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Speaker 1: Good morning. I'm Brian Curtis and I'm Doug Krisner. Here

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Speaker 1: are the stories we're following today.

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Speaker 2: The next high profile IPO to hit the market will

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Speaker 2: begin trading tomorrow. Online grocery startup in Stacart has been

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Speaker 2: flirting with an IPO for years. The companies based in

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Speaker 2: San Francisco. It's offering to sell twenty two million shares

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Speaker 2: somewhere between twenty eight and thirty dollars each arranged that

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Speaker 2: it elevated on Friday, more now from Bloomberg's Shanali Bossak.

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Speaker 3: One thing instacart has on its side so far is

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Speaker 3: the Cornerstone investors that it has lined up. Even though

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Speaker 3: the market is watching the story on margins moving forward

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Speaker 3: on Instacart, you do have PepsiCo coming in as an

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Speaker 3: investor into the ipo, as well as Cornerstone investors that

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Speaker 3: could take up sixty percent of the shares. That includes

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Speaker 3: a division of Norges Bank and Dan sundeims d one Capital.

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Speaker 2: Bloomberg Shnali Bossek. If in Stackhart trades well, it will

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Speaker 2: add some momentum to other listings. Boston based marketing automation

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Speaker 2: startup is expected to price it's listing tomorrow. This is

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Speaker 2: after the company boosted the target for it's listing to

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Speaker 2: five hundred and fifty seven million dollars.

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Speaker 1: Well, we are hearing that Disney has held preliminary talks

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Speaker 1: with potential buyers for its Indian streaming and television business.

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Speaker 1: Here's bloomberg' Saed Ludlow.

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Speaker 4: They could take the Disney Star property in India and

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Speaker 4: sell it outright, or they can do more of a

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Speaker 4: piecemeal approach where they take the sporting rights that are

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Speaker 4: India based and the Disney hot Star regionalized streaming platform

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Speaker 4: put them in combination. And it's interesting because one of

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Speaker 4: the party's in talks, according to Bloomberg sources, is Mukesh

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Speaker 4: and Barney's Reliance Industries. That goes back to Disney losing

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Speaker 4: the rights to the Indian Premier League cricket in that nation.

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Speaker 4: Where did those rights go? They went to a JV

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Speaker 4: between Mukesh and Barney's Reliance and also Powamount, that.

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Speaker 1: Is Bloomberg, said Ludlow. Now, according to Bloomberg sources, discussions

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Speaker 1: are ongoing and Disney could decide to hold on to

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Speaker 1: these assets for longer. Now Ed referred to Billianaiir Mukesha

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Speaker 1: Bonni's Reliance Industries obviously identified as another potential buyer. A

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Speaker 1: spokesperson for Reliance said the company evaluates various opportunities on

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Speaker 1: an ongoing basis and will make we require disclosures when necessary.

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Speaker 1: A representative for Disney declined to comment.

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Speaker 2: Brian, the top executives at Mercedes Benz are calling for

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Speaker 2: open markets as tensions between China and the West grow.

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Speaker 2: Mercedes CEO Ola Kalinis said that the auto industry is

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Speaker 2: reliant on global supply chains and as such, measures to

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Speaker 2: decouple from China pose a risk to healthy competition in

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Speaker 2: the sector. Here's Helenis, speaking earlier to Bloomberg, and.

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Speaker 5: I think we learned a thing in the pandemic that

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Speaker 5: supply chains can be fragile. It would be a complete

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Speaker 5: illusion to think that we can divide the world, the

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Speaker 5: automotive world, into individual regions that have nothing to do

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Speaker 5: with each other. These supply chains us, or supply networks

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Speaker 5: rather are much too sophisticatid.

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Speaker 2: Mercedes CEO Ola Helenis. His comments came as the European

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Speaker 2: Union opened an investigation into Chinese subsidies for electric vehicles.

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Speaker 2: The European probe is set to take some nine months.

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Speaker 2: It may ultimately lead to import tariffs on Chinese vehicles well.

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Speaker 1: China Central Bank says it will boost efforts to stabilize

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Speaker 1: trade and improve the business environment for foreign companies. The

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Speaker 1: story from Bloomberg's Baniau.

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Speaker 6: In Hong Kong, PBOC Governor Pan Gong Shang met with

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Speaker 6: various foreign firms, including JP Morgan, HSBC and Tesla. He

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Speaker 6: said the PBOC would optimize the working environment for overseas companies.

