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Shery theyre watching daybreak asia coming to you live from new york, sydney and hong kong. Annabelle counting down to asias major market open. Paul a risk off move as fears of further rate hike go further south for u. S. Stocks and bonds in the intervention alerts zone as we wait for japan cpi numbers. Beijing is said to tell state owned banks to step up in the pboc also chiming in to stop yuans slide. Goldman sachs planning a hiring spree to address regulatory concerns from authorities, including the fed. Shery u. S. Futures extending the declines we saw on the new york session were u. S. Stocks were down for a third consecutive session. Tech giants leading the decline the likes of microsoft, apple were down today. We have pessimism over the chinese economy, but it was really about the concerns that the fed would tighten policy. We had more data today showing the labor market remained resilient with those jobless claims. We had most treasury yields higher. Talking about the 10 year yield at the 2007 high. The 30 year yield in that 2011 hi. On the others we had one sector on the s p 500 to gained ground. That was the Energy Sector due to the fact that we saw crude prices getting above the 80 a barrel level on concerns about tighter global supplies, but right now and the asian session, we are reversing some of those gains. Annabelle as you say, the focus really in the session is on the higher rates environment, higher bond yields. Thats playing out. Taking look at a oneweek basis, it puts the moves into further focus because the kiwi tenure bond, one of the standouts moving above that 5 mark for the First Time Since 2011, that was after we heard from the rbnz and governor saying he was comfortable with the prospect of the governor. The cross as set move is in focus of that go in asset class that does not lack a higher rates environment. Bitcoin touched 26,000. We are sitting around a two month low for that asset. Copper in focus. We have seen that sliding over the course of this week. That is also down to concerns around the health of chinas economy. If you take a look at what we are seeing for futures in the set up today, we are broadly pointed to the downside. Investors were great weighing the higher rates environment. The prospect of the economic weakness in china its in chinas economy. We are seeing a step to try to shore up sentiment. Shery bloomberg learning chinese authorities told state owned banks to escalate intervention in the currency market this week and to push to prevent the surgeon yuan volatility. The onshore yuan falling towards that lowest level since 2007. We continue to see week sentiment over the economy there. For more, lets bring in our chief north asia correspondent Stephen Engle in hong kong. Steve the big question is, can you shore up the yuan without shoring up confidence in the economy. Thats the big issue because those policy pleasures have not necessarily come through in a vigorous way and i think thats what traders have been looking for. The daily fixing where i been progressively stronger over the last few weeks, but again, traders seem to be losing patience over this constant underwhelming ecodata and, lack of policy, policy followthrough. The politburo in late july did pledge, they signaled a pledge to have more stimulus in the chinese economy, but so far that has not necessarily materialize with full vigor. I was just reading a report from the Research Group that set the risk of inaction or insufficient action has risen. The pboc has a toolbox they can dip into. I mentioned the daily fixing rate. There has been a stronger bias towards a stronger yuan. And then the yuan can trade within 2 either way of that 2 fixing. The biases been to the strong side. We have a chart showing that kind of strengthening bias. But again, there has to be some other toolkits that they can dip into, including basically cutting the reserve ratio requirement for effects at banks. They could, because they are worried about capital flying off. They could tighten the capital controls. Theres a number of tools, but just how far they want to go. Right now there seems to be a magical number that sources telling Bloomberg News that the leadership is concerned about. That would be a weakening toward 7. 35 to the u. S. Dollar up onshore cny. Yesterday it wind is week is 7. 3 175. That was before talk of this intervention pushed. But the state owned bank strengthen the yuan down to where it is now. Obviously, offshore with the sentiment towards the chinese economy weakening is a weaker situation at 7. 30. Paul lets talk about the pboc and specifically, but it saying and what its calling Monetary Policy report. We got that on thursday. Stephen late yesterday they publish that, its a Quarterly Market outlook for the pboc. They still think that the fundamentals of their ethics policy is correct and stable. Let me read out a couple of points. They will resolutely present over adjustment in the yuan. Weaker yuan is not bad for china as it seeks to find growth in the export markets and to bolster sentiment, they just dont want too much volatility or too much to the negative side or to the weaker side. They are also saying it does not feel the renminbi has deviated from fundamentals and that the pboc has ample policy tools, as well as the experience. They have experience with dealing with effects volatility. They have the tools and the experience to safeguard a stable fx market. But again, they did admit and did acknowledge that there are headwinds in the chinese economy. Namely, they named three households, weak income, thats no doubt. People are keeping their money under the mattress, they are not spending. Insufficient private investment. Confidence, Business Community is holding off spending on growing pressure out local government. That is a perfect story and i go back to my initial assessment. Can you shore up the yuan without shoring up confidence in the economy. I think that latter one is the priority. Paul bloombergs 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, lets bring in bloombergs chief rates correspondent for asia and mliv competitor mliv correspondent, garfield reynolds. How long can this trend last . Garfield thats 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. Thats going to be the sort of thing thats gnawing away at investors. There are still many of them who are saying, we think theres a recession coming, we think theres a slowdown coming, please yields are the highest weve seen in a long time. You should buy them now because you will end up reaping the benefits. The question is as aware, can you stick with those investment long enough to reap the benefits if we do get further selloff in longer data bonds. Shery how was japan contributing to that narrative especially after that week 20 year option . Garfield the week 20 year option is interesting. On the one hand its a sign that investors are getting weary of bonds and its not great. On the other hand it speaks again to the narrative that with the boj moving ever so glacially towards an end towards yield repression, these investors would bring their money back home. You would think the longer data japanese bonds would be creating some strong competition for u. S. Debt because, thanks to their hedging costs, the japanese the japanese investors face, they might will decide its a good time, instead of investing in treasuries, invest in jgbs, there have been some signs of wear its been for treasuries, but not all that much, and this is a very mixed signal. I think the key here is that because u. S. Yields have jumped, again, that sent the u. S. Dollar up particularly against the yen. As long as the dollar is rising against the yen, that makes it less attractive to bring those funds back home to japan for the u. S. , where you are also probably getting potentially getting the benefit of the stronger u. S. Dollar, and you are facing very difficult decisions decisions about hedging flows. Shery on top of this you have more supply coming from the u. S. Government. We need to sell those bonds in order to finance growing deficits. Garfield yes, thats a very key concern. Thats one that will go away. That strong expectations, but the u. S. Increased what they are selling this quarter, the next quarterly announcement is that they are expecting to increase that again. And that comes at a time when the Federal Reserve is saying its planning to stick with its program to reduce its Balance Sheet, that means it is effectively adding supply as well. You are taking some of those bonds that are on the Balance Sheet, off the Balance Sheet and handing them back to the market. That supply