in beijing shanghai and here in hong kong. welcome to bloomberg

covid cases in shanghai add to anxiety over china's recovery. let's check in on the futures as the story around china weighs on the markets in asia. you are seeing that pronounced, shanghai cases and concerns that -- futures are -- floss is stateside on the nasdaq of 1%. the ftse currently down .8%. we continue to watch the energy complex as well. we will focus on oil shortly. comments from the iea's fatih birol on the possibility of worchester, on the energy crisis. -- worse to come on the energy crisis. the spanish ibex is lower by 30 points, down .4%. let's see how things are playing out across assets. we are looking at futures stateside, the cpi print is out tomorrow. the guidance on what that will mean for the trajectory of the federal reserve. the futures pointing lower by .6%. after two weeks of gains in the u.s. the move in terms of the yields of five basis points lower. the euro-dollar getting very, very close to parity. see if that happens in the next few minutes. we are just a couple of points away from parity. brent $105, down almost

yvonne: shanghai stepping up mass testing as case numbers grow. the case for another jumbo hike bolstered, u.s. inflation likely to hit fresh four decade highs. the japanese market gets a left as the yen sinks to the lowest since 1998. rishaad: we have got weakness really for the likes of hong kong and shanghai, the prospect of further lockdowns. the australian dollar hit a two year low. looking ahead to a lot of debate coming ahead this week. david: cva had a call on the aussie dollar, i think they're looking at $.65 u.s. dollars was the call. when you think about how commodity markets which have been down six weeks, and news of shanghai mass testing and macau, which is driving on hsi. and mentioning dollar yen, back at the 1.37 handle. we are coming off of highs for the session but sharp declines in the japanese currency. a little bit more on the hang seng index. last night led by casinos, some of your tech plays, tencent and alibaba are down about 4.5%, with all of these together we are down some 200 points. yvonne: tomorrow we have decisions b

kathleen: emma o'brien with the latest on covid in shanghai, and shanghai is reporting 69 local cases for july 10. the numbers are still small but growing quickly. this is feeding into everything we were just tearing. let's move on to another ministry, consumer prices grew faster than expected in june driven by poor prices despite the covid zero strategy continuing to depress demand. let's bring in the china economist at natwest market. i am a poor clever -- pork lover. if i were in china i would be helping to drive up pork prices. what happens with cpi, one kind of food, one something that drives it but when you step back it looks tame. >> thank you for having me today. on china's inflation over the weekend you have rightly pointed out the food price rise was the main culprit behind rebounding in cpi inflation. the court inflation remains relatively subdued and mostly reflecting slack in domestic demand. even though china's cpi rebounded to 2.5%, it is below the government target. kathleen: it seems also to be the case that so far much bigger concerns for china is not prices rising t

>> what that means is there is still virus circulating in shanghai. that is not something that would be surprising in the entire world. the difference in china is they are trying to get to zero. the idea there could be someone infected in the community who could expose other people, and that person got it from somewhere, they do not know where it is, it is a worrisome thing. they are doing massive testing there, you would have to expect they would pick up those cases quickly. what you would be afraid of is that there will be additional restrictions in your neighborhood or friend's neighborhood or at work as opposed to going back to never shut down in shanghai. david: michelle cortez there. just ahead, we are staying in china but evening to high yields, another chinese firm selling, the debt ridden real estate sector. goldman sachs largely avoiding double bonds. we will get the take on what the alternatives are. this is bloomberg. ♪ haidi: a check of the latest business flash headlines. the company says the global surgeon will cost is starting to wei

that is why shanghai is taking a reaction to learn shanghai is launching mass testing for covid testing. more than half of the city, and it will do that for a couple of days. concerns are definitely returning to the city, and obviously, the government is trying to avoid citywide lockdown. something that you have seen earlier this year which is costly and brutal. whether there will be another round of lockdowns in shanghai would depend on the result of the test. heidi: how whole -- how are households reacting to this? they are hoping that they will help the global economic recovery. i wonder what the economic reality is on the ground. you never know when you go back into a lockdown? >> this is a bit frustrating. most students are go to schools and concerns about lockdowns. still lingering. that is because of china's is sticking -- that is because china is sticking to the covid zero strategy. the strategy is unlikely to change anytime soon. during his trip to wuhan last week, this is best for student china best. because it kept the economy going, this is inconvenient. china should be cont

but now there is the latest wave of all we can be a 5 in shanghai, several town councils, a vice people to prepare food for 14 days. people worry about another lockdown and not just some high across the country. the number of cases at the highest in most multiple cities i'm posing some restrictions as these will all probably lead to future supply chain disruptions. due to be correspondence. those on hon there from taipei, will businesses around the world have been dealing with supply shortages for more than a year. now, usually, as a result of the pandemic. now, in japan, there's a shortage of what sabi go. this time the blame falls elsewhere. a diner grades fresh with saw be over his noodles in the near future, adding the green condiment might be a rare privilege reserved for special dishes westlaw. in the past we served all the cold, so been oodles with a piece of ra, a sabi. but now we can no longer do that due to insufficient supplies of with sabi, we've had to change our menu and go so that i like with hon. a 2020 report from japan's ministry of agriculture shows that the productio

