stephen engle is in hong kong. bring us up to date. what do we know?> any time there are protests in china, it is rare and interesting, particularly in beijing, which is almost nonexistent to find these kinds of protests. in other cities perhaps far away from the nation's capital you will see protests, but we are hearing up to about a dozen protesters rallied around zhongrong international trust, major shadow bank that provides funding at very high interest rates of course. there long time cnet fairly safe places to park -- they are longtime seen as fairly safe to park money. we are going to talk about country garden in a second. but also the slump in the stock market and other signs of weakness in the chinese economy is showing this slump is going beyond the property sector and into the financial sector and heading equate -- a key provider of liquidity. the government obviously concerned with even a dozen protesters gathered to seek explanations as to why they are not providing those redemptions on their investment products. right now, zhongrong is no

stephen engle is here on the ground. we thought this might happen last week. you mentioned hong kong. give us a sense of what this means in politics and the economy. stephen: i spent the entire day with him on wednesday, including going on about to the islands within reach of xiaomin. he deflected the questions about candidacy but he's sure looks like a candidate on the two days i spent with him. and now we are just seeing on of feed off line that he has declared his candidacy now. this is not necessarily a game changer unless you are the kmt candidate. in the past, terry gou has identified as a kmt member and he ran for the kmt back in 2019 and the election in 2020 he lost, but this time is a different situation because opinion polls right now, the kmt, which is the opposition party, but they are the nationalists, the big pro china engagement, much more so than the dpp, the incumbents. the opinion polls right now, the dpp vice candidate is leading, but it is a four horse race as you can see right here with william lai qing te leading, but that means the kmt ca

stephen engle joins us now.here you are and why. >> we are on the small island just about six miles across the bay from the major chinese city of xiamen. you can normally see it in the outline of the haze and the fog. it's very close. about 6.2 miles across the bay. it's always been on the symbolic frontlines. you can see the steel bars filled with barnacles. they have been in place for decades to symbolically repel any potential pla invasion from china to this island. that's why these leaders, the president, the kmt front runner will be here today to commemorate the anniversary -- the 65th anniversary of one of the biggest battles between taiwan and china in 65 years -- 65 years ago. they will be here, with a wreath laying ceremony and the like. the election, terry is not a candidate but is acting like a candidate. yesterday i got front and center with the 72 -year-old billionaire founder of foxconn, the biggest supplier to apple, and i asked him directly this question, let's play it. what does the next preside

let's get to stephen engle in hong kong. what do we know about this shadow of intervention? stephen: yeah sources are telling bloomberg news they are not at liberty to speak on record but saying they are close to the situation, saying authorities in beijing are concerned by the continual weakness and strong moves to the weak side and the currency and have instructed state banks to intervene in the fx markets. they are said to be probing investigating whether local firms have been placing speculative bets to the downside on the yuan that helps to further the decline. as you can see right now the onshore yuan is 7.28 but yesterday thursday, it was 7.3175 at its weakest and the sources are telling us top leadership in beijing is looking at 7.35 as the magic number they are concerned about, whether we inch towards that, the offshore is considerably weaker at 7.30 right now and annabelle talked about that weaker sentiment from foreign investors that has driven the offshore yuan down, but on short right now authorities trying to talk up jawbone and use policy tools including the la

haidi: stephen engle there with the latest on china's slowdown. of course such a big part of this is what happens with the property sector we have got a major player at possibly the most major player -- evergrande trading resumption, not exactly great market conditions to be coming back but this is a momentous day for the company. annabelle: yes this is a stock that has been suspended for 17 months now but the company says it has essentially met the conditions in order to restart or resume trading. they want to start on monday. this is going to be a lot for investors to consider as to whether they want to buy into this stock. you recall when it was last told that it had already dropped around 95% in value from its peak back in 2017. the news that needs to really beef -- really be refocused is restructuring plans and also earnings. on sunday at the company reported results for the first half and it showed a further loss to $4.5 billion. net loss adding to more than $80 billion from the two years prior. certainly something to be watching, creditors.

