haidi: welcome to daybreak us earlier. shery: good evening from bloomberg world headquarters in new york. the top story this hour -- china's official g-v falls into contraction as lockdowns continue to weigh on the economy. haidi: evergrande fails to deliver apron limit area structure plan, feeling anxiety. shery: house speaker nancy pelosi heads to asia, skipping mention of a possible stock in type -- possible stop in taiwan. the nasdaq 100 seeing its best month since april 2020. we had a big earnings week with big tech and a big earnings, amazon and apple adding almost 200 billion dollars after solid results. oil prices under a little pressure but we had gains in the friday session given we saw exxon mobil and chevron coming out with record quarters. the 10 year yield still around the april low but shorter data yields were higher given that we got price gains coming in a little higher than expected, including the pce number which is the one the fed targets. it's another big week -- we are talking about 75% of earnings re

haidi: great to have you with us. you can get around up of the stories you need to know in today's addition of daybreak. bloomberg subscribers can get it at dayb . get the news on the industries and assets that you care about. this is bloomberg. ♪ haidi: here is a quick check of the latest headlines. the latest in a growing list of casualties from crypto's rout. the collapse of a hedge fund as caused voyager to secure a credit line from crypto mogul alameda research. gamestop jumped after announcing a 4-4-one stock split. it is the latest jump on the practice after past splits from amazon, apple, and tesla. it helped drive retail investor interest and a stock has a lower-priced tag. one point $7 billion under pricing in the hong kong second listing on top of the range. the firm is listed, it sold 164 million shares. it is the largest share sales this year and end a month-long route -- drought. apple has introduced a security tool to prevent cyberattacks on high-profile users like activists, journalists, and govern

haidi:.aidi: wall street is also looking to reining expenses, goldman sachs planning to slow hiring and potentially bring back job cuts. shery: and china considers a grace period for mortgage payments as it races to restore confidence in the housing market. u.s. futures are unchanged at the moment. the s&p is slightly up, after a lost ground. we saw the s&p giveth gains of 1%. we had apple's plans to slow hiring impacting the markets. apple is a company that did pretty well during the pandemic. they have done well, weathering many different economic crisis, so having them react to the fears of recession is not doing well. the twos and tens are inverted. crude prices today about $100 a barrel, though we are seeing a downside today. goldman sachs did pretty well, a bit of a mixed picture for bank of america. take a look at the earnings picture. we have 33 earnings results so far. a little bit mixed. when it comes to the earnings beat overestimates, it has been around 60% which is low, compared

haidi: let's get more on china.way from unveiling a restructuring plan that speaks to the huge complexities of the world's most indebted developer. we can understand, $300 billion of liabilities. no wonder is taking this long. does the drawnout nature benefit evergrande more than bondholders? guest: evergrande is very complicated. when it comes to the offshore assets, not that complicated. it's pretty established. bondholders can only get a hold of overseas assets. to that extent, it's not that complicated. you are trying to chop off one arm and give global investors what they are due. shery: does that mean they should try to get whatever they can right now instead of holding off? reporter: yes. whatever the restructuring plan that comes up this weekend will be very bare-bones and we will not see much of it. last year, they sold stakes but there was no cash exchange. if offshore bondholders are not careful, they will be gone. haidi: country garden's placement we are getting details of, is this a desperate move? repo

haidi: edna curran there.out recession fears are not playing out when it comes to market sentiment this monday morning. we are seeing gains, when you look at major markets, australia outperforming, particularly when it comes to tech, real estate. every sector is in the green. we are seeing gains when it comes to share trading in tokyo as well as festivities, to gain -- utilities, when it comes to the neck a 225. david: you aggregate everything together, 35% upside on msci. europe is coming online and ftse 500, 52 points, euro stocks up, in line with the tailwind we are feeling across equity markets. it bodes well as we make our way into the open. there is plenty more ahead on "bloomberg daybreak: asia." stay with us. this is bloomberg. ♪ david: here is a question, what would you do if you were 19 again? that is for bitcoin to answer, 19, struggling with my ad leaves today -- ad libs today. haidi: would you buy bitcoin if you were 19 again? david: i would not. haidi: [laughter] a contributor will talk about the

