let's get it over to vonnie quinn in new york with the first word news. yvonne: -- vonnie: japan's economy recovered to its pre-pandemic size, picking up after covid curbs were relaxed. they grew at 2.2 percent, below the forecast of 2.6%. consumer spending, which accounts for more than half of japan's outcome led to the growth. gdp was expanded after a contraction. a u.s. congressional delegation led by senator ed markey landed in taiwan sunday for a two day visit. they are meeting with the taiwanese president and other lawmakers. according to the american institute in taiwan, discussions include global supply chains and climate change. the trip risks keeping tensions with china high after house speaker nancy pelosi's recent visit to the region. chinese officials have signaled thousands of tourists crept in hotels on hainan could soon return home. frustration over covid lockdowns on the resort island sparked protests over the weekend. authorities say commercial flights should resume monday. however, travelers can only fly out if there are no new cases in

i am vonnie quinn. this is bloomberg. yvonne: still ahead, an exclusive interview with linkedin's director on progress towards gender equality in the workplace. we have a new study coming up from them, coming up next. david: let's take a closer look at some of these issues for than the property sector in china. they are saying the homebuyers strike lay mortgage payments could increase risks. we will dig deeper into that report. you are watching bloomberg. ♪ yvonne: take a look at property stocks in china this morning. a bit of a reversal after a lot of fed chelation -- speculation , we saw headlines in red. china considering estate act bonds, liquidity support for the sector. saw double digit gains for country garden and long for, slightly lower today but a lot to talk about with s&p. david: it's going to take more than a headline, more than a few headlines. s&p joining us, they basically think property sales are down 33% this year, almost double the drop in their prior forecast. joining us now is charles chang. it's very

vonnie quinn with the first word headlines. ies are taking steps to shore up the property sector. the pboc says they will offer $29 billion in special loans to developers to complete properties that have been sold. the pboc is calling on financial institutions increase loan issuance. the top u.s. infectious disease expert will step down at the end of the year. dr. anthony fauci has won -- has run the institute since 1954, advising seven presidents on everything from hiv to ebola and as he got. japanese lawmakers are making overlapping trips to taiwan despite possible backlash from beijing. indiana's governor is also looking into economic partnerships. this comes after nancy pelosi's arrival to view chinese military drills. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. shery: we will delve into the outlook of the tourism industry as a travel surges. lockdowns in china continued. we will speak to the

i am vonnie quinn. this is bloomberg.ad: quickly checking on a currency which has not been this low since 2020. the taiwan dollar. falling below that level of 30 against the greenback. essentially, what we have foreign investors pulling $625 million from local stocks, the rise of the dollar also responsible, we have political uncertainty on the horizon and part of the zeitgeist with nancy pelosi visiting four countries, however, a statement skipped any mention of a stop in taiwan. let's get to our taipei bureau chief. reporter: that is the question we are all trying to answer, including throughout the entire weekend. is pelosi going to come to taiwan? yesterday, we got confirmation after weeks of speculation that she will visit singapore, malaysia, south korea and japan. the question was, will she add an unofficial stop in taiwan, so there were tens of thousands of people watching flight radar. in the end, and ended up not happening. for now, she has not been to taiwan as yet. that does not mean she is not going to stop o

vonnie quinn is in new york with your first word news. nnie: the richmond fed president says the central bank is committed to taming u.s. inflation, even if it means risking inflation. he says policymakers will return inflation to their 2% target, while acknowledging that a recession could happen in the process. resent fed speakers have agreed more rate hikes are needed. the chinese province of sichuan is extending industrial power cuts due to extremely outstanding deficiencies in supply. blistering temperatures and surging demand for air conditioning have caused gaps in production. some industrial users' power supply will be extended to thursday from sunday. germany might have to resort to nuclear power. the german chancellor says there is an option of extending the lives of the nation's three remaining reactors. the worst energy crisis in decades has forced politicians to look at alternatives, including atomic energy, which china had decided to exit permanently -- which germany had decided to exit permanently by year end. the interior mi

i am vonnie quinn, this is bloomberg. cuesta hong kong secretary is confident of a pickup in ipos after posting its fifth straight drop in quarterly profits. we have more from this list of interview with the ceo. this is bloomberg. ♪ >> u.s. futures struggling early in the asian session. let's bring in our next guest who is the chief research strategist and portfolio manager . good to have you with us. >> the challenge has been as we have seen a massive correction in the equity market, there has come back about half of what we lost earlier this year and you are starting to see a lot of pressure on bonds as well. people are a little overly optimistic about how likely it is you can solve the inflation problem quickly. we don't have to include more policy and more rising rates. >> is that question when he will -- is that why so many people are taking cover? >> yes, the dollar has been pushed for several reasons. the dollar is very strong because of the relative positioning of the u.s. economy versus other regions. we also te

