will that rescue japan from the stagnation from the challenges which japan didn't overcome even under the rule of sions? i'll be, what do you think? said era, now unfortunately it will not. the fact of the matter is, is that, well, you know, i've been on the 1st era was flying the weekend has basically surge the income of the japanese exporters, which was expected to basically increase the income of the japanese people that didn't happen. so obviously mister, she's the end mister corner. both are basically indirectly making sure that you know, they would certainly push for the increase of wages to take place so that you know, private spending will basically flourish. but in japan, one of the characteristics of japanese consumer spending is that you have to have a secure conditions of the corporations still live on employment. it's energy system, although it is basically crumbling, is still is very intact particular. so larger companies, meaning that the stable condition of these companies are, must project spending. so obviously it will be very difficult, you know, even if you make th

japan's separate new leader. yoshihide suga plans to resign after just a year in the job. hsbc ceo says opportunities in china are too big to miss

japan's separate new leader.rom minister yoshihide suga plans to resign after just a year in the job. hsbc ceo says opportunities in china are too big to miss despite the crackdown. we'll bring you our exclusive conversation this hour. plus, it's jobs day. another better report could push the feds close to tapering. jobs claims fell to a fresh pandemic low amid a recovering economy. good morning. welcome to the european market open. busy day, 7:00 in london, markets from singapore, and mark, what are the markets saying to you? mark: good morning, anna. today, it is a busy day. and the big three stories were the ones you mentioned in the lead-in. . i'm sure it won't be great for his ego. the topics closed at its highest level since 1991. the prime minister resigns, a 30 year hike. it is not directly connected to that, but there is optimism that any successor would be more likely to play a more popular card and providing more pandemic support even if the economy doesn't necessarily need it. we had some poor china d

from japan will be a long with their views. bloomberg. ♪ haidi: we continue to really monitor the divergence when it comes to climate policies between australia and other international bodies like the u.n., as well as in the u.s. we have seen this kind of division between washington and canberra in particular. despite all the evidence and warnings in this latest report of klingon touch of cleaning on to being able to bring coal into the new tariff. shery: a once in a generation opportunity to transition to new energy that perhaps australia is missing out on. clean energy, lithium batteries also soaring. we have plenty more to, on "dayb -- we have plenty more to come on "daybreak: asia." that's next. this is bloomberg. ♪ >> welcome to "daybreak asia." collects we are counting down to the asian market open. >> our top stories this hour, the fed's tapered timeline set for a delay after the latest u.s. jobs report signals a drop in hiring. japanese futures pointing higher after the decision to step down. a

japan is in a serious bind. with more than 2300 cases in tokyo on saturday, according to the -- it will likely continue at least for another two weeks beyond the current expiration of september 12. >> china's move terrain-in the private sector -- move to re in-in the private sector continues. this could come just three months after they actually went public here in new york. can this be seen as anything other than blatant nationalization of a private company? >> we don't know the exact specifics of this plan. we understand the city of beijing municipal government has proposed to more senior officials that it have some of its -- invested in didi. it can be is an the form of a small stick, but a golden share that would give the city government and its state owned companies the right to veto some business decisions and a seat on the board. this is early days yet, nothing has been decided, but the city of beijing would like to propose that the broader government support this. >> we are seeing chinese regulators tigh

the bank of japan set japan's growth would pick up to 4% next year.ks mandate, unlikely to change and to renew prime minister. promising to keep residential electricity and gas prices stable and gas prices stable in china. authorities say it they will work to avoid a -- avoid abrupt power cuts. bloomberg sources earlier said they were hoping to ease will supply crunches. no international spectators will be allowed at beijing 2022 winter games. tickets will be sold exclusively to spectators residing in china's mainland who meet virus requirements. the ioc also says athletes who are not fully vaccinated will have to quarantine for tony one days upon arrival in beijing -- 21 days upon arrival in beijing. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ shery: still ahead, morgan stanley's chief china economist joins us to discuss the pmi numbers. marathon asset management investing on evergrande. more on why they are buy

we are watching the -- prices in japan.uts holdings on watch as the government is set to have started to sell a stake in the company this week. >> next, we will be back with sophie for a look on how markets are trading. more to come. this is bloomberg. ♪ it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. shery: welcome to daybreak asia. haidi: we are taking a look at the major market open. a global stock selloff splits asia after wall street's worst day since may, marie's include -- worries include inflation. japan's ruling party is set to choose a successor in the most open race in a decade. plus, ever grabbed bond follow-up. global banks assess potential exposure. such a