haidi: sticking with japan. japan is working through startups to make products more sustainable. we spoke to the vp of research. >> with the green science were -- approach, it is around transforming our entire portfolio into a more sustainable set of products. there are two big approaches we take. the first is to transform existing raw materials. the second is harnessing the power of nature to push these performances to a higher level. we have many examples. what we have been doing in the last few years is working with an approach which is trying to push the boundaries and generating new products and advantages that we can get for consumers. >> you are building strategic partnerships with universities, how is that working? >> it has been great. we just did a pitch event. this was meant to bring in founders of the ecosystem. we believe in japan. world leading material science, biotechnology, everything that goes on. we believe there is an opportunity for startups to work with us. if you look at the external world

haidi: yeah.rned that china could allow homeowners a grace period on mortgage payments for stalled property checks without charging penalties. let's discuss with chief asia correspondent, enda curran. what is the significance of this grace period? could it inject short-term confidence or backfire? enda: it is not unusual in china for homeowners to buy up the plans and get mortgage payments going straight away before the property is finished. as we know with property developers under so much stress at the moment increasingly, a couple hundred of these developments have stalled. what we are now seeing is a situation where the rules -- where they are refusing to pay the mortgages down. what is happening now is the financial regulators are discussing this idea of putting a pause on those mortgage payments, of granting that forbearance period to those mortgage holders until the developer gets finances sorted out. this is not yet confirmed. it is under consideration by the regulators. but it speaks to t

haidi: su keenan.et's get for a look of how we are previewing markets, a lot of risk aversion right now. >> picking up on the expectation that china may not be the answer to oil markets and they could not see or keep up that level of demand, and that is being reflected in what we are seeing, the micro frequency indicator from our markets life team, passenger volumes and shanghai, the csi 300 really tracking those moves you see. does not seem what we are seeing in fundamentals. it's a further headwind for the metal space, we have seen declines across iron ore, steel, copper. all of this down to the nature of infrastructure spending, china is focused on areas of water conservation, that differs from what we saw in the 2008 financial crisis the focus more on areas like building expressways, certainly as you said, allowed for investors to change some flashpoints. that is being reflecting in bonds, that is spiking, that move index has been rising. we see the vix, this measure of the explanations, but the bo

i'm howdy that's haidi stroud-watts in sydney. good evening from bloomberg world headquarters in new york. i'm shery ahn. investors are bracing for big great decisions in japan, indonesia, and europe. asian central banks are resisting the tightening trend. haidi: vladimir putin is signaling europe will start getting gas again but flow could be curbed. tesla says it has cashed in. u.s. futures under pressure after the s&p 500 managed to gain ground for a second session. but it was a volatile day with tech taking a hit one point after google says it would pause hiring for two weeks. we are watching tesla paring back from earlier gains after the earnings. the 10 year yield is above 3%. oil is falling in the asian session. under pressure in the asian session but in new york we had to pare back some declines given the risk on sentiment around the equity space. look at this chart. we talk a lot about the china property sector and the crisis there. i'm fascinating about what is happening with the u.s. real estate market. existing home sa

haidi?: let's get you a check of the latest business flash headlines are credit suisse is set to cut more than two dozen roles at the investment bank in asia. the lender is grappling with losses and a weak outlook for the economy. reductions fall across businesses including dealmaking and trading. more cuts are expected to follow in the fourth quarter. bloomberg has learned that a group is the front runner in the stake in the wireless unit. kkr's proposal is more attractive. they are expected to make a decision this week and they have been valued at $20 billion in any deal. coin bank crypto lender vauld is exploring restructuring. it is suspending traded three weeks after saying it was processing withdraws as usual and will continue to do so. rivals said they will finance and they are resorting to last ditch measures to survive the market rout. david: hopefully the route, most of it hopefully is behind us. who knows really what the future brings, but certainly this week or so, gains on monda

