tom: good morning, this is "bloomberg daybreak: europe." i am tom mackenzie in london. sealing the deal, global stocks gain after easing u.s. inflation makes a september rate cut all but certain. we look ahead to u.s. retail

sales, u.k. growth data and results from walmart. chinese stocks find support with signs of life in the consumer sector as retail sales pick up, but infrastructure spending surprises to the downside, underscoring the economy's long-term headwinds. hedge fans load up on apple shares while trimming their holdings of nvidia. we will break down the latest filings. so the data is aligning for investors this morning, stronger picture out of japan, a jobs number out of australia that looks more positive, and the inflation dynamics in line when it comes to the picture in the u.s., inflation heading in the right direction and opening the door for the potential september

cut. voice coming through from the fed speaking suggesting fomc members are aligning to suggest september good to suggest september could be go on the first guy. european futures pointing to gains of .5 of 1%. we await the gd print out of the u.k. s&p futures looking to add 12 points after five straight days of gains. at nasdaq futures pointing higher by 91 points. we look at the pound, the treasury moves. so far treasuries relatively flat. they digested the news in terms of cpi coming in and lead with expectations. the pound at 128, up .1 of 1%. we will see to what extent there was volatility. brent below back -- brent back below $80 per barrel.

standing by for us is avril hong with a deep dive on asian markets. avril: those u.s. cpi numbers help to calm fears for asian investors in this part of the world, but we had q2 gdp numbers out of japan, and it was better than expected boosted by private consumption, and this is what the bank of japan wants to see, this virtuous cycle where higher incomes feels higher spending, and in theory this reinforces a boj that could come through with more of a hawkish stance, and we are seeing selling in bonds, strengthening and forming in the yen versus the greenback area stocks in japan are paring gains from 1% early on in the session, but from here on out until next week when governor ueda appears in parliament we might it see it in a holding pattern. he could sound a bit dovish to

appease politicians. it lets take a look at what we are seeing cross asset in china as well, because we got a lot of data out of the largest economy in asia, and this issue to some there were signs of life. the retail sales number was better-than-expected, separate data showing home price declines easing. if you look at property investment, that showed further contraction. fixed asset investment not doing well, so it was a mixed bag. if you take a look at a reaction on mainland stocks, csi 300 well in the green. one possible explanation is what we are seeing on the national team activity potentially. onshore etf's that usually get a lot of attention from the national team saw a pickup in activity right after the data actually dropped, so some ways that goes to explain what we are

seeing in the stock market as well. tom: really interesting and terms of the dynamic of the national team. avril hong in singapore with a deep dive on asian markets. chinese equities are higher today with official data showing retail sales picking up and a modest easing of those falling home prices, so home prices continue to fall but at a less severe rate than previously. there was a surprised done in investment. our china correspondent minmin low joins us. what for you stood out from this data set? >> it is quite mixed data, and what is clear we still see this does try recovery going on. retail sales slightly beat estimates coming in at 2.7% aided by favorable base effects, and you have the summer travel season helping to lift sales of

services, but if you break down the data a little bit and dig into the details, you will see that home appliance sales, car sales are declining. by numbers increasing by 0.2% this month, 5.2% is the total unemployment. the government says that is because of the influx of new graduates entering the job market. nearly 11.8 million students entering the job market this season. so you have fears around unemployment, income holding people back from spending, and industrial production slightly missing estimates at 5.1% this month, and that is a worrying sign because it is the fourth consecutive month of industrial production growing at a slower pace. pmi contracting for the first time in nine months, pointing toward headwinds when it comes

to export rules especially with the u.s. economy slowing. tom: part of the support measure coming through from policymakers in beijing is government bond issuance. what do we know about their plans around this, and how effective it is likely to be at a time when we are seeing remarkable interventions into the bond markets by this government? >> there has been a lot of movement in the bond market recently, and the projection is that the government is nearly going to doubled the issuance of government bonds to about 1.4 trillion yuan this month up from 780 million the previous month. that will inject more stimulus into the economy, because remember we had the very weak credit growth numbers that cannot yesterday, the first contraction in 19 years when it comes to new loans for the new economy and today's fixed asset data missing expectations.