outlook ramps up for japan.have some economic data. switching to check on the open. we are keeping our eye on reopening players after australia and new zealand procured extra covid vaccines. the asx 200, little change. this was paired well with the jump that we saw. we are seeing prices for aluminum continue that advance at the 3000 level this morning. we are seeing some downside pressure but trading around five dollars here. morgan stanley seeing trading of 10 bucks. that may challenge the transitory environment. watch the reaction to pyongyang. we are seeing some downside pressure for the kospi after we saw it snap a two week game. more losses while we are seeing the korean won under pressure as well. all of this as we get the latest flash trade numbers. >> our next guest is -- has recently downgraded his northern equities exposure. great to have you with us. remember how north they shifted this during the onset of the global pandemic because of their ability to rein in covid. even now, their electronic export

also you ask them in the relationship between japan and south korea between japan and china just a few days ago. and he attended the quad meeting in washington with the us president vital with the but i mean sort of premises of india and radio. and now we want to see like what kind of coalition is going to form indecision and mr. tissue that is very well known as a common voice is not very outspoken. and this lack of a little car is not of the car is not maybe proved to be a challenge, especially that the country is going to head for the general election by the end of october when the turn of the makers and by that time. so now he has not only together the support of his party, but also of the public, and he has the certainty. after his victory announced he, he made a fool, he made a short speech in which he promised to do so. well, let's speak to ricky cast. and, and can but she's an honorary professor of they're still in japan research center at is trillion national university. it's good to have us on. i'll just have a title, co was cabinet minister in charge of vaccinations and he s

shery: same thing for japan. we are getting gdp numbers, they were hurt during the pandemic as everybody else was. these are the final numbers. the reason i point to these numbers, we got the preliminary, we are expecting a slight upgrade to 1.6% growth in the second order but given how well the market has done in japan, i wanted to bring attention in the next 60 minutes, we are getting trading again, the nikkei surpassed the 30,000. -- level. we are having a change in politics in japan so we are watching that closely. haidi: economic policy changes may be on the horizon. it doesn't seem like the boj will change their objectives. the interview with predecessor saying the boj perhaps needs to get real. how long have we been targeting 2% inflation? we haven't gotten close to that. perhaps it is time for a reality check. chicago nikkei futures, one of the few marginally upside movers in the futures session. we will wait to see whether we see another touch above ¥30,000. perhaps some signs, given the extraordinary ga

so far with the eu, japan and australia.to delay a trade meeting with the u.s., citing the deal between australia and the u.k.. they will press the pause button. many states have backed france's request to postpone the meeting scheduled for some temper tonight in pittsburgh. -- september 29 in pittsburgh. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i vonnie quinn. this is bloomberg. haidi: let's look at some of the movers in the tokyo session, banks on the move, trading up by about 1% after the dental services agency said it would issue a penalty against mizuho financial over outages over the atm's. they will also see a system overhaul and maintenance. mitsubishi ufj up by 1.3%, after years of speculation ending, making an acquisition proposal for the union bank, adding to the wave of consolidation across regional banks. softbank trading to the outside after the lock chain infrastructure platform becoming a uniform -- uniform --

so how has japan done it?and author ofjapanisation: what the world can learn from japan's lost decades. great to have you on newsday, william. so in the first instance, is it fair to call this a turnaround? it seems like just a few weeks ago, we were talking about covid surges during the olympics and the paralympics — now we've got the situation. paralympics - now we've got the situation. , ., ., situation. yes, i mean two months — situation. yes, i mean two months ago. _ situation. yes, i mean two months ago, when - situation. yes, i mean two months ago, when i - situation. yes, i mean two months ago, when i was i situation. yes, i mean two - months ago, when i was looking at airfares, i was considering flying back home to get vaccinated. so i have finally gotten fully vaccinated back at the end ofjuly. yes, quite a turnaround. i think in many ways, there was a lot of bad press before the olympics, and japan internalised that bad press and got its act together. it sort of pulled off a joe biden, if you will,