issue is a part of why longer data bonds have been doing so poorly in this instance. In fact, they have been underperforming short data bonds at a time when both are seeing yields rise. Thats not the sort of behavior that investors were prepared for as we do approach the end of the feds hiking cycle. Even the fed acknowledge that if it goes again, it wont go too many times. Bonds should be rallying with the short and leading, instead, bombs are falling with a long and leading. This adding to whats a very tough outlook for investors even as many of them continue to pile in or pullback on your investment but try to hang onto those high yielding bonds that will perform well over the next two to three years because the u. S. Economy will eventually crack. Shery bloombergs chief rates correspondence for asia, garfield reynolds. Great to have you with us with those insights on whats happening in the treasury space. Right now, we are very much watching japans Inflation Report due in under 30 minutes. We mention some of the reasons that we could city to see weakness in the japanese yen, including those yield differentials. Markets watching out from government intervention. Kathleen hays is here. What are we expecting from the july cpi numbers . Kathleen is it interesting how japans Inflation Numbers are becoming like the u. S. Inflation numbers. We watch them here, in asia and around the world now because its important to what the boj does next. Thats important to what happens to the yen. The core cpis expected to ease to 3. 1 percent yearoveryear from 3. 3 . The headline is supposed to stay steady at around 3. 3. On the downside, lower energy prices, better base effects, more favorable than the previous ones are supposed to temper the inflation. You can see just a little, but its rising demand for recreation. Japanese people want to get out, they want to go to the beach, they want to go out to eat, they want to go to hotels. Its boost your accommodation fees. Thats one that could speed to the upside above the forecast. Heres the deal, the bank of japan, led by the governor, wanted to see that inflation is sustainably and sustainably above 2 . Everything the governor said publicly recently suggests hes not quite there yet. Now, remember, that report we just got last week, remember when the gdp was up 6 annualized, more than double the forecasts. Yes, it was a lot due to exports. Thats one thing that makes the governor a little bit downfall. Pressures pushing up growth, and inflation are going to stay there if exports dont stay so high. Theres not wrapped up consumer demand, but the gdp report was that 3. 4 yearoveryear, quarterly number, the highest on record. Paul whats this mean for the yen as it weekends as japanese inflation stays higher . Kathleen it looks like traders and investors have a little more belief in the ability of japans inflation to be sustainably and stably above two percent. So they are already looking for the boj leaning towards more tweaks and yield curve control. You remember that happened in december of last year, where they yen got down, dollaryen got down to a 140 six handle, that happened enough that the former governor of the period japan did this tweet in december that help stabilize things, but now with the new governor, with these Inflation Numbers looking better, staying higher, thats what people are looking for, the yen weakness has already spurred the finance minister, and his lieutenant, to say, we are watching out for extreme moves in the currency, thats what we dont want to see. Thats why traders are watching the yen so closely. Paul bloombergs Global Economics and policy editor kathleen hays. This got some breaking news about the up coming ipo, weve got softbanks arm believed to have lined up 28 banks for whats going to be the biggest 2020 ipo. I wont read out all 28, they heres a few of them. We know that barclays, goldman, j. P. Morgan, but there are 10 secondtier underwriters, citigroup, Deutsche Bank and jeffries. And a lot of securities firms have dialup, hsbc holdings, and this as well. We dont have direct comments, but we are counting down to that ipo ipo leave to be happening towards the end of the year happening to eight to 10 billion. That will be the years biggest ipo. 28 banks now lined up for that. Plenty more to come on daybreak asia. This is bloomberg. upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. 76 of 23andme Health Customers surveyed reported taking healthier actions. Constant contact. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Shery take a look at how currencies are trading at the moment after we saw that dollar really hold that climb five days that we saw this week, still around the 200 moving day average but on the other cited the trade we have seen a little bit more strength on asia. Japanese yen holding at about that 145 level. Of course we will continue to watch for those cpi numbers from the month of july in japan in just under 10 minutes. We are also watching the aussie dollar because it was really under pressure after the Unemployment Rate rose more than expected for the month of july. And expectations were seeing the labor market really turn around and sending the currency lower. We are watching also the offshore yuan. A little bit of strength, trading week passed at 730 level this after we heard that beijing could be taking action to step up intervention in the currency market. They want to really prevent that surge in yuan volatility. Paul lets get more on this, bring in state street seeing global macro strategist. I want to start us off in china. You mentioned about moves to protect the weakness in the yuan, but if we take a look at this chart on the bloomberg, we can also see that there has been a record streak of net selling by Foreign Investors over the stock connect. Would you be recommending investors to join that exodus . We are still concerned about the policy response that the administration could actually implement on an ongoing basis. So, i think there is still a lot of wood to chop before we get comfortable and its time to think about picking the buy here. A lot of questions about the efficacy about what they could do and the environment now with regard to demand, as well as the property sector using this quick defensive on the region. Paul when weve been in situations like this before, it usually means the stage is set by an entrance for the National Team to buy up stocks, but is there a risk that would just end up buying a more attractive exit point for investors . Is that something you think we are likely to see . I think thats absolutely correct. I think it is a risk. I think some of the Economic Issues that weve all been made aware of within a time, you need to see demand. Dont forget that we are kind of dealing with a lot of these concerns as youve got the Global Growth landscape really starting to slow down on top of it. So kind of that natural engine that often comes from the export side of things is nowhere near as robust and thinking about this for the next several quarters as a potentially has been in the past. Shery yet the u. S. Continue surprise to the upside when it comes to Economic Data and leaning to that volatility in the rates market, but what is this telling you about whether policy expectations are being properly reflected . The great selloff has been quite drastic, quite violent over the course of the last few weeks. In a lot of ways, it hasnt been one where the story around higher yields have matched up. When we look at policy expectations, they have gotten a little bit tighter, expecting less in terms of cuts, looking into 2024, may be a little bit beyond that. But in terms of where the market thinks the fed is going to reach , that hasnt changed too much and overall Inflation Expectations seven change too much. This is what we call a real yield driven type of selloff, which has a lot of implications in terms of just where overall yields are going to clear once we get through this. The with a lot of the uncertainty that remains out there in terms of a postpandemic environment, as well as whether or not those structural aspects that keep the u. S. Economy afloat can continue going into next year, i think will cap rates somewhere around here. Its hard to try to catch that falling knife, if you will, but there are just a lot of stories that arent matching up quite cleanly. Shery give us a little bit more in terms of investors having to reprice in this environment. We are talking about idiocy currencies in the rates market in august where it slow. We do know theres a lot of supply. Thats been a bit unexpected. So august is probably not the time where investors are going to aggressively walk by. Then you have the overhead from jgb and investors and whether or not theres intervention that comes out of asia in general whether its japanese investors, and or the chinese authorities with regards to the currencies. Its an upper hand, it will take a wild to get through that and be comfortable going back into the rates market, kind of like an economic perspective. You need to see things lineup. Shery always great talking to you, global macro strategist. If you missed any of those charts that we showed you throughout the conversation, gtv is your function. This is bloomberg. Shery we are awaiting july cpi numbers out of japan at the bottom of the hour. Core inflation is expected to pull back. Weve had a week japanese yen boosting prices of imports in the country. Thats really accelerating those Inflation Expectations. Those details are next. This shery we are getting breaking news out of japan, the july core cpi numbers, excluding fresh food, coming in at three point 1 , matching economist estimates and also deceleration from the previous month. We were expecting core cpi to really pull back a little bit, but at the same time, we are continuing to see the upside pressure on the headline number, 3. 