traditionally government led investment, those bonds have been a key source of infrastructure investment that made up for the shortfall in private investment and property investment, and that pboc has been in this battle with traders trying to cool the bond rally. the issuance will go somewhere to lift the yield curve a little bit, but at the same time it will increase the risk for those rural commercial banks were some of the most aggressive buyers of these bonds, some with a quarter or more than half of their assets in these bonds. that is what you have local authorities telling these smaller role banks -- rural banks to stop producing these bonds. right now there are not many alternatives. the chinese bond market has been outperforming the global markets, but when you look at stock market and property that is not where you want to put your money in. interest rates are so low it is cutting into profit margins for banks as well. tom: minmin low breaking down

the data and the government response to challenges that continue in china. we have seen property prices falling less dramatically than some had expected, but that infrastructure component is a surprise to the downside. that ties into what is happening with iron ore, prices currently below $94 per ton. at the lowest level since 2022. intraday down 2.2%, another day of downside for this key input into the global economy. china is the biggest consumer of iron ore. a drop of around 30% for the year. china steelmakers talking about a crisis, and we know they have cut output. output is 10% lower than it was last year, and it ties back to the real estate sector that has not found a bottom in china. this happening at a time when

miners are boosting exports, so that is reflected about the pricing of iron ore. with focusing on the basic resource base when the ftse 100 opens for trade at 8:00 a.m. u.k. time. underlying inflation in the u.s. has these 484 -- for fourth month. let's get more from mark cranfield. this cpi seems to lock in that september cut. you were very early and terms of flagging a potential jumbo cut the fed in september. we are getting fomc members turning dovish. at raphael bostic saying he is open to the cut. goolsby saying his focus is on the labor market. what do you make of this? mark: yesterday we were talking about traders thinking this was a shakespearean play, but today it is a beatles song, the long

and winding road of rate cuts. it is probably 200 basis points worth of rate cuts priced into next year. traders are convinced once of the fed starts at there will be no stopping, rates are coming down and down. what the fed people are doing here is they are making sure there will be no margin for error. they are telling the traders you are right, so do not panic. that is partly why you have had a relatively small response so far to the cpi data, considering how important it is, but there were more pieces of data to come before the fed meat. -- mmeet. we are getting toward september. as you mentioned there is still a possibility that 50 basis points, the fed do not want to get bart -- boxed into a situation like the rmb z. that would much sooner tea everything up.

we do have another jobs report to come and get some indication from claims later today. goolsby was talking about employment being the most important factor now. it is no longer inflation. it is deterioration in the jobs market, a jump to four point 3% unemployment was a shock, and it could go higher. now the biggest piece of data is the september jobs report, and that is a couple of weeks away. tom: before we get there we have the jobless claims out today, the retail print as well out of the u.s. do those data points take on added focus given the shift of focus from inflation to the labor market? mark: traders will be more focused on job games -- gains, because last week he came up stronger-than-expected. yields overall are slightly lower than they were a week ago, but it caused quite a bit of disruption in the market at the

time. retail sales are important and people are concerned about the consumer, but they are much more concern if people are losing their jobs that will not be able to buy much anyway. people will be extrapolating and say what does that mean for the u.s. employment report coming down the road? in between we have a pce report to come as well, and bloomberg economics is saying that everything is moving in the direction with the core pce will hit 2% target they have been waiting for for some time, so all of the parts are moving into place. the data today will not derail the fact that we are going toward september rate cut is very much like me, but the question is how much of a rate cut? the next couple of pieces of data will determine whether they get their way or they have to go bigger. tom: we watch of those jobless claims and whether or not the soft landing theory remains intact.