haidi: su keenan the latest.illion revaluation is dealing a blow to softbank. we get the latest on that, next. this is bloomberg. ♪ shery: take a look at softbank shares, rebounding from yesterday, we are talking about highs we have not seen in a week but still not a lot of strength when it comes to the broader space as we continue to see japanese stocks gaining ground. we are paying closer attention. the company that invests in the tech companies, greenfield bank, we have a great column right now talking about how the reputation might be damaged. we are seeing fintech raising $650 million, mostly from existing investors. this would just be a fraction. haidi: it seems like softbank always manages to hold the worst play out over the last few years. unless you are softbank, you look at two years ago, we had the fund manager slashing we were valuation from $47 billion in 2019 to $2.9 billion. the dollar amount is much smaller. as you say, the reputational risk is incremental, it perhaps could be valued at a lot more

haidi: tech earnings also in focus.e will be watching for guidance out of netflix as well as commentary on its add plans. reports amid the fallout of elon musk's abandoned takeover bid. twitter says it will not host an earnings call due to the legal matters surrounding the deal. that's your week ahead. shery: the imf says it will cut its economic outlook in its next update. the finance chiefs grapple with a list of shrinking options. let's bring in a senior economist at moody's analytics. always good to have you with us. we have seen financial conditioning -- conditions worsening. we see central banks moving. what is your assessment of where the global economy is right now? it does make sense to be downgrading expectations at this point. >> i think it makes perfect sense to be downgrading expectations at this point. due to the headwinds facing the economy -- elevated inflation, central banks moving very aggressively to try and tame inflation. we are looking particularly at asia and it has slowed -- china has slowed quit

haidi: bloomberg's su keenan.s told investors that it is returning therefore billion dollars after failing to consummate a merger deal. by the unexpected recovery of capital markets during the pandemic. he says that made conventional ipo's a stronger competitor. cap shares fell after it fired its ceo over a series of operational challenges. the chairman will take over immediately as interim ceo. cap -- morgan stanley has picked two leaders. gross and simon smith have been promoted as co-heads of global investment banking. the shuffle comes as the units fortunes have fluctuated. haidi: coming up next, sri lanka's parliament is set to elect a new president next week. the latest on the terms of the opposition party to cobble together a unity government. this is bloomberg. ♪ haidi: we do have some breaking data crossing bloomberg when it comes to australia. the consumer confidence index coming in slightly higher than expected. 86.4. that is better than the 83.8 which was what was expected. we continue to watch expecta

haidi: we see different crosscurrents.omm, it really doesn't look great when it comes to the forecast. reporter: it's interesting. those samsung numbers tell us a lot. you have the samsung handset view of the world. qualcomm is the biggest supplier of chips, and they basically gave an outlook that was tested, probably a bit kind. but they are talking about is revising downward views for the rest of the year on the lower end of the smartphone market. talking about android handsets. that's interesting because it gives us a lens into the consumer, you think these corporate earnings are a leading or lagging indicator, but that is what we heard. that will give us the fuller picture of what that demand is. china is such a big player as well. on balance, things are not looking great. haidi: ed ludlow talking through some of those lines. we are seeing the impact of a strong u.s. dollar, 1.3 trillion won. we had numbers from sk hynix, the weakness in the won playing out. 50 men staying solid, dram supply in line with demand, so we

haidi: haidi: let's get more when it comes to the effects of dollar strength said to continue.ning us now is todd elmer of fx -- intouch capital markets. significant weakness in the u.s. dollar complicates inflation. how much momentum do you see driving the greenback? todd: i think there is a lot of momentum left for the dollar. look at the macro factors. a lot of those remain. we are seeing a global slowdown. we are seeing other economies that are more highly leveraged. development in europe with the war in ukraine. of course, the fed is continuing to be among the vanguard leading to move towards higher rates. i think all those factors combined to create quite a strong environment for the dollar and critically we are not getting indication yet that any market positions are stretched. i think if anything, the move to buy the dollar has lagged behind what we might anticipate. there is a significant ammunition for buying, particularly against the euro and higher leverage to the global slowdown. haidi: in terms of dollar yen, the policy to vergence is clear -- the policy divergenc

