>> good morning. this is "bloomberg daybreak: europe." i am lizzy burden in london. chinese stock continue their slide. -- sowing confusion over beijing's approach to tackling the property slump. watching wyoming as the world's central bankers head to jackson hole. we will bring your top interviews from the kansas city fed. the netherlands and denmark will provide ukraine with f-16 fighter jets in an agreement hailed by president zelenskyy as historic. good morning. happy monday. who have you -- you have -- i hope you have your cowboy hat at

the ready. all eyes on chair powell as we await his speech at jackson hole. concerns about an imminent u.s. recession might be fading but investors are still looking at potentially entrenched inflation and therefore higher interest rates for longer. treasuries are down for the year after the recent losses but those losses are almost nothing to do with markets replacing fed policy which you can tell because the steepest declines are at the long end of the curve where treasuries are poised for the worst month of 2023. 10 year treasury yields are closing in on the s&p 500 earnings yield. u.s. equities gained some ground in the final minutes of the session but it was not enough to stop the s&p 500, ending nearly even, and the nasdaq down. u.s. futures pretty flat. over in asia, stocks are down in china and hong kong. the hang seng is headed for its lowest close. finance and property, the biggest losers after banks cut the short term loan rate by less than expected this by

policymakers calling for more lending. you have yuan weaker against the dollar. -- the offshore yuan weaker against the dollar. just take us through the equity picture where you are. >> hi, lizzy. another day, another bout of selling in asia. they maintain the prime rate. another worry is that bout -- is about bank margins. why are banks going to hold onto these rates as they are right now in the property market is something? why wouldn't the government want to reduce the rates to push up property demand, push up market demand? bank margins have compressed. concern is rising that they cannot continue to cut rates. we have seen previously that mortgage rate cuts, which are closely tied with the five-year loan primary, have not spurred

demand, so that is the latest bit of worry in the china market. benchmarks in hong kong have led declines in the region today and of course as bnp paribas put it quite well, there is the triple whammy hitting asian equities this month. there is china of course. there are u.s. bond yields rising quite substantially. and there is the dollar strengthening yet again and all of this is coming together to make august, which is a high-risk season in a share, even worse than a lot of investors had expected. >> the big question, why is china leading the economy run cold? that is the topic of today's big take and we will be delving into that later. thanks for that round of asian markets. time now for our morning roundtable. i am joined by jill in hong kong and david in singapore. good morning to you both. i want to start with china.

thanks have got their benchmark one-year lending rate less than expected with no reduction for mortgages. it is a surprising result but what does it mean? jill: i think she touched on this little bit but ultimately, it seems like this may be a move to protect the banks with narrowing interest margins, also dealing with poor profitability here. just as recently as friday, a lot of economists were expecting the five-year rate that is the reference rate for mortgages to be cut potentially by more than the one year rate was. we ultimately did not actually see that today, but yes, it kinda comes down to this idea of maybe this is something that signals that could be more property easing in the cards. maybe it is just that it takes a little while for these signals from the policy loan rate cut last week to transmit to the rest of the market to see how banks can ultimately react. it means the central bank has to

be more to cut rates or make other adjustments to help rates from these things and point out that mortgage rates -- the average mortgage rate and china is that historic lows at the moment. a lot of questions about what exactly is happening here but ultimately, what we are hearing from economists at this moment is that it seems like an effort to protect these banks which don't really have a whole lot of room right now to move things a lot lower. lizzy: and another sign of how concern policymakers are about the chinese growth outlook, policymakers renewed their push to get banks to offer more loans . they are working with the financial sector to reduce local government debt risks. i wonder your read on how far policymakers will go to support the property sector? jill: look, i think it is really important to point out that, you know, we had that meeting at the central bank and that financial regulators had with banks just on friday.