here is what else to be thinking about, 7:00 a.m. u.k. time, we switch focus to the u.k. data at 7:00 a.m., because gdp will drop. we will see how that ties into a relative picture posting a conundrum for the bank of england as markets price in the next guide coming through in november. 11:45, earnings crossing from walmart, the biggest retailer in the u.s. a gauge on the health of the consumer and to what extent there is more caution trickling into the u.s. buyer. 1:30 pm, we get the broader picture on retail with retail sales, u.s. retail sales, an important gauge of the u.s. consumer. mediators open new round of gaza truce talks can ease tensions in the middle east, but with hamas representatives not due to

attend, what of the actual prospects for the deal? a south african mining company has released first half earnings reporting a drop in operating profit. we will speak to the chief operating officer later in the show. this is bloomberg. ♪

tom: welcome back to "bloomberg

daybreak: europe." mediators from the u.s., qatar, and egypt are said to meet with israeli negotiators in doha in a fresh attempt at striking a gaza cease-fire deal. let's bring in our bloomberg news director all those this. what is the likelihood of any deal or moving toward a deal given that hamas will not be attending these talks in doha? >> the pressure has been on, but we have seen many runs of these talks and they have gone nowhere , but we are getting a real push from the u.s., egypt, and qatar. qatar are interesting because they are channeling the messages to and from hamas. qatar does have inroads with hamas. in fact israel has accused qatar of representing hamas, so they will have some voice in the room , but it does make it more complicated because you have to

pass messages back and forth through conduits. the head of hamas is in hiding in gaza. at least we will get a sense of where the conversation is going, because of the key sticking points are still there. israel has is sticking points, hamas has its sticking points come up can we get to the point for israel to say we need to get to the cease-fire, because it may stave off some sort of attack from iran. tom: this after iran accused israel of assassinating the key negotiator. what are the key sticking points? >> the main one is what does the cease-fire achieve? hamas wants it to be an end to the war. israel says its ultimate goal is eradicating hamas, from preventing hamas from attacking israel like it did back in october. it wants the option to continue

fighting. there are many other sticking points, what about passages -- hostages being held in gaza? where do the israeli troops go? what about returning more civilians to the north of gaza? will israel say you have hamas moving alongside them, so it is a bunch of complications. the main thing is what will the cease-fire be a pathway to? tom: is it realistic to think that if there is product -- progress that would ease the risk of iranian retaliation? >> iran is waiting to see, but they have been saying for more than two weeks that they have to do something. this was an attack on a senior hamas official in toronto -- tehran just after the new iranian president was inaugurated related they have to

work out with that is, but if the talks go well maybe it is a different kind of response. maybe it comes through proxies versus a direct attack. maybe it is a cyber attack on israel versus a physical attack. it does seem as though iran feels that they have to do something. tom: thank you very much indeed with the latest as we look ahead to those talks in doha. consequential for the tensions that remain. russia says it has repelled a wave of ukrainian drones and missiles in one of the largest overnight attacks of the war. moscow says 117 drones were shot down over all border regions. ukraine says his forces continue to advance into russian territory as moscow russia's reinforcements to the border region where ukraine says it has seized control of more than 70 towns and villages.

plenty more coming up. we will get details on the securities and exchange commission in the u.s. levying more fines on financial companies for the use of whatsapp messages. we will bring you that story and others. stay with us. this is bloomberg. ♪ sleep number does that. thank you. during our biggest sale of the year, save 50% on the sleep number limited edition smart bed and free delivery when you add any base.

>> we are moving in the right direction. >> i think it is good news. >> the economy is strong, inflation is decelerating. dark out they went to cut rates and will probably cut rates in september. >> i do not think anyone should hold their breath for 50 basis points. >> if they do 50 basis point cuts it will probably spark an unnecessary consent and markets of that they know. >> we think 25 is the right first step. >> our basecase remains for a 25 basis point cut in september. >> i think at the risk of recession since greater than the risk of any resurgence in elation. -- inflation. tom: recent guest weighing in on the recent inflation rent and its implications for auditory policy as the debate shifts for whether or not the fed goes 25

basis points are 50 basis points in september. the assumption is september is locked in for the first cut of the cycle. columbia university president has resigned after a brief tumultuous tenure that's all the head of the prestigious university grappled with protests over the war in gaza. she is the third leader of an ivy league school to depart over accusations of antimissile much as him -- antisemitism on campus. the securities and exchange commission has find programs almost $400 million. the fines add to payments recently agreed to make. citi is lifting the cap on its top london banker bonuses allowing some to earn up to six times their base salary. the latest move applies to

