joumanna: good morning, this is "bloomberg daybreak: europe". i'm joumanna bercetche in dubai. the middle east on edge after israel and hezbollah exchanged the most serious strikes since the beginning of the war in gaza. traders counting down to a fed rate cut after jay powell's jackson hole speech points towards the start of monetary

policy easing. today's big take takes a look at how the mpox global health emergency could have been avoided. joumanna: good morning, everybody, and good morning to those early risers in the u.k., i know it is a bank holiday today, so if you are joining us, welcome, welcome. lots to get through. we will talk about developments out of the middle east in the last one to four hours and the reaction in markets to jackson hole on friday. with fed chair jay powell saying the time has come for policy to adjust. what we saw was quite a bit of reaction on wall street towards the close, some of the majors ending the day up more than 1%. this morning leading more negative, euro stoxx 50 are tilting to the red, down 0.3%,

and s&p futures and nasdaq leaning towards the red, too, down eight basis points respectively. a big week coming up, we have nvidia earnings going to be a major market mover wednesday in addition to pce, that is the fed's preferred inflation gauge coming up on friday. a lot more data points throughout the course of this week but it was not just these indices, let's look at how the russell 2000 reacted friday, because not that long ago we were talking about the rotation out of large caps into small caps, well friday was another case in point of how well small-cap indices did, with the russell 2000 ending the session up 3.2% higher on the day, inching back towards all-time highs we saw just a couple weeks ago. it wasn't just equity indices that reacted. we saw major market moves across rates and usd. flipping the board, so you can take a look, the two-year, the

front end of the u.s. treasury curve rallied eight basis points friday. the market is now pricing more than 100 basis points worth of rate cuts until the end of the year, which implies more than 25 points of cuts per next meeting, so some are implying that september has 30 priced in for a. the dollar unchanged today but slipped 1% on friday and brent in focus. trading just shy of $80 but still off about half a dollar today, about 0.6 percent stronger given the geopolitical tensions over the weekend. that is it for global markets, let's look at how asian markets are faring with avril hong in singapore. >> we are seeing asia stocks today started on the front foot, thanks to that market confidence we are going to get rate cuts from the federal reserve, but turning cautious as the session progressed. the stockade for the region

slipping off session highs, as tensions in the middle east come to the fore, maybe dent risk appetite, but we also have those nvidia earnings to contend with particularly for asia tech investors and what this might mean for chipmakers in the region. the bloomberg gauge of asia chip stocks mostly showing them in negative territory. then you wrap around also what we're seeing in the japanese currency. we had ueda, powell, maybe a bit of safe haven demand leading to lower dollar-yen, right now at the 1.44 level, an uncomfortable backdrop for japanese equities, as it makes export-related names seem less attractive given how stronger yen would weigh on earnings. there is an added headwind for japanese equities, if you look at the jgb curve, as our mliv strategist has been highlighting on the blog, it has been

potentially flattening towards the levels we last saw in august. this suggests further adjustment ago because don't forget when we saw those market ruptures, the top picks was 20% down from where we are now, so potentially another risk as far as japanese equities are concerned. joumanna: if we learned anything from three weeks ago, whatever happens in japanese equities is significant for global markets as well. thank you for flagging highlights from the asian session. a relative calm is holding in the middle east after israel's sunday bombing raids on southern lebanon. israel took out thousands of hezbollah missile launchers based on intelligence that the lebanon-based militant group planned imminent attacks. >> we follow hezbollah out for weeks with technological means and air patrols by air force planes.