i am vonnie quinn. this is bloomberg.hery: take a look at futures trading at the moment, not a lot of movement after a very mixed station in new york. s&p 500 little changed, nasdaq 100 outperforming. in the future session, not much happening. even the bloomberg dollar index not very much. this as we are sitting on the sideline, given that we have the u.s. job reports, big set of numbers coming up on friday. haidi: i always get nervous when you say there is stop much happening -- not much happening. our next guest does not think the recent rebound signals the bottom of the selloff. in terms of nothing happening, stocks, the dollar is holding. after quite a bit of weakness, ponder dropping as well. is there a big lack of conviction even in the rallies we do see? >> i'm not sure there was a lack of conviction, we always saw a very heavy selloff, the markets are down cheap definitely. we are not convinced we have seen the bottom. there is still a lot going on. the unknowns still are is inflation going to be extended beyond w

let's get the first word news with vonnie quinn. hong kong reducing quarantine for inbound traveler starting friday, three days in hotel quarantine down from seven days, and then four days of health monitoring at home or in hotel with some restrictions to movement. hong kong reported more than 4000 covid cases per day since the beginning of july. secretary of state blinken is sinking to strengthen the alliance with the philippines. he reiterated washington's commitment to the mutual defense treaty. a chief executive has stepped down. conway will serve as interim ceo. the giant is looking for a permanent successor and make a seamless transition for the person who eventually takes the job. a new vice president has been elected in india, giving mahendra modi's party control. the coalition holds comfortable majorities. the vice president is chairman of the upper parliament. 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 am vonnie quinn. this i

shery: now let's get to vonnie quinn with first word headlines. fficials offering mixed signals on the september rate hikes. in an interview with the wall street journal, they urged another 75 basis point move. kansas city has a more cautious tone saying the fed has already done a lot. neel kashkari says the inflation challenge is not over. >> the question right now is can we bring inflation down without triggering a recession? my answer to that question is i don't know. we know we have more work to do in raising rates to bring inflation down. vonnie: the philippines central bank delivered a half-point hike, taking its key rate to 3.2%. governor signals the central bank is not done with rate hikes yet, saying it helps against price pressures. but turkey's central bank -- the monetary policy committee lowered its benchmark to 13% after keeping it at 14% since december. all 21 economists surveyed by bloomberg expected no change. the resumption of monetary stimulus comes less than a year before elections. global news 24 hours a day on air and on bloom

i am vonnie quinn, this is bloomberg. david. david: just had on the show we will be focusing on the future of the property sector in china. where the story is going to go. they expect -- to continue type funding market to continue. >> another problem that is facing, a power crunch caused by severe drought the latest on the heat wave. up next. this is bloomberg. ♪ >> it was taken as almost axiomatic six month or year ago that at some point the chinese economy would surpass the american economy in terms of total gdp, market exchange rates. that is now much less clear. >> that was the former treasury secretary larry summers on the health of the chinese economy. he is saying look, it could be the 1990's of japan could be coming to china. >> you look at the growth, we are almost back to those levels, somebody forecasts coming out certainly the economy being pummeled not just by the cyclical factor, the severe weather, the record drought we are seeing, very heavy rain and the north. food shortage is exacerbating the issues at a fairly

here is vonnie quinn in new york. vonnie: saying he was joining fed chairman jerome powell in bowstring the flight against inflation if prices remain out of control. he warned higher u.s. rates may weaken the yuan further and lead to stronger inflation in south korea. speaking to bloomberg, he kept the door open for another outside interest rate hike. >> at this moment, i do not want to comment f are inflation rate continues to be at 5% like chairman powell. bank of korea should also prioritize -- vonnie: evergrande senator evergrande elizabeth warren has taken aim at the fed saying it will continue to lead the u.s. economy into recession. saying she does not believe raising rates alone can contain inflation. she spoke following fed chair jay powell speech in jackson hole where he signaled the fomc will continue an aggressive series of rate hikes. economists turning more bearish on china. the meeting growth forecast is 3.5% down from 3.9%. covert outbreaks persist. projection for the first three quarters of next year w

let's get to vonnie quinn with the first word headlines. vonnie: iran has sent the european union its official response to the proposal for revising the nuclear record. the broker-deal would ease sanctions, potentially restoring iranian oil exports to the global market. they expect a here back in the next two days. iranian officials signaled earlier an agreement can be reached if the u.s. shows flexibility. hong kong's financial reporting council is stepping up an investigation of china evergrande. they are looking at accounts and audits of the company and subsidiaries. it is the second review of the embattled company in months. evergrande defaulted in december. myanmar's depots leader has been sentenced to six more years in prison. according to sources, a court found her guilty of four corruption charges related to a charity named after her late mother. the total time is now 17 years, and that ends any hopes of a political comeback. china has new military patrols around taiwan on monday as u.s. officials visited the island. the american del

let's get over to vonnie quinn in new york with the first word news. vonnie: the u.s.iran have weeks to decide whether to revive their nuclear deal which could allow a major expansion or -- european union negotiators wrapped up 15 months of talks in vienna with a draft for both countries to sign. it would see iran reduced stockpiles of enriched uranium. the original deal collapsed when the trump administration withdrew. softbank ceo is promising widespread cost-cutting after a record $23.4 billion loss. they lost to the vast majority of that money on its vision fund which marked down holdings like doordash and coupon. following the results, he said everything will be reviewed for cuts and he revealed he started talks to sell fortress investment management. india is banning firms from exporting common credits until the nation needs climate goals. the government is seeking to create a deficit carbon market and advances -- the government says new laws will prepare companies for looming carbon taxes and export markets, and transform the company into a net energy exporter.