we can be a 5 in shanghai, several town councils, a vice people to prepare food for 14 days. people worry about another lockdown and not just some high across the country. the number of cases are at the highest in most, multiple cities and pose in some restrictions as these will all probably lead to future supply chain disruptions. businesses around the world have been dealing with supply shortages for more than a year. now, as a result of the pandemic in japan, there's a shortage of with sabi, but in this case, the blame falls elsewhere. a diner grades fresh was sabi over his noodles. in the near future, adding the green condiment might be a rare privilege reserved for special dishes westlaw. in the past we served all the cold, so been oodles with a piece of ra, a sabi, but now we can no longer do that. due to insufficient supplies of was sabi. we've had to change our menu and go, so that are a local hon. a 2020 report from japan's ministry of agriculture shows that the production of with sabi has declined by more than half since 2005. 0, nice. she attributes a scarcity to c

a period of time that includes a major lockdown in shanghai, the world's largest port. a china has forecast growth of 5.5 percent this year. a goal that almost all analysts now say is all but impossible at this point. now for a closer look at the problems facing beijing, i spoke to someone who knows the countries business community quite well. your booker is president of the european chamber of commerce in china. he joins me now for more years. this was not the best news on growth from china, and then we still have issues including unemployment, property market issues also global. the global downturn looming. how our european businesses in china experiencing this moment. right.

the protesting john jo, shanghai, and change in our stock. reminder of what could happen if the communist parties economic model starts to unravel. clifford kooning who filed the piece, joins us in the studio. clifford so good to see you again. i want to start with how you ended your report. he talked about the dangers of the chinese economy unraveling. how shaky is the economy? well, i think a lot of people have called the end of the chinese economy over the years and am. but what we've seen is a lot of resilience. i think the difference this time is that there's a lot of things happening at once. and we had data this fresh dasia, which shows that the economy shrank by 2.6 percent versus the previous quarter as a result of the 0 coven policy, which the government is doing, largely due to that. and then at the same time, you have this real estate, an issue which real estate, which accounts for a quarter of the whole economy is in serious trouble. and the developers are running out of money. and their big lenders are the local banks, the same kind of local banks that we saw in john jo. am

we have a further outbreak in shanghai. you subvariant cases, and also new infections we haven't seen since late may. what this underscores is the challenges of implement and support for the economy. last week we had the possible promise of 200 $20 billion in support for infrastructure. still not affecting the key sectors. in macau this morning, we have seen macau that'll its biggest outbreak yet and because of that they will be shutting all businesses, including casinos, that was something they had held off doing until now. you can see the reaction here. dani: japan is one of the bright spots this morning when it comes to the equity market. we are also monitoring the prime minister speaking in tokyo, this follows after the tragic assassination of abe, but also there are elections this sunday. the prime minister saying at the moment, we will do all possible to tackle rising prices. walk me through the action in japan right now. annabelle: this is related to what you are saying, the election we had at the weekend, consolidat

the protesting john jo, shanghai, and change in our stock. reminder of what could happen if the communist parties economic model starts to unravel. clifford tuning who filed the piece, joins us in the studio. clifford so good to see you again. i want to start with how you ended you report. he talked about the dangers of the chinese economy unraveling . how shaky is the economy? well, i think a lot of people have called the end of the chinese economy over the years and am. but what we've seen is a lot of resilience. i think the difference this time is that there's a lot of things happening at once. and we had data this fresh dasia which shows that the economy shrank by 2.6 percent versus the previous quarter. as a result of the 0 covert policy, which the government is doing largely due to that. and then of the same time, you have this real estate, an issue which real estate, which accounts for a quarter of the whole economy is in serious trouble. and the developers are running out of money. and their big lenders are the local banks, the same kind of local banks that we saw in john jo. am a

we have seen mass testing across shanghai. there is concern the city might be going back into a lockdown. what are we seeing in terms of demand? guest: big customers of samsung. definitely in a lockdown. [indiscernible] haidi: great to have you with us. just reacting to that breaking news. south korea missing estimates, the slowest growth in two years as inflation is hitting consumer demand as well. we have plenty more to come. this is bloomberg. haidi: british airways is canceling flights for the peak summer traveling season. only short-haul routes are affected. we are told the firm ends a month long drought for offering. sources tell us there is a [indiscernible] worth about $1 billion. shares have more than doubled giving evaluation of $2.6 billion. any revival would be a 10% -- be sure to turn into bloomberg radio and get in-depth analysis. broadcasting live. much more ahead. this is bloomberg. ♪ shery: beijing case numbers coming in. 54 local cases for wednesday. we continue to watch the spread especially with the subva