you are right, indicating some level of urgency to get things going again. how much of that is rhetoric looses an actual concrete measure that can sort of help banks here and ultimately help the economy? at this point, we are hearing a lot from economists again, the idea that there's additional steps that the central bank has to take. maybe it's about lowering that rate on policy loans by even more than what we saw last week. some economists have suggested it could be lowered by another 100 basis points or more this year. they could reduce the reserve requirement ratio and this may be some adjustments to deposit rates that we could see and on the property side, what we have been hearing is maybe there's additional policy relaxations like lowering down payment ratios or lessening purchase restrictions in big cities. there is a lot that could potentially be at play but at this point, may be rhetoric is not enough to spur action. lizzy: on the one hand, you have

those measures, that rhetoric. on the other hand, you have seen the pboc setting you on fixing at astana than expected level. it seems they are doubling down on this counterintuitive strategy of cutting rates while strengthening the currency. is it simply that officials reckon this will induce financial stability? what do you make of it? david: there is more regarding the fixing, trying to limit the downside in the near term. obviously, the yuan is weaker today because it can trade to percent below the actual fixing. it can trade at that handle. it is trying to limit that downside. we don't want the currency to weaken too much. the markets are saying you are going to give us room for two we can still and we are going -- to weaken still. so markets were looking for some

sport today from these cuts. we did not get it. we are disappointed therefore and we will penalize you by pushing it lower. i do think the pmi data at the end of the month will be very important for the market and if that comes in week, weaker than expected, pressure on the yuan is going to grow one way or the other. the pboc can only at some point limit it because of the 2% gap that is allowed to trade than the markets who keep pushing it will see more pressure on state owned banks to enter the market and sell dollars to try and limit the yuan slide. lizzy: the impact of that, you are seeing on the screen there in the red. let's stick with central banks but moved to wyoming because fed chair jay powell and other policymakers from around the world are meeting at jackson hole this week. how important is this year's conference? jill: look, this is historically

the most important fed conference, right? we have seen policy signals being made at jackson hole for years at this point. i think that right now, it is incredibly important as well because there is so much uncertainty about what exactly the fed's past looks like going forward. we are in the middle of the longest spell we have, waiting for next month's fomc meeting and what the decision will be there, excitations obviously that there's going to be a pause, but you know, if we are looking at this idea of recession fears being pushed back for longer, rates going to be held higher for longer? we have all these fed officials who have been telling us for weeks this idea of looking at the data for clues on how exactly they should move on future decisions. i would say that, yes, anything jay powell says at this meeting that is historically this really critical meeting for these fed officials is going to be important for helping divine what to expect not just at the next decision but also help us understand that calculus behind how the fed is thinking going

forward. lizzy: a crucial meeting historically but even more so given the point we are at in the cycle. we have had the fed minutes and more eco-data. what investors -- what are investors going to be listening out for and how will it matter to treasuries? david: you think basically there is this big gap between the last fed meeting and the next fed meeting that is still a month away. the market will take a look at what powell says. how is he evaluating the data that has come out? even if he adopts the stance, which i think he will because he wants to leave at least a rate hike on the table if needed, if he does that, the market is still factoring in 42% chance of the rate hike with no more cuts this year. i don't think he will move that much. if he was to sound a bit more dovish, obviously, you would see yields come off quite a bit. for him to be hawkish, he has to

be really hawkish for that to kick in. another factor to factor in his the upcoming 20 year yield auction. how well is that received by markets? if it is not received well by markets, you could see pressure no matter what powell says in the near term. lizzy: thanks to jill and david for the morning round table. i also want to bring you up-to-date on the latest on the situation in ukraine. denmark pledged to send 19 f-16 fighter jets to kyiv while the netherlands has also promised to send some of its own during a surprise visit by president zelenskyy. it is a major step in terms of getting ukraine advanced weapons to be back russia's invasion, given the ukrainian foreign minister has just had to push back against reports the u.s. was gloomy about kyiv's counteroffensive strategy. there was a series of drone strikes in russia over the weekend, raising jitters about the threats. you have seen prices of the

commodity jumping as much as 1% in early trading and you can see it on the screen there. let's take a look at some of the key events we have coming up this week. at 9:00 a.m. on wednesday, london time, we have euro area /composite pmi's for august as long -- along with a raft of other pmi data. this should give us an idea of how growth is developing in these tighter monetary conditions. you may see a growing divide between european and american economic activity, but bloomberg economics still reckons the ecb and the bank of england will hike by a quarter-point in september. at 1:30 p.m. on thursday, you get u.s. orders for durable goods, data, and at 3:00 p.m. on friday during powell's beach -- speech at jackson hole, will he confirm rates will be higher? i am sure every word and raised