at the moment, we detected an intention on the part of hezbollah to carry out the attack and eliminated most of them. joumanna: both israel and hezbollah have announced for the moment operations are over despite ongoing low-level fighting. >> if the result is not sufficient in our opinion, we will reserve the right to respond at another time, but whoever wants to go home go back home, the country must calm down again. joumanna: that was the hezbollah chief speaking. let's bring in paul wallace. again, the region has been sitting on edge the last couple weeks, waiting for retaliation both from iran and hezbollah up for the killing of senior commanders. it certainly came from lebanon over the weekend, but from what we gather, the last 24 hours it could've been a lot worse, where does this leave us in terms of potential for all-out war between lebanon and israel and

other proxies? >> it is certainly right that it could have been a lot worse, if you look at the casualty account, one soldier in israel died and reports of three non-civilians killed in southern lebanon, but tensions remain very high. hezbollah has said that what happened yesterday was only the first round of its retaliation for the assassination in july of that commander. so there could be more to come. iran is still saying that it will retaliate against israel for what it says was an israeli assassination only a few hours after shoukra of ismail haniyeh in tehran. we don't know how involved nasrallah was in yesterday's attack by hezbollah, but it seems like the islamic republic is still insisting that it will respond to israel at some stage. joumanna: in parallel, these

ceasefire discussions are still taking place, i thought it was interesting that on sunday morning a couple hours after the strikes between israel and hezbollah, you saw an israeli delegation head to cairo to continue negotiations around a gaza ceasefire. to what extent will that influence outcomes of the region? >> israel has long argued that the more military pressure it puts on both hamas and other militant groups are on region, especially hezbollah, the more likely hamas is to agree to a ceasefire. israel says that has been borne out over the last three months because when it has hit hezbollah or hamas particularly hard, hamas has made concessions soon after in negotiations. we saw hamas react, as you can unsurprisingly, pretty badly to yesterday's flareup between hezbollah and israel.

its representatives left cairo. they are not in the city anymore. it looks as if those talks, although israel was saying they can go ahead, have not gone anywhere. we are still back to the old sticking points as to whether this will be a permanent ceasefire, and plenty of other issues as well. joumanna: paul, thank you for the update from the region. a significant round of escalatory strikes between lebanon and israel over the course of this past weekend. for more and the impact of the tensions are having in the oil and gas markets, we're joined by energy reporter terry lundgren. the middle east is on edge, typically the geopolitical premium that gets priced into oil does not tend to last. it always tends to be short-lived, but what are the implications for oil prices this time around?

>> good morning, i'm actually speaking to you from what some would argue is europe's oil and gas capital, here for a conference seeing all of the country's oil and gas elite and i sure this topic will be at the forefront of their minds. in the last recent weeks, the story of the oil market has been one of oversupply. i think that is probably something that will continue. the eyes will be on opec-plus and their thoughts regarding whether they will add to the market later this year, but at this point, it is volatile. you have events like this and that will be factored into what is going on for decision-makers at opec+. joumanna: it's not just about oil. the other commodity i have been keeping a close eye on is natural gas prices etf. we have been planning steadily

over the course of the summer. as we start heading into the winter season, in europe, what does the outlook look like for european net gas prices? >> things are looking up, or at least prices started to ease at the end of last week, which is good if you are a european policymaker looking into the winter and worrying about having enough gas storage. gas storage is very full at this point, over 90% full, and the maintenance outlook from norway which is europe's biggest supplier of natural gas looks steady. at this point, there is a cautious sense of optimism there will be enough gas and there won't be the volatility we have seen in recent years. joumanna: you said you are in oslo for a conference. one of the big drivers for nat gas market from here on is

maintenance work taking place within norway. that is making the market quite nervous. what are people concerned about? >> stavanger actually. every summer, they take an opportunity, it's been something that has happened for years read it takes years of planning but the facilities are big, they are complicated, and norway is in the spotlight now as never before. after the invasion of ukraine. which means that if you have a facility, if things are going to plan that's great, but is soon as you have arts missing -- parts missing or delays or something unexpected, there is a ripple effect. over the summer, we had one of the platforms in norway had a pipe that had problems. immediately everyone thought pipe, they thought nord stream, what are the implications, they think terrorist attack.

