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Speaker 1: Good morning.

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Speaker 2: I'm Brian Curtiz and I'm Doug Krisner. Here are the

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Speaker 2: stories we're following today.

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Speaker 1: Walt Disney shares rising and after hours after the company

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Speaker 1: said it expects content spending this year to total about

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Speaker 1: twenty seven billion dollars. That's down from the thirty billion

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Speaker 1: that Disney typically spends. The company also reported third quarter

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Speaker 1: earnings that surpassed analyst estimates. It benefited from a narrower

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Speaker 1: loss in the streaming business. CEO Bob Eiger explains what

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Speaker 1: stood out from the results.

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Speaker 3: Perhaps most importantly, We've improved our DTC operating income by

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Speaker 3: roughly one billion dollars in just three quarters, as we

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Speaker 3: continue to work toward achieving DTC profitability by the end

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Speaker 3: of fiscal twenty twenty four.

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Speaker 1: Disney also said that it would raise the prices of

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Speaker 1: its streaming services in an effort to narrow losses even further.

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Speaker 1: That includes a twenty seven percent increase for the advertising

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Speaker 1: free version of Disney Plus. Are up now about three

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Speaker 1: percent in after hours, but that's about half the earlier

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Speaker 1: gain of around six percent.

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Speaker 4: Well.

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Speaker 2: As mentioned a moment ago, tomorrow morning eight to thirty am,

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Speaker 2: Wall Street Time will get the July report on US

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Speaker 2: consumer prices. Bloomberg's Michael McKee has a preview.

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Speaker 5: This may be the least important, most important economic indicator

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Speaker 5: in a long time. It's important because, of course, the

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Speaker 5: level of interest rates going forward will depend on whether

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Speaker 5: inflation is coming down. FED officials have suggested one more

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Speaker 5: rate increase going forward, but they also say they are

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Speaker 5: data dependent. The data suggests a decent progress report. Slowing

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Speaker 5: Housing inflation will be the main driver of that. Used

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Speaker 5: car travel and apparel price gains have also slowed while

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Speaker 5: energy prices are up. Will it matter not a lot.

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Speaker 5: FED officials have two more inflation reports to see before

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Speaker 5: their next meeting. These data will be interesting, but not definitive.

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Speaker 5: Michael McKee, Bloomberg, Daybreak Asia.

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Speaker 1: Apple can keep its app store payment rules in place,

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Speaker 1: at least for the moment. Bloomberg's and Kate's has the story.

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Speaker 6: The US Supreme Court has rejected a request by Epic Games,

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Speaker 6: maker of Fortnite, that would have let developers start directing

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Speaker 6: iPhone users to other purchasing options, putting on hold an

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Speaker 6: earlier ruling against Apple by the Ninth Circuit Court of Appeals.

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Speaker 6: Apple told the Supreme Court that Epic isn't being affected

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Speaker 6: by the policy. Fortnite was expelled by Apple because Epic

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Speaker 6: created a workaround to avoid paying a thirty percent fee

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Speaker 6: on customers in app purchases. Epic says that subsidiaries still

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Speaker 6: have games available in the Apple App Store. In Washington

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Speaker 6: and Kates s Bloomberg Daybreak Asia.

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Speaker 2: President Biden has signed an executive order limiting US investment

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Speaker 2: in some Chinese firms. We have more from Bloomberg's Charlie Pellett.

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Speaker 7: It is part of a push to restrict the country's

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Speaker 7: ability to develop next generation military and surveillance technologies that

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Speaker 7: might threaten US national security. The order would regulate American

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Speaker 7: investments in some Chinese semiconductor, quantum computing, and artificial intelligence firms.

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Speaker 7: It was signed after almost two years of deliberations in

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Speaker 7: which China Hawks argued for a faster and more stringent action,

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Speaker 7: while others, including the Treasury Department, pushed for narrower measures

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Speaker 7: that would take longer to go into effect. In New York,

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Speaker 7: Charlie Pellett Bloomberg Daybreak Asia.

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Speaker 1: China is sprinting ahead in the race to modernize global

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Speaker 1: money flows. Bloomberg's Joan Wong has the story from Hong Kong.

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Speaker 8: A new platform to expand the reach of China's digital

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Speaker 8: yuan and other currencies is moving closer to reality. The

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Speaker 8: Mbridge project will allow money to be sent around the

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Speaker 8: world without relying on US banks, is being developed by China, Thaimeland,

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Speaker 8: Hong Kong, and the United Arab Emirates. A basic working

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Speaker 8: product is expected to be ready by the end of

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Speaker 8: the year. Ambridge could eventually make it easier for China's

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Speaker 8: yu want to be used as a dollar alternative by

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Speaker 8: enabling its digital form. But the project is concerning some

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Speaker 8: European and American observers. They're worried about a possible threat

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Speaker 8: to dollar denominated payments in global finance in Hong Kong.

