dani: good morning this is

"bloomberg daybreak: europe". i'm dani burger in london with the stories that set your agenda. no deal. debt ceiling talks hit another impasse with the top republican saying no additional meetings are planned. asian stocks track wall street lower. the new zealand dollar crumbles after the central bank unexpectedly signals tightening is finished. the world's richest man has an $11.2 billion wiped from his fortune in one day as concerns about a softening u.s. economy hit luxury good makers. it is day two of the qatar economic forum underway in doha. the big story follows comments from the saudi energy minister who issued this morning to oil short-sellers. >> speculators, in any market they are there to stay. i keep advising them that they

will be ouching. i don't have to show my cards. i'm not a poker player and don't know how to play poker but i got it from a movie somewhere. [laughter] but i will just tell them, watch out. dani: let's get over to manus cranny, coanchor of the show who is at the conference. still more ouching in store? manus: job done for prince and solon. -- bin-salman. the roadmap to be in a set. the floor has been created in prices. he was disparaging of hydrogen, who is going to buy it. think about the price relative to the price of a barrel of oil and it is astronomical, but his

message is bears, watch out. i have a special talent in this leader of opec, which is, you want to mess with me and trash this market? we drive this market as the central bankers of oil. could saudi arabia act unilaterally in vienna in a couple of weeks? but commercial bank of kuwait are worried about for the drop in oil prices. and indeed global slowdown. that's a banker at the heart of the gcc, but the market went from a shrug all the way to a 1% rally. i like what his highness had to say, which is there is huge uncertainty. we are obsessed about the one-two-month view, policymakers are not daring enough. that was yesterday's oil conversation, pump up the oil, pump up the boiling -- volume.

good morning from qatar. dani: i was lucky enough to hear a qatar airways interview live, a lot of optimism about business class seats and upgrading. manus: i wonder if it is because i told him i fly with somebody else. he was in good form yesterday. it is about constriction in capacity. he wants to ramp up into china, and one of the big constrictions is not just the lack of planes, but also what is going on inside the economy. there is natural bottlenecks. >> now that we are ramping up, we're introducing new routes in europe, africa, asia and of course, going back big-time into china. manus: i thought it was interesting, dani, in terms of five got the capacity to get there but i have bottlenecks at the other side.

you think of all the chinese data at you and i cover across bloomberg every day, it is what is causing this underperformance in the data. maybe that is an inside track in terms of the constraints for business in china, but higher prices are here to stay, 25 price rise in your business class seat is absolutely. the days of commoditization by ryanair and virgin aragon. - are gone. dani: stay louder said they had excessive inventory because no one is buying in chinese airports. what else do have today at the qatar economic forum? manus: so today i have a little bit of finance from saudi arabia. the md of the imf will be on a panel. i will catch up with the ceo of mastercard. we will discuss the risks to

capitalist society. that's a big one. i don't know whether i have read enough for that. michael miebach. the sotheby ceo, we have come off the geneva sales in jewelry. and steve schwarzman later in the day to talk about the global state of markets. i'm sure the debt ceiling will be prescient, along with the fed. i am curious what the sotheby ceo will say about that luxury jewelry market in geneva last week. i don't want to spoil it, but do you know what i picked up for you on your birthday? dani: a nice secondhand rolex watch from so the base? manus: rolex watches are down but there is nothing for sale in dubai. good morning from qatar. dani: perfect opportunity for you to buy. manus cranny in doha.

a schedule market check. mission accomplished for the central bank of new zealand, saying they are done with a hiking cycle. the kiwi dollar is down against every single currency, down significantly versus the dollar. i don't have it up for you, but believe me, it is bleeding today. the new zealand two-year yield down. its biggest drop since 2011. it is the surprise that they say they are done fighting inflation, mission accomplished, and they can start cutting rates come 2024. the rest of the global market moving in sympathy. new zealand is a small economy but they were the first to start this rate hiking cycle. hence the reaction. u.s. two-year yields dropped seven basis points. stocks had a bad day yesterday. more concerns about debt ceiling impasse are perking up today. but in general it is a good time given the debt ceiling from a to

reevaluate -- debt ceiling drama to reevaluate complacent positioning. the euro stoxx had a $300 million wiped out in market cap yesterday. they continue to head lower, down 0.4%. another area that has been weak this morning's japanese stocks. challenging complacent positioning in japan where stocks are trading at the highest since the 1990's. the nikkei down 0.5%. the yuan weakens versus the dollar. we had a tame fixing from the pboc that renewed strength in the dollar versus yuan. it is the china story. we have woke up to economic issues. there has been weak data and concerns about another covid wave. and metals like copper briefly trading under $8,000. let's get into top stories. we will talk about the rbnz.