every bank in japan, every company in japan is taking money from japan and putting it into the u.s.arkets because they can't get a return over there. but with the prime minister resigning and the potential for more stimulus in japan, fiscal stimulus, not the kind of central bank money that they have had for a long time going, which has not worked just like it hasn't worked here in the u.s., but now you're putting money in people's pockets. now you've got a stock market breaking out of a 30-year base you talk about a big base. that is one big base it should go higher in space so the reason why this is so important is because all of those flows that have happened over the last several decades have the potential to reverse. and it hits every asset class, not just currency, but it hits equities and japan has been one of the largest buyers of u.s. treasuries so they've actually filled the hole that china left when they stopped buying treasuries. this hits every asset class. if you get that continued rally, which it looks like we're going to get, everything that you knew about the last de

also has to mean the relationship between japan and south korea to in japan and china just a few days ago. and so guy, he attended the meeting in washington with the us president biden with the brightness of parameters of india and the radio. and now we want to see like, what kind of coalition is going to form in this region. and mr. tissue that is very well known as a common voice is not very outspoken, and this lack of a little cut is not that it's not maybe to be shot and especially that the country is going to head for a general election at the end of october. when the 3rd of the makers, and by that time, so not only together the, the support of his party, but also of the japanese public. and he has the certainty. after his victory announced he, he made that he made a short speech. and richie promised to do so. fighting satellite solomon talking to us from tokyo. funny thanks very much. indeed. lava from the volcano on the spanish island of la palmer has reached the atlantic ocean. this is the scene right now. a huge cloud of toxic vapor and gas is being released into the air. as

how unusual is that in japan?his is actually quite an extraordinary and interesting development for japan. only one woman prior to this year had ever even run in the race to become the leader and that is the person who is governor of tokyo. obviously, she failed to become prime minister. what she went on to do shows that even entering the race can be a good career move from a politician even if you do not win the first time, your name is better known and you are seen as a prospect for the next time around so i think both women in this case can look to the next race in a few years time and perhaps have a better chance. shery: isabel reynolds there. even after the campaign, when it comes to japanese companies, females hold just 6% -- she was elected the youngest female mayor in japan's history. herself, her company's training women for board positions and matching them with companies on board. naomi, great to have you with us. tell us your reaction to the candidates right now in japan's leadership race being women.

japan is on the same -- china is on the same path as japan.he birth rate fell below replacement in the early 90's probably two decades after japan 's birth rate fell below that level. japan -- they are following japan probably two decades behind and i think it is an issue for the commonest party. >> this issue has implications not for just so see about the regulatory overhang. this is also a product of this worry and concern and a potential crisis. >> i believe it. i think when you look at some of the regulations coming around gaming, video gaming, children, i think the party is worried about young people and this lay flat phenomenon. in japan, -- the question is if china was facing a similar phenomenon of youths who don't want to get married or have babies, don't want to work. i think some of the regulatory movement is to make family life easier. education stocks. was it getting to expensive to educate two children? it was expensive to educate one. if we clampdown on it, might people be inclined to have more kids? it may be very difficult for

just to reiterate, kishida has been elected leader of japan's ruling party. and of course, the ldp have a strong position politically

japan, apple today -- half full today.and it might get more toward the optimistic side of things. southeast asia doing good as we speak. this is a longer-term story. up until friday the fifth straight week. we could get number six this week. let's see what happens. it is a rotation story within asia and the global context to asia from the -- big ems as well. aluminum producers in australia -- not aluminum producers aluminum contracts and some of your producers trading over in australia, 5.3% to the upside. monica -- vonnie quinn is a new york. vonnie: a u.s. republican lawmakers has americans and afghan interpreters aboard several planes being prevented from being afghanistan. they told fox news they would not let the aircraft leave, essentially holding them process -- hostage. an afghan official told him they are -- negotiations provide the 2015 nuclear deal must lead to the removal of sanctions. -- says he told the french president that iran is not interested in negotiations or think negotiations. talks have been on hold

and japan does have huge debt. of that debt is domestically held, so in some sense, it is a less precarious situation than other nations that might have a lot of debt held overseas, but that is a huge concern. sales tax is very unpopular and really hits people in their daily life and their daily expenses as well. haidi: thank you so much for joining us with insights on the japanese election. time now for morning calls. japan, a key issue for analysts. sophie: certainly, and our guest just noted, while there are still question marks as to where the funding will come from to finance government spending, questions coming in as to how big we could see the new stimulus package come in under the new premier. you have the board shifting gears at goldman. this latest analysis takes into account shifting trade structure and exposure to domestic demand. we are switching out the board, a modestly bearish scenario for the property sector in china, which sees a 2% drop, and calculating a limited hit to asia. haidi: we are going