so, the whole market is taking all of this recent history into account. in the end, in that case, it was just a small pipe, but even fixing a small pipe on a platform offshore in the north sea is not a simple process. it involves helicopters, getting people out there, getting the right part. here you have onshore facilities, one big facility that is going to be off-line for a month, and total gas deliveries are equivalent to the daily needs of france and italy. it's a huge volume of gas. if the norwegians can keep all this on track, we're in a good place, but we could see continued volatility on the back of that. joumanna: certainly something to watch out for. i mistakenly said you were in oslo, at least i got the country correct, norway. kari lundgren with the latest on

european gas markets. there is a big week for markets. it is not all about jackson hole and the reaction, later on today, we will get the german ifo business climate. that is important because it gives you a sense of how businesses are faring and how consumers are feeling about the business environment. something to watch out for at 9:00 a.m. u.k. time. wednesday is a big day for stockmarkets. the one stock everyone talks about repeatedly, nvidia, will be reporting earnings on wednesday, it is a good litmus test for how the ai world is faring. also sets the tone for trading in some of these key tech stocks into the coming weeks. it will be a big driver for markets. those results on wednesday. friday we have the fed's preferred inflation gauge, that is the pce. the pce headline number year on year expected to come in at around 2.7%, still above 2%, the

core number also expected to come in around that level. as we heard from the fed chair jerome powell friday, things are moving in the right direction. he did say the time has come for policy to adjust. those are some of the major takeaways from the weekend and major events to watch out for this week. you can get a roundup of the stories you need to know to get your day going, in today's edition of daybreak, and terminal subscribers can go to dayb . today's top stories are about oil, telegram and spacex, if you check out the terminal right now. also coming up, we will talk about the countdown to cuts. we look at how jerome powell's signal of a september cut is affecting markets next to. this is bloomberg. ♪

joumanna: welcome back to "bloomberg daybreak: europe." while traders are counting down to a fed rate cut after jerome powell's jackson hole speech pointed toward the start of monetary policy easing. >> the time has come for policy to adjust. the direction of travel is clear and the timing and pace of rate cuts will depend on incoming data and the evolving outlook and balance of risks. joumanna: let's discuss this more with bloomberg's mliv's mark cranfield. we have been tracking the market reactions. a positive reaction to stocks on friday but the dollar slipped 1% in friday's drapery dollar-yen leading the way. how far may it decline this time around? >> traders are looking back at that. so if previous declines of

dollar-yen, the biggest worry in recent history is the one at the end of 2022, and that decline was about 16%, between the high and the low for dollar-yen. the low so far even at the extreme point couple of weeks ago is only 12%, so there could be quite a way to go. if you compare the conditions, they are more favorable for the yen now than they were two years ago, what has changed is the fact that the bank of japan is starting to raise interest rates, and the fed is closer to lowering. that's a big change from what we saw in the previous cycle. the fact that mr. ueda last week reinforced his message that there is more work to do is helping the yen. jerome powell clearly's ignoring -- clearly signaling that the federal reserve will start lowering rate soon as well. it is coming together very favorably for the japanese yen, not so much for the u.s. dollar. if you look at where projections are from previous cycles, dollar-yen will probably go below 140.

if you go into the mid 135 levels based on similar projections we have had in the past, so room to go and the yen probably has not finished against the u.s. dollar yet. joumanna: i remember, a month ago, when we were talking about the japan interventions, people were saying the best thing that can happen is for the fed to start cutting interest rates and here we are. another big event of interest is nvidia earnings. those come out on wednesday. which asian markets will be most exposed to that? >> chipmakers across the region are watching this very closely. of all those, taiwan is the place that is on edge about the whole thing. if you look at the performance of taiwan's index, the taiex is the best performing among the major indices, and taiwan's semiconductor is up 60% this year. so much of that is off the business it does with nvidia. what we have seen is that nvidia

continuously manages to beat forecasts, the past two years almost every quarter, even when expectations have been very high , it managed to achieve something even better. no wonder the options market is pricing something like a 9% move, even if we get a number that comes in line. expectations are huge. whatever nvidia does will have a big follow. whether positive or negative, as you will be right at the forefront, especially the taiwanese market, although korea and hong kong be watching closely. if you are looking for a single name to watch, taiwan semiconductor will be right behind nvidia. joumanna: no surprise there i would say. mark, thank you for bringing us the analysis. also coming up, a series of missteps and lost opportunities led to the global mpox emergency. more in today's big take next. this is bloomberg. ♪

