haidi: have we heard from president biden? this is key to him at this point. >> he spoke after the strike started friday and encouraged the companies to reward workers for the record profits they have enjoyed. he squarely took the side of the uaw in the dispute and has called himself the most prolabor president ever. michigan, where many of the workers are, it a very important swing state. he won it in 2020 and currently leads by just one point over trump. shery: we see a costly shift towards electric vehicles. depending on the outcome, what comes next? >> between gm, ford, still lantus, they are spending more than $100 billion to build electric vehicles so they are saying they cannot afford big contracts and the ev transition. for the union the next option is to ratchet up the strike. they have only struck three plants so far, when in each company. they could still strike that big plants. haidi: keith norton in detroit with the latest. we will continue to monitor developments. let's look at how we are setting up here in asia

haidi: jodi schneider with the latest. still ahead, arms ipo delivering a boost for equity markets and softbank. infrastructure capital advisors says the fed will not hike again because inflation is now declining rapidly. we get that next. this is bloomberg. ♪ ve 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. >> growth could be slower if the policies are more forceful than expected or if the world economy weakens, for insists going to further slowdown in china. conversely, growth can be higher than projected if there is a strong labor market and rising incomes mean that people and businesses become more confident and spend more. haidi: ecb president christine lagarde on the potential for global growth after the central bank delivered its 10th rate hike our next guest says the hawkish ecb will likely cause a global recession this year. join us now is jay hatfield from infrastructure capital

haidi: how does u.s.y -- 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

haidi: the former u.s.reasury secretary larry summers says the strikes may continue for some time and the impact on the economy is still unknown. larry: it is always easier to compromise on numbers than it is like how big is the wage increase going to be that it is on principles like what will happen to the battery factories. it is easier to compromise on numbers like the size of pension packages than it is on questions like changing the separate wage structure for recently-hired workers, so they still have questions of principle as well as questions of numbers separating them, so this may go on for a while, and i think there are two big questions. one is what will the spillover be to the larger economy and the midwestern economy, including through price increases if cars get scarce, what that means for automobile and used car prices. i also think there are some real questions here about when you have these highly publicized labor conflicts and you see what is likely to be a big number for the wage increase

haidi: david finnerty there.gn debt issuances this evening pressure on the central bank to keep funding conditions loose. authorities are pivoting toward stronger fiscal stimulus to spur the recovery. joining us now is our correspondent. why are we seeing this quickening when it comes to issuance? >> china's finance ministry is ramping up on issues, because the main issue is they want to accelerate spending to prop up the economy. based on the data we found on our terminal, china issued a total of 1.2 trillion yuan was sovereign debt, 60 percent higher than the average for the last three years in the highest monthly issue for this year. as i said, the main purpose is to ramped up spending, to help finance projects and other spending to help at this year's gdp target, which is 5%, and china is under pressure because the property market is not doing well, and business confidence remains low following three years of covid lockdown. only the central government is ramping up spending. local governments are pumping up

haidi: su keenan with the latest.et's take a look at how we are setting up when it comes to asian markets and the return of volatility, fasten our seatbelts. >> return of volatility and a risk off session. moves in focus kicking off dollar strength, the present theme in the market is higher for days. you're seeing that play out in the early hours because the japanese yen are above the 149 level. given what we've heard from the boj reiterating the need for stimulus measures, 150 could be the line to watch but what else we are seeing, subdued trading in the bond space when you compare to what we had yesterday, given the big moves of the long end of 10 year yield steady but the equity space is recalibrating and continuing to digest the narrative of the fed higher for longer, plus consumer confidence numbers coming through, the deterioration. the macroeconomic backdrop is deteriorating, weakness looking ahead. let's take a look at the moves in asia and a global perspective because when you see on the index, we are at the