3 growth, which matches the economist estimates. This also coming at the same level of acceleration than the previous month. Take a look at the core, core cpi. Exclude fresh fruit and energy coming in at 4. 3 . And thats in fact the acceleration from the previous month of 4. 2 . Thats matching estimates. We have seen rising accommodation fees, rebounding demand for recreation and upside risk for inflation in japan. Of course, we will be watching what the boj does in reaction to these numbers, but core cpi deceleration to 3. 1 growth for the month of july. Lets now turn to bell for a check of the broader asian markets. Are we standing up . Focusing on the Market Reaction that we see two of those numbers because weve been hearing from economist, investors in the markets that any reading, particularly in the core one you mentioned came in line with estimates or exceeded them would be something that would still continue to keep pressure on the boj to start to normalize away from its easy policy settings. That is the reaction to that in terms of the Market Reaction. We arent seeing too much in fluctuation in terms of the japanese yen. Just a little firmer against the greenback. We see futures fairly steady. Nikkei futures coming online in singapore, that contract pointing to a weaker star. We didnt have that we cant weakness coming through in the wall street session. Questions really revolving around that high rate environment that we see outside the markets. Lets change on to put those moves in the japanese yen. A little firmness coming back in after we saw the core cpi reading coming in line with what economists had been expecting. As i said, really a lot of economists saying thats going to put the pressure on the boj to start to normalize. That could lead to further yen appreciation. Probably, the Market Reaction fairly muted and that is in line with what we tend to see when this reading comes out. The yen reaction is tight, taking a look at the first 30 minutes of release over the course of this year. Fairly range bound. Shery lets turn to the latest of Financial News because bloomberg has learned that Goldman Sachs has gone on a hiring spree to help address concerns from regulatory authorities, including the fed. Su keenan joins us now with the latest. These extra compliance are coming on board when we actually see bankers leaving the firm. Su that gives you an idea of how important compliances right now for goldman. The most important thing to understand according to my colleague is that its never good to have the fed in the building and definitely not good to have the fed in your business. Thats whats been happening at Goldman Sachs. Our correspondent broke the story and sources that goldman have been telling us for a while theres been a hike into reglet tory scrutiny. Now according to these sources, several hundred news factors are being brought on board specifically to help address concerns for regulatory authorities that include the fed. And this is coming as the firm is cutting execs because of the slump in business. Bloomberg reporting also shows there are now more openings for compliance staff and there are for bankers. While its not unusual for large banking firms to face routine questions from regulators, goldman execs privately described that there has been growing pressure from the fed over the past year. This is a situation that is never ideal for a bank because number one, supervisors impose formal and measures. Number two, they are in your business, basically. One source told bloomberg that goldman has been dealing with the confidential measure imposed by the fed that actually predates the current increasing banking scrutiny that weve seen. Goldman makes it a practice not to comment on any potential regulatory issue, so they are not commenting here. Paul how does this add to the challenges that the bank was already facing . Shery su it puts pressure on the ceo and the stock dropped into the price part. Right as the story broke, the stock lost about two dollars before gaining some equilibrium and recovering a bit. There has been a lot of focus on goldman in recent weeks and months and senior managers have voiced frustration with the ceo for newspapers and magazines, and bloomberg included, among other things, the frustration has come from the botched consumer banking, which was solomons idea, and it brought increased regulatory attention. While some had blamed solomon, the ceo told colleagues that it was tougher reglet tory climate for the industry at large. In the blowup of the Investment Firm on that capital in 2021 really set up a prolonged look at just how wall street banks handled counterparty risks. Then you had the Regional Bank failures. There were a lot of questions from regulators on what the big banks new in what was involved in some of the early attempts for rescue. It can take a wild to overhaul compliance to to poor compliance overhaul at these big bangs. And observers say it could be a lengthy mission for goldman as it seeks to fix the lapses. Paul su keenan there. The leaders of japan and south korea are set to meet in the u. S. For a trilateral summit beginning on friday. For more, lets bring in isabel reynolds. Isabel, i will start with you, what concrete results are we expecting from the summit . It does seem to be a more substantial summit than what we mightve expected. It was initially set up because the three leaders did not have time to meet at the g7 summit in may, but they have a broadening agenda and they are expected to come up with things like a hot line between the three countries so they need to confer in times of crisis and making a commitment that they will confer with when those crises occur. Also, things like setting up military exercises, annual military exercises, which have been difficult to organize between japan and south korea. Also, just institutionalizing the summit. Thats the first time separately from any other summit. Its a freestanding event and will be an annual event. Shery what are we expecting from south koreas president during the summit . The president will be touching down in d. C. And he will go to camp david, the retreat where he will begin by sitting down with biden for a oneonone and followed by the trilateral meetings with him and biden together, they will have a working lunch together, and thats when japan and south korea are going to have the lateral summit. It would follow a joint presser where there would be laying down two documents that they have agreed on, which are the camp david principles and spirit of camp david. The First Principles would be literally talking about the principles, u. S. , south korea and japan share like themes, it will be touching upon some of the key issues and global issues such as the advanced technology, Climate Change and nonproliferation. The spirit of camp david would be the joint statement among the three nations. It will be talking talking about some forming of the group or alliance of the three that was just mentioned, that would be also talking of the deterrence of what we would presume would be the president had mentioned what the president had mentioned to us earlier. Shery they talked about these shared values and officials have talked about wanting to lock in gains that have been made in a relationship between tokyo and seoul. How likely is it that they will succeed . I think thats something we very much have to look at over a time. Over japan and south korea we have decades of