let's get to the first word news of vonnie quinn. vonnie: the story is that opec+ will raise production a token 100,000 barrels a day in september, one of the smallest hikes in the group's history a blow for president biden after visiting saudi arabia in july, seeking to cool fuel prices in the u.s. capacity is severely limited, and the excess should only be used to respond to major supply disruptions. europe and iran are set to return to vienna in an attempt to save the nuclear deal. the u.s. special envoy to iran says he will be discussing a european union proposal to rescue the 2015 agreement. the accord collapsed after washington withdrew four years ago and reimport sanctions on iran. u.s. fast speaker nancy pelosi is set to hold a phone call with south korean president ian sekulow on thursday. pelosi is expected to have a face-to-face meeting with her korean counterpart in seoul. the issues on the agenda include indo-pacific security and climate change. policy will go to japan on thursday night. the u.s. senator has given us -- t

i am vonnie quinn with the first would headlines. officials are pledging to continue an aggressive fight against inflation even at the risk of recession. jim bullard says he favors big rate hikes. they are committed to lowering prices and a recession could happen. mary daly thinks rates will remain high for up to a year. nancy pelosi will meet her counter part insole after wrapping up her controversial taiwan visit. it is on the agenda include into pacific security and climate dependence. -- climate change. opec plus will raise production in september and one of the smallest hikes in history. it is a blow for president joe biden after visiting saudi arabia in july, trying to help cool fuel prices in the united states. their production capacity is limited. india plans to work with cleaner fuels. the roads third bennett -- their biggest emitter of greenhouse gases is pushing to hit net zero by 2030. the government is seeking a mandate for the use of some fossil fuels. a group of professional golfers including phil mickelson are suing t

in the meantime, vonnie quinn has your first word news. vonnie: president biden has signed legislation that will give the semiconductor industry $52 billion in subsidies. the bipartisan legislation will spur u.s. chipmakers to construct more production facilities in the u.s. and provides billions of dollars to support research and development. it will also reduce reliance on other countries were advanced chips and restrict u.s. companies from expanding in china. >> unfortunately, we produce 0% of these advanced chips now. china is trying to move way ahead of us and manufacture sophisticated chips as well. it is no wonder the chinese communist party actively lobbied u.s. business against this bill. the u.s. must leave the world in production of these advanced chips. this law will do exactly that. vonnie: bloomberg has learned china's flurry of anti-graft probes is due to anger over the industry's failure to come up with tech to replace u.s. circuitry. top leadership is frustrated tens of billions of dollars have failed to produce breakthroug

let's get you to vonnie quinn with the first word headlines. vonnie: thank you. a u.s.ongressional delegation led by senator ed markey landed in taiwan on sunday for a two day visit. their meeting with taiwanese president and other lawmakers according to the american institute of taiwan. discussions include global supply chains and climate change. risks keeping tensions with china higher after house speaker nancy pelosi's region -- recent visit to the region. chinese officials have signaled that thousands of tourists could return home. frustration over covid lockdowns sparked protests over the weekend. authorities say commercial flights for domestic passengers should resume monday, however travelers can only fly out of there are no new cases in their tour group and hotels within the last seven days. salman rushdie is starting to recover two days after being stabbed at a lecture in new york. he is quoted as saying the author is on the road to recovery. he is said to have been removed from the ventilator sunday and was able to talk and joke. the author of the satanic vers

i am vonnie quinn.s is bloomberg. shery: china is signaling it will keep up pressure on taiwan following u.s. house speaker nancy pelosi's visit last week. beijing is extending military drills that were due to conclude on sunday. for the latest, let's bring in our chief north asia correspondent stephen engle. stephen: it's been almost a week since nancy pelosi is controversial to -- trip to taiwan and reverberation still being felt. these six exclusion zones that encircle taiwan, where they are conducting these military drills, supposedly for four days, they were supposed to be wrapped up on sunday, but the people's liberation army have announced more drills in and around taiwan. taiwan is saying they flew at least 66 sorties sunday that crossed the median line of the taiwan strait. 120 pla aircraft crossed the line from wednesday to sunday. the question is how long will these what some would say provocative displays of force, how long will they continue to send the message that beijing is displays -- i

i am vonnie quinn. this is bloomberg.ake a deeper dive into the european energy crisis. su keenan joins us. su: victory lap in meeting goals for storing gas. let's drop into this chart to show you how german tanks have been filling up considerably. they are on track to meet goals for november which translate into winter. the big concern. the european commission is the executive arm of the eu. let's check the two week chart of natural gas, it's an odd looking chart because prices soared last week. we are down in the prior session and down again in terms of the benchmark for european natural gas. it's intact with the announcement that they are trying to do something, the bloomberg shows the urgency the eu is faced with, electricity prices are soaring tenfold driven by the rise in natural gas. the eu believes it has a lot to do with speculation and concern that things can get worse. haidi: tell us what we know about the planned intervention. su: it's all about the nord stream 1 pipeline. the black coming out of russia and go