derek wallbank is with us on the latest u.s. debt ceiling drama. kicking it off with new zealand. the central bank raising key interest rates by a quarter percent to 5.25%. the kiwi dollar tumbled after the rbnz on expectedly signaled no further policy tightening would be needed to tame inflation. let's get to economy reporter swati pandey, 25 basis points was expected, so walk us through this very outsized market reaction. swati: morning, dani. market reaction was immediate as soon as the decision came out. economists, even though they were inspecting a 25 basis point height were expecting a hawkish hike, which means they were expecting the rbnz would leave the door open for further tightening. westpac had a note saying they

see the peak at 6%, and there is a risk of even higher interest rate. against that backdrop, it really surprised the market that the rbnz said it has done enough and is happy to wait for the lags in monetary policy to kick in. they were sounding more dovish than they have. remember, the rbnz started the tightening cycle before the fed, and has been more aggressive. so for them to turn dovish and give commentary that indicates tightening is not done led to this huge reaction in the market. dani: to that point, given the history which you laid out of this tightening cycle, can we say perhaps this means something for the fed? that the fed is about to be finished, too? swati: i would say that. that is also reflected in the

market reaction we're seeing today. the rbnz has hiked five percentage points now. the fed is at 4.75%. on the commentary we have seen from the fed, it looks like they are weighing their options, they are not sounding as hawkish as they were a few months ago. all central banks are kind of in that situation where they are thinking, have we done enough? our inflation pressures behind us? with rbnz making that call and saying we have done enough, it is a signal i guess for other central banks, who are still in the tightening cycle, that maybe they can pause and reflect as well. dani: thank you so much for that. that's swati pandey on the rbnz.

speaker kevin mccarthy left the capitol late tuesday afternoon say the two parties had yet to reach a deal to avert u.s. default. u.s. contractors are already reporting government delays in payments. joining us now is bloomberg derek wallbank. what sticks out to me is republicans may be having skepticism on june 1 being the actual six date m-- ex-date, is there a possibility we will not get resolution by next week? derek: congress works best with a firm deadline. there is a necessary amount of flex in the deadline. the deadline set by the u.s. treasury is as early as june 1. doesn't mean it will be june 1 at midnight, there could be a little flex. i've read multiple reports suggesting when the actual

ex-date might be. you wind up in some bad scenarios if you say it will be at one time and it is two days in advance. it gets into danger areas. understandably, the treasury and speaker mccarthy don't want to go down that road what you do see some thoughts that that is not actually the ex-date. and you see thoughts on the left that there are still options, including invoking the 14th amendment to prevent crises if there can't be a deal. i think what is expanding on, is the fact that there is pressure from both sides of the negotiating tables far flanks to get a better deal and not come back with a deal those folks don't want. some of those are not majority makers and will not vote for it anyway.

what it outlines the pressure people are under, particularly kevin mccarthy who as you recall took more than a dozen votes to become speaker of the house. dani: got an easy party for him to unite. coming up, we will dig more into the market reaction to that impasse. will speak with blackrock chief investment strategist wei li. later this hour, we will go back to the qatar economic forum, and have a conversation with insider founder and ceo on the future of ai. this is bloomberg. ♪

>> the politicians in washington have been saying the debt ceiling for decades. so far there has not been an

accident. given how crazy politics is in the u.s. right now, the fact is, treasury markets are behaving well and credit markets are betting well. so the market is not rising a bad outcome. dani: the standard chartered on maybe a complacent market. joining us now is wei li, global chief investment strategist for blackrock. maybe the market is complacent if you look at equities, but if you look at t-bills, june 15 yielding over 6%, compared to 1.5% for end of may, should equity markets be reacting? wei: there is a big disconnect between equity and bond market volatility. you look at vix and mov, and that gap has been notable. what is important is broader

