because it is too crowded, so for us, it's an opportunity to expand our tourism season, and also to open a new destinations on the mainland for people to explore. it still good to be some time and told the scandinavian beaches or the danish or swedish beaches are going to compete with the greek beaches, i don't see that happening anytime soon. [laughter] i will pass that message on > anytime i see -- i will pass that message on time i see them. what did you learn from the wildfires this year? >> we have always had wildfires in the mediterranean, but we had particularly intense wildfires this year and we also have floods. it's very clear that we need to focus more on short-term

adaptation. this is a case i am also making to my european colleagues. we spend trillions of euros on long-term irrigation, rightly so because we want to be leaders in the climate transition, but we also need to support people when they lose their livelihoods or houses as a result of climate disasters today. so we need to be much more effective in dealing with these disasters. we have made good progress. for example in greece we had a 112 emergency number which we used successfully to evacuate people and make sure we saved lots of lives. this is something that was not present in maui, for example. when i look at the disaster in maui, it was so painful because we have gone through similar disasters five years ago, but we learn from them. we are using technology in a smarter way today to make sure that at least we can save people's lives. >> the climate crisis will cost more money in terms of either dealing with events, or energy. where will you get reliable,

affordable energy from, and where do you get it? rebecca: first of all, from the wind and the sun. >> affordable? >> it is affordable. >> reliable? >> it is reliable. it will not do the trick by itself, but greece is one of the top 10 producers of renewable energy from the wind and the sun, 12 gigawatts of installed wind and sun energy in greece and much more to come. in the short and medium-term, we will also need to rely on natural gas as a transition fuel. there is a case to be made that greece is played an important role in the european energy system, because were also an entry point for natural gas to serve not just eastern europe, but also pumping gas to ukraine. greece is always a pillar of geopolitical and energy stability in the eastern mediterranean and it has been enhanced after russia's invasion into ukraine. haidi: the greek prime minister kyriakos mitsotakis, speaking

with our colleagues guy johnson and alix steel. chinext travel market is hoping for a big boost as the golden week holiday arrives at the end of the week. our asia transport reporter danny lee joins us now. the lunar calendar has aligned to make one of the longest holidays this year. what are we expecting? danny: that's right, eight days holiday in china. it is one of the busiest periods of trouble in and around china and we have two back-to-back holidays and that gives rise to more opportunity for international travel for what is the world's biggest outbound travel market. china will be closed. onshore markets will also be closed. the amount of travel and the way people travel will be closely-watched give it three years of covid. international travel for chinese travelers has been a lot slower to recover, much lower than domestic travel, so it'll be interesting to see how this performs. with their people expert to fly,

21 million people traveling by flight in a little over a week, that's the size of the population of australia. so, looking at that in size, it will be interesting to see how chinese airlines in particular will perform. shery: really puts it into perspective. we expecting to see more group tours given restrictions are mostly lifted? what sorts of trends should we watch out for? danny: on chinese group tours, there has been a bit of a fair -ineffective ready. particularly around the announcement of group tours restarting, china's group tours restarting. it has seen record amounts of air traffic moving around the country and outside the country so we have seen some benefit there especially. as for some of the trends, a lot of the chinese tourists are favoring chip asian destinations

particularly tokyo, japan, singapore, they are considered the most popular areas for chinese people to travel to at the moment. and obviously people want to stay longer as well. these are some of the key trends for which it is shaping up to be quite a busy golden week holiday. shery: bloomberg definitely there with what to expect from the golden week holidays in china, and these are some of the stock we will be watching at the market open. hong kong and the mainland. we mentioned golden week, we will be watching retail and tours related shares during this 8-day holiday. ctg duty-free, and trip.com are some of the names. also, keep an eye on developers, we have been talking about stress in the property sector. evergrande is scrapping meetings with creditors. we have freshened out over their proposed restructuring. take a look at how asian shares are trading, we are seeing a bit of a mixed picture with the

nikkei gaining 0.3%. this, after a weekly loss, as we have the japanese yen trading around the 148 per dollar level after the boj made no changes to its monetary policy. we are seeing downside for the kospi, though, 0.1 percent. we already had a weekly loss in south korea. materials and industrials are leading losses. also watching kiwi stocks down a quarter of a percent. the asx 200 is under performing major markets. that is it from "daybreak: asia." our markets coverage continues as we look ahead to the start of trading hong kong, shanghai and shenzhen. standby for "bloomberg markets: china open." this is bloomberg. ♪

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