let's bring in stephen engle who has been covering this visit. what stood out to you?ight things are being said at this went. >> right now the right things are being said but keep in mind rolando as commerce secretary has been an architect in the biden administration on x work controls to china. and again, it's been one year since jake sullivan, national security advisor, called these controls a new teaching asset and that the united states needs to maintain as large of a lead as possible in foundational technologies like logic and memory chips and the like. rolando has been onboard essentially and that has created political differences no doubt between china in the united states. the message seems to be shifting a little bit from the biden administration as this is the fourth essentially cabinet level minister or secretary from the united states that included jake sullivan and janet yellen john kerry and gina raimondo to go to beijing since june 2 kind of repair the relationship and this is a situation where they are saying trade and transparency can be the foundation

haidi: this bring in our chief north asia correspondent stephen engle. l evidence pointing to further weakness. stephen: we will get that data that will basically confirm what the anecdotal evidence is telling us. there are price wars going up right now. many retailers and other businesses, the inventory that they built up at a time earlier this year when there was so much expectation that there would be this avalanche of demand, that simply has not happened. many businesses and consumers are simply scarred from their drop in profits. their cash flow was decimated during three long years of covid zero. it's a big dilemma for the chinese government. cpi and to a lesser degree, ppi, is a sensitive issue. it just tells me, talking of anecdotal evidence, economists are being told by regulators not to talk about deflation. that tells me that the government is extremely worried. it's very different this time around, haidi, in late 2021 whenthan falling pork prices were a big reason for temporary deflationary pressures. this time it seems like it is much more fu

stephen engle talking to us about china and the president's remarks.ds. we are showing photos of philip lowe, the outgoing governor of the reserve bank of australia speaking to parliament. the latest things he is saying, saying everything they need to do to fight inflation. they feel they are in a phase where they are getting closer and also saying that maybe they only have to make small adjustments to calibrate policies. what are you taking away from philip low's remarks? this is his last public speaking event before stepping down. garfield: the last fact is in many ways the most important one. he might say that he thinks they need to make small calibrations to policy going forward. but that will not be his decision. there is one more move before he leaves next month. even that might be partly a decision driven by his successor, michelle bullock, the current deputy. rates traders are strongly sure the rba will not move and september. there is a 90% chance of no move in september currently. they agree calibrations are yet to come because there is a 60%

debt and they have hired somebody to have a look at their balance sheet and what that looks like stephen englenits who also supply the trust project -- trust products to many chinese across the country are facing a cash crunch, liquidity crunch and they are not paying their redemptions. that is why we saw some of the protests late yesterday. what we are learning in the bloomberg scoop is they have hired kpmg according to sources to edit its balance sheet and find out what assets are sellable, what once they are going to keep ahead of debt restructuring. shadow bank plans to sell off assets after the review to repay investors. this is according to sources telling bloomberg news. this company manages more than a trillion yuan. 137 billion u.s. dollars in assets. it already has suspended payments on nearly all of its products. i mentioned the protests. that was outside one of its units. which missed dozens of payments, dozens of its products and no immediate plan to make clients hold just yet. according to the video that has been seen by bloomberg news at least a dozen angry investors went to the

all right, chief north asia correspondent stephen engle there. and you can also turn to your bloomberg for more on china tech earnings. go to t live. go. that's go and get commentary and analysis from bloomberg's expert editors. and plenty more to come on daybreak. australia. this is bloomberg. you automate sales tax with avalara you don't have to worry about things like changing tax rates or filing returns. avalara. i. i. i. 76% of 23 andme health customers surveyed reported taking healthier actions because they know health isn't just a future state. health happens now start your powered health journey today with personalized insights from 23 and me. fabulous surroundings. but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill advisor. she's not researching her next role. she's learning how to handle market ups and dow

let's bring in stephen engle. this week was going to be seeing the key data coming out whether it is the trade picture or inflation picture. >> we will talk about deflation. the export numbers have several ways to look at it. is a bad number. the consensus estimate for july experts will fall 13.4% year-over-year, 13.2% in july. bloomberg economics expects it to be worse at 15.8%. that will be the worst headline number for exports to fall since that infamous month of february 2020 when china closed, because of covid. it's pretty dire. you also have to take it with a grain of salt. year-over-year base effects do impact these numbers because june and july last year's when we saw a bump up, because shanghai open after months of being in lockdown. these effects will affect it, but really it is an external demand story, as well as the trade and imports, and the internal demand story which also feeds into the deflationary story that we are going to talk about. rishaad: well, don't forget deflationary pressures mount here

stephen engle joins us now from the unofficial campaign trail. about this island and why you are there. stephen: it is strategic in the course of the cross trade relations. it is far closer to mainland china. the city is about 6.2 miles across the bay. yesterday you could see the gleaming skyscrapers perfectly, as well as the beach down below that has those steel spikes full of barnacles. they were put in place decades ago to repel a potential come a traditional landing invasion by pla soldiers. so it is kind of the front lines between the cross strait relations which have been strained under the leadership of the more independence money party -- independence minded party. none of the three declared candidates have more than 35% of the vote so far in opinion polls. that's why this is the wildcard in this, he is trailing at number notched -- number four in unofficial polling because he is not a candidate yet, but he is acting like a candidate. he is here today, as is the afd candidate. they are all here because 65 years ago today in the waters off