material risk takers and follow similar moves made by barclays and jp morgan. material risk takers are able to earn a bonus as much as 10 times their base salary after changes by the u.k. government. bloomberg understands klarna is close to accepting goldman sachs for its ipo. the stock-based lender is in talks with investors for a sale of existing shares that would come before the proposed floatation. klarna had considered seeking a of $20 billion in the ipo. the ipo valuation well done from previous valuations. apple is ramping up work on a home tabletop device as it seeks new sources of revenue. a team of 700 people are working on the product which uses a thin robotic arm to move around the

screen. it is viewed as a videoconferencing machine and security tool. a south african mining company exxaro reports a drop in the second half. we will be speaking to the company chief executive. european markets, futures pointing higher. s&p e-minis pointing to gains after five straight days of gains for the s&p 500. stay with us. this is bloomberg. ♪ with so much entertainment out there wouldn't it be great... ...if you could find what you want, all in one place? show me paris. xfinity internet customers can enjoy the ultimate entertainment experience and save on some

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tom: good morning, this is bloomberg daybreak: europe.

these of the stories that set your gender. ceiling of the deal. global stocks gain after easing u.s. inflation makes a september rate cut all but certain. we look ahead to u.s. retail sales, u.k. growth data, and results from walmart. chinese stocks with the signs of life in the consumer sector as retail sales pick up. but infrastructure spending surprises to the downside. underscoring the economies long-term challenges. plus, the world health organization declares in mpox outbreak in africa, a global health emergency. that as it tries to contain a potentially deadly virus. to the markets now, european futures higher by around .4%. a decent session stateside. five straight days of gains for the s&p and looking to build on that today with u.s. futures also pointing higher by shy of .2%. the upside coming through, the data aligning with the

constructive view of the markets and fed speak as well from old speed to raphael bostic to the fd suggesting that he would be comfortable without first cut of a cycle in september. cpi inflation print aligning with that view, calling on the call level certainly in the u.s. yesterday. again, open that door wide for a september cut from the federal reserve. ftse 100 looking to get to 30 points. a look ahead to gdp data. s&p pointing higher by just shy of 2/10 of a percent pure nasdaq futures up by .4%. let's look across asset, pound and focus ahead of the gdp print. later in the u.s. we do get retail sales and then the key retailer are the biggest retailers walmart, a gauge of the consumer. 395 on the front end of the two-year. we will see if that moves as markets price and in the debate moves from whether or not it is a 25 basis point cut or 50 in september. 128 on the pound. seven and nine dollars a barrel on oil. iron ore under pressure in the session down 2%.

93 dollars per ton currently for iron ore on continuing concerns about the demand out of the chinese market. that's a check of your markets, let's get back to a key story right now this thursday, the world health organization has declared in mpox outbreak in africa a global health emergency. a mutated strain of the virus has affected about 15,000 people in at least six african countries and killed more than 500 in the democratic republic of congo. click the who has been working on the mpox outbreak in africa and raising that this is a concern. it met and advised me the situation constitutes of international concern.

problem: what we do about booze rate of seven pogs course exemplar clues and the rig. when the last global outbreak is happening in traded to 2020 three, africa god -- so now we have seen a virulent strain that is the endemic strain that is being saved it for an it has started in central africa and we are already seeing it in east africa. and they are still scrambling to get data and good surveillance to know what they are dealing with. tom: what are the global risks at this point from the spread of this virus? quick to flow, i guess. but as we saw with covid, you shouldn't turn your back on something like this, it can

spread very quickly. as i mentioned, it has already spread to east africa and it takes one person on one flight and it's gone global. so the w.h.o. are acting quite quickly so as africa cdc, they declared their version of an emergency the day before and it is being taken seriously. tom: what is the material impact of these declarations of emergency? what is a mean in terms of the resources that are put to play to try to combat the spread of this virus? quakes sincerely marshall's resources, the w.h.o. is meeting today and in the coming days and they are going to detail more copper has a plan. as he saw with covid and it was stockpiling.