eyebrow will be monitored closely. for all the stories and more, check out the daybreak newsletter to get your day going. today, they lead on china banks and have bond bulls undeterred despite losses. that is about recession fears. finally, confidence growing that the fed can pull off a soft landing. for all that, terminal subscribers can go to dayb . the market reaction to the disappointing rate cut by chinese banks and the confusion. that conversation, next, with our markets live team. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe." investors eyes returning to jackson hole this week. wyoming is the host of that

conference. jay powell, the fed chair, is going to speak. for more, mliv strategist mark cranfield joins us now. what do you expect will be the key takeaways for jackson hole? mark: nobody will be surprised if jerome powell talks about wanting to keep interest rates high for a long time. that would not be a shock because inflation still has not reached its target but by the time people review jackson hole, they might find that christine lagarde turns out to be the star of the event. she has got a lot more to worry about. the german economy is the most important, showing clear signs that it is heading towards recession. in fact, the data this week, before she even speaks at jackson hole, may confirm that germany is backing into a recession and that is a huge worry for the european central bank who were trying to say they would be more -- there would be more interest rates to come but she might have to backtrack on that. because china especially is

really affecting the german economy. german exports these days are less than half they were to china before the pandemic started so that is a very worrying signal. plus, germany is still suffering from a lot of the energy related issues that it had when russia first invaded ukraine. so germany is being hit from all sides. the economy is slowing very quickly. for christine lagarde to try to sound hawkish at jackson hole is going to be very difficult. where she might surprise people is that she axley starts talking about risks to global growth, her own area as well, and that might affect the whole panel at jackson hole. we may come away from jackson hole thinking that we are more concerned about slowdowns in china and germany than we are about inflation in the united states. lizzy: speaking of china, give us your view on how markets are reacting to china's loan prime rate cut then. mark: in a word, disappointed and confused. the fact that they -- as you

were discussing earlier -- they only lowered one of the rates, that just cause to equities to slide. the yuan is a bit weaker as well. in an ideal world, the central banking in china would love to be able to continue easing and yet, the yuan, not to get any weaker, in fact, to stay in a very stable range. you are dealing with an enormous foreign exchange market where traders every day are looking for the weak link in the market and if you are lowering your rates and your growth is falling and you don't have a coherent policy on how to improve your economy, traders will straightaway be looking at you and saying your currency is too strong. so the central bank no doubt, they will continue every day. they will try to make sure that yuan stays relatively strong, but their job is getting more and more difficult. and unless there is a big turnaround in the dollar generally, the yuan will probably we can from here --

weaken from here. lizzy: -- doubling down on their that that a u.s. recession won't happen. mark: they are seeing headline inflation fall below treasury yields that's a good thing. core inflation is a bit too high. if they stay in there long enough, eventually, core inflation will come down. their bets will look at bit better. 10-year gilts are pretty close to the highs of last year in treasuries. not much can go wrong there. position, it prbly makes sense just to stay with it. lizzy: thanks to bloomberg mliv strategist mark cranfield for that update. coming up, south africa has cyril ramaphosa backs an expansion of the brics group. we are live from johannesburg with the details for you, next. this is bloomberg. ♪

>> brics or brazil, russia, india, china, and south africa. it has gone from an acronym to a powerful club that dozens of countries across the political spectrum want to join. it was coined by jim o'neill in 2001. initially, bric, the "s" joined in 2010. nearly a quarter of global gdp and 1/5 the world trade. these nations saw their collective voices as a way to exert greater influence in a u.s. dominated world but much like other multilateral forums, such as the g7, producing an agreement at its annual gathering has become one of the biggest challenges. now, more than 40 countries have expressed interest in joining the club, many of which are

african. >> the brics partners are significant investors in africa. >> among the items on this year's agenda will be how to boost the influence of the so-called global south in multilateral institutions such as the united nations. brics still only has 15% of voting rights at the imf and the world bank. the imf predicting these nations' growth rates will surpass those of the g7, brics wants a bigger voice in these bodies. they say this year's summit could prove critical for the future of the brics in an increasingly multipolar world. lizzy: so a look into the background of the brics and why more than 40 countries have now expressed interest in joining the club. cyril ramaphosa has expressed support for an expansion of the bloc ahead of the annual