context. right now, the back and forth in the negotiation may be more motivated by market volatility. what we have seen the last 24 hours of market correction, if that leads to accelerated progress, but the big picture matters more. a few weeks down the line, we won't even remember debt ceiling. the broader growth picture is more important, the broader inflation picture. as we navigate the debt ceiling volatility, we're not focusing on what the immediate effect should be, but we're looking at market dislocation and trying to see if that creates opportunity. the bottom line is it's important to stay invested and not get spooked out of markets. because rebound can be powerful. volatility is very high. we stay invested but in a

quality way, bunkering down with a quality tilt. dani: people on the program say cash is attractive because of volatility and what it yields. are you saying, make sure you can capture upside in riskier assets? wei: our preference for the treasury market is as close as we can go toward cash, but we are not getting out of the market completely for the reasons i just mentioned. on the front end of the curve, yes, yields are rising because of debt ceiling discussion. but if you are under no pressure to liquidate and hold to maturity, those are attractive yield levels. dani: i mentioned yields on the t-bills near to that potential ex-date. there has been this going argument that if an agreement is reached, the treasury general

account needs to be refilled and that will suck liquidity out of the market. are you worried about that impact? wei: the pga dynamics is important from a liquidity perspective. but there are other levers that act as moderating forces in the overall liquidity picture, so it is one of the few dimensions we monitor. more important than the tga ebb and flow, is as we come out of debt ceiling hopefully in days and weeks, what is the inflation picture telling us? on that front, we're getting no relief and that is likely to be driving markets. dani: you have a great research print recently. credit is tightening, what is your reason? wei: we are seeing banking volatility in the u.s. market

creating a more challenging funding environment. the rising rate and economics of deposits likely going to lead to a withdrawal in that lending space. who will step up? private credit has an opportunity to step into this increasing gap. if you look at valuation, we have seen yields coming up in private credit, but yields have held up well in public credit so there is a valuation gap being created in support of private credit over the long-term. having said that, it is important to take in the fact that we are heading into growth slowdown. adjusting for higher default prospect is important as we think about the role of private credit in portfolios. even as we adjust for that, it is coming out good which is why we are strategically

overweight private credit. dani: but not private equity, necessarily. wei: strategically, we prefer public equity over private equity. also on a valuation basis, having said that, for the duration of 2023, we have held the view of modest underweight in developed market equities because things could get worse before it gets better as we head into all this source of market volatility including persistent inflation. including growth slowdown. the current debt ceiling back-and-forth. things could get worse before it gets better but over a 5-10 year horizon we're structurally overweight developed market equities because we think inflation hedge in portfolio, and long-term growth potential for developed market economies is competitive. dani: will china and that

dynamic? the data has been week, luxury stocks got crushed, copper got crushed. this narrative is building that perhaps china is not the tailwind we thought it would be. have you changed your viewpoint in terms of its contribution to global growth? wei: we observed broader dynamics of global growth, including in china, and i will get to that. q1 growth has been quite resilient. supported by u.s. consumers that are still running down their savings buffer during the pandemic. supported by european consumers that have benefited from energy windfall. and also chinese restart. right now, if you think about higher frequency q2 data, they point to incrementally weaker momentum. including the april surprise on the downside and the may higher frequency data points to

moderation, including in real estate. currently our expectation for 6.1 percent gdp growth for china in 2023 is potentially challenged if we don't see easing coming through. so far we haven't seen that sense of urgency. that is representing downside risk. dani: thank you so much for joining this morning. wei li, global chief investment strategist for blackrock. we look ahead to the latest u.k. inflation print, and expectations of some light up after months of double-digit price rises. this is bloomberg. ♪

dani: let's get to our u.k. correspondent lizzy burden who yesterday had a conversation with shadow chancellor rachel reeves. what were your big takeaways from it? >> it was counterintuitive, but

labour wants to be the party of business, and do what rachel calls secure-nomics. >> secure-nomics builds on the contributions of more people in more parts of britain. taking advantage of national opportunities but also ensuring our resilience to give families that security that they de sperately crave. >> labour are saying they would be more interventionist in life sciences and green energy. but it sets labour in opposition to the government, where rishi sunak has warned about the dangers of getting into a subsidy rates with other g7 nations in response to the inflation reduction act. significant that rachel reeves is making this announcement in the u.s.

she says britain is too closed for business in the sense of trade barriers after brexit, but too open because companies are listing elsewhere in the u.s. on brexit, we asked if she would be open to rejoining the single market? that is not labour's approach. they would try to reduce trade barriers like cutting red tape. dani: check out her most recent piece on the terminal and the web. coming up, don't miss our inte hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change.