now, vonnie quinn with the first word headlines. vonnie: japanese prime minister fumio kishida has tested positive for covid and has mild symptoms. he developed a cough and slight fever saturday night and came up positive on a pcr tests. he is resting and will resume duties remotely monday. china's latest covid outbreak is worsening with cases jumping by more than two thousand over the weekend. the southern island of hainan saw the most infections with 1000 reported friday at ramallah by tibet and changing. in hong kong cases rose by the most in four months sunday. the city is reopening one of its biggest isolation facilities as the surge puts pressure on hospitals. the singapore prime minister says removing the legal ban on sex between men the right thing to do and something most singaporeans will now accept. they stopped short of allowing same-sex union. australian prime minister anthony albanese says inflation is a key priority for his government. headline inflation was at the fastest place that space in 21 years by the second qua

let's turn to vonnie quinn with the first word headlines. vonnie: the u.s. has passed a landmark tax and health care bill -- climate and health care bill. it was passed after a year of democratic infighting the white house wasn't able to control. the vote is now headed to the house. the democratic majority is expected to pass it on friday. taiwan says it will not bow to pressure from china after days of military drills in the air and water assimilating attacks on the island. china's people's liberation army says it conducted operations focused on joint long-range air and ground strikes. they did not say if the drills would be extended. antony blinken says tensions need to be de-escalated. a cease-fire between israeli and's -- and palestinian militants is in place after nearly three days of violence after israel launched a strike against islamic jihad militants. 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'm vonnie quinn. this is bloomberg. haidi: still ahead, ch

i am vonnie quinn.'s look at markets, -- >> 30 minutes into tray for japan, australia and south korea. a slight lift across the board but trading looking in. a wait-and-see mode ahead of the jay powell address at jackson hole this weekend also, the question is, how aggressive get the fed continue to be? just heard from minneapolis fed president neel kashkari in the previous hour, saying the focus is still very much on fighting inflation. still, we got weaker economic data for the u.s. coming in overnight. look at the direction of the dollar and other currencies. the dollar index now trading fairly flat. but off that, we are keeping watch on the yen this morning because bloomberg economic downgraded their growth forecast based on weakness in the yen. importers have not been able to take advantage of the rising costs there and exports at the same time because of the global slowdown also have an been putting out as many goods. we also watching the korean yuan at a 13-year low, that complicates the outlook

haidi: let's get you to vonnie quinn with the first word headlines. vonnie: u.s. department said it has already seen documents seized from donald trump's home. that casts doubt on trump's lawsuit seeking a third party review. authorities say a limited set may contain privileged information. trump sued to seek a new review by a so-called special master. nasa has delayed the debut of its moon rocket due to a problem with one of its engines. the next opportunity to try again is this friday, but no decision has been made about rescheduling. >> this is a brand-new rocket. it is not going to fly until it is ready. there are millions of components of this rocket and its systems, and needless to say, the complexity is daunting when you bring it all the focus of a countdown. vonnie: flooding in pakistan has killed at least 1000 people since june and cost more than $10 billion with of damage. the country has been hit with its highest rainfall in more than 30 years after a period of intense heat. 30 million people have been affected. for the first time, the navy has been dep

let's get over to vonnie quinn with the first word headlines. vonnie: the australian prime minister says inflation is a key priority for his government. headline inflation is running at the fastest pace in 21 years in the second quarter and is forecast to accelerate even more by the year end. he echoed advice from the treasury department that inflation will not go past 10%. singapore is repealing a colonial era law that criminalizes sex between men. it is something most singaporeans will now accept. he stopped short of recognizing same-sex unions, adding the constitution will be amended to add the definition of marriage will be between a man and a woman. in japan, the prime minister has tested positive for covid and has relatively mild symptoms. he developed a cough and symptoms and came up positive on a pcr tests. he is currently resting at the prime minister's official residence and is expected to resume duties on monday. china's latest covid outbreak is worsening with new cases jumping over the weekend. a southern island saw the most infection

haidi: let's get you to vonnie quinn with first world headlines. vonnie: a u.s.ongressional delegation led by senator ed markey landed in taiwan sunday for a two day visit. they are meeting with the taiwanese president and other lawmakers. according to taiwan, the sessions include global supply chains and climate change. tensions with china hi after nancy pelosi's visit. chinese officials have signaled that thousands of tourists trapped in hotels on hainan could return. frustration over covid lockdowns sparked protests. commercial flights for domestic passengers should resume monday. travelers may only fly out if there are no new cases in their tour group and hotel within the last seven days. salman rushdie recover -- recovering after being stabbed. he is on the road to recovery. he is said to have been removed from a ventilator sunday and is able to talk and even joke. the author suffered serious injuries friday after being stabbed multiple times shortly after taking the stage. tributes pouring in from wall street and beyond for andrew james comer the former deu