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Speaker 8: I'm joining Long Bloomberg, Day, Brigeesia and.

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Speaker 1: Doug in another big story Country Garden. The big developer

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Speaker 1: is leaving investors somewhat in the lurch about these bond repayments.

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Speaker 1: The company missed those payments on Monday. That's what we

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Speaker 1: heard from bondholders and haven't said too much about it.

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Speaker 1: There is a thirty day grace period. The stock did

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Speaker 1: trade lower yesterday, but nothing too dramatic. However, it is

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Speaker 1: down sixty seven percent since November. It's down more than

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Speaker 1: ninety percent since twenty twenty. And again this was one

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Speaker 1: of the biggest This was the biggest developer in the

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Speaker 1: private sector, and the chairwoman of the firm, Yang Hui Yen,

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Speaker 1: who has been one of the richest people not only

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Speaker 1: in China but in the world. Well, her fortune has

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Speaker 1: dropped about eighty five percent in two years.

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Speaker 2: So that is some of the concerning news out of China.

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Speaker 2: Can I put a positive spin on what we learned today?

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Speaker 2: Win Resorts with adjusted EPs for Q two above the

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Speaker 2: average estimate, a strong performance in Macau's second quarter mass

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Speaker 2: mo market, reaching about eighty five percent of the levels

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Speaker 2: seen in the second quarter of twenty nineteen. So we're

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Speaker 2: very close, I think, to pre pandemic levels for Winning Macau.

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Speaker 1: But I do think that there will be some struggles ahead, because,

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Speaker 1: as we've been talking about a lot on this program,

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Speaker 1: Chinese consumers are still a bit nervous, and you know

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Speaker 1: it's probably going to be a little give and take.

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Speaker 1: There was a rush and then maybe back off a

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Speaker 1: little bit. This is an ongoing story in China about

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Speaker 1: how China tries to build confidence in both consumers and

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Speaker 1: in businesses. I wanted to mention as well, because really

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Speaker 1: the big story of the day for US now will

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Speaker 1: be this China Investment Executive Order, and I think the

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Speaker 1: scope in this has been narrowed somewhat, and I think

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Speaker 1: even before that, I don't think the impact was going

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Speaker 1: to be that great. I mean, think about it. US

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Speaker 1: investment in China is down massively in the past year already,

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Speaker 1: and particularly in this quite narrow range of targets. So

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Speaker 1: while it's a very important step for the US, it's

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Speaker 1: a kind of reverse Syphius, if you will, an outbound Syphius.

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Speaker 1: I don't think the impact on the markets will be

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Speaker 1: too great.

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Speaker 2: One of the things that I was wondering about, how

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Speaker 2: do you measure revenue to determine whether or not you

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Speaker 2: actually meet the threshold? That's going to require some level

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Speaker 2: of transparency.

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Speaker 1: Yeah, absolutely, That's the question I put to one of

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Speaker 1: the guests yesterday was how do we get to this.

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Speaker 1: Is it going to be a committee like we have

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Speaker 1: with Syphius or will it just be numbers? It all

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Speaker 1: sets up as and it's taken them what two years

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Speaker 1: to put this together, So there's a lot of thought

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Speaker 1: that's gone into it. We'll have to wait and see.

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Speaker 1: Now it's time for Global News. Wildfires Hawaiian island of

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Speaker 1: Maui have cost lives and have done major damage to

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Speaker 1: the west side of the island. At Baxter with Global

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Speaker 1: News from the nine to sixty News from.

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Speaker 9: D Yeah, thank you Brian.

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Speaker 7: This.

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Speaker 9: At least six people have died. They are more unaccounted for.

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Speaker 9: There have been many more injured and overcrowding hospitals, forcing

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Speaker 9: thousands of evacuations, burning a large portion of historic Lehina

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Speaker 9: town powers out at Hotel Hells on the west side

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Speaker 9: of the island. Governor Josh Green says the flames came

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Speaker 9: in so fast people had to jump into the water

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Speaker 9: to be rescued.