key does not want any kind of neoliberalism in japan.nts very much to have a middle-class country where there was not a big disparity between rich and poor, and he believes that disparity as gone too far and he wants to fix that. he has the problems in japan to deal with, massive national debt, which has resulted from the aging population and the social security spending from that nds to try to get the economy back on track from the covid hit, which has been fairly bad is expected to get better as the state of emergency is lifted from today. paul: toshiba -- kishida said he wants to support younger ministers. tsuzuki is 68, rather stretching the definition of younger. >> he has says that he wants to appoint more young people, but there is an informal rule, you have to have five election victories before you can be considered for the cabinet, so it is fairly rare for someone to very young to be appointed. 68 is obviously a bit younger, but certainly not young. we are also looking at the party , a bit less high-profile but more important i

jp morgan leh keen japan, not to mention other -- liking japan, not to mention other emerging markets. telling people to offload attack because the growth so far has gotten a bit too far, haidi. haidi: yes, very interesting to see whether the japanese rally will continue, how that could be beneficial for the cyclical driven rally. over to sophie kamaruddin in hong kong, what are you seeing when it comes to the start of trading in tokyo? sophie: nikkei futures in chicago are printing higher. . it. assesses the different economic paths by candidates to take over the world by suga. ishiba is not in the race. political risks are seen a beating. jp morgan's strategist is also bullish on the yen. and another analyst has upgraded her price target to 4500, but she is cautioning chasing the gains, saying there is a major pullback, u.s. stocks have gained ground on. day drop ahead of the u.s. inflation numbers on tuesday. the dollar is under pressure. switching out the chart, the reflation trade. we had aluminum hitting $3000 in london for the first time in 15 years. commerzbank says there is n

we are both tracking japan. the burst from japan on the possibility of new economics.a whole set of fiscal and monetary implications and we have state street with us and they said you want to be long japan, close the gap. it has been flat relative to the u.s., relative to europe, so a rare burst of unity, a rare burst of us being together. you will have everything back to yourself, back on your own, kid, in a day. tom: i will be crying into my coffee. and now you are jetting off once again. manus: i am an unreliable boyfriend, they say. tom: we have had it now. that's official. it's on the record. we were talking about the policies of japan. we are switching over to germany. this remains the biggest political story. less than three weeks until germany's election, environmental issues have been a key battleground for the party with a heavy reliance on coal for electricity generation and a thriving industrial actor. the country is europe's biggest polluter but can germany cut its carbon footprint without venting jobs and economic growth? let's get more with maria tadeo s

coming up, perhaps sunny in japan. japan's outgoing prime minister as he comments on evergrande and relations to china. this is bloomberg. rishaad: taking a look at the outgoing japanese prime minister telling bloomberg in an exclusive interview china is -- could present a risk to japan. sue set to join the first in person leaders, including the likes of the u.s., australia, india, japan at the white house. yvonne: for more, let's bring in our managing editor. what is the take away? >> he is basically a lame-duck. the fact he is going to the white house, scott morrison australia, it really shows japan's overall commitment to the quad, kind of a strategic grouping pushing back against china and asia. as far as the race, we see a lot of similarities, as far as china's policy being more hawkish than others. the u.s. is the key ally in japan. they see a need to push back with allies against -- in the region. rishaad: who is going to get the premiership? we mentioned hawks. who is more hawkish, who is more interested in the

japan always sees this missile tests _ region? japan always sees this missile tests as _ region?ssile tests as a _ region? japan always sees this missile tests as a threat - region? japan always sees this missile tests as a threat and l missile tests as a threat and we have been hearing from the us and indo pacific command, saying this was not a threat to the united states or allies, which does suggest this was a short range missile, but it also said it does show the continuing issues of north korea's weapons programme. we are hearing details and again this is unconfirmed at this stage but it's true, south korea state news agency that this may have been a missile test that only flew for a very short range indeed and it may have been a new type of missile. if so, north korea is continuing to show off its weapons development. this is its third test in as many weeks and when it comes to weapons development, pyongyang is determined to show that even while it's under strict international sanctions, it can continue to push forward its missile and ballistic weapons programme. missile an