haidi: great to have ufs.e appreciate your time and giving us the view as president of the national committee on u.s.-china relations. you could get around above the story in today's edition of daybreak. go to dayb and you could customize those settings so you just get the indices and assets that you care about. this is bloomberg. ♪ haidi: a quick check of the latest business headlines. falls sorts of analysts sales with the cutting forecast for the year. second quarter revenue fell 22% to $15.23 billion and way below the $18 billion estimate. the world's biggest maker of computer processors was weighed down by a drop in demand for datacenter chips and when it comes to pc shipments. shares tumbled as much is 12% in the after our session. suing the chinese developer and its units in the hong kong. the singapore-based bank said that its entity breached terms by reallocating loans without the banks consent. the g factory in china is alleging that government officials are increasingly meddling in business. th

haidi: how strong is the consumer?mand weaknesses, apple cutting prices by $90, but still it is a symbolic shift. does the property prices have implications for household wealth and resilience of the consumer? guest: absolutely. the story is not good. people are not confident at the moment. people have lost money in companies or projects. the stock market has not done so well. the question is, will it be stronger? we see the property market starts to slowly recover. it might be that the margins are better in about a years time. that's when the valuations get a little bit higher. shery: are we going to see recovery in the memory sector? guest: investors are to underway. we are cautious on tech in general. further earnings cuts might have to go through there. if you are significantly underweight, you have to be careful. it could be that we are close to a bottom. i would not be surprised if we see the sector starting to offer good value. it could recover, that is something we have been hoping for in the early part of next

haidi: that is really key. supposed to be the finale, the eighth hearing, but we could get more. we are getting that started in a few minutes or so. but looking in the hearing, the first person view from inside the west wing of the white house in terms of what the president was doing in terms of the attack. the efforts to act sooner or more decisively. we will hear from the former national deputy security advisor in the trump administration who resigned after the assault. trump deputy second sect -- secretary will be hearing from. there will be video testimony and key when it comes to some of those players. the former white house chief counsel who called trump's actions a dereliction of duty and potentially also some insights again. that is all coming up next in the market open. this is bloomberg. ♪ -hi, i'm smokey bear and i made an assistant to help you out. because only you can prevent wildfires. -hey assistant smokey bear, call me papa bear because i'm "grrr-illing" up dinner. haha, do you get it? -yes. goo

haidi: a stellar u.s.ng with inflation did expecting to strengthen the resolve for another 75 basis point hike later this month. our chief asian economics correspondent edna curran joins us now. what was the key takeaway for you after the jobs data? does it alleviate slowdown concerns? >> i think it does, pretty strong u.s. jobs number. a lot of people look at u.s. strategy. a job number that came out friday night suggests a strong labor market, robust wage gains, positions that cannot be filled, so i demand for labor and that will engage unemployment is at a record low. it speaks to the idea of a labor market with standing fed rate hikes that will lean on pressure for further wage gains going forward. the fed will have more to do. looking at the u.s. in terms of when will the fed rate hikes impact consumers, wage gains and everything else. it speaks to the fact that the fed is more work to do -- has more work to do. kathleen: wage gains slowed but there is still 5% year-over-year, double what they were be

haidi: what is the balance of risk for the rba?he fragility of the australian consumer and the property market. how much space will they have if we actually see energy prices and the supply side start to come down in the second half? >> they have to tread carefully here. they are right to go hard and go fast up front. there are inflation expectations. underlying their commitment to their inflation target. they end up with a foul. they have to be prepared to slow up. we are seeing clear evidence that they rose 25%-30%. that declining looks to be gathering steam. we have consumer confidence in australia and i think it is only a matter of time before that gets into the lowest spending in australia. that is a response in housing and consumer which is a lot earlier. that means that the reserve bank will not have to continue aggressively raising rates. 3% plus, and probably will be able to pop out the cash at 2.5%. in the third half of next year. david: on that optimistic note, have a great week ahead. you can get more on the markets and