infection numbers in shanghai have been on the rise. if the virus makes a comeback, the government could impose antivirus measures again. consumption will not pick up, and businesses would not invest in equipment unless people have hope for the future. with profit and growth, businesses would cut wages and the job market was ink. that is a vicious cycle that china's economy could find itself in. >> will beijing remain committed to the zero covid-19 policy?>> reporter: president xi jinping has stressed this is the most effective for china. it suggested will not go away anytime soon. the president is considered that the policy has had an adverse impact on the economy. i've a feeling that the government might take steps to mitigate the damage. it's about how beijing can strike a balance between stimulating the economy and preventing the virus from spreading. last season's travel season shows how difficult this can be. it led to the nationwide spread of the virus. the government responded with stricter measures. that caused a sudden drop in

if not for shanghai, would 67%. you have to decide whether you are ready to write off shanghai. the biggest door that tells a can lean back on in his berlin and austin. that's really going to be the wildcard for what 22 looks like for the end of the. right now they are telling you everything you want to. >> do you get elon and tesla pass for the shanghai shut down? >> ultimately it's going to be a short term issue. it is not just them. i think what you want to look at is if they are going to get through this, it could be something to look at. ultimately i look at tesla and have a hard time with it because value is so much higher than ford or gm. at the end of the day i don't know how much upside there is going to be. yes, i think some of these things i'm not as concerned about hearing, but i'm still not a long-term buyer. >> that has always been a story on tesla. you would have missed out on a lot of profits. what do you make of the quarter? >> it was kind of a noisy quarter. as every company in this busy quarter. supply chain. bitcoin, which is really a sideshow. i don't know i

kathleen: let's move on to china and shanghai. if i was a resident there i would be having a hard time doing anything. they found 24 infections recently. any other place in the world, it would have to be shrugged off. it could be lockdowns, the economy still showing signs of weak demand. what can we expect to see their, emma? emma: groundhog day when it comes to china, a stark contrast to australia. 57 new cases saturday for shanghai. that's significantly higher than what they were seeing a couple weeks ago when they were declaring victory over covid. it does show that particularly with new subvariant, it will be a constant challenge. china will have to be constantly visit -- vigilant if it wants to keep up the covid zero policy that xi jinping has recommitted them to, not only in shanghai, but we have restrictions and mass testing in high not, the island off the south, guang joe also doing mass testing there. the agricultural and auto making hub in the north there. that is also seeing a big surge. definitely, not out of the woods

and there's a big loop in the seasonal rain which goes through the miller shanghai. i suspect the shanghai will be, well, the police are a bit rain over the top, but it's still remarkably dry. south of the young c, hong kong is humid with that much relief from charles either here for india, for pakistan and bangladesh, anywhere could get some significant chairs. it looks like the focus and the warnings are further west in india, going out through good europe. they're heading towards the south of pakistan, that pakistan has wednesdays and fridays. we're going back into the wet phase again . and friday is going to provide some, i think, flood father, with the heaviest rain anywhere but by the time gets in the day it will still be hanging around in the south. and karachi having suffered wet weather a couple of days ago, you get it back again on friday. cats ha, airway official airline of the journey. housing has become a commodity instead of a human rights, mag, you some people the ability to take advantage of others, the elite feel free to violate basic laws, the worki

and a balance in the shanghai composite. yvonne: it was on the mliv blog, the fact that tech is leading today. we have better data in the u.s. showing inflation expectations coming down, we also have solid retail sales. so that. tech could be that good to spot. plenty more coming up here on "bloomberg markets: asia." stay with us. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. >> it is almost 11:00 a.m. in hong kong and shanghai. welcome to "bloomberg markets: asia." i am yvonne man. juliette: and i am juliette saly. china pledges to shore up growth. i.m.f. warns about a substantial cut to its growth outlook

also in shanghai, we are starting to see quarantine. macau, another interesting case, still considering to see cases despite the weeklong shutdown. shery: what will the impact be on casinos? reporter: they have had a tough time covid began. there was a nice period where gamblers were able to come and go quite easily, the shutdown is bringing in no revenue, they are having to pay staff, the shutdown brought into a second week. when we see earnings coming -- haidi: we are seeing outbreaks elsewhere, japan hitting a record, australia and the middle of the new wave. pandemic support payments as so many people are all four. is this just a seasonality kind of thing we are seeing? reporter: covid does come in waves. it has the natural ebbing and decline. countries are on different wave flows. you are seeing almost globally a real uptick, displayed it being summer. people are out socializing, probably spreading the virus. interesting to see how different places are responding. australia is bringing those payments back but not mandating masks or