leaders summit which kicks off tomorrow. for more, we are joined by jennifer, our africa respondent. just talk us through these expansion plans and why it could actually pose a threat to the world order. jennifer: as you mentioned, we heard yesterday, sunday evening, from president cyril ramaphosa expressing his support for expansion and saying that if there were to be an expansion of brics, it would be not just another opportunity for brics countries to be represented at multilateral forums, but it would develop and help strengthen in a multi-polar world which is essentially what we have been hearing from a lot of these leaders over the past few weeks leading up to this event. and i think just, you know, in that package, we talked about it a little bit. the brics countries represent 42% of the world population. bloomberg economics anticipates or estimates that an expanded group would represent about half of global output by 2040. that could really counter the g7

potentially but what we have been hearing from a lot of these leaders is that they are not necessarily looking to step in and be anti-west. they are looking to be a counter to the west, at least some countries, we can say that. they really do want a bigger seat at the table, a bigger voice, so we will have to see come out of these 40 countries that have expressed interest, which ones will actually potentially be added to brics. only 20 have formally applied to be part of brics at this point in time. lizzy: apart from talking about an expansion of the membership, what else is on the agenda for the summit? jennifer: expansion has really caught a lot of the attention over the past few weeks. there's also a lot of discussion around a potential joint currency. that is something that has really divided a lot of people who are paying attention closely to brics, but what we have been hearing from a lot of foreign ministers and even a lot of these leaders is that they really want to move away from a reliance on the dollar and what that looks like sort of depends

on who you talk to. it could potentially mean the digital currency. it could potentially mean a currency backed by something like gold. it could potentially mean just more trade in local currencies so that is going to be very high on the agenda. also course, the war in ukraine has caused a lot of food insecurity across the african continent, something we have heard a lot from a number of leaders, so you can anticipate, especially given we are going to see russian president vladimir putin attending virtually, that that will be of high importance. they have also talked about how they really want to, you know, as i mentioned, with a more balanced world order, what that looks like for brics and the global south, which is a number of countries. tomorrow, as you mentioned, the summit officially kicks off on tuesday. it's going to begin with a state visit from chinese president xi jinping, with president cyril ramaphosa.

we will be there and we will have to hear what this relationship looks like, which is very important to south africa, and what it is going to look like going forward. lizzy: thanks to jennifer for that reporting. more to come later today. we will be speaking with jim o'neill, former chairman of goldman sachs asset management. the man who coined the term brics. you mentioned russia. i want to check in on oil. we had supply curves from russia and saudi. it is up for the third day today on signs that the physical market is tightening an offset growing demand risks in china and the u.s.. brent tra

lizzy: good morning. this is "bloomberg daybreak: europe." i am lizzy burden in london and these are the stories you are waking up to. chinese stocks continue their slide as banks fail to cut a key interest rate that guides mortgages. in confusion over beijing's approach to tackling the property slump. watching wyoming as the world's central bankers had to jackson hole this week. we will bring you top interviews from the conference. less the netherlands and denmark will provide ukraine with f-16 fighter jets in an agreement held by president vladimir doesn't see -- volodymyr zelenskyy as historic. welcome to a new week. he ha -- yeehaw, we are going to wyoming, all eyes on fed chair

jay powell as we await his speech on friday. concerns about an imminent u.s. recession may be fading. not for the bond bulls at j.p. morgan, but the main concern for most investors is potentially entrenched inflation and therefore higher rates for longer. as we start the week, treasuries are down for the year after their recent losses but those losses are almost nothing to do with markets repricing fed policy, which you can tell because the steepest declines are at the long end of the curve where treasuries are poised for their worst month of 2023. 10 year treasury yields are closing in on the s&p 500 earnings yield and u.s. equities gained some ground in the final minutes of friday's session, but it was not enough to stop the s&p 500 ending nearly even and the nasdaq inching down. currently, u.s. futures are pretty flat. over in asia, stocks are down in china and hong kong. the hang seng is headed for its lowest close since november. finance and property, the

biggest losers. this after banks cut the short term loan rate by less than expected this by policymakers calling for more lending. you have the optional yawn weaker against the dock -- you have the offshore yuan weaker against the dollar. let's continue our conversation about china. president xi's to rewrite quest -- xi's quest rewrite the story. the pboc cuts the one year loan prime rate but holds the five-year rate unchanged. the surprise move sewed confusion. president xi's quest to rewrite the playbook is facing its sternest test yet. we are going to dive deeper into that story with today's big take and we are joined by bloomberg's china economic -- economy and politics reporter, tom hancock. it is a fascinating read, this. why isn't beijing adding more stimulus at this point?

