♪ manus: good morning from our middle east headquarters in dubai. i'm manus cranny with daybreak. these are your stories. the taliban take kabul 20 years after they were removed by u.s. military. the collapse brings recriminations in washington. china's recovery weakens as the delta heartbreak adds new risks. key july data are short

forecasts. the fed's kashkari once a few more strong jobs reports a 4 -- wants a few more jobs -- strong jobs reports before tapering. shifting the gears of the bond market, the single biggest drop in yields on friday this year. i just had a conversation with steven major from hsbc. he sticks resolutely to his view that the taper is in the price. we got a reality check on friday. the consumer sentiment crashing the lowest since 2011. the fed's taper is largely in the price. growth has been tapered back in terms of bloomberg survey to 2.6% versus 6.6% in the united states. that is still the strongest growth since the 1980's. what is normalization? major makes a point. you should now focus on the left-hand tail risk, which is lower yield, lower terminal rate. i talked about where rates could go by 2025. at the moment, the market has

1.5% by 2025, 1% lower than where longer rates were indicated. disappointing data from china brings equities lower. bond yields drop lower. there's a fear and the bond market not represented in the equity market. foods drop .2%. it has been 193, maybe 194 days since a 5% drawdown in equities. analysts are bullish, and on main street, they are worried about buying cars. oil down. we will normalize in prices. there's a concern about covid. covid cases are the highest since 2020 in china as ports close down and asian economies temper their view on growth. that's the state of play in the markets. we'll revert to discuss the bond market moves in just a moment. but to our top story, the taliban have kabul. they marched into the afghan capital, taking control of the presidential palace.

the president fled the country hours earlier. the new leaders say they will declare the nation the islamic emirates of afghanistan. what does that mean? our afghanistan reporter, thank you for joining me. the taliban takeover of the presidential palace, the imagery is so potent of the abandonment of saigon by the united states many, many years ago. what's the next move by the taliban? what do they want? >> well, the taliban, as we say, have captured the presidential palace. and also, thook over the capital of afghanistan, kabul, and everywhere within just two weeks. that caused everyone's a surprise, seeing the taliban swift territorial gains across the country.

they have the presidential palace now. they moved into the other palace last night. they are in front of the presidential desk at the palace. the taliban's next move, they are in the process of declaring a new administration in afghanistan. and they would like to bring back their former rule back to the country, as they had in 1990, to establish the islamic emirates of afghanistan. manus: well, of course, the taliban, this taliban, some are saying this is a very different taliban than what we dealt with 20 years ago. you've lived in afghanistan. you know the country. is this a veneer of change in taliban 2021? or is it still fundamentally the

taliban you would have grown up with? >> well, it depends on where they are ruling now. it depends on location. invest areas of afghanistan, we have seen reports of the taliban getting education or getting public jobs in those areas, such as the northern province of afghanistan. the taliban had told a woman who had jobs in the private sectors to leave their jobs and go back to homes. but in other areas, they are saying public statements, saying they would allow the woman, the girls getting jobs from the country or the private sector. so, it depends. we have different taliban's living in afghanistan. it's just a matter of time.

manus: as you say, it's a very disparate groups of taliban. those in the palace may be different than those in the northern borders or to the east, with pakistan. what do we know of the former leader? where has he gone? and the most pressing question is, you know, who supports this taliban? will the international community , are they going to have to get behind its government and support them in some form, financially, etc., to ensure some kind of stability? >> well, the leader of the taliban is reportedly in an area of afghanistan and pakistan has made -- similar based between these two countries. but the opposition leader is based in -- meeting diplomats

everywhere around the world, visiting china and other countries. but the taliban have been funded by different countries in the past 20 years. they have been provided cash, especially by afghanistan's neighboring countries. and there are reports saying pakistan has been behind the taliban, supporting the taliban. and afghanistan's president, as you have said before, has fled the country, as well, yesterday because he wanted to avoid possible tele-vent execution. the executed -- taliban execution. so he fled with his team out of afghanistan, and he's in a neighboring country, perhaps in pakistan. and also we have reports saying