most companies affected in outbreak and don't necessarily have the same resources to pay for vaccines that many of the other countries in the world do you have. so there's going to be a lot of discussions, there needs to be a concerted effort. hopefully this time africa were not be left behind. tom: so some estimates of possibly $4 billion is needed to combat this virus. give us some details in terms of how dangerous this virus is in which parts of the population are most vulnerable, and the efficacy of the vaccines that are currently available. >> the efficacy is pretty good, it was developed for smallpox, which is largely been eradicated locally. it will cover -- the makers are pretty confident it will cover any mutations. the populations most at risk, a lot of the cases have been in children and we are seeing a

rapid spread through sexual networks, so there is that element as well. this is an endemic and it's usually --. the case fatality rates in the drc is about 5% at the moment. and the outbreak that happened in 2022 and 2023 globally was a different one with a lower case fatality rate. tom: bloomberg health care reporter on the important details around this unfolding story. really appreciate the update on the details. thank you for joining us. switching focus and coming up, hedge funds reshuffling their positions in big tech. we have those 13 net filings. we take a look at why they are picking apple over nvidia. that's next. this is bloomberg. ♪

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tom: good morning, welcome back, underline u.s. inflation eats for a fourth month on an annual basis in july, keeping the federal reserve on track to cut interest rates next month. they showed you're on your core consumer prices rose at the slowest pace since 2021. for more reaction let's bring in civ u.k. chief economist victoria clark and we will get your views on it. a big day for this nation with gdp crossing at 7:00 a.m. u.k. time. that start on the u.s., your take on what we have seen. inflation picture seems to be aligning with that sambar cut -- september cut. the debate is whether they go 25 basis points or 50, where you land on this question. would 50 smack of panic, is september locked in for you and the team and what is the sequence going forward? >> history was important. the fact we had that bad run of

u.s. inflation numbers. i think we have probably had enough good numbers. so we think september is on but we are struggling with the notion that the fed is going to jump straight into 50 basis points. our view is that it's not completely a done deal even on the 25. but if there is going to be a move, it should be at 25 basis and 50 basis point adjustment. tom: arts of the inflation basket, when you break it down, consumer goods and big-ticket items like cars are falling significantly, suggesting the u.s. consumers feeling that pain. what would hold them back from not going 25 because there is still a bit of caution as to whether or not they do actually go? >> the payroll numbers are volatile. obviously we've got another number to come. there is still some residual heat there in the bits of the inflation basket. so i think we need to see that reassurance that the jobs market is as weak as we all suspect the last month.

i think of it is, then, yes, they can get going. but we need to know that that is not a fluke, and i think i agree with you, we think the consumer is softening, consumption is softening in the u.s. is moving on to a softer part but that's more of a soft landing. we are not in the realms of saying that the big slowdown. it's more of moderation in our eyes. i think that that would lead you towards 25 being a much more sensible move in 50, i think it does scream a panic but it also risks re-stoking that demand that has been softening nicely. you want to go carefully to make sure you have dealt with the inflation beast. tom: go to be of the fed coming out saying he is concerned about the labor market. we had rafael bostic speaking to the ft saying he's open to cut. four point 3% unemployment, how vulnerable is the labor market to deep cracks or is there relative resilience? >> i think there's resilience,

as i say, the view that we take is that there is a slow down, but it's not a sharp one, consumption is slowing but it slowing in a contained way at the moment. provided that you see that, you wouldn't expect to see a sudden sharp drop in the labor situation, we have had a decent amount of growth. i think at the moment our sense is that the fed still has inflation matter to deal with, yes, there is softening coming through but you have to balance those things out and that requires a measured response. tom: what are you looking for in resilience? >> u.k. economy looks like a has had a resilient first half of the year. we had plus .7 over the first order. we are looking for the same for the quarterly number for this time, for the next three months, for the second quarter. at face value that looks great. i think it overstates the extent of strength for the u.k. because we had such a week end to last