haidi: u.s.tary of commerce gina raimondo says she expects a decision on using tariffs on chinese goods to come soon. speaking exclusively with bloomberg, she also called on u.s. lawmakers to quickly pass a bill funding more chipmaking at home and called it a national security issue. sec. raimondo: yes, it will happen. it is taking much too long, and what is at stake is our national security. even beyond the economy. every piece of military equipment requires chips. if you talk to the heads of national defense contractors, as i have done, or senior ranking officials in the department of defense, they are all very worried about the delay. but yes, it will get done. at this point in the negotiation, unfortunately, politicians look for leverage. and while it is not right to play politics with national security, that is what i think is happening. in the past two weeks, we made huge progress. we were closing out issues, finding compromise. i think everyone needs to come back today, get back to work, a

haidi: what about the consumer?re you slightly more conservative when it comes to consumer stocks, or is there some resilience? >> i do think we have to be careful with consumer discretionary in general right now. but i think the consumer, when we look at them, is strong. look at about 9% being dedicated towards debt services right now. and the consumer is still healthy, still have savings, using savings with the inflation numbers that have impacted them. the impact to the consumer has to do with gasoline prices. as we have seen oil coming down, it will help the consumer. haidi: we have seen retail prices at the pump for gasoline also coming down more than 20 days or so. does it give you more confidence about those sectors that are more consumer oriented? whether it is discretionary sector or some goods, as well? >> i think we are really looking at some of the areas like financial energy materials and sectors we do like right now more so than consumer discretionary. shery: why is that? >> if you look at valuations,

haidi: kathleen hays.hailand assistant governor is our guest, speaking to the indonesian governor. stay with us. so critical as we continue the debate on inflation. shery: for more, let's bring landmark on field. just as heidi mentioned, we're in that middle of the debate. where-year-olds are going. this tug-of-war in the bond space. how long will this continue? guest: we are seeing a serious collapse in oil prices. there has been some divergent forecasts in the past few days. people suggesting oil could gate -- go close to $400. for the near term, much more concerned about recession, that's why you saw it dive below $100 per barrel yesterday. it recovered a bit today. the central bank bring back the focus on the inflation question. haidi: not backing away from the haven tray. says that continue? reporter: that is a recession straight. historically, when there is a, typically in a recession scenario, it's good for the u.s. dollar. de-risking the united states is relatively high. risks in europe are getting

haidi: that is it for daybreak australian.e to come, including taking a look at where the aba goes next. we are expecting our first back to back 50 basis point moving today's meeting, the first on record for the reserve bank of australia. this, as we look to getting potentially close to, or even potentially over neutral by the end of the year. this is bloomberg. ♪ psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill, over t-mobile, at&t and verizon. wow. i can do better. yes, you can. i can do better, too. break free from the big three and switch to xfinity mobile.

haidi: as well as the strength of king dollar. we will continue to look at how asian markets open for the trading week. we are still deciphering jobs numbers from friday. there is still seems to be a disconnect between recession and slowdown fears and the robustness of the u.s. labor market. we saw more jobs 372,009 payroll in june. we saw participation also rising. we saw the unemployment rate near the five decade low. so, that tells me there is a strong demand as well as tightness in the market that will keep the fed on track, one assumes. we get a big inflation print from the u.s. this week that might meet a fuller picture of what the trajectory will look like. >> cpi year-over-year 8.8 percent. we heard from raphael bostic being very supportive of a 75 basis point hike at the july meeting. china's inflation hit a two-year high. what other strong economy in the world would have -- would give to have an inflation rate that low? or prices continue to drive inflation higher. food price inflation was 2.9% versus 2.3 in may. a core

haidi: u.s. inflation is expected to see a fresh peek and that is expected to keep the fed on an aggressive freight path. contextualizing widening concern we could see a policy over a step or misstep and create a recession. what we are expecting is the consumer price index probably increasing! put 8% -- increasing 8.8%. we are seeing a climbing, that could mark the third month and four months we have seen inflation jump at least 1%. sophie: the pain is in the credit space. that aggressive credit drying up. that would lead to a recession. historically speaking. we will get some indications of what is happening on that from from bank earnings later on this week. one thing to look for are signs of the credit tightening. the deeply inverted yield curve is threatening to rein in bad interest margins are the could create a credit crunch. let us bring in garfield reynolds and our global economic and policy editor kathleen hays. let me start with you. what signals the yield curve is sending right now? >>