so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.

dani: good morning. this is "bloomberg daybreak:

europe". i'm dani burger in london with the stories that set your agenda. debt ceiling talks hit another impasse. the top republican saying no additional meetings are planned. asia stocks track wall street lower. kiwi crash, the new zealand dollar crumbles after the central bank on expectedly signals tightening is done with rate cuts next year. the world's richest man has $11 billion wiped from his fortune in one day as concerns about softening u.s. economy hit luxury goodsmakers. it is day two of the qatar economic forum in doha. haslinda amen is at the conference with a test. haslinda: the themes of growth and technology on the back of how chatgpt, and what ai can do. scary, some would say. hande is the cofounder and ceo

of insider. your company analyzes market data for coca-cola and so forth. congratulations on the new funding round. $105 million. we know it is for m&a. what is the plan? hande: thank you for inviting us. the whole world is talking about ai and machine learning. talking about real technology is so important. i'm so excited, why? because there are very few technology companies in the world established by a woman founder. insider is one of them. it's a real technology global company. our new funding round in this program is so good. i'm so excited, thank you for having us again. haslinda: what will you do with the money? hande: it is aimed for m&a actually, because insider has

continued its growth over the last two years, although the world has faced economic downturn in many ways. we heard the news from other technology companies, even the biggest ones, but they are doing layoffs, etc. what insider continues to grow in terms of headcount and growth rates. haslinda: where are you looking, which markets are interesting? hande: we have acquired one company almost six months ago. now we are looking at u.s. and europe for acquiring more companies which were going to help insider grow its technology. we aim to have one or two positions from europe or u.s. markets. all of those acquisitions will be focusing on enhancing insider's technology.

haslinda: the funding was backed by two investors who are already existing investors. has it been difficult to get new investors on board? hande: that's not the case because we never started to look for new investors due to insiders' continuous growth. our existing investors say, don't look for another investor, we are here. clean around. easy to manage. at the same time, we see your numbers, don't go outside, we are here and are going to back to you one more time. that was the story. haslinda: does the new funding round change your valuation in a big way? [laughter] it is not all about valuation, but it does matter. hande: the series valuation was almost 1.3 billion dollars.

although the multiple has decreased, insider's valuation has increased. it is very much closer to $2 billion, which shows us that our public round will also be strong in terms of valuation. haslinda: ipo plans? hande: absolutely. we are expecting the market will be a little more open. due to economic fluctuations they are closed compared to the past. but we expected to be 2025, for the beginning of 2026. that's the target. we could do it now but all the preparations will be the issue. haslinda: there is pullback in terms of technology spending.

what other plans to raise funds as well? hande: the multiples in the market has came down. now the valuation is pretty much low. however i believe that still good companies with good metrics are refundable. sequoia, one of the biggest companies in the world, is one of the investors of insider. i like the culture at the company. one of the good things they said about the economic crisis, still good investors continue to invest in good companies. this is what i believe. this is what i see. there are challenges, but funding continues. haslinda: i know you are looking to hire more engineers i'm a but you want women engineers. what is the pipeline been?

hande: 60% of the whole leadership team is women. my team is all woman. it is not that women and men are not equivalent. women has advantages also in technology. women should be empowered. we have a lot of programs for this, not only in emerging markets, also in developed markets. we're running special programs to find more global women engineers. we don't have a strong pipeline, unfortunately because women in tech is not very common yet. but all the technology companies should put a special focus on that. haslinda: hande cilingir, cofounder and ceo of insider. i'm looking forward to that ai panel i will be moderating later today. chatgpt just the start, what's to come? dani: it is literally the

hottest topic right now. i'm looking forward to that panel. we will be back with her shortly, she will have another guest from doha. in general, at the qatar economic forum, francine lacqua will host a panel. and that will be at 9:10 london time. we will have interviews with the ceos of mastercard must of the beast and the blackstone ceo. the rbnz has declared mission accomplished to the surprise of many. they hiked but said our tightening cycle is done. you can see cuts in 2024. biggest drop in the front end of the kiwi yield since 2011. the kiwi dollar also falling one and 130%, down against virtually every global currency this morning. u.s. bonds are bid in sympathy,

the front end of the u.s. curve down seven basis points. a good day for rethinking entrenched positions. some jitters when it comes to the debt ceiling. wei li at black rock saying she is looking beyond the debt ceiling but it could cause dislocations. s&p 500 futures had higher after falling 1% yesterday. european stocks, an ugly day when it comes to luxury, $30 billion in market cap wiped out. arneault sees his wealth probably about $11 billion. in terms of other entrenched positions we're rethinking, japan is trading at its highest since the 1990's. the nikkei taking a pause and slight reversal from all-time highs, trading down .6%. the china trade is alive and well, reports this week of more covid peaks coming for china.