haidi: you're watching daybreak asia coming to you live. annabelle: we are counting down to asia's major market opens. vonnie: asian stocks set to open lower amid the fallout from china's move to widen bands on iphone used. apples today slide wiping out $190 billion in value. chevron's talks with its australian lng workers continuing until friday as unions warn a deal to avert strikes is unlikely. schools and transports suspended in hong kong. trading may face disruption too, as the city is swamped by some of its heaviest rainfall in 140 years. haidi: we have some breaking news when it comes to hong kong and that weather situation. they were battered by a super typhoon last week and dealing with more extreme weather today. we are hearing from the hong kong exchange, delaying be friday morning session due to the highest rainstorm alert, canceling the preopening trade due to that rainstorm other as well. we're seeing the prospect of another day of extreme disruptions caused by the intense rain, now from a different storm. schools will be susp

haidi: great to chat with you.er ana holdings has tensions over the release of treated wastewater from the fukushima plant has not affected travel to china. we spoke exclusively to the ceo. >> [speaking another language] >> we are closely watching current demand what i do not think the water from fukushima is having a big impact on demand from china. if you look at the movement of chinese customers over the past six months, for example from january to july, it is a tenfold increase from 30,000 to over 300,000. i think this growth will continue steadily in the future. in line with this growth in demand, we will also increase the number of flights. before the pandemic, there were 175 round-trip flights per week. currently, not even half of that number is actually in operation. we would like to increase the number of flights as demand grows and recovers. >> how do you see the demand over the next year playing out. will you see it revenge trouble continue longer? given it was late to reopen from the covid pandemic. is

: haidi:.at mean we do not have an end in sight for how long this could last? >> one analyst thought this could last through the end of october. it is hard to know at this juncture. the companies are making some movement. the union not as much. there seems to be a fair amount of disagreement. uaw yesterday said it was making progress with ford. today it said it negotiated with gm. shery: how do we tap -- how do we calculate the cost for both sides? >> one analysis is if there was a full-blown strike of all the workers we would see 9.5 billion dollars in the first 10 days but we do not have that. 13,000 workers are striking at three plants, one for each company but it makes up 3% of the u.s. gdp so any long stoppage will impact the economy. haidi: what are we hearing from president biden? >> he is coming out strongly in favor of the union. he says the company should share record profits with them and that is owed the union because they did a lot of concessions for gm and chrysler when they went

haidi: that was the latest on birkenstock.undraising stories we are watching, openai is reportedly talking to investors about potential share self that would value the startup at up to $90 billion. the valuation would be almost three times with the company was worth earlier this year. it would allow employees to sell their existing shares instead of the company issuing new ones to raise fresh capital. alibaba logistics farm has filed for its initial public offering in hong kong. it could raise one billion u.s. dollars. three banks are joint sponsors of the offering. a prospectus shows that alibaba wants to retain half of the shares and keep it as a subsidiary unit. still ahead, u.s. senators announced a bipartisan plan to keep the government open through november but it faces gridlock in the republican-controlled house. we get an update from washington next. this is bloomberg. ♪ 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. w

haidi: you're watching daybreak australia.planning to hire 250,000 workers ahead of holiday shopping season. a jump from last year's quota, it will span a variety of roles. amazon will also boost the average pay for logistics workers amid a labor shortage. it comes as analysts expect overall hiring to stay muted. for managers of the bankrupt crypto exchange ftx suing the parents of sam bankman-fried. the company accuses them of receiving millions of dollars at the expense of its victims. ftx fell apart when $8 billion of debt, and what cost -- prosecutors allege was one of the largest financial frauds in u.s. history. consumers accidentally carted limbs of microsoft's future giving to games -- future videogame plans. they details were part of the ftc's antitrust suit against the takeover of activision blizzard including unannounced games and a refreshed console. information has since been removed. next on daybreak australia, hearing more from our exclusive interview with the indonesian president. ♪ hi, i'm jason. i've lost 228