resentment that have built up over japans colonial era in the korean peninsula. And we have seen that in the past, we have seen that fall back again when you get a new president. Thats one issue that could occur in the future. I think we also have to look at the u. S. Piece of this. U. S. Officials have been quite open and saying they want to make this a bipartisan feeling an agreement because we dont know who the next u. S. President is going to be, and it may not be someone whos keen on maintaining these alliances with the u. S. Traditional friends. Paul you did have an exclusive interview with them earlier, what did he tell you in terms of a possible breakthrough in cooperation with the u. S. In deterring north korea, which incidentally, we heard my consider testing another missile. They expect it to lead to somewhat of a wider agreement with a degree to better enhance capabilities against threats of north korea and this would be a milestone summit with the body that they created. Experts are telling us that this could be a form of a meeting, nato, that this could be keeping beijing in check. This could be pretty significant just considering that the potential office had said that the three countries combined, the gdp of them is one third of the entire world and its a massive collaboration body of the three and we will have to see what comes out of the meeting. Shery guests joining us both from tokyo and seoul. Do you breaking news at the moment, we are now hearing that instacart is said to be planning for a september ipo, instacart is a grocery delivery company, and people familiar with the matter telling bloomberg that it could publicly file its plans for an ipo with the u. S. Securities and Exchange Commission as soon as next week. Though instacart had previously considered a direct listing, the company is planning a traditional ipl on the nasdaq according to people speaking to bloomberg with that ipo potentially coming as soon september. Coming up next, with the World Cup Final coming up this weekend, we will look at whether the tournament success has held the push for equal pay and prize money in womens sports. This is bloomberg. 76 of 23andme Health Customers surveyed reported taking healthier actions. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Shery england and spain are set to face off sunday on fevers world cup womens final, capping a tournament thats drawing record crowds and money. It has set records for the largest audience in history for a single women sport. That discuss the lets discuss sports with the Deputy Director and interim u. N. Director. Great to have you with us. How much progress would you think has been made through this tournament . Thank you so much, its great to be here today, and what an exciting tournament. Not just on the pitch but in terms of gender equality. It was in 2019 where we heard these constant chance of equal pays in the stadium and 2023, the fed has raised the prize money by a triple from 30 million to 150 million. This is part of a threestep gender equality plan. Shery at the same time, although we do have these answers, they are still not paid as much as they do for mens events. What more needs to be done . Great point. The mens take away back in qatar was 440 million. So still this pay gap exists. This pay gap isnt just on the pitch, its jackson lee something that addresses women all over the world, no country has close the gender pay gap. Lots more needs to be done, this is in terms of ensuring women have visibility both online, but also in terms of professional opportunities in sport. More airtime, as well as more equal playing conditions, these are just some of the issues to face, but theres also the issues of abuse that female athletes face in terms of the toxic backlash, money, even including through mainstream media. Paul certainly the time of year in australia has been a huge success with the home team doing so well getting all the way to the semifinals. Viewership numbers in australia had been globally very strong as well. But still back behind the mens game. I do remember discussing with fifa before the tournament set off, what they pay for the rights and they wouldnt tell me, it was commercially sensitive, but i do know substantially less. Great question, we have seen viewership nearly doubling every four years since 2015, i think in 2015 there were 750 million viewers. Now, as you said, 2023, 2 billion viewers, yet that number still lags far behind the male gang. This year is potentially due to the contracts that are established, but its also due to the shifts in norms and demands for the sport. I think we are seeing an upward trajectory, which really reflects the ways in which women sports is being increasingly recognized around the world. Just the other day i saw on social media someone said they jumped into a taxicab in new york city and they cab driver said, did you see the game last night. What they were referring to was the fifa womens soccer game. What a refreshing approach to hear the game being referred to, women sport, for one of the first times. Here, i think we can see women on the pitch needs to be reflected on how gender equality has increased around the world. Paul its an interesting observation and when i would share from here. People would say have you watch the games and i would see the game and there is no gender specificity at all. But what about teams and broadcasters from other more conservative countries and the barriers to accepted a bit higher . I think that we are seeing the barriers to acceptance starting to come down little by little, to see more stability for women in sport around the world. I think that the world cup has really rude has really raised attention to womens rights issues more broadly. We can applaud fifa for not shying away from showcasing one of some of the many social issues that happen on full display during the tournament. You may have seen the captains armbands had messages, such as unite for gender equality, or the stadiums led lights carrying messages on unite to end violence against women. As you and women in our partnership with fifa were energized by the way in which these messages are starting to cut through audiences all across the world. Paul you are with the u. N. , what is the u. N. Doing to help, but it is not body that traditionally associates with sport. U. N. Has a Significant Partnership with fifa and other sporting efforts around the world, including at the International Olympic committee. In order to really partner together to drive gender equality as an objective in fifas work, and we are excited to see the ways in which this has pay dividends, not just in terms of sporting takeaways, increasing triple fold here in 2023, but we are also seeing women turning into the door in a serious way for the first time in over 100 years. Fifa has rewritten its constitution, creating a new womens football division, increasing women into leadership positions, and then of course investing in a billion dollars into the womens game. Its this investment thats key. Not all the money goes to the big prize money, this is really intentional because its about building the womens game rather than just giving big and he only to athletes. Paul very quickly, before i let you go, who are you supporting in the final . I wondered if youd asked me this question. Indeed, both our teams are out. Im a fan of the underdog, so im standing behind spain for the big game. Paul terrific, thanks very much. Sarah hendrix, deputy executive director at u. N. Women. You can watch us live and see our past interviews on interactive tv function tv. This is for bloomberg subscribers only. You can check it out on tv. This is bloomberg. Paul Japanese Companies wages aggressively are outperforming on the tokyo stock market. For more our senior stock reporter joins us. The share price of Japanese Companies that do make those generous wage hikes, just how well are they doing . In morning, paul. Yes, as you have probably discussed with many guests over the past several months, which hikes have been one of the key focus is in the market. There has been a debate over whether wage hikes are a good thing for the stock market. Some people think wage hikes mean stock increases while others think it is a part that companies have to pay. They did their research on this and what they found is quite interesting. Companies have announced aggressive wage hikes have done better in stock market during the past quarter. The basket of 33 companies they are looking at did five Percentage Points better than the benchmark, so that is quite a big difference in over performance in the market. Shery very counterintuitive. If you are hiking wages, that means costs are rising for your company, your bottom line is getting hit, so why are we seeing this . Its interesting, actually, its wet many Fund Managers have been feeling, that is the companies have announced wage hikes ours essentially a Stronger Company and they can afford to pay more than other companies. Or they are also strategic and forwardlooking. Labor marketing is tightening at the moment. If you look at the demographic data, japans population has been declining and is expected to decline 6 in this decade and 12 in the next decade. So its a really tough situation for companies to hire. And difficulties in hiring, is a part of life with these companies these days. Shery our senior asia stock reporter there with those wage gains in how companies in japan are performing. These are some of the headlines from global chipmakers that we are also watching. Bloomberg has learned that arm has lined up, 28 brings a handle of its ipo, sources say the transaction will be led by barclays, j. P. Morgan and Goldman Sachs. Bank of america and Deutsche Bank will be among 10 institutions. Arm seeks to raise up 2. 