david: -- tom: i think there are two key reasons. the first one is that parts of china's economy are doing very well, at least relative to last year. i was in shanghai last week and malls are packed. that is a massive contrast with last year where there were lockdowns across the country so services consumption is growing at double-digit rates and those companies are doing very well in china compared to last year and it gets you more towards the 5% growth target which is quite modest. the other part of the economy doing well are the new economy sectors. ev's, solar panels, advanced industrial stuff is growing very fast as well including exports. so that is one reason and then the second reason is it seems like beijing has made a decision that it does not want to rely on a fast-growing property construction sector to drive

growth and it also doesn't want local governments to be barring off balance sheets to fund projects it does not approve of. so those two things are a big drag and that is why we have got a slower growth picture for china emerging in the future. lizzy: it is an ugly picture. no bazooka yet. what is the longer-term outlook for china's economy with all this bad news? tom: well, i think that their baseline is that china's growth over the next decade is probably going to be closer to about 4% annually without that boost from the property sector that we had in the past decade when growth averaged something more like 7%. that will be the base case going forward. don't forget, there's still a lot of things driving growth in china's economy. you can look at your phone. china has produced tiktok and all these kinds of innovative companies that you did not expect to see five or 10 years ago and it's going to be more of

that but it's just going to be a slower growth than before and then this process is also a bumpy one and there is some risk that things could go wrong if the property market overcorrect, then that does perhaps derail other parts of the economy and then you could see something more like a stagnation scenario. but i think that's going to be something that is more of the tail risk than a basecase for china because there are clear other growth drivers that are going to propel china's economy forward. i mean, it is still, compared to the u.s., 16 per capita gdp, so there is -- 1/6 per capita gdp. lizzy: thanks. you have got to read that big take. it really answered all of my questions on china if it were possible. now, denmark and the netherlands have pledged to send f-16 fighter jets to kyiv despite a surprise visit by the ukrainian president, volodymyr zelenskyy. let's get more from maria tadeo,

our europe correspondent. how significant is this new support from nato allies? maria: it is significant. there has been a number of reports suggesting that this counteroffensive is not going as fast as expected. the ukrainian foreign minister over the weekend said that there are no dates for -- they don't operate like that. having support from the air was crucial. now, with the f-16s, ukraine should get some of that. there's two fundamental questions, however, going forward. you mentioned president zelenskyy. he met with the prime minister's of the netherlands and denmark. the question is, how fast will get those fighter jets? the dutch part minister suggested that september may be a little bit too rushed, but "hopefully soon after." the other question is, how many? there are too many f-16s in stark in the netherlands.

president zelenskyy appeared to suggest ukraine would get 42. the dutch prime minister was not willing to put a number on there. when it comes to denmark, we know they have pledged 19 for ukraine so that should make a difference. the big question is, however, will this change much for the counteroffensive? that is a question that truly matters for ukraine. lizzy: how many chats and how fast will they get them? the key -- jets and how fast will they get them, the key questions. they talked about sweden's bid to join nato. maria: energy of course featured in that discussion, but yes, it was a meeting between the hungarian premise to president erdogan. the two countries are connected by the fact that they have not yet ratified sweden's entry to nato. this was almost a never ending story for sweden which is looking to join as soon as possible. we do know that at the nato summit that happened a month ago, president erdogan did give

the political signal but the parliamentary process is still pending. both countries say they will review that membership did in the fall -- bid in the fall, but for sweden, this is a question of getting it done as soon as possible. when we spoke to the swedish foreign minister, one of the risks noted to us is he did not want this process to drag on. there is no dates for either vote to happen. the hungarian parliament nor the turkish parliament. lizzy: thanks to bloomberg's maria tadeo in brussels for that update. i want to look at some of the other global news stories we have this morning. strike action in australia's lng sector could begin as early as september 2 if you talks on pay and conditions failed to resolve disputes. as well as negotiations that would -- ballots are taking place on potential walkouts by workers at chevron facilities. any outages could threaten 10% of global supply cuts.