haidi: su keenan with the latest.ow to get your day going in today's edition of daybreak. bloomberg subscribers can get that at dayb on your terminals. it's also available on the mobile in the bloomberg anywhere app. customize your settings for the news on the industries and assets you care about. 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. haidi: we are watching currency given the outsized impact from the dollar and potential for more currency volatility, once we get that announcement from the f

haidi: that u.s.ort may be reinforcing that the fed could deposit rate hikes up at numbers also suggest the rate tightening cycle is not over yet. joining us next is the founder of sgmc. it was the worst kind of data print and that there was something for everybody. it lends no more certainty to expectations. >> we are not innate period where we can have certainty. the message is clear from the data we have seen. sure, we have come down from the inflation peaks we have seen a number of months, but it is not going to be easy to get back to the 2% inflation the fed once -- wants. is it a bit of a one-off this month because oil is at a peak and maybe inflation can come back down over the coming months? we think maybe it will come down a little bit, but it will not be a massive fall. it means the fed will not be in any rush to cut rates, potentially could hike them one more time this year. basically, it is a data which keeps equity investors on jitters, because it is not clear which way things will go, an

haidi: we will stay on geopolitics.ndia's g20 summit has wrapped up with an agreement on a joint communique that included a consensus on russia's war in ukraine. for more, let's bring in our coanchor haslinda amin, who has been covering the summit in new delhi. you surprised by their decision to stay away, despite the language that was walked back when it comes to the war in ukraine? this is being seen as a win for india. haslinda: i win for india, for modi, and a win for the u.s. and for the g20. remember that coming into this meeting, there was a high-risk we would not produce a communique. that failure would be a stark contrast to the success of the recently concluded brics meeting. so it is awaiting for just about everybody involved in the g20. for modi, it was a chance to step up and a chance for him to perhaps cement his position as leader of the global south, and xi jinping's absence allowed him to do just that. we talked about how that was a communique? it was not just the success of a communique, it was produce

haidi: great to chat with you.your time should greater china ceo at acco >> speaking of fx, -- taking a look at some of the moves we have seen in dollar china. we annabelle: annabelle: were just talking about the moves and a the weakness but what was interesting in the session yesterday we were all about the yen. there a lot going on with the yuan and combine the currency, helping to drive or put pressure on the greenback here. what drove that? there were a couple of different factors. one is chinese officials coming in to say they are concerned about when we moves in the market. they will move to correct those as well. that was one of the factors that led to the jump we can see here. the biggest one since six months. what else boosted it along was economic data. we had the aggregate financing numbers coming in better than expected telling us there is a little stabilization going on in the china property market. another supportive factor for the currency. we have seen a lot of stronger-than-expected fixes coming th

haidi: thank you.r kim jong own is expected to travel to the russian city this week to meet with vladimir putin. putin earlier said he was looking to strengthen ties with pyongyang on all fronts. bloomberg's east asia government editor joins us now. and he so far that kim has left for moscow? >> no signs yet, when we learned he went to moscow -- his state media put out in advisory about a day before he was going saying he was going. can jong own likes to travel by a luxury armored train which is easy for spat -- satellites to see. we do not have any indications of a train moving or anything of that sort but the border from the russia north korea order to there is maybe about 150 kilometers so once he crosses over it should be a relatively short time for him to be there. >> what does putin want from this meeting? collects i think that pollutant is looking for help with his war in ukraine and he's got a friend in kim jong-un. that friend also possesses some of the largest stocks of munitions in the world

haidi: the u.s.d to establish diplomatic relations with the pacific nations of niue and the cook islands. this is a fascinating area to look up. >> there will be a formal announcement this week. there is a two day summit coming up between the u.s. and the leaders of 16 pacific island leaders at the moment. niue and the cook islands will receive diplomatic ties to the u.s. the cook islands, a population of just 18,000, but they are strategically important, and china has been making inroads in the pacific and courting the region for years, offering cheap loans and setting up security packs as well. the white house has this meeting and diplomatic relation is all about strengthening ties, climate change, promoting economic growth, the subtext is china. shery: not all leaders will be at the president's summit. who is missing and why? haidi: the prime minister -- >> the prime minister of the solomon islands will not be there, and that is a bit of a snob because he was at the u.n. general assembly. the whit