japan's nikkei 225 on track for its highest level since 1990.ong kong and china have wavered as traders evaluated the troubles of the ever grand group. -- ever grand -- evergrande group. we are joined by martin malone. there are protesters outside the institution. good morning. martin: i think basically this will be a social issue. xi has been very vocal backing the social agenda. literally the politics, the social side, the sort of ideology of president xi will basically come to the forefront and way behind that is the market, investors, companies and some of the protests we are seeing. tom: what does it tell us about the distorted economic incentives in china and whether any progress has been made to address those? martin: i think this is actually the main point, we call it sort of the triple pivot from president xi, that is a pivot to the real economy sectors, away from speculation on property, a pivot to the state being more involved and a pivot literally domestic, because he has to rely much more so than on the development model of investme

the other three are focused on japan, germany, and europe. each study group has four cochairs on a bipartisan and bicameral basis. also joining us is congressman kim. congressman kim represented california's 39th district in the house of representatives. she also serves as the cochair of the congressional study group of korea with congressman barra. congressman kim started her work for former congressman ed troyer's where she was a key liaison to the 39th district, and an advisor on the asian-american community and foreign policies. prior to serving in congress, congresswoman kim was the first ever korean american woman to serve in the california state assembly. as an assembly woman, she fought to grow jobs, support small businesses, and ensure public safety, support veterans, and protect victims of the -- domestic violence. two highly qualified and distinguished members of congress joining us today. for this csis broadcast. let me just say first that we are really grateful that both of you could take the time to join us today. it will be goo

do you think it has big implications given the japan well not buying chinese bonds?> i think it is incredibly important. 2021 was a big year for buying foreign bonds. also replication, changing the understanding of value. rishaad: you can understand corporate debt. >> you mentioned the implications for the broader macro outlook if we do see a slowdown in property. that's where i think you are seeing, even though we had nine straight days of injections, more broadly speaking the economy is going to take a bit of a hit here. when you look at onshore spreads on corporate debt, you do see those spread starting to rise. even with extra liquidity we're seeing the first signs of stress in the broader market. we haven't really seen that thus far. so i wouldn't be expecting reevaluating sovereign bonds here. yvonne: what should we be looking for? >> the 30 day grace period on the coupons will allow evergrande to buy some time. on the $270 million, there is no grace. , there's just five days if there's some kind of technical or administrative error. when you add up all the lia

his announcement comes one year after the longest serving prime minister in japan's history. sions ave, announced he would resign over health problems after 8 years and office and the questions that were there could return for an unprecedented 3rd term. there are also questions surrounding the top contenders and the governing liberal democratic party with reports noting both have signaled they would take a more hawkish approach to china and have supported plans to increase japan's military defenses along with this present at sea. and the economic form has kicked up in russia as leaders from the key players spoke about a host of issues ranging from economic development in the region to the situation in afghanistan, to the coven. 19 pandemic. the 3 day for him kicked off on thursday in the rush report, city of lot of boston, which sits on the sea of japan. several leaders spoke at the event including shooting, ping, of china, who address the foreign virtually distress the need for stability in the region. for me, i was able to be, we should make concerted effort in safeguarding regional

haidi: japan's ruling l.d.p. will elect a new leader on wednesday who will next week be replacing the outgoing yoshihide siga. it is considered the most wide open contest in a decade. let's bring in our north asian correspondent stephen engel t culminates k we draw any conclusions on how all of this behind -- behind the scenes horse trading i should say has been going? >> the political rang willing has been -- wrack willing has been fierce, when took over -- yoshihide suga took over from abe. this year will the japanese consider more continuity under this obviously covid time? this will be the third prime minister in the covid era. shinzo abe, suga and one of these four individuals who will stand for the l.d.p., the leeb real democratic party, the ruling party in japan. the leadership vote today. we're going to get more than a million rank and file l.d.p. members voting. actually, they had to vote as of last night. and lawmakers will vote today. we'll get a result by 2:20 japan standard time. so 1:20 hong kong to

a risk to japan.e is set to join the first leak of coordinating nations. let's get more from our asia managing editor. what to expect from this meeting? >> we are expecting a lot of solidarity between these nations. japan, australia, the united states and india. all democracies in asia that have come together over the past two years to try to counter china's weight in the region. try to offer an alternative to countries in the middle when it comes to things like vaccines or infrastructure, technology, computer chips. a lot of what this group is trying to do is pin their pet -- end their dependence on china and provide an alternative vision when it comes to rules of the road and economic growth so that they do not lose countries to china's sway. we will see a lot of that from the meeting on friday at the white house. shery: the prime minister is leaving office very soon. what can we expect from the liberal democratic party in terms of foreign policy? >> really all the candidates kind of sharing the ske