he is in india. manus: ok. we'll be with you through the morning. we wish you well. that is our afghan reporter. let's get for export headlines from iraq -- first word headlines with juliette saly. juliette: manus, hopes are fading the world will reach herd immunity for covid-19. the original thinking was that covid will fate if 60-70% of the population was in ocular it. the director of -- inoculated. the director of x any research said 95% wouldn't be enough. japan afforded a double-dip reception with a rebound in consumer spending despite virus restrictions. the outlook for the economy still depends on vaccination program and how it handles the latest wave of the pandemic. the news is reporting the government will extend the virus emergency in tokyo to

mid-september. 1300 people have now died as a result of a massive earthquake off the course -- coast of haiti on saturday. the u.s. deployed search-and-rescue teams to help find survivors among the debris of collapsed homes, searchers, and hospitals. tropical storm grace is set to hit the nation today. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: juliette, thank you very much. coming up on the show, china is one of our key focus is in this data. we'll talk about the pause, the speed of the slowdown, and the ramifications. coming up, the economic activity in discussion. this is bloomberg. ♪

♪ manus: its debris europe with

me, manus cranny -- it's daybreak europe with me, manus cranny in dubai. the consumer the lowest in a decade. a pause in the trajectory of the recovery in china. that is a consequence for equities. s&p 500, analysts are the most bullish into decades in stocks, however -- in two decades in stocks. in michigan, sentiment is the lowest in a decade. it's been 193 days since a drawdown of 5%. european stocks are lower on a bullish run. paris is the highest since 2000. london just pauses down .6%. your equity markets, a lot of it coagulates around the data around china. the report we have this morning for july, you've got new boris

-- virus outbreaks, hit by floods, and fisk assets in investments all missed estimates. it's the scale we should focus on. enda curran has been tracking the data. it's a mess, but is it surprised by the scale of the missed? is that the takeaway? enda: i think it is a hefty mess across the board. we know china has been hit by both flooding and the virus outbreak, but the question is going to be just how steep a slow down will be from here? we had some figures out of china earlier saying the virus has dropped dramatically to the low teens. obviously give or take whether the figures are right on the money suggests authorities are getting the spread under control. if that happens, you would assume they would start lifting these restrictions and that

would flow back into the consumer story. the big takeaway, be it retail spending, is weakness on the consumer side. that is hinging on the virus control story. manus: good to know the consumer is the global force in america, in china. it all comes down to what we buy and what do we spend our money on? there's a lot of articles written about the pboc, pushed or cajoled into a rate cut. but i look at what they did with medium-term lending and what they did with the seven day repo. and the lien seems to be on levers rather than rates. enda: exactly right, manus. as you mentioned, most analysts are saying it won't be an outright interest rate. it might frighten the horses. it's more likely they will do targeted measures through to

money markets, trying to put money into those sectors of the economy that needed the most, not the particularly small and medium-sized. and that's usually done through bank lending. what they may do is lower the reserve rates requirements again. there could be another one on the cards. i think the broad story is certainly a case that the pboc is on the sidelines, more action and support from them will be needed. the only debate is over what levers they will pull. the expectations are less that interest rates and more that it will be through. money markets. manus: ok, thank you very much, our chief asia correspondent on the data. ellen higgins, as we look at the data, he's the cio it could to cope. 48 hours, that gave us a bit of a shock. something doesn't joint up for me. consumer is under pressure. this data from china is a double

slap, isn't it? it's a growth stock warning and an inflation risk from the closedown of some of their major ports in china. how concerning is the last 48 hours of information for you? alan: morning, manus. so, the data from china, it was a mess. economic data is nothing new, as we seen. the more shocking memo is what we saw a lot of friday, the michigan confidence. that was a real mess. so, we've got the conference board, which has been diverging, another measure of consumer confidence in the state. but we're looking for moderation. it's easy to forget we have had a v-shaped recovery, especially in consumption. we're looking for moderation, including the delta variant. in my concerned enough about --

am i concerned enough about equities? not big picture. the reason is the fundamental of earnings rate. earnings rate is so strong.w e're -- we're seeing a 45% earnings global growth this year. the market is derating as a strong earnings rate comes in. and the second reason why, you mentioned we haven't seen a 5% correction in ages and ages. usually you get a 10% correction. it's a bit more technical maybe, but i really follow skew, especially in the u.s. market. what do i mean by that? that means the professional investors pay up for adoption. you can pull it up on the bloomberg terminal, just typing in skew. and you can see that just come off really high levels, still ridiculously high. what does it mean? people are paying too much for put options relative to call options. markets simply don't value, they