7 billion dollars next month aiming for evaluation of 60 to 70 billion. Brought, a secure 28. 4 billion dollars in new funding for its planned acquisition. The debt commitments entered into last year were 32 billion. The potential 61 million acquisition could be one of the biggest tech deals in history. The market opens in sydney, seoul and tokyo. This is bloomberg. 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When you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five million peoples lives, its overwhelming. Its everything. This is daybreak asia. We continue to see that global bond selloff. Inflation in japan meanwhile as we discussed our 3. 3 in july. The young still very weak as we look ahead to the open in japan. What are we watching . It is that narrative we have been discussing. It kicked into gear. Telling us that the outlook for investors is higher for longer. Quite the Market Reaction has been fairly muted. Most noticeable year in the japanese yen. Just a fraction of firmness coming back into the currency. Any video that came in line with estimates or a little bit higher would not be enough to shift any sort of speculation. The doj will be needed to shift away from its easy policy settings in the coming months. Particularly when you look at the core ratings of fresh food. Matching a record set in may. Underscoring the strength of that deeper inflation trend. That is the outlook stock online there. 1 to the downside. Lets change on. Korea coming online. We do have a meeting between the leaders of japan, korea and the u. S. At camp david in maryland. Still worth noting. But we are watching in the session will be tech stocks in particular. You can see the losses there. That is a tech heavy sector. We saw the nasdaq dropping from its biggest threeday decline since february. The cost me off. Watching the moves in the korean lawn. It is at its weakest since august of last year. Lets change on. We are keeping an eye on what is happening in the aussie session coming underway. We did have an interview with australias secondlargest pension funder. Borrowing costs in a stroller could stay elevated until 2025. Well, we are just watching it there. Fractionally weaker in the session. You have the outlook for china. We have been watching the Chinese Markets. Especially as we saw that selloff in assets. The one weakening. Weak Economic Data has not helped. My moms coming from the government officials. Caps off in China Remains a little is now left. Great to have you with us. Does this mean we can see some supposed to be upside . When it comes to chinese equities . Wes and i think this is interesting. I would like to go back to the end of last year as a starting point. We are all talking about reopening or the lack thereof in china. There was a 60 rally in the market. We sold our kind of come back off again. There are number of issues. We can talk about what is happening in the real estate market. At some point you may start to see stimulus come into the part of the market wish will make a difference when iraq consumption. When we talk about this pressure on chinese assets, are we talking about acrosstheboard selloffs . We know there are sectors in the markets that are really have driven by Government Policies such as evs, clean energy, perhaps a lot to do with education as well. Although some sectors where you can find more opportunities than others . Absolutely. A lot of people focusing on certain sectors on things like real estate for example. If you look at certain places like health care, they have been attracting quite a lot of political tension. These are going to be good, long term stories. It was a good thing to look at some of those areas. The transition is never smooth. During the transition, as the markets is quite a bit, there will be opportunities within that. It is not always about what is happening within china. We do see some opportunities in their post pullback from what weve seen. In terms of some of the stimulus we have seen in china so far, do you get the sense that it is a little bit piecemeal and that some of the moves such as cutting the republic, the mlf is the wrong answer to the wrong question . Is cheap money really the problem in china . What more needs to be done to strengthen animal spirits . I am not a policy expert. I will leave that to the policy experts but we would like to see companies with good longterm prospects and good valuations at the moment. We want to see them move to china becoming test coming up for consumption that economy. People left on those, spirits are quite low. We would like to see more targeted things in consumption between the nextwave of the chinese economy. We can talk about real estate but that is more looking backwards there and forward. The market has not seen anything that we have gotten really excited about yet. The market does not need to be comms for lack of a better word but it is those moves were likely to see that will provide things for more stability. Making people feel more comfortable with their job outlook, etc. And seizing consumption come back. Question to point out a minute ago that there are lots of other markets besides china. Where are you looking for opportunities right now . Absolutely. It has been very interesting. Weve been excited about places like japan. It is becoming quite dominant. It is an interesting sort of dynamic. There is a lot of Intrinsic Value in these companies. A lot of it is about south help and restructuring. Making the Balance Sheets more efficient. Markets are vietnam, it is one of those that is a bit under the radar. We think it is in that an attractive opportunity sitting there as well. Indonesia, and other market, a good structure of. Things look attractive there. Post willie what we have seen with the pullback over what happened with the donnie were there are some opportunities with the stock market in that market, we have seeing a lot of opportunities. As we are seeing this global bond selloff as well, how are you adjusting . Because i am the equity side. I think our fixed income is saying we are games where the end of this cycle. There is a lot of debate. I think there yields look a little bit attractive. That is how they had been looking at things. From equities, we think we have seen that sort of big move inmates. We are able to see that he will come back very quickly like somewhere. There is no see how the u. S. Market will be valued at the moment. In asia, valuations are still very cheap. Those high rates are unlikely to impact. The ability to cut rates is probably high here. We will look to add more stimulus. Across program. The hundred asiapacific equities. Its get to annabelle for a look at what is happening on markets. I am seeing some green next to the air sex but it is been a while since ive seen that color. Because if you just want to talk about that for a moment, the sectors that are moving higher so far are the two meals and energy and a lot of those are in the air sex 200 followthrough for the most recession because that was the one sector that also move higher. Oddly, what is lagging so far is tech stocks. That is not surprising. There worst three day drop we have seen since february. A little bit mixed as we get trading underway. Another asset class is prices of bitcoin. If we could look at what we are seeing. We are back at a two month low. We essentially erased all those gains after we saw this going udf or spot its yet file is coming through. These are some of the names linked here. You can see there under pressure, paul. Thank you. Still to come, we discuss asia travel outlook as china lift its ban on group tours to major cities. First, we have learned the chinese authorities have told state on banks to step up intervention in the currency market this week. More on that scoop next. This is bloomberg. The first time you made a sale online with 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 woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. 