it has struck deals with the e.u., japan and australia.essing the new defense pact to washington struck with canberra and london. the dutch prime minister singh brussels will press the pause button till i growing number of member states back france. the northern chinese city will suspend a kindergarten, primary middle schools for a week starting wednesday. to control a covid-19 outbreak. all teaching will be moved online. reporting three covid cases any the 24 hours. -- in the 24 hours. public transport will operate in a limited capacity the south korean president saying the two koreas, unit it states and china should declare an official end to the korean war. this would be a key step to end nuclear activity on the korean peninsula. the war ended in an armistice rather than a signed peace treaty. david: speaking of moon, moon cakes. coming back online. the play across the equity markets. the asx 200 and u.s. futures steady. that is ahead of the fed. briefly, commodity market changes in china. things of rubber. palm oil and iron ore seeing

the government in japan is seeking to extend the state of emergency.ourth state of emergency across japan, including tokyo, and now we are hearing the government is in fact hoping to extend that emergency for tokyo and large parts of the country by more than two weeks to september 30. the current sunday expiration day -- that was the original expiration day but we continue to see high levels of delta variant infections putting a strain on the medical system. more than 70% of the japanese population is under that virus state of emergency, and the government is planning to extend that emergency for another two weeks. let's get to vonnie quinn with the world headlines. vonnie: the u.s. secretary of state has criticized hong kong authorities for arresting four members of a group that organized an annual vigil to commemorate the 1989 tiananmen square massacre. in a twitter post blinken called the rest politically motivated at a blatant abuse of law. they accused the group of colluding with foreign forces. lawyers for theranos founder say she is not the vill

town, one of two tourist hotels, will have an impact, and we need to engage honestly with the japanmmunity and with the workers who could lose their jobs.rhe s conversations continue. the city had proposed buying four properties, including one in another district, where the supervisor says neighbors seem to ep brace the idea. >> it's an opportunity to really stabilize a population that might not otherwise have access to housing. we're doing it all over san francisco. >> reporter: in san francisco, christie smith, nbc bay area news. >> okay, did you hear it? or did you even see it last night? those lightning strikes. the storm hit part of the sierra making things tricky on the front lines of the caldor fire. there were quite a few strikes on the west shore of tahoe last night, thankfully not too many strikes in the perimeter. crews have continued to gain ground. the caldor fire is 53% contained. >> we hear a couple small fires were sparked but nothing big at all. we escaped any major problems with that lightning storm. >> up across the sierra, a red flag warning is expiring tonight.

haidi: japan -- that 31 year high.nother gangbusters day when it comes to the start of trading in tokyo. how much further momentum is there and at what point is there a reality check as to what we expect from the new leadership? kyle: it very much looks like a headline-driven move to me. he hasn't controlled pandemic well enough and maybe hasn't been a great success as far as trying to drive the progrowth agenda, so there is a sense may be it is opening the door. some of the headwind is it's a reprieve for global stocks to move away from the tapering conversation. asia disproportionally benefits from that looser monetary policy, so we have that sugar hit reflected in japanese stock prices as well. this is probably one very much driven by more air map -- more irrational impulses than firm fundamentals, though i will say investment will likely be seen as a more positive one under new leadership and it has in the last 12 months, which have probably displease the market if you had to put a pass or fail great on it. haidi:

industrial production, retail sales in japan, numbers. way below forecasts. . perhaps suggesting the moribund nature of the economy as it tries to revive itself after two or three decades of doing nothing. what are we looking at the moment? yvonne: you saw surprise to the upside when it comes to the nonmanufacturing side. contraction when it comes to the factory floors. so what does that mean for policy? maybe you should not expect rrr cut despite the fact the consensus is we are going to get something in october. rishaad: something to ease the pain. let's have a look market wide. it is a mixed bag out there. we sawtek taking a slamming -- we saw tech taking a slamming on wall street. the nikkei down 0.4%. looking at what else is happening here as well, the bond market, seeing yields on the 10 year at 1.5%. when we drill down into pmi numbers, we see perhaps looking ahead we could see more pain in the economy. chinese exports falling. new export orders falling to the lowest since last year. it does not exactly bode well looking on. yvonne: look, she is still sa