joumanna: welcome back to "bloomberg daybreak: europe." mpox is a global health emergency scientists say could have been avoided. lost opportunities and lack of funding contributed to the spread of the virus in africa. helen reads from the world health organization told us that africa is once again short on vaccines. >> the world should say have we learned anything from covid? the african region acquired covid vaccines months later. that meant in many cases people had already had the infection and people were not interested in having the vaccine. we look at mpox and we have the same problem. joumanna: for more, let's bring in bloomberg's reporter janice

kew, in johannesburg. very reminiscent of the feeling around covid-19 which was four years ago. time flies, but why are scientists and public health officials saying that this specific mpox situation is a global health emergency that could have been avoided? >> africa has long had a history of being ignored, when it comes to issues like this, in terms of infections and infectious diseases. this is the core issue. when the last mpox global health emergency was declared over in may 2023, africa still did not have any mpox vaccines, and in the intervening time, the disease mutated and they are dealing with the strain they are not 100% sure what they are dealing with. there is a low level of surveillance and testing in that region specifically about 17%,

which is very low by global standards, all most all mpox cases that presents in western countries you are probably looking at closer to 100% of them tested. scientists are scrambling to figure out what they're dealing with. the vaccines still haven't arrived. there has been a huge lack of funding. a country roughly the size of western europe that has the world's second-largest rain forest and it is war-torn. getting basics in there has been incredibly difficult. things like water, so you can ensure a good hand hygiene, public messaging to deal with stigma. all these things have been missed. while that's happening, spread continues and viruses mutate. joumanna: so, we talked about what could have been done in the past. what is being done now within

africa and around the world to prevent further spread of mpox? >> the declaration from the world health organization and africa cdc for their public health emergencies are slowly marshaling resources. we hope vaccines will arrive within the next two days. countries are looking at surveillance of orders. -- borders. this isn't always effective but it gives a sense of where this mutated strain is moving and what people are dealing with. there is certainly the attention of the world on this situation and trying to ensure we don't have a repeat of covid and in the last global emergency for this disease mpox. joumanna: health care reporter janice kew. thank you for bringing us the latest. also coming up on daybreak,

telegram questions the detention of its cofounder and ceo pavel durov in france, the latest on that next and a lot more. stay with us. this is bloomberg. ♪

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joumanna: good morning. this is "bloomberg daybreak europe." i'm joumanna bercetche in dubai. middle east on edge a day after israel and lebanon's hezbollah

exchange the most serious strikes the beginning of the war in gaza. oil gains. traders counting down to a fed rate cut after jay powell's jackson hole speech points toward the start of monetary policy easing. nothing to hide, messaging app telegram questions the grounds for the detention of its ceo, we will bring you the details. welcome back, everybody. let's get a quick check on how markets are faring. the big event friday was jackson hole. fed chairman jerome powell's speech of signaling the time has come for policy to adjust, indicating we could get the beginning of the fed's rate cutting cycle as soon as september. investors might be getting ahead of themselves because there is more than 30 basis points priced in for the september meeting but 100 by year end, that meant we had a risk on tone on friday, wall street ending up in the green about 1% higher. today futures tilted towards the

red, euro stoxx 50 or is called down about 0.3 percent, s&p and nasdaq seen mildly weaker. but not just these equity markets, i want to draw your attention to the russell 2000, because once again, we have seen a lot of money being poured into small caps. friday we saw the russell rose up more than 3% higher, so once more we see this rotation come through out of large caps into small caps stocks, as the fed turned more dovish with the outlook. something to bear in mind given the big trends a month ago with that big rotation theme. it is not just equities that reacted, cross assets we're seeing very large reactions. we spoke about the reaction in two-year treasuries. friday we saw the two of your note rally eight basis points, we have more than 30 priced in for september, some say they could go as much as 50 points given palace at the timing and pace will depend on incoming data, so if the data surprises