data over the last month shows retail and manufacturing is weakening. the dollar is at its highest versus the yuan for the year. we also briefly saw to get under $8,000, lower by 1%. in hong kong with the first word news is adrian wong. adrian: tiktok says it is on track with efforts to have all u.s. user data hosted by oracle. the ceo says oracle has begun a review of tiktok's source code and is developing a european version of the local hosting initiative to alleviate fears of sensitive information reaching the chinese government with data centers in ireland and norway. >> tiktok is not available in mainland china today. the chinese government has never asked us for u.s. user data. we will not provide, even if asked.

adrian: russia's prime minister kicked off a two-day visit to china to deepen trade ties with beijing. he told a business forum in shanghai that china trade help to russia decrease its dependence on the dollar. he also said russian farmers are ready to significantly increase agricultural exports to china. pakistan's former prime minister imran khan has won bail from the islamabad anti-terrorism court, were slight that may help calm his supporters. the cricket star turned politician faces dozens of charges including graft, assets and insulting a female judge. he has denied all wrongdoing. global news powered by more than 2700 journalists and analysts in more than 120 countries. dani: adrian, thank you. we will be talking hospitality and travel with bill heinecke,

chairman and founder of minor international from the qatar international forum, next. this is bloomberg. ♪

dani: summer is just about upon us. everyone wants to plan their next big trip. the travel industry is building back up after the tough years of the pandemic. it's a major focus at the qatar economic forum this year. haslinda amin is at the forum in doha with a asked. haslinda: let's get the perspective of bill heinecke, chairman and founder of minor international. he has hotels in about 66 countries, so he would have a great perspective on the industry. bill, good to have you with us. i want to start with thailand where you are based.

we are at the end of elections, what is the mood of tourism in the country? bill: very strong ever since the beginning of the year. there was really no interruption during the elections. there was so much pent-up demand people were dying to get back. we saw travel emerge in a huge way. it's only the chinese that are missing. >> some say that revenge travel is almost done. can that be sustained? bill: we haven't seen chinese come out yet. it will take until the third or fourth quarter until we see that surge. goat forget, airlines are still running at about half capacity. these are things that hold us back. >> what our numbers from hotels both in thailand and the rest of the world? bill: seeing strong recovery in all markets. it is higher than 2019 and remains higher. this summer will be very strong in europe. it is low season for much of

asia, but i have no fears we will have a record year. >> which region is leading in terms of growth? bill: europe probably is one of the strongest ones. we had a very good season in thailand, which ended sort of in april. but we've really seen just a phenomenal amount of demand. at rates that were much higher than they were in 2019, only because of the higher cost of labor and all the inflationary expenses. such as energy. >> do you expect rates to peak any soon? we talked about how flights are costing more, but he thinks even the cost of flights have peaked? bill: i would say we are getting close to the peak. there is room to go up, especially in thailand where we're expecting a new minimum wage with the government.

there is still going to be a little bit of pressure. the days of cheap money, cheap energy and cheap labor are gone. >> what is your biggest worry as you try to expand your business? bill: probably making sure we have sufficiently trained people. there is labor out there but we operate with about 70,000 people. and we're still short. we have opened so many new hotels. most recently, in rome, nice, and one today in china. we're seeing that we're trying to have to continue to attract the best talent. >> give us a sense of that shortage, and how are you mitigating that? bill: for exam will, in europe and london, we had a tremendous shortage after brexit. after covid, a lot of people didn't want to come back. young workers want to have more flexible hours. this doesn't work well in the service industry, whether

restaurant or hotel. >> how many positions still to be filled this year? bill: a lot, trust me. that is why we opened our hotels will in thailand. in conjunction with la roche in switzerland we set up a hospitality school in bangkok. >> when you expect that to come back? bill: they were able to issue passports, visas and other things during covid. many people had passports that were expired and they can't get them fast enough. it is like the airline industry trying to ramp up people's travel documents. >> the recovery of the chinese economy, might that impact travel demand? bill: it might, but there is so much pent-up revenge travel that it is going to come. one of the areas that is interesting to notice, today in

china, they are not coming to shop as much. they are coming to experience food, unusual advents, travel, concerts, anything but shopping. everything that you want in china is there. the lvmhs, the guccis, the tiffanys and cartiers. >> the trends of travel have changed since the pandemic? bill: there is much more interest in health when people are traveling. there is more demand for islands. destinations that are not covered with thousands of tourists. so, unique destinations, smaller hotels are definitely in demand. >> great to have you here. bill heinecke, chairman and founder of minor international.