more likely to see some continuity japan's leadershipi -- in japan's leadership.th the latest. let's get you a check of the business flash headlines. a major shakeup for the nikkei two to five, contributing to the rally today. murata manufacturing and nintendo, joining. a cap -- nearing a deal. one of the largest divestments in recent years. sales could be announced in the coming days. apex partners are seen as a strong contender. next, china's trade date gives us a glimpse into the impact of the global supply crunch. would talk to our greater china economist. this is bloomberg. ♪ >> merchants continue to mitigate challenges, including adding time to orders and chartering vessels specifically for more -- were walmart goods. >> we continue to effectively manage the strong demand for home improvement products despite significant industry disruptions and supply chains. we will prioritize high demand categories. >> there could be shifting between q's 3 and 4. we also will secure more ports, more shipping lanes then we have in the past. david: some key executives there

they want to tell you what their connection is to japan, to firefighting. -- we named the truck kiri because "kiri" means "fog." it's the first character you see on the door there. it's just perfect. [ laughs ] we're in san francisco with a truck that has "fog" written on its door. it's from a town in japan called kirigamine, which means literally "fog on mountain summit," which of course in san francisco is just the most perfect parallel name you could have. it's also been this really lovely bridge between san francisco and japan. ♪ japanese americans, people who have immigrated from japan -- it just feels to them like a little piece of home. through social media, there are all these people from kirigamine, the town where it's from -- they thought they were done with this fire truck, and it turns out it retired to san francisco and is having this terrific party lifestyle, and they think that's hilarious. the bridge that it's been able to create between san francisco and japan has just been so meaningful to me, and it's really kind of what i hoped it would

as japan's top official confirms, he will not seek to continue his role as leader of the governing party after just one year and office following months of allegations that the government response jacoby in 1900 was too slow along with criticism over the decision to continue with the olympic games a summer prime minister yoshi here is to guy says his goal moving forward is to continue to focus all of his efforts on the health of the japanese people at the liberal democratic party committee that i would like to focus on cobra. 19 measures . so with that in mind, that i've decided not to run in the party leadership elections. while thinking about running and thinking about coven 1900 measures in the election campaign. doing both takes enormous energy. i've decided that i should just choose one or the other. i have made many promises to the people. i want to dedicate myself to prevent the spread of confection. that is what i have decided. his announcement comes one year after the longest serving prime minister in japan's history, ition, so all bay announced he would resign over health probl

so i think this budget request also sends a similar message about japan thinking.h you have to bear in mind that these are just requests at this stage. what happens now is the defense ministry gets into a long discussion with the five ministry and the amount could be beaten down a bit in the end. david: hopefully we can disentangle all that is going on. our bloomberg politics reporter in tokyo, isabel reynolds. we are in the lunch break. the strength in the market, the hundred-day moving average is about 50 in terms of support. here is the set up as we enter the next hour. we are mixed. the benchmark is higher because of what we're seeing in japan, this hawkish stance in prices in australia. something to watch. commodity prices down about 6% down on the iron ore or contract in singapore. gdp numbers out yesterday out of india, the next market to open up. yvonne: yes, a blowout number. still showing that this recovery certainly has been robust. it bodes well for the recovery ahead given the fact that these lockdowns have been localized, certainly helping cushion the

kishida has won the bid to be the leader of the ldp in japan and is set to be japan's next prime minister. let's get all the details from our north -- chief north asian correspondent, stephen engle, who has been in hong kong and across this story. what is the latest? how significant is this? stephen: it means that kishida, the former foreign minister, will be the next prime minister of japan barring some sort of unforeseen situation. the leader of the ldp and their coalition partners in the parliament to have that majority. on october 4, kishida will be named the next prime. so they chose -- the ldp stalwarts chose policy stability over perhaps some uncertainty going forward in elections. kishida not necessarily the most popular in a population of japan but he is obviously the more popular choice within the parliament and within the ldp because that vote, the second vote, the runoff with kono, who lost out moments ago, it was not necessarily close. so again, when i talked about uncertainty in elections, because there must be a general election by the end of november. and kishida now will