to the downside, i.e. that pce number on friday, that could open the door to further more aggressive interest rate cuts. bear in mind, the dollar trading sideways today, we slipped about 1% on friday. brent moving higher on geopolitical tensions within the region. just shy of $80 now, about 0.6% firmer on the session. let's switch over to the political development in france. the president's emmanuel macron is meeting with political delegations in another bid to form government, after snap elections in july left him with a hostile national assembly that has no majority. let's get more from caroline connan. good to see you. i just wonder to what extent president macron is riding high after the very successful paris olympics. how is that likely to factor into the discussions taking place? are we going to see any progress? >> you are certainly right.

the olympics have been over for nearly two weeks. you have the paralympics that started wednesday night. we are exactly 50 days since the outcome of this snap elections delivered a hung parliament. we still have no prime minister in sight. today this morning, president macron is meeting the president of the national assembly from his own party. later in the afternoon, he will meet the president of the senate, but most importantly, with the leaders of the national rally, marine le pen and jordan bardella. the national rally was first in the polls but ended up coming third in snap elections with 143 seats. still a big bloc, but very far from a majority of 289 seats. emmanuel macron has excluded at the moment to name any prime minister from the extremes,

either the far left. emmanuel macron also met with leaders of the new popular front , the so-called left-wing coalitions, on friday which includes the far left lfe party, the greens, communists and also socialists, they have a proposed candidate, a 37-year-old economic advisor of the current paris mayor. but macron has also excluded naming lucy castets as prime minister because she was to include some far left to include some far left ministers within her government. this is a redline from his own party, the center-right, and from the right-wing, the republicans. the window is tight, there are some other names mentioned, the former socialist prime minister but time is running out for emmanuel macron. joumanna: it seems like a process of elimination is underway.

what is it that macron is waiting for? how soon can we expect to hear who this new prime minister will be? >> the process of elimination meaning that you don't want any new government to face a vote of no-confidence. that is the main issue because no one has a majority, so macron has to form some kind of coalition, and he doesn't want to include any far left leaders in his government. the greens, also a member of the new popular front, have said they want an answer by tuesday. technically, the nomination could come before the paralympic games start on wednesday night. over the next couple days, because on thursday morning, emmanuel macron is traveling to serbia for an official trip, so the window is really tight, unless you wait until after the paralympic games, which end september 8, but that leaves very little time for the budget because the only deadline that

he has is the budget, the deadline is october 1, technically that means any new government need a few weeks before that to prepare a new budget. the last thing emmanuel macron wants is the budget to face a vote of no-confidence and create even more political chaos over the fall. joumanna: very good data points of those days we need to bear in mind. let's see if something happens before the start of the paralympics. telegram has questioned the grounds for france's detention of the ceo pavel durov. the billionaire cofounder who is taken into custody at a paris airport over the weekend. annabelle droulers, a really surprising sequence of events, walk us through what happened and why mr. durov was arrested

over this weekend? >> it is interesting to put that in highlight, how surprising this sequence of events has been, because you have seen somewhat screwed the on tech ceos -- scrutiny on tech ceos over the years, the heads of meta and google but never seen a tech executive being arrested in plain sight and that is exactly what happened to pavel durov when he was returning to paris over the weekend. he was detained at an airport on the outskirts of the capital city. all of this being first reported by afp, i should know, but the suspicion is he failed to take steps to prevent criminal use of telegram. telegram is a messaging app, many would be familiar with it, it has about 900 million users worldwide. it has gained prominence as an app that is that about to spread disinformation, hate speech. that has an association with extremists. a lot of that have been present

in recent events. we had the anti-immigrant riots in the u.k. in early august. telegram was front and center because there was the insinuation it had been used to foment and coordinate demonstrations, so there is greater scrutiny not just on the u.k. because france as well, and the afp says that ofmin, an agency set up to protect violence against adolescents, they are the ones that issued the arrest warrant. joumanna: it raises questions about to what extent the individual is culpable for the activity that goes on, on the social media website in the situation, has there been any official response from telegram? >> telegram responded to that level of culpability. they are saying telegram is an app and is following all the regulations of the eu.