we knew the chinese economy was struggling, but after the reopening in shanghai, perhaps the we were expecting 50.3. any number below 50 indicates contraction. the estimate was 453.9 but that manufacturing bmi is going to be reverberating perhaps on the markets today. bloomberg economics has a few hot takes on this, essentially saying china's recovery is sputtering after a short spurt in the wake of the shanghai opening. it is abrupt loss of momentum for the economy and clearly the property sector and up fresh outbreaks of covid-19 are taking a toll on the economy and their assessment is this data we've got on the pmi, when we were expecting 53, it is grim across the board. haidi: we do have some more details about how speaker pelosi's trip to the asian region -- no mention of a stopover in taiwan and no mention of visiting indonesia despite our reporting suggesting that would be a destination. tony: that's right. pelosi and her team have's -- have kept the schedule very close to their best. that said, it is hard to overstate that tension these plans have created even though they hav

the protests in john jo, shanghai, and change in our stock reminder of what could happen if the communist parties economic model starts to unravel. clifford kooning who filed the peace, joins us in the studio. clifford so good to see you again. i want to start with how you ended you report. he talked about the dangers of the chinese economy unraveling . how shaky is the economy? well, i think a lot of people have called the end of the chinese economy over the years and, and, but what we've seen is a lot of resilience. i think the difference this time is that there's a lot of things happening at once. and we had data this fresh dasia, which shows that the economy shrank by 2.6 percent versus the previous quarter. as a result of the 0 coven policy, which the government is doing largely due to that. and then of the same time, you have this real estate, an issue which real estate, which accounts for a quarter of the whole economy is in serious trouble. and the developers are running out of money. and their big lenders are the local banks, the same kind of local banks that we saw in john jo. a

shanghai and alibaba, and the big news from asia. once again, russia reducing the flow of gas to germany, reminding europe of the daunting challenge the continent faces to bill -- build up energy stockpiles. how significant is the announcement we got yesterday from gazprom? what does it tell us about putin's thinking? >> it is very important to understand europe was relying on russia for 40 percent of its gas supplies. what it has seen this year is continuous reduction of this share. 12 countries have experienced this or that affect. that has set off emergency measures including germany, the biggest economy in the european union. this is happening at a time when european countries are rushing to fill up gas storages. by november, the target is 80%. the fear is that if it comes to a complete halt, it could be between 65-71% in november. that is very different from the target of 80%. it is important in reaction to this. we saw gas prices go up 10% yesterday. tom: the news of course, gazprom reducing supplies to the european union. onew

it shanghai, things have been tough. sean: their story is still about growth, as it always has been. they have open factories here and in berlin -- here in austin and in berlin. musk commented that both of these factories are money furnaces, he said they are losing billions of dollars right now. the point he was trying to make is that they had to base up the scale of production to 1000 vehicles a weekend will be spending far more money building up the factories for those vehicles then they would be making money from them. i think a lot of people looked at that as possibly negative. the thing to keep in mind is that that is the nature of it and it is not good to slow tesla down. tesla is still working on expanding the factory here in texas even though it doesn't have production up to the level he wants left. ed: sean is in austin on twitter at @fokane1. talk to me about austin, how much is the tesla factor changed the city? sean: it feels like when i was in reno and the gigafactory was in its first few years, the original

the real figure released wednesday was a still i watering 9 point one percent lock bound in shanghai and other areas of china have battered the world's 2nd largest economy. yet export growth in the country has beaten expectations. once again, in the 1st half of this year, exports increased more than 13 percent compared to the same period in 2021 imports rose nearly 5 percent looking at the past few months, china managed to escape major fall out from those strict locked downs in shanghai and other cities earlier this year, x i exports did fail to keep pace initially creating disruptions and global supply chains. but since then, exports have picked up at a steady pace. beating analyst expectations are correspondent in taipei has more. since may, with the overall improvement in containing the colon of iris, the fact of various policies to stabilize growth gradually emerged. and the orderly progress of foreign trade enterprises resumption of work and production, especially the rapid recovery of imports and exports. the overall growth rate of foreign trade pickup is significantly, but now

more than 11 years ago, law towns in shanghai and other areas of china have battered the world's 2nd largest economy. yet export growth in the country has once again beaten expectations. and the 1st half of this year exports increased more than 30 percent from the same time in 2021 imports. meanwhile, rose nearly 5 percent looking at the past few months. china has managed to escape and especially hard fall out from those strict lock downs. in shanghai and other cities, exports did initially fail to keep pace creating disruptions and global supply chains. since then, exports have picked up at a steady pace. beating expectations are correspondent, i pay as more, says may with the overall improvement in containing the colon of iris. the fact of various policies to stabilize growth gradually emerged and the orderly progress of foreign trade enterprises resumption of work and production, especially the rapid recovery of imports and exports. the overall growth rate of foreign trade pickup is significantly, but now there is the latest wave of all. we can be a 5 in saw high several town coun