haidi: we are counting down to asia's major market open. shery: risk appetite to be tested in asia as investors brace for a likely 75 basis point fed hike. the clock is ticking for the world's most indebted developer. china evergrande is days away from unveiling its restructuring plan after a leadership shakeup. and the world health organization glares monkeypox a global emergency, trying to spur ordination in testing and treatment. haidi: let's get you a look at how are shaping up when it comes to the sydney open. we are looking like a pretty tepid oakland -- tepid outlook. looking at potentially not much change at the start of cash trading. it is on the precipice of a big earnings week for australia. we have seen the resource miner energy market be a standout across the region and it comes to earnings revisions. they have stalled since early june, so we look more uncertain when it comes to the growth outlook. we will see how that is inflected in some earnings this week. from u.s. stocks we saw the first decline for the s&p in four session

haidi: gary gensler there.ook at how futures and europe are opening up as we see the broad-based rally taking hold. equities gaining for a third day following the report russia will restart the nord stream on thursday. seeing a little bit of gain when it comes to german dax futures. equities extending gains. we're looking ahead to the ecb where policymakers are reportedly considering a 50 basis point hike at the meeting on thursday. lots more to come, this is bloomberg. ♪ >> if it was a single thing, you could talk about stranger things. really we are set up very well next year. shery: the company is forecasting a return to growth, less than half of what wall street feared thanks to the new season of stranger things. let's get more. >> this is a relief rally. all of the big entertainment companies as well, this whole idea of streaming has peaked, the model wasn't working. this is a sigh of relief. the numbers are not great. they lost one million subscribers but they are forecasting things to turn around. they h

haidi: stocks and bonds whipsaw after u.s. inflation comes in at the highest in over four decades, boosting bets on even more aggressive fed action. we speak exclusive we to the cleveland fed president loretta mester about whether a 100 basis point move is on the table. president biden: the cpi number out of date as he visits the middle east to help reign in price pressures. shery: those are really being felt across the board. the hike is to 9.75%, much bigger than economists had expected. of course they were already at the highest interest rate since 1998. they beat the expectation of a 50 basis point hike for 75 basis points. i will tell you more about what is happening in chile, but u.s. futures right now are down, this of course after we had a volatile new york session trying to digest the inflation numbers. we had an actual loss of more than 1.5% for the new york session. s&p 500 turned positive, then that did not last, and it fell throughout the day's end. this coming at a time where we continue to see right -- to see re

haidi: bloomberg's elizabeth low.gnaling the furthest rate cut unlikely due to more than reasonably ample liquidity in the market. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. annabelle: this is daybreak asia. a check on markets 30 minutes into the trading session for japan, korea and australia. looking at the crypto link stocked industry. exchanging operators, or they have stakes and they are moving this morning after we got the report that celsius, the crypto lender, has filed for chapter 11 bankruptcy. the story sparked some of the market contagion that we have seen in cryptocurrencies when it forced withdrawals for members last month. only last week by the law firm, kirkland and ellis to handle its restructuring. we are seeing the biggest moves here in the japanese. let's move to what we are seeing bro

haidi: emma o'brien there.neca has raised its revenue outlook for 2022 after results exceeded analyst expectations. they excelled in all areas including its covid-19 medicine. the drugmaker is seeing growth across the board. >> we have had a solid quarter and solid first half. our earnings-per-share was $1.72, which was a beat on consensus. we are seeing growth across the board in every geography and every market. oncology, which has been a great success story for astrazeneca, grew 22%. cardiovascular medicine screw 19%. -- medicines grew 19%. we also had an acquisition of alexion and we are almost at the one-year anniversary of that acquisition. across the board, 330. a curious, we are seen strong growth. >> as we weigh out the risks across the world, do you see that momentum holding up? >> i think our business is fairly resilient. we supply lifesaving medicines across the world. we are seeing the diagnosis rates that have gone down for oncology product in cancer, people are not getting screening done for canc