76 of 23andme Health Customers surveyed reported taking healthier actions. Constant contact. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Fabulous surroundings. But everyones looking at their phones for Financial Insights from merrill. Is he hailing a ride to the concert hall . No. Hes making sure his portfolio and retirement plans work in harmony. They want to adopt a child and build a new home. So theyre talking numbers with their merrill adviser. Shes not researching her next role. Shes learning how to handle market ups and downs without the drama. Personalized advice so impressive your money never stops working for you with merrill. A bank of america company. Chinese authorities told state on the banks to escalate intervention in the currency market this week. In a push to prevent the surge in you on volatility. We are seeing a little strength in the lawn but the onshore currency has been violence of the lowest level since 2007. For more, let us bring in Stephen Engel. What to me now . What do we know . Question was a bit of Dollar Strength into this equation. There is clearly a sentiment issue into the chinese economy. The lag between policy pledges and policy action in china. Traders do look at the daily fixing which we will get. A little over one hours time from now. That will likely be possibly a record higher daily fixing rate from the poc. All the kind of stem the rapid volatility and the rapid decline of the onshore you want. They just do not want an excessive move or a lot of volatility. What we are learning from this bloombergs group is essentially authorities are encouraging or instructing, urging state banks to intervene on their own and buy some you want and prop up the lawn. But will get that daily fixing of mark cranfield. He is going to put out his blog saying he is already see bias is lower even before the pbs he comes out in a little over one hours time with what is likely to be another aggressive you want fixing. Mark is citing the story, this bloomberg scoop about possible state on bank intervention. Investors will be expected to see a bigger presence from china state banks. That is something we will be looking for. The other tools after what authorities have been trying to do is boost confidence in the chinese economy with that surprise rate cut. Also, a string of strong within us daily fixes and large injections of shortterm cash into the financial system. Traders have been saying that daily fixing being less successful in recent days. They have grown more weary of that less than convincing Economic Data coming out of china. Close the poc published its Monetary Policy report thursday afternoon. What did he have to say . They are saying the market fundamentals and policy is remaining stable and is working right now. They did acknowledge weakness in the chinese economy. Week Household Income outlook. Also, growing pressure and local government finances but they said they will resolutely prevent over adjustment in the lawn. They will step up macroeconomic policy adjustments while largely reaffirming his policy stance. It also says they do not feel the renminbi has yet deviated from fundamentals. They have ample policy tools and ample experience in market volatility to safeguard and stabilize the effects market. That was bloombergs chief nor is economist Stephen Engel there. Property developers are warning of widespread losses. Fueling concern is that the housing crisis is printed companies with government backing. Lets bring in the illusion leaves the asian investing coverage for Bloomberg News. What is the latest development with chinas troubled property sector . Almost half of the 38 listed stayed owned developers have crashed preliminary losses for the first half. That is up from 11 from last year. Only for such firms last year warned of such profit losses. It is over the stark reversal from just two years ago. It signifies how the property turmoil seen in the country is pouring from private developers to stay on drums running off emergence and stepper provisions. I think we know because we are not seeing that the stronger policy support, the problems are just starting. Cross that is surprising given that we have always thought smes were investor darlings because they had the backing of the government. When can we see that back in . We really havent seen any of the policy support they promised. Yes. I think for the signs we are seeing right now, what it means is the state owned developers are not as immune and they also probably have limited abilities to step up and support the market. Take over some of those uncompleted projects that the private developers have struggled with. In order to ensure those Home Deliveries to homebuyers. But it also means that right now, it is possible that some state owned companies are just kitchens sinking their results to prep for better years ahead. The key is that they still have access whether they still have access to bank funding. For the smaller ones, there will be evaluation on a casebycase basis. Cross lets try to some of the other stories related to these developers. The china evergrowing group has filed for chapter 15 bankruptcy here in new york, and move protects its u. S. Assets well it works on a restructuring deal elsewhere. The court finding refers to such proceedings in hong kong and the cayman islands. They have been working for months to finalize offshore debt restructuring. Approval has been one from creditors in three coupon payments. The company was taking two extra months to pay about 50 million of interest. The approval allows them to focus on a 274 million note maturing on september 1. You can get a round up of all of those stories you need to know to get your day go on this edition of debris. Bloomberg subscribers go to dv go. This is bloomberg. Wake up, achievers. Youre making the most of every hour of your life. Except the hours that youre sleeping. So why do we leave so much Untapped Potential on the table . This is a next level bed, for a next level you. My circadian rhythm is kicking your circadian rhythms butt its not a competition. I know, but im still winning so, it is a competition. Save 50 on the sleep Number Limited Edition smart bed. Plus, free Home Delivery when you add a base. Shop now only at sleep number. A subsidy field boom helped build china into an electric car giant. But with the economic slowdown and hundreds of i had a cup is going bust, country dealing with in excess of unwanted Battery Powered vehicles. Lets bring in linda lou in hong kong. Hundreds if not thousands of evs have been found sitting unused in fields across at least half a dozen cities in china. How did that happen . China spent a lot of subsidies to try to kickstart their ev industry. A lot of our human businesses were started to helping these electric vehicles to the masses and use them for rides and taxi services. A lot of those companies relied on government subsidies to run. Unfortunately a few years ago, china started slashing these subsidies, hurting the cash flow of these companies and a lot of the one under. These cars ended up in no mans land and a lot of them have been abandoned. Given those subsidies, china has become the leader in ev adoption as well. What do these abandoned cars mean for china . Amended ev is due represent a waste to the industry but some of the analysts have said that this development in the chinese industry was actually very crucial. These van halen businesses were instrumental in helping to educate consumers that were a safe alternative. At the time, china did not have a big Consumer Market for evs. Having these businesses out there buying these evs and putting them there actually autumn jazz motivated automakers to continue to invest in ev related technologies. While these evs may be a very big eyes are right now, in some ways they are kind of an odd monument to chinas ev development. One of the companies what other companies or government doing about these evs . Price for the past few years, theres been a lot of media reports about these ev graveyards. They have said they will try to clean up these cars but there was a challenge in that because a lot of these righthanded businesses have gone under. The ownership of these cars are not clear. Some of them are probably still entangled in a court cases waiting to be auctioned off. Some of these will be taken to scrap yards and they will try to recycle the materials for future years. A lot of these are just left in fields because it is not clear what anyone can do with them. That was linda lou in hong kong. Here are some headlines on global chipmakers. They have lined up 28s handle their ipo. Sources said the transaction will be led by Goldman Sachs, j. P. Morgan. Bank of america and Deutsche Bank will be the second of 10 institutions. They seek to raise up to 10 billion in the listing next month. Emmy for evaluation of 60 to 70 billion. Brock has secured 20. 