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Speaker 6: Confidence among foreign firms in China has weakened due to

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Speaker 6: geopolitical tensions and a struggling economy. There are also concerns

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Speaker 6: about the clarity of regulation. Penn pledged to improve the

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Speaker 6: quality and efficiency of financial services and help create a

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Speaker 6: business friendly environment. No specifics were given. In Hong Kong,

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Speaker 6: I'm Bonniel Bloomberg Radio.

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Speaker 2: Has announced some plans to invest two billion dollars in Turkey.

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Speaker 2: Bloomberg's Joan Wong has that story from Hong Kong.

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Speaker 7: The announcement came after Ali Baba president Michael Evans met

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Speaker 7: with Turkish President Rachiptai yip Urduwan. No detailed information about

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Speaker 7: the investment was mentioned, but even said the plan is

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Speaker 7: for what he called the coming period. He said the

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Speaker 7: company has confidence in Turkey's economic fundamentals, a statement that

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Speaker 7: Turkey has the potential to become one of the world's

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Speaker 7: leading e export countries. Ali Baba has already invested one

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Speaker 7: point four billion dollars in the country through its Turkish

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Speaker 7: e commerce unit. Trend deal in Hong Kong Join Wong

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Speaker 7: Bloomberg Radio.

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Speaker 2: Doug is not the type of story that would move

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Speaker 2: the stock a lot, and indeed the ADRs of for

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Speaker 2: Ali Baba were a flat for the session. A tough

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Speaker 2: day yesterday here in Hong Kong. In that session, Ali

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Speaker 2: Baba traded down two point four percent. It has been

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Speaker 2: a difficult period for Chinese stocks listed in Hong Kong.

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Speaker 2: We did have a little pop in Chinese shares on

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Speaker 2: shore yesterday with the CSI three hundred up half a percent,

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Speaker 2: but the mood has not been particularly good.

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Speaker 1: I thought it was interesting too that we learned today, Brian,

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Speaker 1: that China's holdings of US treasuries down in the month

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Speaker 1: of July for a fourth straight month. You and I

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Speaker 1: were talking earlier about the possibility that some of this

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Speaker 1: reduction has to do with the efforts on the part

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Speaker 1: of Chinese authorities to actually defend the currency that you

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Speaker 1: want against a lot of its recent weakness.

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Speaker 2: Yeah, I think that's one of these things where you

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Speaker 2: don't know exactly what's happening, whether it's some of these

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Speaker 2: securities are maturing and not being reinvested, or whether or

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Speaker 2: not they're actually selling, and if they're selling, what are

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Speaker 2: they using that funding for? And then they have so

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Speaker 2: many other ways of generating funding as well, so we

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Speaker 2: don't know if it's a direct plug in on the currency,

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Speaker 2: but suffice it to say they have been rather than

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Speaker 2: trying to weaken the currency, they have been trying to

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Speaker 2: support the currency and keep it from weakening more dramatically

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Speaker 2: because all the implications that has for capital flight and such.

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Speaker 2: So it's a pretty complicated mosaic.

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Speaker 1: And it comes in a day when we heard from

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Speaker 1: Treasury Secretary Janet Yellin she was speaking at the Clinton

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Speaker 1: Global Initiative today saying the US needs to de risk

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Speaker 1: but not decouple from China.

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Speaker 2: Yep, that's a very interesting story. So we look at that.

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Speaker 2: We've got our guests coming up, Lisa Ericson. In a

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Speaker 2: few moments, Senior Vice President, head of Public Markets at CFA,

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Speaker 2: and we'll be talking a little bit about the fed

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Speaker 2: to hawkish pause expected there by the Fed that would

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Speaker 2: appear to be priced in, as you correctly pointed out earlier,

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Speaker 2: the dot plots will get a lot of attention, and

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Speaker 2: what the projections are for any cuts that could be

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Speaker 2: expected next year. Now it's time for Global News. A

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Speaker 2: US congressional stopgap funding bill is on the table and

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Speaker 2: could come to a vote this weekend. Baxter has Global

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Speaker 2: News from the nine to sixty News from in San Francisco.

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Speaker 8: Yeah, but will it the I won't to get through

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Speaker 8: the smart money as on won't now Brian speaker Kevin

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Speaker 8: McCarthy says he wants a vote on Thursday. Bloomberg Stephen

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Speaker 8: Dennis says A cobbles together the right wing of the

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Speaker 8: party and some moderates, and.

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Speaker 9: It's basically already falling apart. You know. One of the

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Speaker 9: things that is going to be a continuing theme as

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Speaker 9: we go through this big shutdown drama this time is

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Speaker 9: he only has the narrowest of majorities. So if he

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Speaker 9: has any anytime, five House Republicans raise their hands say

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Speaker 9: they won't vote for something, and the Democrats are going

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Speaker 9: to oppose it, then it ain't happening.