haidi:ery good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. the top stories this hour. u.s. stocks snapped before-day losing streak as traders speculate on higher for longer rates. the bond selloff extends to another week with the 10-year yield hitting a 16 year high. haidi: china's evergrande crisis deepens of default pileup and some executives are poorly detained by chinese authorities. shery: also ahead, australian warns of soaring costs from climate change ahead of time usually disastrous wildfire season. haidi: plus, an exclusive with lg electronics ceo, as he looks to evs to help drive its growth. shery: u.s. futures coming online in the asian session pretty muted after the s&p 500 saw its first gain in five sessions. fluctuating between gains and losses throughout the session. we saw energy and material stocks leadi

haidi: tessa latest on chevron.next, republican launch an impeachment investigation into president biden on allegations of corruption. we get the latest from washington, next. this is bloomberg. ♪ >> i am directing our house committee to open a formal impeachment inquiry into president joe biden. this logical next step will give our committees the full power to gather all the facts and to answers for the american public. it's exactly what we want to know. shery: u.s. house speaker kevin mccarthy announcing and impeachment investigation into president biden and alleging corruption. for more, let's bring in our political news director jodi schneider in washington. what will this inquiry focus on? >> kevin mccarthy -- kevin mccarthy, on the first day the house was back after 47 days of a summer recess, came back to say that they will be looking into joe biden and his dealings with his son hunter biden, particularly his overseas business dealings and whether president biden and then vice president biden was involved at

haidi: i'm haidi stroud-watts in sydney. annabelle: i'm annabelle droulers in hong kong. we are counting down to the asian major market open. shery: i'm shery ahn. big tech leads u.s. stock declines while bond yields rise on the feds's hawkish hold. policymakers seeing another hike this year. and higher rates through 2025. >> it is a primary objective and i did not say otherwise. it is what we have been trying to achieve for all this time. >> a new offer to striking autoworkers even as gm cause the. >> alan joyce had to lose some departure payout fixing an acute loss of trust among customers. but how u.s. futures are coming online in the asian session after u.s. stocks and bonds fill in the new york session. we saw a lot of fluctuation. we had the fed rate decision today as expected. a hold. we are now expecting another rate hike this year not to mention higher rates throughout 2025. we saw treasury yields rising across the board. the two year yield at the highest level since 2006. the 10 year yield at the highest level since 2007. they are pressuring tech with the nasdaq

haidi: how long will it take for the boost to come through?een elon musk, jamie dimon, bill gates in china and more and more announcements of or stimulus to come. scott: let's wait until they put china's top 10 private sector company executives, ceos, and chairman on tv, or xi jinping visiting them. he needs another southern tour like event like joan shopping took in january and february of 1992. it is not whether multinational company executives or bank executives are vetted and get on tv. it is what the domestic and private sector creates. 80% of new jobs, 60% of investment. they are the ones he has to show love to. shery: that's to do with confidence and sentiment on the ground. what about fundamental issues? especially with potential defaults coming from the likes of country garden following evergrande and all of the products linked to the property sector as well? what that actually means for the broader economy. scott: i think you are exactly right. these are real, serious challenges. they are probably the main reason why we are seeing bi

haidi: stephen engle there.cs, we are getting an update when it comes to the prisoner swap arrangement that was made for those five detained americans and iran. they were freed in a prisoner swap deal, having landed safely in qatar. we are now hearing perhaps the most controversial element of this deal, which was the agreement by the u.s. to allow access to the $6 billion in oil revenue that had been frozen in bank accounts due to sanctions have been released. we are hearing from the south korean finance ministry that a statement that the funds have been transferred to qatar. this forms part of the prisoner swap deal with the five americans having landed safely in qatar. it is towards what some people hope will be a diplomatic effort that will seat easing of tensions and potentially open space for progress on the nuclear program of iran. we're now hearing that $6 billion in oil revenue funds frozen in south korean banks, south korea's finance ministry saying they have been transferred. u.s. saying the money can