let's get you to vonnie quinn. vonnie: opec's new head says oil markets face high risk of a supply squeeze this year. the secretary told bloomberg fears of slowing consumption in china have been exaggerated. he said opec members and other oil producers are running out of extra supplies. he was appointed as opec's top diplomat. >> i think we are running on thin ice if i may use that term because capacity is becoming scarce. this is an issue. it is like an insurance policy. we do not want the oil markets to run on without the insurance policy. vonnie: goldman sachs has downgraded its forecast of china's for your gdp. down point -- down from 3.3% following weaker than expected july data. goldman cited rising covid-19 cases. it is the second time goldman has cut its forecast for china gdp in one month. the biden administration is weighing iran's response to a european union proposal aimed at reviving the 2015 nuclear accord. officials are signaling a deal could emerge after a year of false starts. from a president withd

let's get to vonnie quinn. ie: senator elizabeth warren has taken aim at the fed, saying she is worried it will hit -- put the u.s. economy into a recession. saying she does not believe raising rates alone can contain inflation. where and spoke following fed chair' a jay powell speech in jackson all where he said he would continue an aggressive series of rate hikes. a city near beijing is imposed a partial like dennis covid-19 affections climb residents in the four main districts were told to stay home for three days beginning sunday as they go through testing. the northern port city will conduct citywide test monday. last week state media defendant the country's zero-tolerance approach to the pandemic. nasa is about to take the first step on a journey to return people to the moon by the end of the decade. an uncrewed rocket is set to lift off on monday. the artemis one mission will take an orbit that since it deep into space before it returns 42 days later. global news 24 hours a day, on air and on quicktake by

i am vonnie quinn. this is bloomberg. click still ahead, the jackson hole symposium and we have someone who was there at the very first content -- conference. markets are nervous about everything. this is bloomberg. >> a look at u.s. futures right now. seeing a little bit of upside. most indices right there, this after u.s. stocks saw the worst thing in about two months. we are talking about the likes of apple, microsoft, each losing more than $80 billion in market cap over the past two days. the meme stock frenzy unraveling speculative corners of the market. this as we continue to see u.s. dollar strength move toward the bloomberg dollar index at a one month high. let's bring in our next guest who says the markets are nervous about everything as we look ahead to jackson hole and things continue to roll in. good to have you with us. we are at the tail end of earnings season. we really heard a lot about those retailers that chart on the bloomberg showing how confident consumer confidence is. whether it is expectations, the

i am vonnie quinn, this is bloomberg. >> findings are coming in, showing how tough money managers areitioned as stocks enter the bear market. we have the highlight. what caught your eye? >> a number of significant investors have been bringing down their risks. they are reducing exposure to the stock market and we have seen that across a number of significant investors. we see that from endowments which liquidated a six minute long position and only holds basically to the etf's in the long side. what we are seeing is from those hedge is that he exited almost all of his long positions only added one new one. and they really brought on their equity exposure a great deal. >> was there any sector of the market that was a popular by? -- buy? maverick, lone pine. all of these were buying up stakes in this tech giant. they wrapped up their investment in amazon. making it one of their biggest holdings. stanley took the opposite position, the exited amazon entirely. >> what were some of the less popular names? >> netflix and and microsoft were not favored among the group. maverick liquidated th

i'm vonnie quinn, this is.: still ahead, a theory him developers are targeting their most ambitious upgrade by september. we get and insight by someone who has skin in the game. the ceo of australia's largest digital asset exchange. but first, san francisco's fed president mary daly says she's keeping an open mind on the fomc's next meeting. she's not ruling out a hike of 75 basis points yet. we hear from her next. this is bloomberg. ♪ haidi: san francisco's fed president mary daly said she's open to a 75 basis point rate hike in september, hammering home the central banks commitment to taming inflation. let's bring in kathleen hays with us, and, kathleen, it was such an illuminating conversation and semi-different ways, but from a monetary policy perspective, reaffirming. i love this idea that data focused, not one data focused. kathleen: i agree, it's small, but i thought kind of powerful statement because we have the cpi for july, the headline year-over-year number broke re-substantially, and then we get the

i'm vonnie quinn. this is bloomberg. haidi: still ahead, andrew gillum will be joining us talking about nancy pelosi's expected visit to taiwan. and some say the fed will stay on its current pace until the end of the year. ♪ haidi: let's get more on the markets, continuing to fret about potential fed pivot and potential risk coming from high interest rates and inflation globally. house speaker nancy pelosi is expected to visit taiwan today and potentially meeting with the president tomorrow. one of the ways were seeing this geopolitical risk manifest in the markets, this is looking at implied volatility in the time when market, the highest since 2020. elsewhere, not much of a reaction. does it speak to the challenges of broader markets to be able to read them to flee price and handicap this kind of risk? >> i think certainly from the taiwan perspective, the geopolitical tensions, they keep talking about this even before this happened this morning. just from the china and u.s. point of view, they cannot afford for this ge