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Speaker 8: Eventually, he says, any agreement will have to bring Democrats

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Speaker 8: into the mix, and something will have to be passed

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Speaker 8: by the Senate as well. Another problem with a bill

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Speaker 8: is a lack of any funding for Ukraine. Republican reasoning

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Speaker 8: for this is aimed at the Biden administration. Senator Ted

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Speaker 8: Kruz on Bloomberg's balance of power, says Biden screwed up

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Speaker 8: the war effort from the get go.

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Speaker 10: Listen, I think it is in the United States's interest

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Speaker 10: for Russia to lose this war, for Putin to lose

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Speaker 10: this war. But I also think the Biden administration has

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Speaker 10: screwed this up almost from the get go.

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Speaker 8: Ooh, he used the same terminology. And this comes when

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Speaker 8: Ukraines Vladimir is Alltski is coming to the US to

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Speaker 8: attend the UN General Assembly and a visit with members

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Speaker 8: of Congress at the White House, so it looks as

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Speaker 8: if any aid for Ukraine will come in a supplemental package. Meanwhile,

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Speaker 8: arguments at the Hague today, where Russia's legal representatives are

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Speaker 8: trying to get the genocide allegations by Ukraine tossed out

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Speaker 8: of the International Court of Justice. A Russian ambassador, Gannetti

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Speaker 8: Kuzman argues any Ukraine arguments are definite stretch.

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Speaker 11: Not Ukraine's claim in itself and its tactics in these

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Speaker 11: proceedings as a manifest this regard of the proper administration

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Speaker 11: of justice and constitute an abuse of process.

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Speaker 8: Ukraine addresses the judges tomorrow. The Americans held in Iran

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Speaker 8: have been released by the prisoner for swap for money swap.

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Speaker 8: The Secretary of State US Anthony Blinkn has spoken with

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Speaker 8: the detainees today after their release. I spoke to them

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Speaker 8: after they landed in Doha.

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Speaker 9: I can tell you that.

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Speaker 8: It was for them for me an emotional conversation, and

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Speaker 8: he says a relationship with Iran is very difficult. China

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Speaker 8: has flown in a record number of warplanes around Taiwan.

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Speaker 8: It's an apparent show of displeasure over visits by a

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Speaker 8: pair of American officials today. Taiwan's saying it poses a

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Speaker 8: serious challenge to security across the Strait. Elon Musk has

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Speaker 8: held discussion with Israeli Prime Minister Benjamin Not in Yahoo

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Speaker 8: today regarding feelings that Musk has not done enough with

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Speaker 8: x to stop anti Semitism. That Yahoo's saying there has

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Speaker 8: to be a way to protect First Amendment rights while

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Speaker 8: curbing hate speech. Musk then responding, Oh, Sam, against anti semptism,

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Speaker 8: I'm against anti really anything that is, you know, that

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Speaker 8: promotes hate and conflict, although the hate remains on the platform.

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Speaker 8: Global News powered by more than twenty seven hundred journalists

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Speaker 8: and analysts in over one hundred and twenty countries. In

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Speaker 8: San Francisco, I'm Ed Baxter, and this is Bloomberg.

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Speaker 2: This is bloom Day Break Asia. I'm Brian Curtis along

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Speaker 2: with Rashad Salama. We are both here in our Hong

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Speaker 2: Kong studios, and our guest is Lisa Erickson, who is

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Speaker 2: senior vice president, head of Global Market set US Bank

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Speaker 2: Wealth Management Group. Thank you very much, Lisa for being

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Speaker 2: with us. You probably heard us chatting just a few

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Speaker 2: moments ago about what's expected from the Fed hawkish pause.

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Speaker 2: I suppose that's pretty much priced in, So your views

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Speaker 2: on that and whether or not you think there's any

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Speaker 2: excitement coming this week.

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Speaker 12: To your point, Brian, there is a lot of consensus

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Speaker 12: around the rate hike outcome of the FED, and people

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Speaker 12: are expecting no move, but of course some language to

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Speaker 12: make sure the markets know that they're still committed to

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Speaker 12: that fight against inflation and retain that optionality to raise

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Speaker 12: rates later certainly if they need to. But I do

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Speaker 12: still think despite the fact that there's some acknowledgment that

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Speaker 12: that part of the meeting may be less eventful, there

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Speaker 12: is going to be a lot of focus on the

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Speaker 12: SEP or Summary of Economic Projections, because right now from June,

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Speaker 12: which was a low stupdate, it's really showing that there's

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Speaker 12: four potential cuts in twenty twenty four and some very

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Speaker 12: modest growth and inflation and unemployment figures. And I think

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Speaker 12: really one of the big questions is, given the string

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Speaker 12: of growth that we've had recently, does that shot plot

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Speaker 12: in terms of four cuts in twenty twenty four potentially

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Speaker 12: move to three or two. And why that could be

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Speaker 12: really interesting is if you look at market expectations. Really

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Speaker 12: after even this morning, we were seeing that the market

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Speaker 12: was also expecting those four cuts in twenty twenty four.