year so some of what you are seeing is just the bounce back from that difficult end to last year. but nevertheless it looks positive. if i look at the signals for this summer, unlike the u.s. where we worry about the slowdown, if anything you, -- you can see the post election, there's a little bit more positivity coming in. tom: you talk about the euro in the sporting effect but inevitably, the taylor swift effect, are we over exaggerating the effects of some of these inputs? >> i think we are, in terms of inflation yesterday, taylor swift, yet again, cited as one of the reasons why hotel prices were soft after a very strong month, i'm not convinced that the taylor swift effect when you look into the detail of hotel prices, the gdp, the same sort of picture, yes, i think it is a factor, more broadly there were a lot of shows. you will find a list of artists that were doing the rounds in the month of june, it's fairly substantial. you have the euros as well. i think it's more the

opportunity is out there for people to spend, and frankly, a bit of normal weather as well, which we haven't had much of this year in the u.k. tom: in an environment where rates have come down from the boe, the first cut, and we know that takes time to come through, is the construction industry on a more sure footing? >> i think construction is feeling a little bit more positive. they have been weather impacted for the first part of the year. good weather seems to be one of the most important factors driving these gdp numbers. you have seen, including in pmi, the signals that haven't gone through the election with rates now and the downward track that there is that optimism. so i think, let's not get carried away but it's a more positive outlook we have had. tom: your constructive on the u.k., 0.7 percent growth coming through in the gdp drops. inflation rose above 2%, but less strongly than many economists have expected, how

challenging is this in terms of the next steps for the boe, where they land in terms of their next cut? >> the boe will look at it and think, we are more or less on track with the way we saw things in august. they would've had 47% gdp, yes they have had a bit of downside news with inflation, but there's lots of volatility in the numbers services, cpi was lower than they thought, but they've got a step back and look at the bigger picture. services inflation still above 5%. hey growth is still elevated in there's work to do. so we viewed the august cut as a cautious one. we've got inflation target, a month ago, we could do a step, but i really don't see the rushing into it, i think it would be measured in responding to the danger, services inflation jumps back up next month we would expect that will add to the caution, those numbers come one day before the boe. tom: your base case is not that the fed goes to basis points but should they go there, with that affect the boe, without pull

forward expectations the boe? >> i think the bank of england would want to do its own thing and step back and look at its own numbers. but if the fed launches into an aggressive cutting cycle that's vastly different from that and we've seen for the boe, that it's going to be difficult for them to continue to slowly run their own gain. the u.k. has growth momentum picking up a bit. still got more services inflation, higher pay growth so it has got its own story. i think if there is the panic there that's needed to trigger the 50 basis points, then the boe will pick up on that. tom: how strong is the u.k. consumers, households, budgets? >> consumption has been the boring story. it did ok in q1, it's not super week, i think you will see probably a similar picture for q2, i would say consumption is exactly where the bank of england wants it, and if they fiddle too much with interest

rates are fiscal policy later in the year, the risk is that that comes back to strongly, so they have to be careful in managing this because we don't want demand to suddenly jump up as financial conditions loosen and growth goes off and inflation grows even more. tom: right now we are looking at a goldilocks consumer environment in terms of where wants to be position for the boe. thank you very much. chief economist -- chief u.k. economist at santander see i.b.. here's what else to watch out for. we are getting those u.s. initial claims. the team at mliv have been underscoring the fact that this is an increasingly important data print. as members of the fomc target the labor market and the unemployment picture in terms of their focus. arguably more than inflation right now. that data will be in focus. retail sales out of the u.s. and gauge on the u.s. consumer. a 2:15 p.m. u.k. time, its u.s. industrial production, that's

another segment of the u.s. economy for which we get more color. later today the fed had speakers at an event and we had these relatively dovish comments from rafael bostic speaking. and before the market on the earning side, a couple of big chinese names on the consumer side, e-commerce, alibaba, jd.com and the biggest retailer of the mall, stateside, walmart earnings crossing as well. another touch on the u.s. consumer. hedge funds have continued to buy into some of the biggest tech companies, including apple. while trimming positions intriguingly and nvidia as they reshuffle their positions in the ai boom that fueled the blistering rally of the u.s. stock markets. let's get more from bloomberg tech reporter annabelle droulers, who has been passing the details of these filings. one of the big changes that you seen? anabel: passing the details, there's about 670 companies are hedge funds that have so far