let's now get to vonnie quinn with the first word headlines. vonnie: the top u.s. ataturk watchdog says it can still demand to view business on a papers even if the -- china and hong kong are the only jurisdictions worldwide that do not allow public onto me -- public company accounting inspections. they are trying to reach a deal before 2024 for keeping off businesses that don't comply. china's economy weekend in july over its response to fresh covid outbreaks. factory output and new orders slowed the weakest level since 2020. retailers are facing the brunt of tough covid researches with revenue growth calling for a fourth straight month. beige book warned any optimism about a rebound is misplaced. hong kong's economy contracted for a second straight quarter. the asian financial hub is under pressure from covid restrictions, rising interest rates, and weaker global trade. gdp fell 1.4%, much weaker than economists forecast. the financial secretary says the city will inevitably cut its full-year growth forecast next month. global news 24 hours a day on air and on bl

let's get to the first word news with vonnie quinn in new york. vonnie: singapore's prime minister in waiting told bloomberg news that raising taxes on the wealthy is an option. that as the government looks to shield the impact of high prices. singapore's key inflation gauge jumped to a 14 year high in june as the economy flatlined in the second quarter. quakes we always look at updating our system. at the system that is fair, progressive, and it's a system that must understand the society where we ensure that growth is inclusive and everyone benefits from the nation's progress. vonnie: iran has sent the european union's official response for the 2015 nuclear record. the eu broker-deal would ease sanctions, potentially with iranian exports joined to the markets. they asked -- they expect to hear from negotiators in the next two days. they signaled and agreement could be reach of the u.s. chose flexibility. hong kong's financial reporting council is stepping up its investigation of china evergrande. the watchdog is looking into accounts and audits o

i am vonnie quinn. this is bloomberg. >> ahead, a hotel group hopes to grow fourfold in three years by increasing presence in the asian-pacific. their chief development officer joins us later to discuss those plans. we will discuss market moves with optimal capital who thinks investors have not fully priced in quantitative tightening from the fed. this is bloomberg. >> you are watching daybreak australia. i'm annabelle droulers. the fed is on pace to double quantitative tightening starting this week. the balance sheet will be shrinking by $95 billion per month, $60 billion in treasuries plus $35 billion of mortgage-backed securities. in order to shrink the treasury holding by $60 billion per month, september will be the first month the fed will need to sell additional non-mature treasury bills. in september it will need to sell $16 billion worth. that is the white bar you can see here. moving forward the amount of sales will vary month to month. money markets funds might take some of the two point $2 tr

i'm vonnie quinn. this is bloomberg. kathleen: still ahead, a look at the oil market as russia chokes fuel shipments to europe and the eu hits a storage goal early. a ceo joins us later this hour. we check with the risk radar. this is bloomberg. ♪ haidi: the darkening global outlook has credits we shifting to underweight stocks. let's get more from jp morgan. we have a few more spots of resilience in asian markets. how are you positioning going into the rest of the year? guest: good morning. without the rally, we have a cautious attitude toward equity markets. this will continue as long as we see an outlook for weakening growth. thinking about the uncertainty that comes with the global economic environment. haidi: in terms of opportunities you see in asia, what are you lacking at the moment? guest: there are some bright spots when it comes to investing. the resilience offset some of the weakness, we are thinking about the different stage asia is in the recovery story compared to other parts of the world. obviously, think

i am vonnie quinn. this is bloomberg. shery: still ahead, we talk about china earnings seasons and the challenges the nation is facing. up next, we discussed investment strategy with the mainstreet cio, the 10 year yield is the leading indicator of u.s. market sentiment. this is bloomberg. ♪ shery: traders are bracing for hawkish talk by the fed this week. >> i think the u.s. does not have quite the same degree as china. in europe, you have the gas issue. there is nothing quite to the same degree we have in the u.s.. it's going to be a slow growth environment, below track. that is why financial conditions are where they are. you have the fiscal drag. plenty of headwinds, but i do not think it's quite as bad as in china or europe. >> how do you expect chairman powell to navigate that? >> is bouncing between two things. he will lay out the case for slowing the pace of increases, 275 -- two 75 basis point moves. i do not think he will be specific about the number, but he will be saying there is a risk of over tightening. it

let's get the vonnie quinn. vonnie: merrick garland says he personally approved the decision to search donald trump's florida residents. the search has drawn criticism from donald trump and his allies. it focused on whether he unlawfully held onto presidential materials. >> the department filed the motion to make public the warrant and receipt in light of the former presidents public confirmation of the search the surrounding circumstances and the substantial public interest in this matter. vonnie: argentina's central bank has raised its rate to 69.5%. it battles its highest inflation and 30 years. the inflation rate surged to 71% in july and the backdrop of clinical turmoil. this is the eight increase this year. daily covid cases surged on a resort island. the people there including visitors are struggling for food and other necessities. almost the entire island is locked down. officials say the virus may have been spreading silently for some time. a power failure in downtown toronto -- >> still ahead, we will d