4 billion in new funding for its Land Acquisition of vmware, the tech commitments replace a bridge loan that it entered into last year with a potential 61 million acquisition. This could be one of the biggest tech deals in history. They are still waiting on the ftc to decide on whether or not to litigate the transaction. The largest u. S. Maker of chipmaking machinery see sales in the corner of about 6. 5 billion. That is a heifer, his estimates. Gary dickerson says the album and rise of internet links devices are boosting results. We have plenty more to come on daybreak asia. Stay with us. This is bloomberg. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. This is daybreak asia. We have a check on markets. The major theme of overriding Investor Sentiment today is what we are seeing in the bond space. The story of this week really came through in the fed Meeting Minutes there was officials still indicating there could be a need for further rate hikes. Inflation is not over just yet. This is playing out into the changing looks over her bond yields will go from here. We had the tenure yet still pushing higher across the past few sessions. The days of using money are behind us and we can go back to where we were more in line with preglobal financial crisis. That is one of the things watching in the sessions today. Highyield is feeding across the equity markets in particular. We are under pressure. Most of these markets and the red today. The notable exceptions standing out our material exceptions here. That could be a bit of a doubt a dollar weakness story coming through. There have been five Straight Days higher for the dollar index. Just modestly higher. The other part of the story is around china. Well have more details on what we can expect for the market open later on today. You can see some weakness ahead. We have also been digesting the latest Inflation Numbers out of japan as expected. The key gauge showing signs of going off a little bit in july. The question is if it is enough to convince the bank of japan that price pressures have peaked. Our Global Economics and policy editor Kathleen Hayes is here. With these numbers came in line with the forecast. That is not always the most important aspect of a report but the point is that things didnt really change much from what was expected and what is going on with japan when it comes to inflation so lets recap the numbers and start with the headline. 3. 3 year over year. But we are really looking at here is the next fresh food. That was the turquoise line. It did take down a little bit. In terms of what drove this, boosting the numbers, food, more than a percent year over year. Clothing and shoes. Japanese people want to get out and do stuff. These are the price increases to be a jet looking for. It is not just things you need. It is about things you want to buy. That is what the real final consumer demand is all about. Pulling it off, we saw utilities, medical care medical care. All these things. In the end, what changed . Not much. It is actually messing this very important factor of things like demand, hotter demand for recreation and he thinks that will keep the be oj on alert, looking for signs that inflation , the sticky kind of inflation is growing. That is the kind of thing the be oj mentioned at its july meeting. Widening the band. That is the kind of inflation print that will make them think maybe it is time to look at our policy again. Chris we have the tenure jgbs,. 644 at the moment. We can as well. Does this change the picture at all . Kristin much at all. As much as the yen has been so weak, it is the dollar yen rising above 146 briefly in the last 24 hours, the level that spurred the doj to make that unexpected move to widen the band. When it comes to bond yields, will the bond yields rising. In fact, the weak 20 year jgb auction we saw is another domestic pressure. Not just following u. S. Yield forces or global bond yield forces. Forces within japan where there is some doubt about where yields are and where they will go. It was just that kind of a trading day. It was a band that is 20 year bonds. In terms of the end, is he going to show any signs of being ready to do a tweak that boosts the yen . For now, you dont see anything in this report. We havent heard from him in a while. Is this a china story . Is this a dollar story . David raises here. Is a little bit of both. The numbers are telling us that quite clearly. It is a dollar story. If you compare the yen and the long, it is doing much better. Everything is basically done against the u. S. Dollar. If you rank it on smart returns, the one actually held up. Make no doubt, the yuan has weakened substantially against the u. S. Dollar. When you put that on a basket, the yuan basket has actually risen. The yuan has actually done quite well against its basket of peers. He just hasnt done well against the u. S. Dollar. It all points to a very strong u. S. Dollar. Plenty of volatility in the right spaces. How is not affecting rates in china . The short answer is it has not. This is the point that a lot of Fund Managers who have allocated parts of their portfolio to the local bond market have been making for quite some time now. The last five weeks have actually improved it. Yields have fallen if not held steady. The specific group has outperformed their peers for five straight weeks. It outperformed virtually every week so far. It is a different story when you look at corporate bonds. Wonder what is happening with highyield property there. Investment grade, that has been pulled lower as well. Spreads have widened and we are down about six to eight days going into this morning here. That sounds like a mixed picture when it comes to the bond space. How is that of the function of Market Sentiment right now . That is a pocket of it. Everything was from the nuance we have on the chinese currency, it is quite terrible out there. You look at where volumes are, the bank lending as a proxy for privatesector confidence, you look at markets, equity markets, the fact that we are simply bouncing up was because of technical indicators tells you everything you need to know. Because i was david and was there. Hong kong stocks teetering on the brink of bear market. Warning signs mounting in all corners of chinas economy. Lets get more from our engine stocks managing editor. China stocks and hong kong reversing all of their year in losses. Does that indicate any change in sentiment . Is this just a technical rebound . Class as david just mentioned, traders have attributed to rebound as a technical rebound because we have seen excessive selling in the hang seng index in the past five days. I think almost every day the sun was more than 1 . The relative strength index for that is approaching 30 which is indicating that oversold level. Losses of 8 . Overall, people are saying that it is telling exhaustion this yesterday. I think the mood remains quite pessimistic. We have not seen any major stimulus or a good Economic Data coming out recently. Although we did see a scoop yesterday about Chinese Government asking banks to step up intervention in the market. I dont think that will translate significantly to the equities market. The hang seng index is going to announce its quarterly rebound. What are we expecting . We expecting to see some new additions in the consumer sector. Leah latella is one name is one that was mentioned. That is an even maker. Pharmaceutical companies are scheduled to be added as well. I think both sectors still have relatively low representation. In terms of deletions, one came and we are watching out for his country garden. With the company teetering on the edge of a default, some people are expecting this company to be removed from the index. Douglas bloombergs asian stocks manager there. Coming up, with the recent lifting of a ban on Outbound Group tours in china, we take a look at the Global Travel sector with syria up next. This is bloomberg. 