we also have a story on the terminal that italy could partly reimburse banks for a new profit tax. this is according to corriere. this news is on the terminal just now. speaking of banks, citigroup is reported to be considering a plan to disband the bank's biggest division into its three primary business segments. according to the financial times, the institutional clients group would be split into investment and corporate banking, global markets, and transaction services. the report says the move would give the chief executive more control. also, donald trump says he will skip the republican primary debates, citing a new poll showing him with a wide lead for the gop nomination. in a post on his truth social platform, the former u.s. president pointed to a recent cbs news survey. the first debate is due to take place on wednesday. let's take a look at some of the

events we are following throughout the week. tomorrow, we will have u.s. existing home sales data, giving a snapshot of how well the property market is holding up. on wednesday, flash pmi readings will give us a health check on the economic recovery. on thursday, we will have u.s. durable goods and initial jobless claims data from the u.s. on friday, jerome powell is scheduled to deliver the key note speech at the gathering. coming up, all eyes on what could be the biggest ipo of the year. an official announcement is expected today. we will discuss what is in the works and what to expect from arm. that is next. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe." let's focus on what is likely to be this year's biggest ipo. bloomberg has learned that softbank's arm is set to split underwriter fees equally among four leading banks. i want to bring in our expert, bloomberg's alex webb. let's start with you. what are we expecting from this blockbuster ipo? alex: the company is reportedly

seeking valuation -- there has been reporting that some banks have come in with a valuation considerably lower than that and don't forget that softbank bought arm in 2016 for 22 billion pounds. this valuation was $70 billion. -- 70 billion pounds. it was the biggest tech company and it will be listed in the u.s. perhaps not a surprise given valuations over there. lizzy: the chip designer has seen a revenue decline. where is the pain coming from? mark: people are buying fewer smartphones. that means there are customers -- there is a big inventory stockpile. revenues held up better than the actual -- people like qualcomm. still under some pressure. i guess we are looking for an uptick in the in the second half

of the year to hopefully reverse that trend. lizzy: do those chips expire? or can they just use them later? matthew: they do. that is the problem. apple is a good example. we are going to see a new iphone come out in september and that will have you chips in it so it is a continual refresh of the technology they are putting into these things. they definitely have a shelf life. lizzy: there are 28 banks on the list of underwriters. that's pretty big, isn't it? alex: not all of these banks are playing an equal role. there are three different tears of involvement. these target prices they are going for his punching. there is no guarantee they will be able to get it and we have had reports that several massive tech companies, amazon, samsung, apple, eventually nvidia -- which tried to buy arm from softbank was essentially rebuffed by regulators -- they have all been reported to be in talks in becoming an anchor investor. now an anchor investor, when you

are looking to list 10 billion of the total, that does not leave a whole lot left to play with. how well those moving pieces come together? it will require coordination. at least, softbank seems to think so. lizzy: talk us through how the chip sectors fared and what the outlook is for the future. matthew: despite these negative revenues, it has performed quite well. the index is up 30% year-to-date. it is doing pretty well. the outlook really depends on the strength of the global economy. this rebounded particularly in smartphones. ai also has a massive opportunity. and just the kind of spread of chips into pretty much every device we use every day. automotive, cloud, everything. that is what has been the big picture by softbank about why they bought arm in the first place.

it will get into everything we use. chips are going to get smaller. there is still a huge growth opportunity in the mid to long term and i am sure that is going to be a big part of their ipo pitch, too. lizzy: an exciting story. thanks to bloomberg's alex webb and matt from bloomberg intelligence. a cofounder of an investment firm says the fed is saying hope for a soft landing is almost guaranteed to be wrong. why he thinks that will lead to a recession. take a listen. >> deflationary forces from the tech stocks breaking in 2021, probably too big. the power of interest rates rising and depressing the real estate market, very negative, slow moving influence. i suspect that they will once again dominate and we will have a recession running perhaps deep

into next year. and an accompanying decline in stock prices. >> the investigation you are predicting -- the recession you are predicting might not start 2023. the federal reserve says we think we have clear the recession hurdle and they don't really project a recession any longer. you disagree with the fed on that? >> i think the fed's record on these things is wonderful, almost guaranteed to be wrong. they have never called a recession, particularly not the ones following the bubbles. they prided themselves in stimulating the bubbles. they took credit for the beneficial effect of higher asset prices on the economy. they have never claimed credit for the deflationary effect of asset prices breaking, and they always do. david: you said not too long ago that you are not a big fan of jay powell and the way he has been handling inflation. is that correct?