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Speaker 10: There are fourteen confirmed water rescues those people are in

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Speaker 10: good shape that jumped into the water. Another three from

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Speaker 10: the Red Cross. But there are thousands of people that

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Speaker 10: are somewhat displaced from their lives. There are two thousand

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Speaker 10: people at the airport right now waiting to be likely

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Speaker 10: relocated to a Wahoo.

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Speaker 9: Yeah, and flights are only for essential people right now.

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Speaker 9: All the websites are saying please do not go there

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Speaker 9: unless it's essential. On the west side of the island, Lahaina, Canapali, Kahana, Nappili,

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Speaker 9: Kapolua are cut off from the central part of the island.

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Speaker 9: Flareup's still active in Lahaina and upcountry near Koola. Lieutenant

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Speaker 9: Governor Sylvia Luke says that it may be a while

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Speaker 9: before we get an actual clear picture of what the

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Speaker 9: damage is.

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Speaker 6: This is not going to be a short journey.

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Speaker 1: It's going to take weeks and maybe months to assess

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Speaker 1: the food damage and the state will provide whatever assistance.

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Speaker 9: Yeah, communication is almost impossible now. This was fanned by

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Speaker 9: wins by a hurricane about five hundred miles off shore

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Speaker 9: and the island there's no way that it could be

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Speaker 9: prepared for these fires. I've just gotten the first helicopter

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Speaker 9: glimpse of the damage at Lahaina, and it says all

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Speaker 9: of Front Street, which is the tourist attraction in the area,

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Speaker 9: is decimated, including the gigantic probably the largest in the world,

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Speaker 9: was Banyon Tree. It's looking as a prosecutors in Georgia

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Speaker 9: are going to hand down a fourth indictment this week.

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Speaker 9: Republican Canada for President Chris Christie could be one of

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Speaker 9: the key witnesses.

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Speaker 4: This is not a game, and it's not politics. It's

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Speaker 4: the rule of law. And so I hope that if

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Speaker 4: ms Willis brings charges that she is absolutely convinced before

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Speaker 4: she signs those documents that anyone that she's charging is

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Speaker 4: provably guilty beyond a reasonable day.

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Speaker 9: Says if he's called, he will testify. Meanwhile, in the

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Speaker 9: world of Donald Trump, there's a new plan to push

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Speaker 9: conservative voters who embrace mail in voting and dropboxes in

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Speaker 9: the twenty twenty four election. It is a shift for

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Speaker 9: the party, is Bloomberg's Nancy Lyons reports.

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Speaker 11: Back in twenty twenty, then President Trump railed against the

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Speaker 11: new methods of voting that many states were adopting due

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Speaker 11: to COVID nineteen.

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Speaker 1: I think that mail in voting is a terrible thing.

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Speaker 1: I think if you vote, you should go and even

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Speaker 1: the concept of early voting is not the greatest.

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Speaker 11: But now Trump's allies are embracing those tactics, with his

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Speaker 11: former acting Attorney General Matthew Whitaker leading an effort to

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Speaker 11: encourage conservatives to cast ballots by any legal means. They

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Speaker 11: even plan focus groups to test messaging and its impact

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Speaker 11: on voter behavior. In Washington on Nancy Lyons Bloomberg Daybreak Asia.

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Speaker 9: Global News powered by more than twenty seven hundred journalists

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Speaker 9: and analysts in over one hundred and twenty countries. In

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Speaker 9: San Francisco. I'm Ed Baxter, and this is Bloomberg.

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Speaker 1: This is Bloomberg Daybreak Asia. I'm Brian Curtis here in

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Speaker 1: Hong Kong, along with Rashad Salamat in London. Our guest

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Speaker 1: is Louis Novalier, Chairman and founder at noval Aer and Associates. Louis,

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Speaker 1: we're in a period of consolidation here in the US

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Speaker 1: equity market. If you look at some of the high

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Speaker 1: flyers like Microsoft and Nvidia, they're down more than ten

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Speaker 1: percent over the past three to four weeks. And at

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Speaker 1: the same time, we've seen the regional banking sector not

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Speaker 1: exactly love, but it's up more than ten percent during

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Speaker 1: that same period. Do you see that as healthy? Does

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Speaker 1: it entice you to kind of embrace some of these

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Speaker 1: broadening out in the market or are you I know

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Speaker 1: you've been pretty bearish.

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Speaker 12: No, I think it is healthy. You know, Citadel algorithms

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Speaker 12: tend to use mean reversion, and so what's up then

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Speaker 12: becomes down, So you know, they're taking profits in the

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Speaker 12: AI related stocks, but they had an incredible run and

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Speaker 12: some of the stocks that got beat up are starting

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Speaker 12: to rally, So I think it's healthy. But the market

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Speaker 12: is reverted to normal mean reverse, so we're going to

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Speaker 12: have new leadership every week, probably for several weeks.

