Down oil and gas production. Haidi hello from sydney. This is daybreak australia. We are talking about the first major market open. Betty i am betty lou. This weekend has been quite eventful. Just what happened over the weekend with Hurricane Harvey, hurricane category four slamming into texas. The fiercest storm and 50 years. The worst hurricane since 2004. A quarter of the production now expectation is it will not hit the whole of the u. S. Economy but certainly texas itself. Lets get a quick reminder before all of that happened how stocks traded on friday. Watching with bated breath what janet yellen was going to say, she was on message friday. That meant the market did not trade that much, not a lot of volatility as we saw by the end of fridays trade, the dow up 30 points. The s p up 0. 1 . The nasdaq trading unchanged. We have a lot had this week including jobs data in the u. S. , likely to dominate the chitter chatter in the market ahead of the data on friday. That is a mixed opening in asia. Haidi yeah, absolutely. It is the sense that as you say, mario draghi and janet yellen very much on message, less hawkish than expected yellen, maybe embraceable. Mario draghi refusing to talk about the euro or the next policy decisions. In asia a bit of a mixed start. Here is a look at trading in new zealand were that is underway. We see the kiwi dollar 72. 42. The u. S. Dollar certainly quite a bit of weakness against the euro in reaction to the noncomments from mario draghi. Up, the aussie dollar 7936 79. 36. We are watching the empires when it comes to particular the aussie dollar. First word news with haslinda amin. Haslinda good morning. These two people have been ed [no audio] speaking about harvey to shutting down Oil Production, and we will get you some more headlines. That is a developing story on. Hat looking at the United States and issues of with geopolitics, they still want to talk with north korea despite the provocative firing of three shortrange missiles. Rex tillersons the saying washington would maintain pressure with china and other allies to move kim jongun to negotiation. Tillerson had praised north korea for showing strength. We hope this is the beginning of this signal we are looking for they are ready to restrain their level attention. They are ready to restrain vocative action, and perhaps provocative action. Perhaps we could see dialog. We want to see more on the steps theyve taken thus far. Factory output last month was low, the economy showed resilience. The industry maintained a profit surge in july, 16. 5 . Investors could tackle capacity ahead of the key Party Congress this fall. We have another talk this thursday with manufacturing released. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Fed chair janet yellen and president mario draghi led jackson hole up in the air where Monetary Policy heads next, but the contract in an interview with the Bloomberg Economics editor, governor kuroda made his position Crystal Clear despite his counterparts in the u. S. And europe. The first time we are hearing this tonight. Kathleen joining us fresh from jackson hole. Kathleen just got off the plane last night. What a whirlwind trip and privilege and interesting to have the opportunity to speak with governor kuroda. He has been there every year since he became the bank of japan president in 2013. This year he was not on the panel, he did not give a speech, but he agreed to sit down with Bloomberg News and radio about what is going on. Japan has had six straight quarters of positive gdp growth, 4 in the latest quarter. On top of the g7, the fastestgrowing country. They had inflation is low, but it is steadily rising. I was thinking lets ask him what that means. Can you start using or moving away from this . I was interested in what he had to say. When the governor spoke, he said no, japan needs to stay on this stimulative policy track. Lets hear from him. Inflationa the u. S. Rate is close to 2 . We might be far away from 2 , we are about 1 . Situationnomic price in the u. S. Is much, much better than the situation in japan so that they are now making Balance Sheet adjustment or so it is said. Ecb, they are somewhat behind Federal Reserve. So they have not yet started any tapering. The Balance Sheet adjustment has not yet considered at all. Both. Is behind the prices are only far away. Far away from 2 . Kathleen better than deflation. Gov. Kuroda we have been able ,o achieve positive inflation but it is small and far away from percent targets. So for some time we have to continue this extremely important accommodation. We are carefully watching how Federal Reserve and ecb are doing, but our Monetary Policy is japanese economy. Since inflation is still far ecb orarget, whatever Federal Reserve do in the coming months, we have to address this situation by our Monetary Policy. Betty very interesting kathleen very interesting people have been talking about divergence. With inflation towards target, wouldnt governor kuroda say there might be a reason to go in the same direction as the ecb and the fed . But he said clearly they are different condition. Japan is below target. He is making Monetary Policy for japan. He also is looking more and more at this interview as we go out, daybreak in asia 4 gdp is not assignable. He said it is good but the economy will settle back into something around 1. 