let's get to stephen engle who is with me now. t seems there is a dichotomy as to what she says and what she has been doing. stephen: she has been a key architect of coming up with these ways, if you want to call it, of restraining beijing, and that includes those export controls on the most advanced technologies, but she is in beijing right now on a three day tour. she is carrying the message that the by and large, and this is the message to american exporters as well, by and large, most of the products traded between china and the u.s. do not fall under the category of being under national security concerns. i am not saying the biden administration is backpedaling, but they are softening the tone. this coming a year after the national security advisor, jake sullivan, said these export controls were a new strategic asset in order to gain advantage. it is important to maintain as large a lead as possible in foundational technologies like advanced logic and also memory chips, he said, and the chips that go into ai. right now, both n

paul: bloomberg's chief north asia correspondent, stephen engle. our global government bond yields have extended their climb. u.s. 30 year is reaching their highest point since 2011. other benchmarks returning 2008 levels. for more, let's bring in bloomberg's chief rates correspondent for asia and mliv competitor -- mliv correspondent, garfield reynolds. how long can this trend last? garfield: that's one of the question people are waiting for jerome powell to answer. and he goes to jackson hole at the end of the week. people notice some can go significantly higher, yet your one potentially concerning side is in every previous hiking cycle back to 1990, the u.s. 10 year yield has peaked at or about a similar time to the u.s. central banks federal funds. now, at the moment, even with a close to almost reaching the highest since 2007 overnight, the 10 year yield is still considerably lower than the fed rate. so if you just want to use that, you could say that 10 year yields could literally go about another percentage point up. that's going to be the s

let's bring in our chief north asia correspondent, stephen engle. we love an urgent high-level meeting, right? >> do we love that? [laughter] yes, the watchdog essentially according to sources telling us they are going to hold an urgent meeting today friday. perhaps i would assume it is going to be in beijing. interestingly, you mentioned country garden which was once the world -- china's biggest property developer by sales. it is now number six. it's been a bellwether. it is one of the few major property developers that hasn't defaulted yet. it missed those two interest payments earlier this week and has a 30 day grace period. but right now the cash position is a problem for this company as is for these developers. what can this urgent meeting accomplish? they are going to get some major developers. i'm not sure who or which ones. but not country garden according to the sources. they will not be there. essentially financial institutions which the government is trying to stimulate lending to the property sector after that several years long crackdow

week, let's bring in stephen engle. official data suggesting continued downward pressure. >> the anecdotal evidence has been mounting quite a bit and that's likely to back up anecdotal evidence. there is no one chinese economy, to be fair they are traveling and trending. they are not buying properties unless the prices keep going down. they put in a lot of new orders with the expectation there would be pent-up demand. the input costs have come up and you are seeing retailers/it even further. that's the anecdotal evidence, they are trying to move product. producer prices have been in deflation for nine consecutive months. i think the cpi temporary deflation in late 2020, court prices were the main driver. poor prices were down, it was temporary, this time it's much more fundamental. shery: what are we expecting from trade numbers? >> we're expected to see exports with higher base effects from a year ago. exports likely fell 13.2% in july expecting a 15 went a percent fall. imports likely fell for a fifth month in a row.

chief north asia correspondent stephen engle.k wealth management cio eddy loh. even if i didn't exaggerating, the problems are real. unemployment growing and so forth. can the market look past the problems and position for a china that will pick up pace? eddy: the picture in china is definitely not pretty, but expectations of policy support led to record amounts for in chinese equities in july. we need to see more measures to really revive the economy. in august, we have seen markets pulling back because policy measures have been short of expectations. but we're still looking especially for the property sector. we all heard about country garden. we heard about very weak property contract sales in july. really there is an emergency. -- urgency. haslinda: more needs to be done, but investors have been disappointed time and time again. how much more can china do in terms of monetary and fiscal policy? eddy: they have been pretty prudent to doing marginal cuts in key policy rates. more on the fiscal side needs to be done especially f