in shanghai, government officials of issued an orange heat wave alert to warn people of the danger of such scorching li, high temperatures. one companies that's in the business of keeping people cool is having to work around the clock to meet to mot. temperatures in china's commercial hub have reached a staggering 37 degrees celsius. that's why this business is making a cool profit. e, as young as young, is the owner of the you who ice company with the current heat wave, he's making twice the amount of money. he typically does. our business in 2022 is double that of a normal year. our machine is running 24 hours a day, just non stop. it's working at its peak capacity, and our employees are resting only 2 to 3 hours a day. on each block of ice waste 40 kilograms in a normal year. you who ice company typically supplies them a seafood and farmers markets this summer though it's customer base has expanded and routine emiliano. shanghai hasn't experienced high temperatures like these in recent years. and nowadays factories and businesses are using a lot of ice. we now primarily supply mark

this summer though it's customer base has expanded and routine emiliano. shanghai hasn't experienced high temperatures like these in recent years. nowadays, factories and businesses are using a lot of ice. we now primarily supply markets. people who work outside use the ice to cool down. and we're also supplying coven 19 testing sites. volunteers at testing sites are shrouded in personal protective equipment that can make the heat even more unbearable. this volunteer shows his drenched t shirt on move out of sweat dripping off their brows. workers that you who ice company are hoping to provide a little relief. and just before we go, a reminder, the top business story we're following for you. the salad is the most aggressive monetary policy tightening since 1081, the u. s. federal reserve raising interest rates by 75 basis points. the 4th right type is here. us central bank is battling to tamp down on the raging inflation, which is running its fastest for 40 years and that's it. you're up to date with dw business. if you want more, check out our business specials on youtube. just go t

this summer though it's customer base has expanded and routine emiliano. shanghai hasn't experienced high temperatures like these in recent years. nowadays, factories and businesses are using a lot of ice. we now primarily supply markets. people who work outside use the ice to cool down. and we're also supplying coven 19 testing sites. volunteers at testing sites are shrouded in personal protective equipment that can make the heat even more unbearable. this volunteer shows his trenchant t shirt on to move out of sweat dripping off their brows. workers at you who ice company are hoping to provide a little relief. and just before we go, a reminder, the top business story we're following for you. the salad is the most aggressive monetary policy tightening since 1981. the u. s. federal reserve raising interest rates by 75 basis points. the 4th right hike this here us central bank is battling to tamp down on raging inflation, which is running its fastest for 40 and that's it. you're up to date with dw business. if you want more, check out our business specials on youtube. just go to a dw

authorities in shanghai some of the executives from the cloud division. the report says the security resources -- researchers concluded that databases were hosted on alibaba's cloud platform. raising the 2022 revenue forecast while warning the spending on expansion by as much as 9% for projection. the move would place the uncertainty about electronic demand in the face of a global recession. the ceo warns that is too early to go into specifics about spending plans or the outlooks for semiconductor demands in 2023. coming up next, we will take you live to the g20 session of the primettes ministers -- finance ministers -- taking place in bali where hot debate is expected to take place when it comes to the role of russia after its invasion of ukraine. lots more to come. this is bloomberg. ♪ this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. su: this

all the blind massage shops in shanghai will close down. the authorities issued a statement after the protests attracted attention online. that�*s all for now. thanks for watching. hello. after that exceptional heat to start the week, for many of you, it was significantly cooler on wednesday compared with tuesday. tuesday, of course, we saw temperatures approach around 40 celsius in a number of spots. for some, it was actually 10—17 degrees cooler, but to put it into a bit of perspective, those temperatures still well above where we should be for ajuly afternoon. the exceptional heat had pushed a bit further eastwards, record—breaking heat in denmark. all that heat over the next couple of days pushes its way southwards and eastwards, and then into the weekend, we start to see it build once more in across parts of the uk. not, though, at the levels we�*ve seen this week. as for thursday, as we start the day, it�*s going to be largely dry day for many. there will be some rain around, and it�*s a bit cooler still compared with what

business activity and shanghai was brought to a standstill for weeks creating calles and food shortages. now the business and logistics hub is struggling to contain another outbreak with households advised to stuck up on 2 weeks of food and medicine. while many countries are trying to live with cobra 19 along with its multiple sub variance, china, it seems, will not be joining that list anytime soon. and so for now, the economy remained stuck in a stop stop pattern. this week the government has released another batch of economic and trade statistics, but they don't necessarily reflect what's really happening to the economy. says one skeptical analyst, i think as a, as the reference as a reference. but like all of fishes, the physics we analysts townhouse trying to figure out it correctly in terms of that i think that the key figure that does matter though is the one for annual economic growth that this year china's leaders set at 5.5 percent. i think that's going to be very hard to achieve because there are so many headwinds. at the moment we have inflation taking off around the world.