haidi: what about japan?as a result of the strength we see in the greenback. what are your expectations when it comes to what the boj does and the implications for this strong japanese equities rally we are seeing? >> so, from our perspective, investors and the market consensus have been getting the japan story wrong, even though getting the yen trajectory wide has also been difficult. the underlying momentum in the japanese economy is quite strong in our view and we do think the economy will continue to generate pretty decent growth and inflation going forward. and, of course, they have 3% plus inflation currently. from the bank of japan's perspective, putting aside political sensitivity regarding the currency value, material weakness in the currency from no one is going to be a tricky prospect to deal with. in our view, our base case is the bank of japan will remove control in april of next year and potentially get out of negative interest rate policy entirely. before the end of next year. but this weakness

haidi: you are watching daybreak asia. 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 t

haidi: isabelle lee there. we are also watching geopolitics. final preparations are underway as india gets ready to host this weekend's g20 summit. president biden is already on his way but xi jinping and vladimir putin will not attend. let's get more from haslinda amin who joins us live from new delhi. what is on the agenda? they're pretty big implications from the absence of these key figures, primarily xi jinping. haslinda: that's right. good morning by the way from new delhi. 3:30 here in the capital of india. this is an economic forum made complicated by geopolitics. huge issues on the agenda. we have climate change, surging debt, reforms of multilevel development banks like the world bank. the issue is coming to a consensus, and that is increasingly becoming impossible. we talk about china. china at odds with the u.s. across a multiple of issues, at odds with japan over nuclear waste water, at odds with india over that disputed border territory. it is not just about china, it is also about emerging markets, taking issue with rich nations

haidi: selena, always great to chat with you.exas, declaring a great emergency for power. this is the first power emergencies since the deadly winter storm there two years ago . the soaring temperatures putting pressure on the second largest u.s. state. this comes in response to shrinking supplies of untapped power. the electrical liability council of texas will move to reserves and push texans to curb uses -- usage. they are being asked to save electricity after fossil fuel plants went off-line. the heat is starting to ebb a little. electricity use is a little lower but outages jumped 72% in one afternoon. this is just in texas but it highlights the test of power grids across the country. we have renewables still relatively low and demand getting higher with this hot weather. vonnie: a concern, especially with more extreme weather events on the way. florida is bracing for a major hurricane. let's look at stocks in focus, apple supplies with a slump for some of them. a wall street journal report said the chinese government is bor

haidi: really outstripping forecast.e've seen higher energy costs, but food for thought when it comes to the bok. we've got data out of australia. pmi numbers, the composite number, the final reading for august. in contraction territory. better than the previous reading. marginal improvement. the final reading for august, 47.8, better than previously but firmly was in contraction territory. this goes into rba decision day. all but one economist we've spoken to expect no major surprises for the last meeting. >> that's right and it points to the issue facing the rba because you've seen weakness coming through in the pmi numbers. households are pessimistic even though you see strength coming through in the labor market, the expectation is we will stay on hold for a third straight meeting, the key rate at 4.1%, near an 11 year high for borrowing costs in the country but the question when he got a hold is what sort of messaging will come through? td securities has been mapping out different scenarios and saying there is a 60%