don't pay off the majority, and therefore, i think this correction, this 5% correction -- i'm looking for more 10% -- i think it's for higher bond yields, actually, will correct the correction, not this environment. manus: i've had a lot of people chastise me in the past for my delusion to want to pay for put options to protect myself. i've been scolded that it's a frightful waste of money. some people might have the last laugh. you say that china -- alan: [indiscernible] your friends are wise. manus: ok, let me put it to you. would you take in the pinion packet? -- premium packet? alan: that's a different strategy. that's different than going long the market. probably overall is on the bit

of the low side. but look, it's a better strategy. it's a better strategy without leverage. but without leverage, it's a better strategy setting puts right now than buying. manus: that's my fault for inadvertently taking a right-hand turn, so i apologize to you for throwing that at you. let's close off. i got caught very badly short. i did a lot of put options once in my life. it didn't work. talk to me about china because i want to finish off that conversation. you say that the equity market needs to continue to trade at a discount to reflect the regulator he -- regulatory and business interruption. do you expect more of a correction in chinese equities from where we are now in the near-term? alan: manus, this is really hard to judge. i think no doubt, chinese tech

is already trading when you adjust for the growth rate. some people put it at 20-30%. it's really hard to judge what you need and look, when you've had a big correction in the equity market as we've had in china from the highs as you see on the chart there, i start to get interested. it's just really hard to get a handle on how productive it -- predictable it could be in the future. so, we wanted to get involved. we probably want a bit more of a duty discount because, let's -- juicy discount because, let's face it, when you're buying china tech, you are buying tech. but it's with the heart. it's a hard judgment -- it's really hard. it's a hard judgment call. maybe a bit more constructive language from the authorities. the one positive in having seen

many china crises, is looking at currency. the currency is rocksolid. and that is encouraging. i can recall 15, 6 2015, 2016, when there -- 2015, 2016. our bias is to wait for an even bigger discount. manus: ok. alan, thank you very much. do not hang up too soon. it's the same instruction i gave you for all of 2020. it's a bloomberg hold on the instruction. alan higgins stays with me this morning, the minneapolis fed president neel kashkari says he needs to see a few more strong job supports before he would feel comfortable winding down purchases. we discussed the latest on the tapering timeline with the three camps rising. this is bloomberg. ♪

♪

manus: it's your monday edition of daybreak europe with me, manus cranny. where has everybody gone, i ask myself? there's one more voice to add, neel kashkari. the discussion over the coming months, that could set the stage for a taper by the central bank on the bond buying. he was speaking during bloomberg's loss, the podcast was recorded on august 9. >> i think if we see a few more jobs reports like the one we just got, that i would feel comfortable saying yeah, maybe we haven't completely filled the whole, but we've made -- hole, but we've made a lot of progress. that would be the time to start tapering our asset purchases. manus: alan higgins is with me. alan, there's three very clear camps, between we're not there yet, start in the autumn, and start now. here we are, my question to you,

how fast a taper are you assuming we will get? we're at $120 billion a month at the moment. how fast with a go down? alan: manus, the answer to that is what i think they should do, and what they will do. and most likely, it's going to be very moderate. kashkari's on the dovish side, so interesting for him to say two more strong implement up -- employment reports. financial conditions are very loose, whether you look at your own indicator and real rates as deeply negative. so taking some of the stimulus away while markets are well behaved are essential to me, but we can tell the fed is very cautious, so something like $10 billion or $20 billion coming off very slowly, maybe mortgages, because does the housing market really need any

more stimulus? so, that's, personally, i think they should be doing it now while markets are reasonably well behaved. the risk is, they have to do it when inflation is still stubborn, and the slow down gets some momentum. and that will get pretty. and then you get you 5% correction and a bit more. manus: yeah, it could be one of those moments where we go right, so this goldilocks scenario isn't going to endure forever. i go back to majors point, which is the taper is in the bond park it. -- bond market. he said we should lean more to the left-hand tail risk, should see a little bit of a slow down, taper in the price, and there will be a lower terminal rate at the end. do you think the taper is really in the bond price? alan: i don't. i think he is long bonds, and

credit to him, he's been right. i would put it a little more technical, this bond rally, because we saw a lot less supply. bond markets have been dominated by the u.s. in july, for example, a very low net supply month, about $100 billion. that was down from about $200 billion in june. so it happened to be a low supply month when yields were somewhat elevated, so a bit of short covering, a bit of buying. and look, it's hard to say that 1.25% -- let's be long-term for a moment -- for 10 years is a fabulous investment. it only becomes a good investment in our world where it can may hedge some equity risk short-term. and there's something to that. but really, there's not enough risk premium in long-term duration for my perspective.