all the blind massage shops in shanghai will close down. the authorities issued a statement after the protests attracted attention online. and before we go, an update on the late dame deborahjames. close friends and family have paid tribute to the cancer campaigner, at a private funeral in south west london. the 40—year—old mother—of—two died last month after being diagnosed with bowel cancer in 2016. in herfinal weeks she raised millions for charity, and received a damehood from the duke of cambridge at her parents' home. that's all for now, stay with bbc world news. hello. after that exceptional heat to start the week, for many of you, it was significantly cooler on wednesday compared with tuesday. tuesday, of course, we saw temperatures approach around 40 celsius in a number of spots. for some, it was actually 10—17 degrees cooler, but to put it into a bit of perspective, those temperatures still well above where we should be for ajuly afternoon. the exceptional heat had pushed a bit further eastwards, record—breaking heat in

and the -- but the chinese communist invited me to give speeches in beijing and shanghai and we told them that's terrific. by the way we are going to go to taiwan. they said you can't do that and gardner owho was my senator adviser i remember listening to him on the phone quelling he a chinese ambassador and saying the chinese communist party does not dictate the travel of the american speaker. what we did have to do is we left china, went to japan, stopped briefly, then went to taiwan and went back to japan. we couldn't go straight. but when we said to the chinese communist, look, if you don't want me to come to china, that's fine. >> i will just go straight to taiwan and never come to china. they said'ly said no, no. we don't mean that but it will hurt our feelings. and i thought at the time. >> brian: but they are a lot more belligerent now and our defense department is warning her dependence it. i think if we back out, the message to our allies is we are not up to the challenge. >> look, it's exactly the kind of confusion that enabled putin to mislead himself about ukraine. we ne

more than 11 years ago. law towns in shanghai and other areas of china have battered the world's 2nd largest economy, yet export growth in the country has once again beaten expectations. and the 1st half of this year exports increased. more than 13 percent from the same time. in 2021 imports, meanwhile, rose nearly 5 percent looking at the past few months, china has managed to escape and especially hard fall out from those strict locked down in shanghai and other cities. exports did initially fail to keep pace creating disruptions and global supply chains. since then, exports have picked up at a steady pace, beating expectations, or correspondence i pay as more since may with the overall improvement in containing the colon of iris. the fact of various policies to stabilize growth gradually emerged and the orderly progress of foreign trade enterprises resumption of work and production, especially the rapid recovery of imports and exports. the overall growth rate of foreign tre pickup is significantly, but now there is the latest wave of all the crampy, a 5 in saw high, several town co

so that means that shanghai west was got this area along the yanks. he has been suffering from really high temperatures and in shanghai in particular, very high. he meant to be broken. record is very uncomfortable, i'm sure. sees no rain is doing this. it's looping around through shanghai and coming up through japan. japan's at risk of flooding from this china again, although you've got a couple of days off in the korean peninsula where it has been pretty wet recently . now back to what we are, all the rather more used to which is the monsoon rains in india. the forecast probably good, jarrett and may be southern pakistan, but look at this hint. may be developing tropical circulation one to watch. ah, what is the ocean with? what is differences with change with whitney sun life witnessed a lot. witness. last witness. charity witness. confusion. witness clarity. witness, family witness, grins. witness the beginning. witness. the end witness life. we miss an algae 0. lou. ah, you want to go to 0 reminder of i told stories, this r u. s. president joe bid

shanghai has had three red alerts so far this year, you'll notice 17 red alerts is what has been observed on record since the 1800s, three of them having happened just in the past couple of days is pretty impressive. for this extensive heat ways in northern areas. >> all i can think about is the fact that it was hotter in london last week that it is in hong kong, something is not going right. thank you very much for that. pope francis arrived on sunday for the first stop in his visit to canada. the trip comes as the roman catholic church tries to atone for decades of abuse against indigenous people at so-called residential schools. the vatican correspondent is traveling with the pontiff. >> pope francis arrived in canada to deliberately subdued welcome ceremony, because as he told us on the papal plane coming over from rome, he is coming to canada in a spirit of penance. penance for the wrongs done to indigenous people here. he was met at the airport by representatives of indigenous groups as well as by prime minister justin trudeau. pope francis did not take the stairs to come down for t

so that means that shanghai west was got this area along the yanks. he has been suffering from really high temperatures and in shanghai in particular, very high. he meant to be broken, record is very uncomfortable on shore, sees no rain is doing this, it's looping around through shanghai and coming up through japan. japan's at risk of flooding from this china again, although you've got a couple of days off in the korean peninsula where it has been pretty wet recently . now back to what we are, all just rather more used to, which is the monsoon rains in india. the forecast probably good. you're right and may be southern pakistan, but look at this hint may be developing tropical circulation on to watch. cats are air way. official airline of the journey witnessed the ocean with plaintiffs. witness differences, witness change. witnesses, happiness, witness. witness. sunlight, witness de la. witness. last witness, charity witness. you. we can witness clarity, witness, family and witness. friends. witness the beginning. witness the end witness. life witness

officials say coronavirus restrictions at shanghai made it impossible to import sufficient supplies of auto- parts. the leading index also found, the measure of the business outlook for the next several months dropped 1.5 points from april marking the first drop in three months. japan's biggest travel agency said they expect domestic tourism to return to pre- pandemic levels during the summer. jt b estimates 70 million people will travel mystically between july 15 and august 31. a figure is just 3% lower than what it was before the pandemic three years ago. they were jackson is based on bookings for accommodations and economic indicators. the company also conducted an online survey that shows people are using more holidays and taking bigger trips. they also estimate that 500,000 travelers will take a trip internationally during the same period. that is a fivefold increase from last summer. the japanese medication technology company has fully started operating their smart facts. takes advantage of the latest digital check elegy along with using zero electricity. electric industry displa