also, that their moderation is within industry standards. it is improving. they had a statement on x the earlier this morning. the ceo pavel durov has nothing to hide, that he frequently travels the european continent, and they are awaiting prompt resolution to the matter. we have seen the market reaction because a cryptocurrency linked to telegram was down 20% on the news, so there is a lot of trepidation. durov could be brought before the court on monday in paris. we have seen attention centered the last one for hours. joumanna: let's see what happens. thank you for the report from sydney. chicago fed president austan goolsbee told bloomberg it is time to pay more attention to the employment side of the central bank's dual mandate now that inflation is going towards the 2% target.

goolsby spoke to us at jackson hole. >> i think we set a rate pretty tight more than a year ago. inflation kept coming down, so in the real rates cents, we have been tightening. when the conditions are not overheating, you have to be really careful with that kind of passive tightening. it seemed pretty definitive the statements that chair powell made in his remarks. i think that this reflects the reality of the economy. that we've got to keep our eye on the employment side of the mandate now. this is what the pat down to 2% inflation looks like. you have some bumps but that side is looking a lot better. >> you have been worried about being too tight for a while now. the chair did not discuss how big of a cut might be coming for the first one. what do you think the economy

needs? do you need to see 50 basis points? >> i don't like, ahead of time picking out specific numbers. in my view, the sep's for the last year have made pretty clear that almost everyone on the committee thanks that conditions will show inflation coming down, the unemployment rate going up gradually and settling in. and that there will be multiple cuts over calendar 24 and calendar 25. that feels like what the path is from conditions so far to me. >> we start down the golden path, or as the chair would say, the golden road to unlimited devotion. how fast do you move, do you think you need to be gradual, are you open to bigger moves if the data suggests? >> you have seen many times the size of the table. it is a big enough table in the

fomc room, that you can fit everything on the table. we should always put everything on the table. what will warrant the speed at which we cut rates, or how much we pause on the cutting, will be determined by how the totality of the conditions show. i think there are definitely warning signs. though there are also signs of strength. on the warning category, the unemployment rate drifting up is definitely a warning sign. if you look at the delinquencies on credit cards. if you look at small business defaults, all of those are in warning category. on the stronger category, gdp growth has been robust, consumer spending still strong driven by, i think, robust wage growth. we just have to watch the whole thing. joumanna: that was chicago fed president austan goolsbee

speaking to bloomberg at jackson hole. we will be speaking with the fed's later today. catch that exclusive interview at 7:00 p.m. u.k. time. now some of the other stories making use. new boeing ceo kelly ortberg faces questions over the starliner program after nasa turns to spacex to return astronauts stuck on the international space station. nasa announced the decision after weeks of testing of boeings faulty spacecraft, the latest blow in the latest blow in a year that included a kevin blowout, federal investigations and an executive shakeup. china will bring up issues related to taiwan during the u.s. national security advisor jake sullivan's visit to the region this week, he will meet with xi jinping as the two political leaders look to maintain dialogue. beijing will bring up export controls as well as u.s. measures to cut off china from

vital technology including semiconductors. u.s. vice president kamala harris' campaign says they raised 82 million dollars during the democratic national convention in chicago last week, pushing their total fundraising hall to $540 million in's president biden announced he would step aside, the money underscores the tailwind behind harris that has reshaped the race against donald trump. coming up, the future of ai in supply chains. we speak to the cofounder of the world's tallest fully automated mobile robot. this is bloomberg. ♪

joumanna: welcome back to "bloomberg daybreak europe." imagine a giant robot that can

scan tens of thousands of packages in an hour and give incredible insights into everything inside your warehouse. the u.k.-based robotic firm dexory created what it says is the world's tallest fully autonomous mobile robot to do that. the cofounder oana jinga joins me now. great to have you on the show. we spend a lot of time talking about artificial intelligence, and how it will revolutionize our way of living, and less so about the use cases. you actually have a very strong product, a robot, that is capable of improving efficiency and outcomes in warehousing, in logistics. tell us more about the product and how it helps improve those outcomes. tanate: thank you so much for having us today. as you said, we are very proud to say we have the world's autonomous robot but the robot itself is not the actual product