back to you. dani: this has me planning my next trip to thailand. haslinda amin at the qatar economic forum. we will get more on the recovery in hospitality and travel. we will speak with the accor chair at 9:40 a.m. london time. coming up, speaking of luxury, we will take a deep dive into the fallout from weak china data continuing. yuan hitting its weakest level of the. all that next. this is bloomberg. ♪ but by the third or fourth cup, your stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy.

♪♪

>> we believe that the montana bill that was recently passed is unconstitutional. we filed a lawsuit which challenged this in the courts and are confident we will

prevail. it is about providing value to users and making sure we continue to provide great service that benefits them. that's our key focus at this moment. >> expressing oneself. was that quite hard, to express yourself most recently when you are in congress telling your story of why tiktok is important to united states? >> i think it was a very important process. and i'm very grateful for the opportunity to show up and tell our side of the story. >> did you tell your side of the story? >> throughout the five hours, i believe i had time to do that. it is a good opportunity to explain ourselves. there are some myths out there. over the last two years, we have built internally something we call project taxes. -- texas, ensuring american data

is stored on american soil and overseen by american personnel. this is truly an unprecedented project. none of the other companies in our industry have ever attempted. we have taken steps that are above and beyond what our industry has done to protect the safety of u.s. user data, which is very important. >> ferrari with project tex -- where are you with project texas , there has been reporting that very soon oracle will have access to your data and source code. but that is not now. when will oracle be able to enact this unprecedented overseeing and transparency of your company? >> a lot of the elements of the project is already in place and operational.

today by default all u.s. data is stored in oracle cloud infrastructure, and no longer in our own servers. >> you have already done that transfer? >> it is already done. secondly, oracle has begun the review of the code. it is a complicated project that will take time for us to finish the details. it is on track. oracle and ourselves are working together with the u.s. government to finalize project texas. dani: the ceo of tiktok speaking to caroline hyde at the qatar economic forum. fallout from surprisingly weak china data continues to hit the currency, hitting the weakest level versus the dollar this year. nomura sees the currency falling to 7.3 versus the u.s. dollar by mid june. valerie tytel has been all over this. what are the ramifications of a weaker renminbi?

>> it's going to be a weaker chinese stock market. yesterday saw the largest foreign outflow of onshore chinese stocks since october of last year. the currency and the stock market tend to move in tandem because they are vulnerable to foreign outflows, but that is a big number two c4 and outflows coming out of the onshore chinese stock market. the other thing is commodities, iron ore and copper especially. iron ore has fallen over 10% in the last week. copper traded below the key 8000 level earlier this morning. you need to remember that china buys these commodities in dollars, so with weaker yuan, they have less purchasing power. expect weaker you want to continue to see this pressure on commodities. dani: the china and luxury story in europe are linked heavily. it was a bad day yesterday. >> it seems a nice liquid play

to short these luxury stocks. many of these stocks upgraded their profit outlook based on strong china sales weeks ago. that story has a crisis of confidence now. lvmh, 30% of their sales go to china ex-japan. the route yesterday in e stocks was notable -- the traders are playing this is a more liquid way to play a slowdown. dani: up next, is bloomberg markets "daybreak: europe". we will give an eye on luxury stocks. an hour away from the cash open in europe. this is bloomberg. ♪

i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you are retired right? am i? ya! save 50% on the sleep number limited edition smart bed. plus, special financing and free home delivery when you add any base. only at sleep number. we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have a ton of mulch. hi, i'm katie, i've lost 110 pounds on golo in just over a year. a literal ton. golo is different than other programs i had been on

because i was specifically looking for something that helped with insulin resistance. i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. anna: good morning a welcome to it just works in everyday life as a mom.

"bloomberg markets: europe."