5 to 2 . Japan is heading in the right direction, but it bothered to ask him about exit. He was thinking about they may be formulating plans for the future, but for now it is stimulative policy as far as the eye can see. He wants to see more progress inflation. Haidi i found interesting he is talking about deflationary mindset. We have been hearing from analysts that animal spirits are better, companies are investing, but governor kuroda did not seem positive. The main event, janet yellen, mario draghi, it was what they did not talk about. Kathleen they start to the story of stuck to the story of regulation. Specifically to that point what governor kuroda said was this thing about firms are trying to save costs. Unit labor costs in japan are not rising. There is a deflationary mindset in households and businesses. Look how different that is from janet yellen and mario draghi because they would to jackson hole, and janet yellen people want to hurt if you her to talk about inflation. Mario draghi they wanted tapering. Janet yellen did a speech about Financial Regulation. Shes in it has done a good job. Josh she said she said it has done a good job. Making banks stronger, and if there is a crisis, they can get through it, they will be a better stand than before. And also she talked about it limiting credit or growth. And mario draghi stood up and said Financial Regulation is a dangerous time to ease regulations. He warned against protectionism. In the question and answer after the speech, he was asked about quantitative easing. You think it is a success . He said it was, and right now we are not seeing is often stained a self sustained inflation rise in japan, so we have to be very patient, monetary accommodation is still warranted. Everyone is waiting to hear this sense he is ready to quickly give an announcement at tapering. He said several times in the last couple of months, he repeated. He is paying attention to inflation like governor kuroda. Su now we have heard from betty now what is next . Kathleen Central Banks are diverging on inflation. So the Federal Reserve say we. Re down 1. 5 , europe is 1. 3 japan is 0. 5 . The fed made it clear they will move ahead despite below target inflation. When it comes to the Balance Sheet unwind. That is part of the normalization process. Mario draghi says we are watching inflation, we have to be patient. He is being stopped more, and governor kuroda is not going to move at all because inflation is so far from target. I wonder if the Federal Reserve continues on this path, if it is different from what everybody else is doing. Alan blinderke to from jackson hole, he said he would not want to raise rates until inflation is clearly not just ending the decline, but actually starting to rise again. It is an interesting thing to watch. We will look at the september meeting with rob kaplan from the dallas fed, told us as well he is waiting to see if there should be a rate hike in december, he does not rule out an earlier rate hike. There is a possibility it could rise, but i think this is something that has been brewing for a while. Mario draghi was surprising. Kuroda says inflation is so far from target it is not a surprise. Su thank you so betty thank you so much for that exclusive interview with governor kuroda. More headlines expected to continue to pour in over the next few hours with Hurricane Harvey. In imax jumping 6. 4 on the opening the nymex jumping 6. 4 on the opening year. It is now a Tropical Storm. They are fighting capacity in texas, now down, perhaps more as flooding continues in texas. Haidi we have got some volatility when it comes to oil, but also broader agricultural, everything from cotton to shipping to the top yield crops. We are getting more on this and reaction to jackson hole just ahead. We have steven england joining us to talk about inflation and regulation. Betty five years in jail, we will look at jay y. Lees corruption sentence for samsung. This is bloomberg. I am haidi lun in sydney. Betty i am betty liu, you are watching daybreak australia. Lets talk about the fed, jackson hole, boj. The fed, the ecb and the bank of japan are on diverging policy cap. Paths. I want to discuss with with stephen england. Good to see you tonight. You are listening in on what kathleen was saying and her interview and governor kurodas stance that the fed doing what it is doing, he had his what to the panel and is foot to the pedal and is staying on stimulus. Stephen he was not scheduled to speak. He was not participating in the panel. His comments were pretty ambiguous. They were saying we would not we have to a sickly keep pushing. It does not matter what anyone else is doing. , the door wasng open to buying fewer jgb, but the market will let them do it. The main take away from the market will be get he is tying himself to the dovish path and saying we are in here for the long run. Betty and sort of reiterating that message. It is not a surprise, but also an affirmation that the boj is on this stimulus stance. What about the fed and janet yellen . You said it was spot on to what would happen. Steven one consideration was that they are going to do the Balance Sheet not shrinking, beginning in september. There is a real consideration they will not do anything to mess that up. You send a shock to the market, they are not pricing in much more fed funds in december, why did the market nervous that you are going to not do this. . Saiderself and others had there is inflation picking up. I think it would be hard for her to come out and say, im concerned about mental stability Financial Stability i want to freeze rates even though it is where it is and set it aside. Betty because inflation is where it is, there is a growing force. It might still be minor, but it is a growing chorus of investors who are talking about rate cuts in the u. S. I want to pull up a chart to underscore what i am saying. G btv 9433, and it just shows you a perceptible rise here in the market