shery: paul allen with the police on qantas peerless gets a vonnie quinn. et researchers say a campaign to cast the u.s. in a positive light has been adjusted by meta-platforms on twitter. the reports that it used tactics to promote pro-u.s. stories and negative narratives about russia and other countries. the campaign is said to resemble other campaigns by adversaries. china is planning to stabilize growth as they close from a covid lockdown from the property sector. it is reportedly ready at a 19 package. keeps them within a reasonable range. has a quota of $43 billion for developmental fuels. russia's industrial sector had the smallest contraction of four months. as the latest that the economy is doubting sanctions for the war in ukraine. it's much smaller than forecast. increase mining and oil output has boosted. clothing, semiconductors and pharma rebound thanks to competitors. texas is named blackrock been a other finance firms hostile to the energy industry. a mutharika cause the state comptroller to boycott the fossil fuel sector. the announcement ha

i am vonnie quinn, this is bloomberg. >> let's get you to hong kong for a look at the market.we are seeing a little bit of risk aversion cribbing into the market. a lot of these recession fears playing out here. we are seeing the major benchmarks in the red here this morning but in terms of what we are watching, we have volumes looking very muted this morning. the nikkei is down .8%. we know there is one in china coming up. but also, the u.s.. the headline is it is expected to call here. what that means for the fed is it gives them the impetus to be hiking a lot further and faster. we are seeing investors taking overly cautious role here. another thing we are watching if you bring up the terminal chart, these are big chip names that have been warning of a slow down here. micron was the latest. a big selloff you're in chip stocks extending into asian trade this morning. you can see the philadelphia stock index is back below its 100 day moving average. >> let's bring in our contributor, garfield reynolds. as an investor, how should one understand this? you have the fourth-larges

let's get the vonnie quinn with headlines. : chinese premier has asked officials from six key provinces to bolster growth measures. li held a meeting with provincial officials asking them to help boost consumption and offer more fiscal support. reportedly acknowledged pressure from covid lockdowns and told officials to strike a balance between virus control and economic growth. kenya's former prime minister rejecting the outcome of last week's election. he says he will take constitutional steps to challenge the results. ruto was declared president-elect with 55% of the vote. -- secured 48.9%. a delay in swearing in a new leader posts risks to stability. crypto hacks have soared as d5 protocols have become an easy target. that is according to chain analysis which reports $1.9 billion worth of digital tokens stolen this year. a 50% from the same period. north korea in groups have stolen nearly $1 billion in crypto this year. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and

vonnie quinn has your first word news. >> the u.s. state department says the deal on iran's nuclear program is closer than ever. the biden administration will make a formal response to the eu which has described iran's position as reasonable. the u.s. has it is encouraged iran has dropped demands including redesignation of the revolutionary guard. taiwan's export orders felt in july as demand from chinese computers -- consumers plunged. the median estimate was for 6.2% increase. officials are warning of further declines to come. orders fell across major product categories with the exception of electronics which include semiconductors. pakistan's central bank has kept its benchmark target rate at 15% in a sign they may be close to an imf loan approval. authorities expect exports to decline, reducing stress on fx reserves. pakistan is grappling with one of asia's fastest inflation rates. it has prompted the central bank to raise interest rates by 500 basis this year. a top u.s. infectious disease expert who became a household name durin

i am vonnie quinn.berg. >> thanks. 30 minutes out from the open in japan, korea and australia. something else, the global aggregate bond index to fall into bear market territory. take a look. this looks at high-grade corporate and sovereign debt. you can see here, very close. a with firm 20% from the peak. what has driven that has been the uniform chorus we heard from policymakers around the world from the u.s. to europe and asia that there is need for tighter monetary policy terrain and inflation. the hawkish fed speak setting the stage for trading in asia. we can take a look at futures positioning ahead of the open. looking at australia, negative territory. new zealand online to the downside. japan looking for a .5% loss. actually, the topic could extend its outperformance against the s&p 500. if history is a guide. take a look, you can see over the past five to 10, we have seen rises for the japanese benchmarks with what you see on the s&p 500. there is no historical trend for trading. what has drive

let's get over to vonnie quinn with the headlines. nnie: optimism about china falls to a new record low. the results suggest china's covid-zero policy has caused more than half of companies to cancel investments. 51% expressed optimism about the five-year business outlook. it is also seen as a major challenge. they overhaul visa rules to attract workers. from january, foreigners earning more than $21,000 a month can get a five-year work pass. the government says it wants to submit his position as a global talent hub. pakistan has secured a bailout from the international monetary fund as deadly flooding threatened the nation's economy. pakistan can withdraw about $1.6 billion. the funds will be key to stabilizing the economy after surging energy costs and inflation. flooding in pakistan has killed at least 6000 people since june and caused more than $10 billion in damage. the company have been hit with the highest rainfall in 30 years. an estimated 30 million people have been affected. for the first time, the navy has been deployed to h

i'm vonnie quinn. this is bloomberg. shery: still ahead, a chief economist gives us her outlook for the u.s. economy and the chances of recession ahead of the payroll numbers. up next, big tech is doing better than feared, but risks remain in the second half. this is bloomberg. ♪ >> inflation >> inflation gets worse. >> inflation is going to stay. >> peak inflation coming sometime in the second half. >> simple reality is we are seeing inflation everywhere. might fall into recession. >> we see a softening of economic conditions in the second half of the year. potentially a modest recession. >> we are watching central banks reaction. >> a mixed of inflation and labor market circumstances. >> turbulent times as you have been saying. >> the shareholders meeting for tesla getting underway. shareholders have approved the stock split. you can see elon musk on stage. this was the big item on the agenda, the proposal for a 3-1 stock split. it has passed easily. the last time tesla split was back in august 2020. there are number o