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Speaker 13: So I mean, ultimately, does this mean that you know,

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Speaker 13: you go to sect a rotation taking place? And is

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Speaker 13: that evidence by move towards more defensive issues? And that

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Speaker 13: is evidence again by using the same wood by the Dow,

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Speaker 13: which is outperforming of late.

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Speaker 12: Yes, I've noticed that my dividend related stocks are holding

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Speaker 12: out much much better. There's a perception that interest rates

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Speaker 12: maybe peeking despite the record treasury auctions we're having this week.

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Speaker 12: That evidence will be probably on Friday when the Producer

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Speaker 12: price Index comes out. There's a good chance it could

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Speaker 12: be negative because the deflation in China is now spreading

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Speaker 12: to America via cheaper goods. Even through June, the hostal

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Speaker 12: inflation was only running point one percent because good prices

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Speaker 12: fell four four So we're hoping for a bigger decline

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Speaker 12: in goods prices on Friday, and then if deflation and spreads,

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Speaker 12: then all the central banks have to stop raising rates,

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Speaker 12: and then that's going to trigger a nice rally in China.

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Speaker 1: Since you've mentioned it, deflation has set in there. Bloomberg

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Speaker 1: Economics believes that we're getting close to the bottom on that.

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Speaker 1: But one thing that does seem to come to the

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Speaker 1: fore here is the policymakers haven't got this figured out yet.

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Speaker 1: For a while, the big question was are they willing

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Speaker 1: to come out with stimulus. Now they've done it, they've

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Speaker 1: shown they're willing to do it, maybe not the big Bazuka,

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Speaker 1: but they've made like a dozen different measures, but it's

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Speaker 1: not working. Do you feel confident that the policymakers at

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Speaker 1: some point will get it right. No.

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Speaker 12: President Shei is an authoritarian leader, and he got rid

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Speaker 12: of most of his economic reformers, and you know, he's

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Speaker 12: a one man band right now, and I don't think

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Speaker 12: he has the depth to implement the incentives the economy needs.

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Speaker 12: And it's it's sad. You know, China's back to where

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Speaker 12: it was in the COVID times and I don't. And

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Speaker 12: of course they told all the economists to be careful

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Speaker 12: with their estimates, don't be too negative. So none of

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Speaker 12: us are going to trust what's coming out of China.

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Speaker 12: But that import and export data was devastating, and then

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Speaker 12: of course we had the deflation data as well.

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Speaker 13: And that is the official Those are the official numbers

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Speaker 13: we're talking about here as well. So things could actually

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Speaker 13: be a little bit worse because it is a situation

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Speaker 13: of being of caveat MTOL. So this is just one

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Speaker 13: of the other aspects which it makes China less investible.

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Speaker 13: What would make it investible then.

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Speaker 12: Well, I mean they started to outreach, but then they

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Speaker 12: had setbacks and you know, but you know, Jeremy wants

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Speaker 12: to diverse away from them. The Bidy administration clearly wants

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Speaker 12: to diversify away and punish them. They had that executive

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Speaker 12: order today, and you know, they just have to engage

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Speaker 12: with the rest of the world and be a little

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Speaker 12: bit more proactive. So you know, I get on the plane,

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Speaker 12: start visiting everybody and yeah, and start doing some deals,

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Speaker 12: just like you know, mcron went to Beijing to get

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Speaker 12: an airbus contract. So you know that you're going to

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Speaker 12: have to get out and start promoting your country.

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Speaker 1: Louis, I've listened to you for so many years. I

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Speaker 1: feel like, you know, we've often had coffee out on

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Speaker 1: my veranda, but it's not really the case. But I

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Speaker 1: would like to get you know, from you a kind

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Speaker 1: of friendly maybe speaking to investors. What's your number one

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Speaker 1: pick at the moment? What are you doing with fresh capital?

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Speaker 12: It depends on the day because the main reversion. We

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Speaker 12: had a lot of stocks popped today because they came

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Speaker 12: out with good earnings, but a couple reversed after the earnings.

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Speaker 12: So the buy of the day is probably super microcomputer.

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Speaker 12: They're putting the Navidious chips on the fast servers.

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Speaker 1: Well, unfortunately out of time, but Louis, thanks for joining us.

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Speaker 1: Louis Naville here, chairman and founder at Novellier and Associates.

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