i would stay cautious. manus: alan higgins sums it up in a word. we thank you for your time this morning. this is bloomberg. ♪ and there you have it- woah. wireless on the most reliable network nationwide. wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included. that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes.

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manus: good morning from our middle east headquarters in dubai. i am manus cranny and this is "daybreak: europe." the taliban takes cobble 20 years after they were removed by the u.s. military. it brings recriminations across washington. china's recovery weakens. he july data falls short of the forecast.

asian stocks in u.s. futures fall. kashkari wants a few more strong jobs reports before tapering. we get retail sales this week. so the bond market had its third-biggest collapse on friday in terms of yield this year. that continues this morning. 10-11 basis points off the high point last week. this is a shift in terms of what the bond market is flagging, potentially delta concerns. potentially a slower road to taper, but this i would say is much more about concerns about delta and a slowdown in china, concerns about a delay in taper. that seems to be what the bond market is flashing at the moment as the consumer sentiment in the u.s. collapses to the lowest level in 10 years. my guest says there would be a

lower terminal rate in the bond market and he says 1% is the target for hsbc, because treasury supply will offset the taper. those are the bond markets this morning. equities lower, the china data ms. is working sentiment -- data miss is irking sentiment. futures down 2/10 of 1%. alan higgins said it is unlikely to see the equity rally shaken to its core. 10 year paper unchanged. brent adding to the downside, as there is talk of an abrupt change in the demand complex. that is the backdrop going into the next opec-plus meeting. the taliban has takenkabul -- taken kabul.

the afghanistan president has fled the country. new leaders say they will soon declare the country an islamic emirate of afghanistan. what does this mean? simone foxman has been tracking mediation efforts with the taliban and afghan government in terms of how that is going. what do we know so far about what this new taliban government in waiting in the palace is offering to afghanistan and the world? simone: we understand the taliban is very different than it was 20 years ago. some of that has been because of the discussions that have taken place here in qatar, engagement with the international community. one of the key political leaders of the taliban was in a signing ceremony with mike pompeo back in february, 2020.

what they really want is some sort of connection with the outside world, but exactly what that connection is remains unclear. we heard a little bit from the spokesman for the taliban based here in doha, and he said he wants, the taliban wants an inclusive government, saying they could bring in members of the previous internationally supported afghan government. he also talked about the rights women will be afforded in the new taliban regime, they will continue to be able to work and go to school, but they have to wear a hijab. but the question is, will we see that, or some thing very different on the ground, especially in rural areas? manus: as our reporter said, based in afghanistan, there is a different type of taliban north and south. and outside the main metropolitan areas. there has been a groundswell, i

want to talk about the political reaction of the biden administration. this was talked about as being a foreign policy crisis disaster, foreign policy for the middle classes has not been a success, foreign policy crisis. how bad is this for biden, his administration, and intelligence gathering? simone: recriminations on all sides, particularly as we continue to see these tragic videos and pictures coming out on social media of, for example, afghans swarming the airports, trying to leave the country that very much resembles that 1975 exit from saigon. that is the immediate parallel. that is going to weigh on biden, but if you look at broad support in the u.s. for the afghanistan

mission, it has a fallen, some 56% of the country leave going back -- going into afghanistan was a mistake and 2001, according to a gallup poll last month. when the u.s. entered the country, it was 9%. the argument from the biden team is we don't want to spend more blood and treasure on a conflict that is not in a bowl. -- winnable. but how this is happening, the dramatic scenes of chaos, particularly from kabul is raising questions and causing not just acrimony in the u.s. but also with global partners. dani: -- manus: indeed, recriminations all the way around. let's get your first word news. juliette saly is with me from singapore. juliette: hopes are fitting that the world will ever reach herd