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Speaker 12: So if there's really a shift in what the FED

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Speaker 12: projections come out to be, that could hit certainly the

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Speaker 12: bond markets at.

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Speaker 13: Leasta just bad with me for a second, we've got

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Speaker 13: a bit of breaking is it's a instacot. It's surprising

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Speaker 13: its initial public offering. They're selling twenty two million shares

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Speaker 13: at thirty dollars per share. That is a top of

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Speaker 13: the range of this online gross. So we have a

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Speaker 13: coal September the nineteenth. The symbol will be caught when

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Speaker 13: it gets go LISTA. Thanks to bearing with us that.

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Speaker 13: I just want to get a sense here of what

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Speaker 13: you're seeing market structures and is something of course that

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Speaker 13: the FED will be looking at given quantitative tightening carrying on.

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Speaker 13: And you know, when the rate cutting cycle is over,

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Speaker 13: they've got to have a long hard look at their

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Speaker 13: balance sheet, haven't they.

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Speaker 12: Absolutely, And to your point, when the Fed looks at

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Speaker 12: overall market structures and economic conditions, you know what they've

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Speaker 12: seen is certainly a more robust market than many would

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Speaker 12: have expected at the beginning of the year. And while

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Speaker 12: we've had some fallback in the stock market in the

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Speaker 12: last several weeks, really the year to date gains are

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Speaker 12: still quite impressive and valuations are relatively high, although not

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Speaker 12: completely broad based, there's still been some nice movement over

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Speaker 12: in US equities. And so with that, and to your point,

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Speaker 12: some revival and the IPO market that is certainly weighing

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Speaker 12: on their minds, along with the higher growth prospects that

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Speaker 12: we've seen come through in the recent economic numbers.

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Speaker 13: So as long as the QT program continues and we've

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Speaker 13: had the private to say, corporate bond issues where it is,

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Speaker 13: we can see that it yields a lightly to remain elevated,

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Speaker 13: and the bond price is depressed and for how.

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Speaker 12: Long the bond market certainly has been pricing in a

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Speaker 12: trajectory of higher rates. And that's really despite the fact

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Speaker 12: that while we've had some good economic momentum, there certainly

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Speaker 12: has been understanding that the Fed is closer to the

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Speaker 12: end of its tightening cycle, having engineered quite a rise

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Speaker 12: through twenty twenty two and earlier this year. That being said,

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Speaker 12: I think again just what's going on with the inflation front.

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Speaker 12: Even last week we had some hotter than expected CPI

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Speaker 12: and PPI numbers, and again those strength of positive economic

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Speaker 12: surprises really is causing those bond yields to continue to

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Speaker 12: march upward. Now, technically, you certainly there's just been a

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Speaker 12: trend and there's not really a lot of resistance in

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Speaker 12: the near term, and so we want to continue to

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Speaker 12: monitor how that's going. Extent that rise in the increases

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Speaker 12: in interest rates are doing part of the Fed's work

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Speaker 12: for it, but they certainly want to remain vigilant and

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Speaker 12: there that could, to your point, have some dampening effect

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Speaker 12: further on BOB prices.

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Speaker 2: In terms of the stock market, we've moved more or

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Speaker 2: less sideways here over the past month. Seasonally, it's a

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Speaker 2: typically weak period. However, there might be some consideration that

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Speaker 2: people are worried about a slowing US consumer. How do

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Speaker 2: you see that.

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Speaker 12: Certainly we have gotten in our bottom up and top

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Speaker 12: down assessments increasing size that the consumer, while still strong,

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Speaker 12: is starting to slow down. And so this is something

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Speaker 12: that we'll want to continue to monitor as the economic

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Speaker 12: data comes out. And we do have a little bit

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Speaker 12: of lap certainly before their crew to Ernie's reports come out,

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Speaker 12: but that is a key question as we enter that period.

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Speaker 2: Lisa, thanks so much for joining us. We appreciate it.

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Speaker 2: Lisa Erikson, Senior vice president, head of Public Markets Group

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Speaker 2: at US Bank Wealth Management. This is Bloomberg Daybreak Asia,

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