offered up the changes that they made in the latest timeframe and really the big theme that has come through in one day you just touched on their is that shift into apple, which i think is particularly important because if you recall a couple of weeks ago we had berkshire hathaway out with its numbers and pointing to that trimming it had made with its stake in our pool, perhaps he could have been for tax accounting reasons. but, it certainly does seem that there has been that change and that shift into apple shares. the stock itself was up 25% in the latest time. net via more than a .5 million shares from hedge funds, janus henderson, there'd point, a lot of different ones. at the same time you say there's been a shift away from ai related themes. nvidia and the trimming of profit taking from some of the different funds. microsoft is was reduced by 140 investors. as we continue to see that boosted to other names like

amazon, tsmc, that's what came through the numbers so far. tom: maybe some profit-taking. famed hedge fund manager making his name during the great financial crisis. also doubling down, intriguingly on chinese tech, which sounds counterintuitive or might be to some. annabelle: it's really interesting because michael is someone who is famous and betting against the u.s. housing market in 2008, he actually shifted completely out of the china tech holdings at some point during 2023 at the start of this year he started to buy up in a quite a big way, names like jd.com, alibaba, in the latest time, his stent has shifted again because jd.com has slipped in these holdings, alibaba has risen to the biggest holding for asset management. again, it is interesting because as i said he has exited away he has come back in, but there are still so many valuation concerns around chinese tech companies,

tencent is a good example because even though we saw a earnings come through, that stock has been under pressure throughout the session today. but certainly a wall street overnight it was down around 3.5%, taking a look at how tencent is trading now, still up 1.5 percent. tom: annabelle droulers breaking down the details and what it means for exposure to tech. thank you for the update. plenty more to come. in terms of what to expect from walmart earnings and why it's a great gauge of the u.s. consumer and looking ahead to retail sales as well. this is bloomberg. ♪

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>> everybody's waiting for september and if the rate because that are expected materialize, that will be a boost for the consumer. the thing that gives me confidence be on the next quarter to is this almost sociological shift we have seen

with this appetite for travel. i think that bodes really well for our business. tom: the ceo talking about the possibility of a rate cut in september, which looks almost certainly at this point for the month of september. the debate really going 25 basis points were 50 basis points with a gauge on the u.s. retail. that data dropping will point to some details around whether or not the theory and the thesis around the soft landing is still in tact for the u.s. economy. you can see the strength that came through in terms of retail sales on the relative choppiness that come through your to date. expectation is it will see a pickup from a flat print last month to an increase of zero point 4% in terms of retail sales. again, an important gauge alongside u.s. jobless claims later today. expectations will take up with a retail picture is expected to improve. that takes us to walmart. let's flip the screen and look at walmart, which is still the

biggest u.s. retailer via revenues. they will be looking for anything they say on the health of the consumer and switch up and buying and going for cheaper products with the volume being reduced in anything they say on inflation as well. this is what's expected in terms of revenue growth year on year. 4.2%. anything around inflation and around changing consumer habits that would be interesting in terms of how you think about the resilience of the u.s. economy. let's look at just where walmart stands in terms of the strength and the size within that retail space in the u.s.. largest revenues as a retailer, but interestingly, amazon is expected to take that crown by the end of this year and walmart pushing back with some other objectives in terms of expanding to other businesses to try to offset that challenge for amazon, including a third-party marketplace. that's the size and scale of walmart in terms of the retail space. challenge comes through for amazon. the stock for walmart is up

around 30% year to date. coming up, signaling a jump in wind turbine orders two days after profit warning related to a different part of the business. we will speak to the ceo of that company 7:30 am u.k. time. the opening trade is coming up and they will break that detail around the gdp data in the u.k. stay tuned for the opening trade up next. this is bloomberg. ♪

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anna: i'm anna edwards alongside guy johnson. here's what you need to know. european futures are in the green following a global equities rally with the needs of u.s. inflation boosting the case for a fed rate cut next month. iron ore prices hit their l