immunity for covid-19. the original thinking is the pandemic would fade after 50% of the global population was vaccinated, but the delta variant is moving the goal posts. even the vaccination rate of 95% would not be enough, reportedly. china's economic recovery is weakening. retail sales, industrial and -- missing forecast. they are facing their most widespread virus outbreak since last year. goldman and j.p. morgan have already cut their growth forecasts for the country. the canadian prime minister has called an election for next month. polls show his liberal polity -- party has enough support to take the lead. half of canadians believe he has done a good job of managing the pandemic. nearly 1300 people have now died as a result of a massive

earthquake off the coast of haiti on saturday. the u.s. has deployed search and rescue teams to help find survivors among the debris of collapsed homes, churches and hospitals. tropical storm grace is set to hit the nation today. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: thank you very much, juliette saly in singapore. coming up, luxury cars. we will talk to a shipping analyst on the impact of china's poor shutdown. this is bloomberg. ♪

manus: it is "daybreak: europe." to the shipping market, and covid outbreak and china has partially closed one of the

world's busiest container ports. it is shut down heightening concerns that the world may face a repeat of last year's shipping nightmares. we spoke to a shipping and trade ceo, who said the closure is likely because of a domino effect -- is likely to have a domino effect on global trade. >> with a specific container ports, it is not something we call, that i do know that port is being bypassed for other terminals. what that does is create port congestion, which we have all been dealing with during covid. i do see that increasing, which will have the effect of pushing freight rates higher. manus: the chief shipping analyst at pimco joins me. there is one side saying freight will be redirected, but with the

port closed or in temporary hiatus, what is -- and let's deal with the ripple effect on global trade. how serious is this? you would suggest this is the beginning of a bigger series of dominoes that continue to fall. peter: absolutely. we have seen this already with the suez canal back in march. we saw a partial lockdowns in the southern part of china with a porch of there in late may that caused disruptions for more than four weeks. now with this third container port in the world, minors are redirecting cargo. obviously this has the potential of being the biggest disruption so far during this whole covid pandemic.

manus: naturally, we gravitate toward looking at charts. the index, 3566 is where we are. a long way until you get to the zenith of the early 2000 in terms of freight costs. some perspective around me, the speed at which freight costs are rising and how much further you think the squeeze has to go, or how quickly can the supply of new freight space be delivered, if at all? peter: obviously with it being so much more than a container port, it also impacts commodities, as you refer to hear, rising to a year high. that is part of the success story, owners of shipping companies this year, the fiscal stimulus providing a lot of

goods being transported into china. the less efficient things work, the better for freight rates. this is likely to push up freight rates for dry commodities as well as oil tankers. that is the most damaged sector in terms of freight rates, which find themselves in the doldrums right now. with ships in anchorage picking up by the day, that is a silver lining to an otherwise critical development right now. manus: in terms of unblocking the system, do you think this is a one month spike? it is very difficult to add capacity and dry bulk, isn't it? you don't just immediately ramp up a new production line. getting new shipping onto the

seas is a lengthy and expensive business. what is the medium-term consequence of this kind of shakedown we are seeing in the market pricing? peter: i think for dry dock commodities into china, it is not necessarily a squeeze at the moment. we will see when capacity builds up, there will be pressure across the board. right now, $30,000 a day is the freight rates for dry bulk, depending on which side you operate -- size you operate. the real squeeze in the market for some time has been the container shipping industry, wherein the manufacturing industries and all of those goods that need to be shipped out and shipped in to get them repacked, that's where contingency plans have been drawn up rapidly over the past

1.5 years. right now, it is one thing on top of another. in terms of dry bulk, you do not just build that can service that -- build a new line that can service that. it is a whole different area. but that is part of the success story this year. manus: can you see a situation, and i know we are dealing with different size of a product to transport. it is not a one answer fits all. but it is more about a shift. we look about the savior for the airlines, it has been freight. for trains, it has been freight. i suppose my question is given what manufacturers and industries experience now in a shipping crisis, a transportation crisis and costs,

does it push more to air and land? peter: it does indeed. at a faster and faster pace. last week we heard also from the airport of shanghai, where there was a sudden surge of course in the man for air cargo out of shanghai -- surge of course in demand for air cargo out of shanghai. you are absolutely right. we are seeing the liner companies, plenty of logistics, a lot of freight companies finding new ways of servicing clients, including everything from trucking boxes from china