rishaad: 11:29 in shanghai. we are seeing a little bit of strength creeping into the shanghai market. they are going off to the lunch break. perhaps turning positive. goldman sachs liking chinese stocks. u.s. recession fears do rise. that is a look at what's happening in shanghai but overall looking at other markets as well, seeing a bit of a mixed bag. let's check some of the wider regional indices as well. haslinda: that's right. we have japan back from lunch. nikkei 225 looking like this but the focus is really on the yen. the yen gaining traction, perhaps a reflection of how people are looking at the yen as a haven play on the back of those recession concerns. it is up by .6%. the yen currently trading higher. rish? rishaad: let's look at the second half of the year. the start of it and let's get to annabelle who is taking a look at the risks of a global recession as we have the central bank grappling with how to deal with this high inflation story. what have we got? annabelle: the consensus is seeing a 33%

i believe that even if shanghai is going to have another kind of lockdown, it will be a smaller scale, of lockdown, it will be a smallerscale, more of lockdown, it will be a smaller scale, more localised and more short—term. i smaller scale, more localised and more short-term.- and more short-term. i was lookin: and more short-term. i was looking at — and more short-term. i was looking at some _ and more short-term. i was looking at some of - and more short-term. i was looking at some of the - and more short-term. i was - looking at some of the numbers when they came in and the one that stood out for me and my producer was youth unemployment. i could not believe this, it rose to a record of i9.3%. unemployment of near 20%, this is the sort of near 20%, this is the sort of thing we saw in europe in a sovereign debt crisis we spoke about with lorenzo a moment ago. how much of a concern is that unemployment rate for you? it is kind of worrying, but i think it will be really short term because the states of enterprises will take up the responsibility to providejobs for this age group.

the shanghai composite there. csi 300, almost the same thing. down about .6%. there is a press briefing that should be taking place or should be starting any time now from local officials to talk about the updates. they are in the middle of a testing blitz. it ends tomorrow. to our earlier point, the big move up in the dollar index, massive move up, but to your point, curves are still inverted. rishaad: let's have a look at that and see what's happening. this is one of the most volatile times for the bond market in years. getting no break. the move gave volatility surging to its highest since the march 2020 covid crash. we have manifested inflation. the fed's committing to aggressively tighten monetary policy to contain it. the risk of recession is tugging yields down at a time where investors are selling into treasuries. we have to talk about them often. david: not a lot. that has risen along with rising interest rates in the u.s.,, the rising dollar. enough to take the dollar index to 106.50. the last time we were at these levels was late 2002. yvonne: not ju

authorities in shanghai summoned executives from the cloud division. cybersecurity researchers concluded the database was hosted on alibaba's cloud platform. online spending in the u.s. rose 8.5% during amazon's prime day sale. the event helped used traffic on competing sites that held their own sales such as walmart and target. amazon sold more than 300 million items over today's. more than any previous prime day. the u.s. justice department is likely to reject concessions offered by alphabet that would clear the way for an antitrust lawsuit over the dominance of their online advertising market. google has made at least one offer to the justice department to address the concerns. one of the world's most valuable startups has told staffers that an internal valuation has dropped. the public traded shares continue to face plummeting valuations. the recent common stock price has been valued at $29. that's down more than 27%. >> australian futures are looking tepid. indicators are down close to 1% will make it to the start of trading. the aussie dollar is

the index plummet nd april as the harsh covid lock down in shanghai took its toll. oufr, infections are rising dwen in recent weeks and some parts of the country implemented restrictions on certain lingers over the economy as beijing stands ready with more virus measures t. nation faces increasing pressure from a downturn in the property sector. oil producing nations are set to discuss on wednesday their output plan for september. members of the organization of the petroleum exports countries and their allies including russia agreed to ramp up production for july and august. joe biden visited the biggest exporter earlier in the month with hopes for additional putt put increase. the white house said last week that the discussions were constructive and is optimistic for further supply increases soon. japanese car maker toyota motor will announce its earnings on thursday. analysts expect it to fall in the april to june quarter compared to the same period last year. this comes as a historically weak currency boost profit of major exporters. the world's biggest automaker

concerns around additional lockdown speared a new subvariant reported in shanghai. still digesting the strong jobs number out of the u.s. on friday as we look ahead to the cpi print. surveys are for a .8%. dr. the politics in the u.k.. -- back to the politics in the u.k. at the heart of her campaign is tax cuts including a pledge to make corporate tax more competitive. let's ring in bloomberg's lizzie bourbon -- lizzy burden. >> you have 11 candidates. more are expected to announce in the coming days. at the moment, the biggest fault line is on tax. most of the candidates are trying to distance themselves from the former chancellor's position which is to end of the fairytales in terms of how the u.k. handles its post-pandemic recovery. liz truss by contest -- by contrast is saying she will begin the tax cuts from day one which raises questions about the inflationary impact. tax debate aside, dirty tricks have started already. if video surfaced over the weekend from 2007 where one candidate was somewhat dismissive of the working class. some are saying that perhaps th