value of bonds with negative yield. They are climbing, and they are climbing more with acceleration. Certainly not out of the question among a small group of investors. What do you think . Steven i think this is the night year nightmare chart for central bankers. When they say low yield and negative yield, it is up a creek without a paddle whenever the economy is down. You dont have any ammunition. They say whatle, goes out has to come back in. If you are a central banker, mario draghi, qe until the cows come home, the Interest Rate sheets nowhere near where they would be sufficient to stimulate the economy without going below zero, the nightmare scenario is you have an economy slowing down where you want to cut Interest Rates. Despite the fact inflation is low and the economy is growing, it is not a terrible signal things are falling apart, it is getting rates up because it buys them time in the session. Haidi do you think Janet Yellens comments about stability, if they had alreadys field her fate as not coming sealed her fate as not coming back because it is not the Current Administration is looking more . Steven he did not some like she was trying to go out of her way to make herself attractive to the administration to be named as fed chair. Unlikelythought it was the administration would name her because it would be her second term, she would not have a third term. She would not oh trump anything. Owe trump anything. He likes low Interest Rates, pro deregulation. She hits some of those boxes but not all of them. Stephen,d finally, watching out for asia, is it a softer yen . Steven i would not think so because this is not consistent with what kuroda he says this all the time. Making the effort to contrast him and the boj, the ecb and the ad, it is great to have temporary impact, but the dollaryen trading up in the asian morning. Betty thank you so much, good to see you today. Stephen england are, rafiki capital research. Updatedkeep you throughout the day. We will be joined by the former , and societember asiapacificief officer. That will be at 9 10 p. M. Lines just some quick passing through. 758. 6 million against the estimate of 700 million, so essentially a rise on expectations there. Plenty more to come. This is bloomberg. Betty good morning, i am betty liu in new york. I am haidi lun in sydney, you are watching daybreak australia. Sinopec posting a 40 rise in their profits due to the improved performance and the chemicals unit and narrow oil and gas production. It covers 4. 2 billion in june, 76ing the estimates, billion in revenue. Betty chinas biggest coal miner has stuck to the path of doing dividends. Investors were hoping shed on hua energyhen would give to shareholders. They announced dividends. Haidi the china ever ground will be looking for backdoor listing when it reports on monday. This could triple high prices and sell volumes. But any dividend payout and itnize, they tapped was overtaken this year by country garden. A look at the business markets for this week. Investors and markets digest the , veryt from jackson hole much when it comes to janet yellen and Mario Draghis statements, but governor kuroda more dovish than expected when it comes to policy in japan. Getting started in new zealand, trading is underway, up 0. 25 . The kiwi dollars 72. 46. Betty we are watching oil prices and gasoline prices. Rose overas futures 6 after Hurricane Harvey. Crude oil prices have a slight in just thet 0. 4 first few moments of trading. Gold futures are unchanged right now. More on Hurricane Harvey hitting the heartland of u. S. Energy production. We are live in houston. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Haidi it is a 30 a. M. In sydney where markets open for minutes time. There is some volatility, up one point 0. 1 . Betty it is after 6 30 on sunday evening here in new york. But get to first word news with haslinda amin. The United States is barring the trade of venezuela and the state owned oil company. Washington is blocking deals owned by the Public Sector to choke funding to the regime of nicolas maduro. Steve mnuchin said the move was in response to attacks on democracy and the rule of law. The former type Prime Minister is set to be in dubai, trying to avoid the jail sentence. She failed to turn up for the verdict and could have been given 10 years. Her legal team claimed she was lives iner brother exile in dubai and london. Hong kong, macau and the delta are moving on to a second powerful storm in five days. Landfall with sustained wind of 90 kilometers of 100. And gusts they would had the highest level storm warning for the first time in five years. Flights were canceled and stock exchanges closed for the day. Opening the door to collective lawsuits against german automakers diluting diesel engines. This company was accused of blocking responsibility. Has a merkel said germany collective suit against national companies, and the state could be offered to car buyers. Dont miss our wrestled to the runup of german elections at 3 30 p. M. Hong kong time. Germany decides, we will bring you the latest Market Analysis in the lead up to the poll. After theew ceo toppling of the cofounder travis. They are Holding Daily meetings, still the favorite with this person despite her not saying showing interest. Another contender has withdrawn from the race. There could be solutions on the conflict about directives. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am haslinda amin. This is bloomberg. Haidi thanks so much for that. Five people have been killed in the strongest storm to kill get the United States since 2004. There was a lot of flooding in the state of texas. Lets get t