to russia, and then bringing the box back onto a transatlantic ship to reach the east coast of the u.s. that is just something you do in an absolutely crazy market when air cargo is all booked, and well in advance. what we see right now is liner companies adding to the service of logistics provider, air cargo services. we don't need to only keep track of large container ships, also how many cargo carriers in terms of airplanes, and are they ordering, key manufacturers, in order to serve clients that are in a more desperate situation every day with a shortage of cargo running at the flow they regularly lie on. -- rely on. now it is a matter of where you

get it eventually. manus: thank you very much. who would have known the dry bulk broker would earn a bigger bonus than a bond broker and 2021. thank you very much. good luck with your freight rates. coming up, convening of top leadership in berlin, a slide in the polls for a second consecutive week. a few people are worried in the german capital. this is bloomberg. ♪

manus: monday morning, "daybreak: europe" setting the agenda with markets. we are trying to understand the slowdown in china, down go the oil and commodity markets

because people are concerned about the pace of the slowdown. looking at the rise of delta. third day in a row down on the oil market. worry about a jolt to the downside. guests said get ready for a new normalization zone in oil, 60-70. $75 the price for them. fresh virus outbreaks beginning to weigh on the chinese economy for sure. in terms of the copper market as well, down over 1%. one thing that caught my eye, u.s. shale producers have upped their rig count to the highest level, it jumped the most in four months. that is something to keep an eye on. copper down on the health of china. it's one of those vicarious trades. i am full of colloquialisms today.

9469 as china pauses. germany trying to whether the dutch weather -- weather the decline. a poll on sunday showed a decline in support for the cdu for the second week in a row, and the suggestion the social democrats are gaining control. where does the blame go? the conservative bloc's decline has been laid at the feet of the chancellor. is it that other people appeal more? maria tadeo, who is to blame? maria: that is a very difficult question to answer. on the one hand, we have seen on the campaign trail, the candidate has not been very effective. we are looking at someone who is not very charismatic, not very

energetic. and there has been a series of missteps. when you look at the management of the floods, you look at the pain that continues to hurt him. he got caught laughing while the flooding was happening in his home region. all of this coming together to take a hit on him as an individual candidate. this also tells us a bigger picture when it comes to the cdu. the party has been process for liking a vision for germany. when you look at modernizing the economy, going green and going digital, this is the same old traditional germany. angela merkel is not really on the campaign and we don't see her publicly anymore, and that is taking away the shine from the cdu. they are hoping to regain momentum, but when you look at polls, the trajectory is clear. down for the cdu as a party, but also for the individual candidate, really taking a beating on a weekly date --

weekly basis. manus: what does the cdu's decline mean for possible postelection coalitions? what with the coalition numbers look like at the moment if we went to the polls today? maria: that is the question now. perhaps the fundamental issue where markets have not come to terms with the fact the election is more volatile than it looks. the best case scenario is we will see a two party coalition between the cdu and greens. if you look at the polls, especially yesterday, the finance minister gaining momentum in the polls and it shows you could get to a three way party coalition. the spd could overtake the greens. we could see the two party coalition, the cdu for sure, and the government is not that clear and you look at polls.

you could perhaps see an alternative coalition emerge on the left, including the liberals. the picture is much more volatile going into this election, certainly. manus: ok, maria, you will have a great couple of months, next six weeks tracking these elections. good luck on the campaign trail. we are behind you. you have to get out of the studio more. maria is going on the campaign trail. maria tadeo in germany. we will track the german elections across the spectrum. here's what you gotta to watch out for this week. tomorrow, fed chair jerome powell set to speak at a virtual event for teachers and students. tuesday will mark the start of china's mpc meeting that runs until friday. it will be interesting to see what rhetoric comes from there. watch out for any new laws enacted around hong kong and the measures to contain the spread of the delta variant. some stringent action taken to

restrain delta. we have tencent on the slate, and on friday, angela merkel visits mosque you -- moscow and the ukraine. ♪

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>> good morning, everyone, and welcome to "bloomberg markets: european open." i am francine lacqua. mark cudmore joins me in singapore. the cash trade is less than one hour away. the taliban takes couple 20 years -- cap rule -- kabul. the delta outbreak adds a few risks while key