haidi: u.s. treasury secretary janet yellen says russia has no place at the meeting and will they gala -- gather in bali? more on the fed inflation on the markets. marvin now joins us. this is bloomberg. ♪ >> it is a range of potential outcomes from a soft landing to a hard landing driven by how much rate goes up with quantitative tightening, defective volatile markets, it's not going to change how we run the company. we manage it before and we will manage it again and i'm comfortable we will do it well. >> we might head into some form of recession and i like others have tried to handicap it. i think it's unlikely to be a deep and dramatic recession, at least in the u.s. the environment is complicated, lots of insurgency, but frankly, for our business model, i think we fare relatively well. >> based on the labor, it is just inconceivable to have a recession with an unemployment rate at 3.6%. shery: voices on recession risks. let's bring in our next guest where who's getting more anxious over how

haidi: we continue to watch the euro. the ecb is finally joining the global fight against inflation with 50 basis point hike higher than inflation. it was the biggest hike since the year 2000. you take a look at history, this is the third time we have seen the ecb try to tighten borrowing costs in the wake of some sort of crisis. the one we are seeing at the leadership crisis and the political turmoil and italy. the previous two times, we have had to backtrack and unwind the tightening within months. the risk of policy error is particularly high. shery: we continue to see the global stories play out including covert outbreaks. china, tokyo. president biden also testing positive for covid. this is an ongoing issue. however, it's interesting if you compared to the pre-vaccine time of 2021 then president trump got it and how he had to be hospitalized. they had to use state-of-the-art antibody cocktail's. president biden now with a covid diagnosis just taking the antiviral and working from the white house. these stories conti

haidi: we're counting down to asia's major market open. shery: apple and amazon's earnings beat expectations. shares jumping after hours. haidi: the u.s. economy shrinking. shery: u.s. futures are higher at the moment. we are sort of seeing bad news is good news phenomenon again where we are seeing the economy in the u.s. contracting for a second consecutive quarter. you have people thinking perhaps this is a slowdown for the tightening cycle. below are paring back the bets of aggressive fed rate hikes. the 10 year yield breaking through the 2.7%, the lowest level since april. we are also seeing oil continuing to gain ground in the afternoon session. take a look at after hours, apple narrowly beating estimates for analysts on wall street. tim cook saying the supply and demand picture looked significantly improved in china. amazon doing well. they not only beat when it comes to second-quarter numbers, but they also had positive revenue outlook. their expenses were lower than expected. intel slumping, they had a sizable miss. >> let's take a

haidi: let's take a look at the asian markets. we're looking muted given the uncertainty and headwinds. sydney futures looking at a drop. u.s. stocks closing will off session lows after a lot of fed speak. the aussie dollar is unchanged. we did see a boost for the aussie after the jobs data that was positive in australia. taking look at new zealand where we are saying modest gains early in the session. the dollar yen holding just over 1.39 handle. breaking news, wall street banks are and focus given that we have had the start of earnings season. regulators are getting what it to extract about a billion dollars in fines from the biggest banks for failure to monitor their employees using unauthorized messaging apps. this texting habit is looking like they will penalize with a $1 billion deal. big banks have already had advanced talks with regulators. morgan stanley disclosed it expects to pay a 200 million dollar fine which is the same as jp morgan. these discussions are still taking place and we know that the penalties could still

haidi:

haidi: you are watching

haidi: the s&p 500 seen the biggest gain in more than two weeks. shery: twitter has scored an early win as the trial is fast track to october. annabelle: u.s. future is gaining ground. this is after we had the s&p 500 closing at session highs, all of industry groups gaining ground. it has been a volatile earnings season. an excuse to gain ground for the markets at this point. the 10 year yield, a rebound in oil prices in the new york session about $100 a barrel. look at after hours trading, twitter was gaining ground, the decision by the judge in delaware, we have no place continuing to gain ground on the expectation. the hasbro, we saw them rally after the biggest toy company in the u.s. has pressure. ibm reversing some of the earlier losses after earnings disappointed. annabelle: something else that the company may be happy about is the weaker dollar than we are seeing as well. those moves in treasuries, scaling back on the aggressive fed. we have seen the dollar rally taking a bit of the pause. we are seeing something that is contributing to his

haidi: good morning and welcome to