we offer customers. it is the data that the robot collects. the robot is designed to work in warehouses. it captures information at crazy speeds, pretty much digitizing tens of thousands of pallets every single hour. it turns that data into insights to make our customers more efficient inside the warehouses and the way they are running operations. we work with the biggest logistics providers around the world to help them use their space and resources much better. joumanna: artificial intelligence essentially is about analyzing data and predicting outcomes using that data. what sort of outcomes are these robots predicting? oana: we're looking at the way the warehouse can be used better in order to then utilize the resources in a much better way. the outcomes themselves, we look

at how can people be moving less potentially. anyone familiar with the supply chain space will know there is a lot of steps or things to push around or move around. knowing where they are needed at the exact time for the exact product will help them work better and get that out the door to consumers as we are getting more anxious to receive our parcels in a much faster way. it is all going back to utilizing the thing that is already there just at the right moment. joumanna: one of the other big questions whenever we talk about ai and robots is whether this is coming at the expense of human jobs. are these robots actually replacing human jobs or are they working side-by-side? oana: the angle we're coming from is they are working side-by-side. the robots don't miss his early take jobs away. they are there to digitize

and feed insights to human workers so they can do their jobs better. normally, some of the things we are doing which is covered by somebody going up and down on it like scissor lift is quite dangerous, working at heights scanning things, quite tedious and boring work, which is why we see most of our customers prefer to have them to become better. joumanna: sounds like it is pretty cutting edge technology. looking to the future, if you can predict, what are some of the major developments we will witness in the next five to 10 years within robotics? oana: robotics is starting to embrace their sister, the ai side of things more. robots themselves are becoming more intelligent, they can operate larger spaces. we can run a robot fully autonomously with no infrastructure in spaces of one to 2 million square feet.

tools for the robot to navigate and receive space. another element is robots working together. in our sector in warehousing, you have different companies having automation. orchestrating that will become essential. probably the most important is being better working together with humans. a lot of solutions at the moment. you have to come out of the cages and operate around their human colleagues. joumanna: makes sense. a real pleasure to chat to you today. oana jinga, cofounder of automatic robotic firm dexory. plenty more coming up on the show. we will be right back in a couple minutes time. ♪

>> i think he is in the right brought place -- broad place. inflation is coming down, the economy is slowing. on current facts, absolutely, the next move should be towards monetary policy easing. and that's what he said. joumanna: that was former u.s. treasury secretary larry summers speaking after powell's jackson hole speech on friday. it was a remarkable and market moving speech because he did say the time has come for policy to adjust. the fed does have a dual mandate. it is not just about getting inflation back to 2% but keeping unemployment under control. the big concern for the fed has been that slight uptick in the unemployment rate, as you can see from that blue line slowly creeping upwards, as the white line which is inflation starts to downwards.

we will have another important inflation reading to peace through on friday, the pce index. another big event is nvidia. those results come out on wednesday. it is going to be a big driver for market activity once those earnings come upgrade expectations are always very high going into nvidia announcements. the intraday volatility is priced very high for the stock, too. this is a chart put up by our colleagues showing that forward p/e ratios still does remain below the five-year average, so many people point towards the expansiveness of the stock, but if you are looking at the forward pe on a five-year basis, it is not expensive. something to bear in mind. it is a major week for european macro data. we have the euro zone inflation to look forward to. that number comes out on friday. the last print was 2.6%.

we're likely to get further moderation to 2.2%. it could be another dovish signal for the ecb as we head into the next meeting. not just the fed turning dovish but maybe the ecb as well. that was it for our show. thank you for watching "daybreak: europe," the opening trade is up next to. ♪

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backed kriti: good morning. an hour away from the opening trade. a rate cut next month but questions remain around size in frequency and bill blaine says the battls