. >> our chief north asia correspondent, stephen engle. fed policymakers are seeing significant upside risks to inflation which might merit more rate hikes according to a policy meeting. to fed officials are in favor of living unchanged, but there are cracks in the consensus. it's an interesting backdrop as they had to the jackson hole symposium next week. now we have our guest, the head of advisory at iti. >> great to be here in the studio. >> especially today, or for timing, because you are focused on what the fed is going to do and will do, and the minutes show that they realize they are in not saying they're going to hike rates but they may have to and they are not going to hesitate if they do. >> the fed made it pretty clear in june that they were going to raise rates two more times, so we had july, possibly september and november, and we have had two pieces that have caught up. number one, inflation readings are better than expected, unit labor costs are coming in at 1.6% at -- and the cpi is better than expected. on the not good new

stephen: stephen engle, bloomberg news, taiwan.r ego, staying in taiwan slightly, there's a market theme, hardware and chipmakers are leading the charge. taiwan is over the most in about six weeks, we can say the same about other markets like south korea, for example. the tech gauge in asia is up two percent. so we are still feeling the nvidia effect. yvonne: we take a look at what it comes to effects, the dollar strength, iron ore first, continuing this rally where it comes to iron ore and effects, dollar taking a backseat. rishaad: don't forget indonesia is out with an interest rate decision, the rupiah trading just a little bit stronger, no change expected in four hours 25 minutes. this is bloomberg. ♪ was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com hey corporate types. would you stop calling each other rock stars? you're a rock star. you ar

our very own stephen engle is underground and we will get to him.on and whether he will run for president. what that means for this election that is a few months away. we will bring you the latest once we hear the official confirmation, if it is happening or not. there you go. he is in taiwan. rishaad: there week. we don't know about his political ambitions. let's tell you about australian earnings. dhp with a 37% decline in its full-year profit, a miss -- bhp. lack of iron ore demand. sales in continuing operations also missing. but it is pain a final dividend of $.80 a share, down from $1.75 a year ago. yvonne: the ceo telling us the outlook for china remains uncertain and that the firm is closely watching the country's flailing property sector. >> it is fair to characterize it as a bit uncertain. i would say that there is actually a number of sectors internet that are doing quite well. that includes green infrastructure, auto infrastructure, automobiles and so on, but he said to everyone is focused on and which is very relevant to our business, i

stephen: stephen engle, bloomberg news, taiwan.ction tv . you can also dive into any of the securities are bloomberg functions that we talk about. plus, become part of the conversation i sending us instant messages during the shows. this is for bloomberg subscribers only, check it out at tv . this is bloomberg. ♪ the first time you made a sale onlin godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com 76% of 23andme health customers surveyed reported taking healthier actions. with a partner that always puts you first. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. help

continuing to watch with stephen engle and our evening coverage.aw with strike approval, needs to figure out what to do. following this is somebody who is encyclopedic on detroit. david welch joins us. how close are we to a strike? david: i think we will have one with at least one of the companies. this always happens, the workers always vote for it because that gives negotiators the leverage to negotiate a deal. it is sort of a legal requirement that they do it. i don't want us to get carried away even though this will which was a landslide means that they've a walk out in the next couple of weeks. we have a midnight september 14 deadline. we have been union president who has demands, and companies know they have to pay these guys something because they had very cheap contracts over the last decade and a half. how rich is the question. tom: the average suv, car, truck takes 17 hours to build. they are going to build less than two cars a week? david: not sure i understand the math. they build multiple cars per hour. tom: 36-hour workweek. most of a

our chief north asia correspondent stephen engle joins us now from hong kong with a preview.e, let's start with tencent. what are we expecting there? well, obviously, that big wet blanket that was the regulatory crackdown on the big tech platforms has been lifted and that is going to improve the revenue outlook for the likes of tencent, where bloomberg, you know, intelligence and other economists are looking or analysts are looking at the fast pace of revenue growth in the june quarter that we're going to get later today. the fastest pace of revenue growth in more than a year. the consensus estimate is for 13.4% year over year growth in revenue. and that's after an 11% rise year over year in the calendar first quarter. but again, the rising macroeconomic uncertainty, which we've been talking about quite a bit in china, is going to kind of limit the pace and that momentum of revenue growth, according to most analysts. we've spoken to. so that's going to be the key focus right now as advertising spending will likely be muted and also, of course, rising costs in ai and also in g

let's bring in our chief north asia correspondent, stephen engle. he's here with a preview for us.d what's expected, this is a very big company, so i don't know where to look sometimes. yeah, i mean, it's tough to get excited about these tech stocks because, look, alibaba, when they had their earnings, they posted better than expected revenue growth across their major divisions. but the stock really hasn't been going much higher. and you're seeing today the market is not really anticipating a blowout. numbers from either tencent or jd.com, which they're both reporting later today. so tencent is down another 1%, but still, we're expecting the analysts expecting consensus gain in revenue in the june quarter of. 13.4% would be better than the 11.4% or 11 point roughly 11% rise in the calendar. first quarter. so again, they're benefiting from, you know, the lack of a regulatory overhang and the confidence in the, you know, that crackdown on the platform economy is over. so it's been lifting up. but most economists that we've spoken to and analysts we've spoken to, bloomberg intelligenc