if china holds course, and japan. there is a real angst among the korean population towards china that certainly goes back to the heavy-handed approach they had when we deployed batteries for self-defense purposes. given what happens, south korea's trying to develop its own defense capabilities for protection. [indiscernible] i don't think anyone has to say that south korea has ambition. those are for defensive capability to defend their homeland, and they are perfectly acceptable. i can certainly see a chinese overreaction to say, well you cannot do that. i think that is totally inappropriate on china's part. we certainly support south korean facilities and defensive capabilities. >> there does appear to be a gap between the policies of the government and where the public is on china. it is a larger gap that we have seen in quite some time, i think. i don't know that is something that is eventually going to be worked out in the upcoming election, but maybe there will be an international debate on the issue as part of

we have pci do from japan and reports from local media saying we may see that list it in japan this month. haidi: one of the things we are watching out for as we get trading underway. let's get over to vonnie quinn for the first word headlines. vonnie: canada's foreign minister says the country's eyes are wide open when it comes to normalizing relations with china. this following the release of two imprisoned canadians and while way executive. she's been more than 1000 days in solitary confinement. that was in contrast to the hero's welcome three years after her arrest in canada on a u.s. warrant. taiwan's main friendly opposition group has elected a new chairman. he took about 46% of the vote. the leadership contest there. this is his second stint in the role which he held for a one year in 2016 when he lost the presidential election. chinese state media says xi jinping congratulated him on his reelection. the influential sister of kim jong-un has reached out to the south. in a statement, she said there was a small mutual desire to recover relations from a deadlock and achieve peace. she

morgan, they see further to go for japan's rally.rs like the reopening sentiment have not been exhausted. even topics technically overbought. j.p. morgan with the rising market breath for the index. switching out the terminal. looking at where we go across global markets. the nikkei sitting pretty at the top of the board. haidi: sitting pretty, indeed. japan's government says a virus restrictions will be lifted gradually in a process that will require the cooperation of businesses and understanding of the public. the approach is in contrast with what we have seen in the u.k. and large part from the u.s.. >> infections can happen, even if you are vaccinated. we will be asking people to take precautions as we move to show a roadmap towards loosening restrictions. if the behavior restrictions these based on the higher inoculation rates, it will help the wider public understand the benefit of vaccination. we should promote that movement going forward. haidi: let's get more from isabel reynolds. we know tokyo and surrounding areas have se

we will bring you the latest on japan and the emergency measures.nd denmark's virus control model. this is bloomberg. ♪ tom: this is "bloomberg daybreak: europe." i'm tom mackenzie. japan is planning to extend emergency measures in tokyo and other areas until the end of the month, the delta variant is causing increased pressure on the medical system in that country and many parts of the world. japan has extended its emergency measures, why are the japanese vaccination rates so low still despite the prominence of the virus? michelle: japan has made remarkable gains getting to the vaccination levels that they are. 50% of the population is vaccinated, and they did not start with great impetus until the olympics. they are gaining ground quickly. the challenge in japan is that they do not have a medical system set up to deal with a lot of coronavirus cases, because not every hospital accepts them. and people are tired of being locked down. the state of emergency will continue, but whether or not people will follow the recommendations is another question.

the government of japan is a series of social reform. not only were they going to strengthen the government and the taxation but they were going to kind of improve the moral character of the people. so what they did is interfere in daily life on a micromanaging level so they managed the price of tofu and how big the block would be. we can sell large plant we should only cell small plants. even children's toys started to be regulated. all of these kind of micromanaging social reforms killed of the economic life of the city that is based on consumption and all these things so the city experienced its own economic and social crisis in which women who went out on the street wearing outfits that were not modest enough were actually attacked and tied up and sometimes hauled off to prison so she lived through the famine in the countryside and the social panic in the city and has a lot of trouble finding work and then ultimately has to leave but i think it was interesting to spend all this time talking about the social life of cities and many of

for that, she says japan still has some way to go.m for a0 years. abba voyage will be released in november. the quartet split up in 1982, but they're now preparing for a tour with a difference, as our arts correspondent david sillito reports. # i still have faith in you # i see it now abba and a new song. indeed, a new album. a0 yea rs a0 years on, benny and bjorn were in london to show some good news. one of pop's greatest acts was back. # there was a union of heart and mind... to go into the studio, yes, let's— to go into the studio, yes, let's do— to go into the studio, yes, let's do that. they have not been — let's do that. they have not been interested in doing another record, i can tell you that, — another record, i can tell you that, for— another record, i can tell you that, for 35 years. but now they— that, for 35 years. but now they said. _ that, for 35 years. but now they said, ok. i remember we stood there the first day in front - of the mixing console, - the four of us looking at each other and everything camel rushing bac