let's get to vonnie quinn. >> good morning. taiwan says it will not bow to pressure from china after they simulated attacks on the main island. china's people's liberation army said they conducted exercises to focus on grand straits. officials did not say if drills will be extended. antony blinken says tensions need to be de-escalated. he is also looking to strengthen american alliance with the philippines. cabinet officials visited the new philippine leader and reiterated their commitment to a treaty. they have quarreled with beijing over the last few years because of chinese increased presence. mass covid testings and lockdowns as another 182 infections were reported sunday in china. authorities say movement will be restricted for everyone. the u.s. senate passed a landmark bill with a slims down bill. it was passed after a year of democratic infighting. 51 democrats voted in favor, 50 against. the bill will head to the house. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists

i'm vonnie quinn. this is bloomberg. >> still ahead, miss our interview with the indonesian presidents on his plan to boost his economy. it plus, samsonite makes an impressive turnaround in the first half. we get an exclusive interview with the ceo later this hour. >> we will get insights on the markets. range bound and data dependent are the phrases to watch out for in the coming weeks. this is bloomberg. >> i think they will continue to raise rates. if they get lucky, they can get it right but it's difficult to know exactly where you are because the data is coming with a lag and there could be shocks that come in. i'm sure they won't get it exactly right, that's they are trying to do. if they're going to make a mistake, it will be on tightening a little bit too much. they want to make sure to bring inflation down. >> that was the former fed governor on the rate hike path. our next guest says range bound and data dependent are the phrases to watch for the next few weeks. with this now is deputy cfo of

i'm vonnie quinn.his is bloomberg. ♪ haidi: let's look at what we are seeing across the crypto space. what are you watching? >> ether is the one that we are watching in particular because we did see it jumping as much as 9%. today, still a little higher. the reason is that the ethereum network could be moving toward the most important upgrade of its history. the bottom line is that ether needs to go through one final test before that can happen. many think it will be successful. parties are already being planned. it would then allow ethereum to transition to a more energy efficient system. bitcoin unchanged at the moment. we did see it declining yesterday after coinbase's poor earnings through the crypto exchange is under scrutiny, saying it is being investigated by the sec over its staking programs that allow users to earn rewards for holding certain cryptocurrencies. let's look at crypto exchanges. we did see crypto linked stocks sold yesterday on coinbase results. staking services offered by many cr

i am vonnie quinn, this is bloomberg. >> let's check in on some of the airlines we are watching in thesian session because china has warned airlines to avoid areas near taiwan as it is conducting military exercises in response to nancy pelosi's visit to the island. we saw an official notice late on tuesday. this according to carriers have received the message and we are seeing a little bit of weakness coming through in some of these green airways and then china airlines is down by about one point 54%. you're watching some reaction to shipping stocks. >> absolutely. this is a huge amount of traffic. it has some of the biggest ships in the world. the difference between a ship and a boat is that ships carry boats and boats don't carry ships. there you go. >> i apparently got some of those airlines mixed up. i am very sorry about that. that is a taiwanese carrier we were talking about. bloomberg has learned that they are pushing back on announcing plans for a north american ship factory. as is between beijing and washington escalate, we will have more on that next, this is bloomberg. ♪ >>

shery: let's get you to vonnie quinn. cials are pledging to continue an aggressive fight against inflation. jim bullard says he favors frontloading with egg rate hikes while the richmond and minneapolis counterparts say they are committed to lowering prices. san francisco saying rates will remain high for up to a year. speaker pelosi will meet her south korean counterpart later after wrapping up her controversial taiwan visit. issues on the agenda include indo pacific security and climate change. a meeting between pelosi and the president is not likely according to a statement from his office. plus he had to japan first and i. opec-plus will raise production to 1000 barrels a day in september for one of the smallest hikes in the group's history. it is a blow for resident biden visiting saudi arabia in july. opec members said their production capacity is severely limited and the excess should only be used to respond to major supply disruptions. a group of professional golfers including phil mickelson are suing the pga tour

i am vonnie quinn and this is bloomberg.hery: latin american e-commerce giant ercot only break is still -- mercado libre is still seeing strong growth. their ceo pedro arnt joins us next. this is bloomberg. >> this was a good report. ask the data allows relief. >> we are not out of the woods. >> the fed has plenty more work to do. >> we don't expect we are finished. >> the fed will hike in september. >> perhaps to 75. >> our goal is 50. >> it looks like 50, 25, 25, a more moderate pace. >> that is still a ton of tightening. >> i expect at the end of the year the federal funds range will be 3.25 to 3.5%. >> markets are not believing the fed has yet done enough to bring inflation down anytime soon. >> this is the first hint that may be inflation is starting to move in the right direction. it does not change my path. >> our guests reacting to the u.s. cpi print. our next guest says the inflation report should set a good tone for the market for the next few weeks. anastasia is the chief investment officer at a capital. it's grea