haidi: asian markets are set for muted trading. weighing the outlook for china's economy. let's bring in annabelle. i would have thought there would have been a sigh of relief when it comes to country garden. annabelle: the chart shows the flows in and out of china, the bar in green was inflows we started to see on monday. but it is the trend up outflows that has continued. investors are bearish on the outlook and not convinced by the piecemeal government stimulus measures coming through. underweight in china is the consensus from global fund managers. when you take a look at the issues in the debt market and the property sector, some are excited to see opportunities. one of the fund managers we have been speaking to his in singapore and they are confident about adding exposure to china. they say the measures that came through from beijing in terms of lowering down payments were more than they expected for the market. they say beijing will do what is necessary to stimulate the economy. so they are starting to add exposure, looking

haidi: what elements could confuse the outlook?een extreme weather for example, protectionist policies might comes to commodities. are those elements you're watching for that could complicate the inflation outlook? >> definitely in the medium-term, climate change, transition to a low carbon chair. in terms of the next 12 months it could be wages growth and services inflation that keeps the reserve bank on edge over inflation. the third quarter wages print will pick up higher than expected. that will tend down from the first of july. the risk is a resilient labor market could see outward pressure and wages growth that would push inflation higher. the other key risks we need to talk about our recovery in home prices that we've seen in australia. a mother that keeps the bank on edge and we see a more resilient consumer. that is not our best case but that is where the risks lie. david: what then is your base case? labor market and also the housing market? >> you expect the labor market to loosen from here. the latest we got for the une

haidi: why is the -- losing support?because you would think it would be a slamdunk. who doesn't support better outcomes for indigenous australians? like most countries around the world, colonization was not a particularly pleasant experience. the history is pretty ugly to say the least. essentially the has got an easier job. all it needs to do is cast doubt , fear, promote the known quantity of the status quo and it has been pointing to the lack of detail over how the body is actually going to function. the yes campaign has been struggling to hit a clear message. it has multiple spokespeople and those spokespeople haven't always been consistent. in australia, changing the constitution is really hard. there have been 44 referendums since 1941 and only eight have been successful. the last in 1999 you would have also thought to be a slamdunk in that was removing the british monarch. but we saw the no campaign successful there as well using the same tactics. casting doubt, saying the status quo is safe. we are seeing history

♪ ♪ haidi: welcomed today by garth roy i'm hiding stroud-watts in sydney.abelle: i'm annabelle droulers. shery: i'm shery ahn. the top stories this hour. treasuries excel off while equities churn as investors digest higher rates and rising oil prices with the dollar extending its climate. annabelle: the largest u.s. memory chipmaker warning of a steeper than expected loss this quarter. shery: how the new honda ce cash qantas ceo turns around mistrust after being grilled by australian lawmakers. how u.s. futures are coming online after stocks finished the session mixed. we saw the s&p 500 fluctuating between gains and losses to finish where it started. it erased some losses after president biden touted artificial intelligence. the nasdaq 100 outperforming finishing in the green. we had at micron smith's after hours adding to technology pessimism. look at the 10 year yield. the 460 level, the slump resuming in today's session. the 10 year yield is over one percentage point higher since mid-may. we are still watching for the fed's referred gauge of inflation t

haidi: you are watching "daybreak asia."own to the opens for sydney, soul, and tokyo, and taking a look at a host of economic indicators following the fed. new zealand gdp numbers, out earlier. a couple of interesting things to know. the first is we saw gdp rising .9%, more than twice what economists had been expecting. also interesting to know is this metric here. there was a revision for the first quarter numbers up to 0%. you can see earlier it had been at .1% and negative territory, so a contraction. that tells us new zealand has avoided a recession on a technical basis. that could offer consolation to the ruling labour party, we are three weeks out from an election in new zealand, and we do have the labour party really trailing in the polls thus far. that is one interesting thing to note. market reaction coming through -- we saw a knee-jerk move higher for the kiwi dollar since being given up. it does tell us that it is the fed story that's really starting to feedthrough. given we have seen a drop -- a stronger dollar c