shanghai is delaying the reopening of karaoke bars. the chinese city carrying out mass covid testing following an uptick in cases. the rise in infections once again throws the covid zero policy in the spotlight. police have charged a man with seven counts of murder over the mass shooting at an independence day parade in suburban chicago. officers say the 21-year-old legally bought five weapons, including two high-powered rifles, despite authorities being called to his home twice for threats of violence and suicide. along with the seven killed, 30 other people were wounded in the attack. the suit brought against it by a woman in it new york subway should and should be dismissed under a federal law issuing gun makers from liability. they plan to does -- moved to dismiss the case. 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. this is bloomberg. manus. manus: thank you very much. enjoy the karaoke. now, has political risk in the. this is the set

two more rounds of mass testing were triggered in shanghai. the eu gave their final approval today, recommending that -- the nation be allowed to begin using the common currency. it is the first euro newcomer since 2015. pepco raised their outlook for the second quarter in a row -- pepsico raised their outlook for the second quarter in a row. consumer demand remains resilient. their north american food and beverage business remains strong during the quarter. it is the first time human beings have seen a distant galaxy cluster in such vivid detail. president biden unveiled one of the first full-color images from the james webb space kit telescope -- james webb space telescope. 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 ritika gupta. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of comp

record june sales coming out of shanghai. right? yet tesla share price is down 29 % since april 25, since this twitter deal and you know, elon musk has even said well look at berlin, look at austin. they are money furnaces so what is shanghai doing the others aren't? well, they are newer, right? there's been supply chain problems all across the globe, so ramping up production, you look at rivian but ramping up production at his two new plants by his own words has sort of been a nightmare. it'll be interesting because we get earnings in a couple of weeks, how big, what is an actual money furnace, right? we'll take a look at free cash flow and see what the startup is looking like there because, you know, money furnaces is not a term defined by business classes , so shanghai is just established, more productive, than the new plants. the new plants are saddled by all of the issues that shanghai had in the second quarter with these covid restrictions in china, plus the fact that they're new, so really, that's what's going on, so the stoc

shanghai is lower by 0.7%. we don't have much conviction because we have such a big week when it comes to earnings and to the fed. i think people are sitting on the sidelines really. juliette: indeed it is all about the fed. no surprise we are seeing some caution. as you mentioned, some downside coming through in the chinese markets. we are waiting for japan to come back after it went in on the lunch break, down by 0.75%. we are talking singapore also being higher. broadly speaking, it is a down day. we still have recession worries and moderating hike expectations underpinning demand for mixed income. the rupee is pretty steady. last week it hit the record low. let's get to new york and get the first word news with vonnie quinn. vonnie: hong kong reportedly plans to cut hotel quarantine arrivals, looking at the introduction of a two-color health good system. the city's government is looking at moving to five days of hotel quarantine followed by two days. the report states a decision could come within two weeks.

the firm has offices worldwide, including shanghai and singapore. shimao group has narrowly avoided domestic bond defaults days after failing to repay a dollar note. they are extending repayment for two years after approval from creditors. a wave of debt extensions has helped china developers avoid default on shore. david: let's look at the regional msci asia-pacific, still on track for a weekly gain, 159 was was our close. we are losing a bit of hot sauce is the china open. one of the big names today is commodity markets, the big drop in oil this week, but things like base metals. on the expectation that china might be helping some of these things here. $60,000 on the copper contract in shanghai. iron or is coming up ever so slightly, about a third of base -- third of a percent. rishaad: with these funds sales coming up and the stimulus, we are seeing people perhaps reserving judgment but you are seeing lift up in some of them with perhaps $260 billion coming into the economy. but not exactly an endorsement for this stimulus package. yvonne: whethe

shanghai has three red alerts, which are issued typically when you reserve hundred and 4 degrees fahrenheit. they have had three this year. 17, since 1873. speaking of how severe and expensive the heat wave has been, we have had three events take place and only 17 accumulated prior to that in over 140 years. the area has a population twice the size of new york city. temperatures climb up to 104, by tuesday. will notice some relief across the area as thunderstorms move in thursday and friday. now, europe is much the same. countries of italy, spain, france, germany, and the united kingdom have their hottest temperatures ever recorded across those nations. there is some relief in store as we hit cooler air on the horizon. we have areas across the south beginning to see heat building farther towards the north. we've had severe weather, as well. berlin and prague, run to venice, with strong storms in the past 24 hours with additional storms in store. look at the storm reports across poland. this is ping-pong hail across poland. with instability with the storms, fueled by the heat already in plac