76 of 23andme Health Customers surveyed reported taking healthier actions. Because they know health isnt just a future state. Health happens now. Start your dnapowered Health Journey today with personalized insights from 23andme. Id like to thank stitch fix. For taking care of the shopping. For getting my fit just right. For finding me looks that work for me and my budget. Now getting dressed is so easy. You just get me. They get me. You just get me. And theyll get you, too. Take your style quiz today. Look at how stocks are trading across asia right now. We are seeing Consumer Staples in industrials loading the declines. We do have materials in real estate trading in the green. Even the Energy Sector is slightly positive. It seems to be more friendly risk off as the day progresses. We are seeing the nikkei down. The cost be extended to clients from yesterday. As well as the a set as well as the aztecs 200. Classic positive Economic News out of china. Kind of hard to come by these days but the recent lifting of a ban on outbound tour groups may disqualify. Spring in the head of asian Consultancy Firm more than that means for the Global Travel sector. Thank you so much for joining us. We do have that lifting of the china travel ban but are chinese travelers interested in traveling abroad right now or is there more demand on the domestic side . Class currently because of the limitation on the capacity internationally. It has been much on the domestic side at this moment. Really, the demand is printing up. The new policy will bring the big market because travelers may experience language barriers and culture different from the travel abroad. Group travel does help in that sense. That is good news but we may not see a positive impact yet. Class you capacity problems. Can you give us a more detailed description of those sorts of issues on the capacity start and where we might expect to see capacity get back to prepandemic levels . Yes. Because Tourism Travel agencies experienced major disruptions over the last couple of years. So it takes time to reestablish supply chain including looking for new partners in the destination market. And packaging their products. That all takes time. Also, the problem is the visa process. The capacity to process visa by a foreign consulate in china is limited compared to the mountains at this moment. Also come from the airline supply side, it is perhaps easier for Chinese Airlines but it takes time for foreign carriers as they need to get their capacity back to china when they deal with the recovery of other markets. I believe a more realistic expectation is to see more meaningful recovery starting from next year. Class is this part of the time issue that we just need time for all of the supply chain issues to fall into place including what airlines can do . Is there interest to really bring all of these chinese travelers abroad . Yes. Capacity was, it is actually it will take time. It is not just the china thing. It is a global issue at this moment after the pandemic. After the supply chain disrupted. It takes time for manufacturers and airlines to establish the supply chain. But also for them to decide the interest, i see that the passenger market of the pandemic, the travelers market, it is starting to explore destinations. The traveler is being cautious to make sure there covered for unexpected changes. Also, airlines are starting to explore destinations to make sure the cost efficiency of the flight. It would be quite useful for airlines to deep dive demand from the target market and plan the product package properly. When it comes to the chinese taurus, their spending power may have diminished given the weakness of the you on that we are talking about every day against the u. S. Dollar and other currencies. Are you seeing those times already . Do you expect chinese consumers and tourists to take a hit because of that week you on . Yes. It is a weak market at this moment. Because of the pent up demand, it has been quite strong. They have not been able to travel for a couple of years. There is still demand there. It depends on what destination they want to explore. You mentioned japan. Japan is somewhat similar to china. Outbound travel from japan is not recovered. It is currently 30 down. Compared to 2019. Currently mainly driven by china and japan. Japans connections of the u. S. Is recovered to almost 95 of the 2019 level. Overall this is a market more relying on inbound traffic still. We will see quarter three from our data to expect 55 growth in total seats between china and japan compared to quarter two. That is a major gross. It will be led by chinese carriers. Shanghai is the city driving that growth. We could see them double or triple their capacity in quarter three. Can you give us some insight into ticket prices . Some are very expensive compared to where they were before the pandemic. How much has this to do with inflation . Exactly. I guess the high price will continuously the problem will be there. He overall cost for airlines to run the routes as well as the supplyside, that will play a part. Thank you so much. If you missed any part of this conversation, tv go, that is your function. You can watch us live. This is for bloomberg subscribers. Check it out at tv go. This is bloomberg. Hes ignorant this is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates, exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh Global Investors are shifting out of chinese assets. Bloomberg intelligence says most foreigners still find china on investable for now. Does not necessarily the case for all the funds. Lets bring in rebecca. Where other the photos showing us right now . Class we are really seeing a diversions inflow between onshore investors and offshore investors. If we look at the onshore market, Mainland China has done phenomenally well this year. They just surpassed 300 billion in assets under management and your today flows they picked up 42 billion. A Record Number for them. Dancing inflows of more than 400 billion. They gathered more than 4 billion. We are seeing a huge amount of inflows into china. We have etf connect that celebrated their first birthday, to a and southbound we are seeing more than 14 billion of turnover. If we look offshore, we are seeing a very different picture. Offshore funds have only seen 775 million. They got 45 billion of inflows. Looking at some of the large funds. The hang seng into processing of 800 million. The China Internet which is a flagship china fund for Foreign Investors have seen 2 billion of outflows from the peak in january. Very different pictures picture between onshores and offshore. Our Foreign Investors looking at china at the moment . One of the challengers for Foreign Investors is that it has been a very difficult year. The msci china is down roughly 7 , the csi 300 is down. There was a lot of geopolitical tension. That is not only intact but also if we look at all of the onshore ats in china, anime has really performed the best. The top four funds in china are anime and comic and games. This is really paying off the metaverse play. Since we have the comic and game etf that has performed 55 year to date, it is actually more than 100 returned in june. If you look at tech, we have the csi cloud competing in big data. There is lots of the of growth within china. Foreign investors really need to go down the broad base. That was rebecca there. We are headed toward the Chinese Market opens as we continue to watch that pressure on chinese assets including the offshore you want at the moment. Trading just before that; 30 level. A little bit of strength against the u. S. Dollar. This after touching that; 35 per dollar level. Sources telling bloomberg that chinese authorities have told banks to step up intervention in the currency market. This as we continue to see you on volatility. 850 futures close here. Down. 3 . We continue to see pressure on Global Equity markets. U. S. Futures giving up some of those earlier gains after falling for three sessions in new york. That is it from daybreak as her. This is bloomberg. , thats nice. Oh searchable, verified reviews. Thats better than the ham, and ive never said that. Booking. Com booking. Yeah he snores like an angry rhino. Youve never heard an angry rhino. Booking. Com baby i hear one every night. Every night. Okay. Ill work on that. Save 50 on the sleep Number Limited Edition smart bed. Plus, free Home Delivery when you add a base. Shop now only at sleep number. Hi, im jason and ive lost 202 pounds on golo. So the first time i ever seen a golo advertisement, i said, yeah, whatever. Theres no way this works like this. And threw it to the side. A couple weeks later, i seen it again after getting not so pleasant news from my physician. 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