haidi: treasuries have tumbled. billions of dollars of issuance, wanting to get in before the next fed decision. let's get more from mark cranfield. her weight passed the peak when it comes to yields now? is it about the timing when it comes to debt sales? >> typically, straight off of labor day, we get a rush of issuance around the world. asia also had a huge day in terms of new bond supply. it takes a few days to settle down. the markets have to chew through fresh supply. with yields at the levels they are, there will be plenty of people targeting specific areas. that will probably not be a major problem. what is more of a concern is oil prices because at these levels it is a problem for the inflation story. central banks around the world are probably relaxed and thought they did not need to do much in the way of tightening. if oil prices stay and $90 plus, they will have to rethink whether or not to tighten further. that is a much -- much bigger issue for the whole risk assets in our in general. with the fed meet

haidi: our politics reporter in tokyo, isabel reynolds.analysis , the senior lecturer at the university of the philippines joining us now from jakarta. richard great to have you with us. we just talked about president biden's abscess -- absence. of course disappointing. and we have the situation where it xi jinping will be absent from that as well, going into the g20 as well. what is the dynamic that is most interesting to you and the issues that top the agenda for you for asean? >> interestingly biden will be visiting vietnam which is an emerging strategy partner for the united states in the region. you have two former nemesis burying the hatchet and trying to build a partnership, especially over china. but also shared economic concerns so i think some people were slighted here in jakarta because they were expecting biden to also visit indonesia not only for meetings but for some high-level discussions with presidents, i think the overall understanding in the region is that the united states is in a catch-up mode. it is true president xi

haidi: i am wondering if there are contingency plans. scenario? what do you see potentially stacked on the state? >> well, it would be very impactful to say the least. we've got thousands of members in our fort wayne truck went -- plant, and thousands others in kokomo. those, facilities just to focus on the auto industry. i'm not one of those people who likes to lob cheap rhetoric from the cheap seats. i hope that no matter how hot the kitchen is, there's not too many cooks. the principles are in the room. they can strike a balance and we can continue to meet the market demands. that's the real pressure, meeting the market demand and the future of it, in part is led by ev investment. we're seeing, as you noted, a battery investment coming to the state of indiana. the whole ecosystem. we've got battery separated companies. we did a groundbreaking for a $1.5 billion company in tech that produces battery separators. we have built a whole ecosystem in indiana to make sure the supply chains are therefore our auto manufacturers. all five of th

haidi: thank you so much.f li qiang through with neil thomas of the policy institute center for china analysis. he told us residency -- president xi is increasingly concerned. >> it shows a deficiency in the vetting process from xi jinping's perspective ahead of the 20th party congress. the more he has been able to gain personal political power, the more he has been able to get his way in terms of personnel appointments without the kind of more stringent vetting or more contentious backroom negotiations that would have taken place in previous decades. there was more enter factional competition within different powerful groups within the communist party, but now it is just the xi jinping show, and i think that has led to a kind of slackening of those types of investigations because one of his big priorities has been to crack on corruption, and it is not a good look to have a few of your handpicked generals or foreign minister ministers being taken out so early after they were appointed just last october or in m

i'm haidi stroud-watts in sydney. >> we are counting down to asia's major market opens. >> i'm shery ahn in new york. the top stories this hour -- u.s. stairs again ahead of economic data that may shape the fed's rate decision. morgan stanley upgrades the stock. >> a semi conductor seal and a sign the iphone maker's own chips are taking longer than expected for apple. >> and arm orders set to close a day early as they consider raising the offer price. take a look at how futures are coming online. we are seeing a little bit of pressure after u.s. stocks rose in their session. this of course as we continue to watch the fed bank of new york survey, showing u.s. consumer expectations were mostly stable in august. the cpi report wednesday will provide the latest clues into prices here in the u.s.. minimal action for treasuries. the 10 year yield, finishing a touch below the 430 level, ending the day mixed. we had the three your notes auction drawing the highest yield since 2007 reflecting the recent bond market selloff we have seen. oil at the moment, not doing much, after it fell in the