jeremy: yes, that is correct. david: you think he has done a better job recently in getting inflation under control? jeremy: i think it is largely out of his hands. the forces work. i suspect inflation will never be as low as it averaged for the last 10 years, that we have reentered a period of moderately higher inflation, and therefore, moderately higher interest rates. in the end, life is simple. low rates push up asset prices. higher rates push asset prices down. lizzy: you can watch that phone interview with david -- with jeremy grantham on bloomberg wealth with david rubenstein, coming up on september 5. coming up, a defeat for the lionesses. spain goes home with a victory in the women's world cup. or on that nailbiting match yesterday -- more on that nailbiting match yesterday, next. this is bloomberg. ♪

>> a crowd of almost 76,000 turned out at stadium australia to watch spain defeat england in the final of the women's football world cup. -- enough to secure the trophy and that is a great result for spain considering the internal team divisions they were struggling within the lead up to this tournament. for cobos australia -- it was a party nobody wanted to end. stadiums, hubs, bars, they were all packed throughout. almost 3 million viewers in australia watched the final on tv despite not having a stake in the outcome. the global tv audience is expected to surpass 2 billion, up from the 1.1 billion that watched the 29 addition in france. -- edition in france.

the players shared in the bounty. the prize pool was lifted to 110 million this year. that is still only a quarter of what the men got at their world cup in qatar last year but as momentum grows behind the women's tournament, that gap looks destined to close. paul allen, bloomberg, sydney. lizzy: well, for more on spain's win, we are joined by bloomberg's maria tadeo. i promised we would bring you back. you are here to rub salt in my english wounds. you must be over the moon. maria: look, i said it on the friday, i would be here on the monday because i was sure -- beyond the fact that you support your country and that is natural, when you look at football, you have to look at the stats, and i do. i look at shots on target, passes, possession, and overall, spain looks like a stronger team. i said i would be here on the

monday and here i am. it is a win, a great moment. it is a great moment for female sport. even diplomatically, i would say spain won on that front because the queen of spain decided she would fly all the way out to australia. yesterday, she was celebrating on the stadium that win. the u.k. royals obviously did not go so make of that what you will. the only negative spot has to do with the head of the spanish football federation who is in trouble this morning because he kissed one of the player's yesterday in that celebration. maybe a friendly reminder that women do not want to be kissed by people they work with and their bosses and their management. you would think in 2023, that would be obvious. nevertheless, let's focus on the good thing, a win for spain and a win for the sport. lizzy: i have to say, i was pretty moved by the moment when the goalscorer opened her shirt

to share that message underneath her shirt on another shirt, and we found out afterwards that her father had died as she paid tribute. it was a message to her family. maria, what was your highlight of the game? maria: i think that was obviously very moving because this is a woman that changed the game. her dad passed before the game. she did not know until the end of it. and of course, it's a lot of emotion. to me, the highlight overall is a team i would say that has overcome a lot of difficulties we know with the management, the football federation, even the coach at times. real tensions between the female players and the coach, the spanish team. overall, they came out on the winning side. i hope this is not a one-off and it actually builds over time. that would be the biggest win. this is not a one-off for one team but transpires across what many teams have played but also

the female sport already overall. lizzy: thanks to maria tadeo. i want to bring you a breaking line which is that citigroup has cut its china 2023 gdp growth forecast from 5% to 4.7%. if we just check in on these markets, you have currently got the hang seng index down 1.6%. it is headed for its lowest close since november. this after the pboc slashed its one-year prime rate by less than expected despite policymakers calling for more lending. if we look ahead at futures as well, you have got s&p e-minis and nasdaq futures pretty flat, though pointing toward a lower open. euro stoxx 50 futures are also flat. also checking in on oil, you have got brent currently trading above $85 a barrel. up next. this is bloomberg. ♪

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