. host: good morning. this is "bloomberg daybreak: europe."

these are the stories to set your agenda. shares surging in hong kong and mainland china on beijing's measures to win back investors. fed chair jerome powell has the bond market exactly where he wants it lacking conviction about the next steps of the fed as he signals that the u.s. could hike again. >> we are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down towards our objective. host: ecb president christine bogart warns of three q shifts and how they could impact the global economy. we will bring you more from our exclusive interview. good morning and welcome to a new week and happy monday. traders cautious this morning except in asia. the conclusion of jackson hole

showing the rates on either side of the atlantic will stay higher. we don't have clues as to where the neutral rate lies. powell's speech boosted yields on the front end of the curb though the market reaction went from dovish to mixed talk it should. the 2 year yield down a basis point and up 5%. u.s. benchmarks rallying after his comments but now futures are flat. this morning it is all about china. incredible moves so far. let's get a check on how asian markets are faring. great to have you on daybreak: europe. >> like you said it is really all about china after the government unveiled it will be cutting taxes on stock trades and it will be slowing the pace of its ipos.

this is boosting some confidence in the markets. benchmarks are surging today though the csi 300 surge some 5.5% though it is pairing some of the gains but it is still headed for one of its best days in more than a month. gains of more than 2% on the hang seng. there are questions as to how long the rally can be sustained. investors looking forward to the official pmi's later this week. we are also focusing on some of the moves in the japanese stock market. it is being boosted by the exporters themselves being boosted by the weakness in the japanese currency. this is on the back of the governors comments at jackson hole sounding dovish. he said there is a slow price growth in the country, slower than doj's target. -- the boj's target.

host: thank you to bloomberg's april hong in singapore. time for our morning roundtable. i am joined by james in beijing, mark in singapore and maria in brussels. getting deeper into the china story, we are seeing stocks on the mainland and in hong kong surging after this announcement of more stimulus. the stamp duty on stock trades is a shot in the arm. can it last? >> it is a good question. this has been rumored for a couple of weeks. you are seeing a rise domestically because of this expectation and now you see the result of that.

it is only domestic investors reacting to this. we still see international investors pulling money out of the chinese stock market. there is no sign at the moment that this kind of reduction of a few points in the stamp duty on stock trades will turn that around when all of the drivers for global investors are pointing the other way. the rising interest rate differentials. a slowing domestic economy. there is no good growth reason as to why anyone would want to be more exposed to the chinese stock market at this time. host: the other big news where you are is the u.s. commerce secretary is visiting. how should we interpret the fact that we have had multiple u.s. officials visiting china this year but it has not been reciprocated? >> i think china's diplomacy has

been confused. we saw the foreign minister disappear for a few months and then replaced for an unbelievable reason. if china was wanting to reciprocate there was a vacuum. if you include the head of the cia, five senior officials have visited china as a sign that the biden administration is wanting to improve relations with china but also the difficulty of doing that. many of the things that the biden administration will do relating to china including investment controls are things that china is opposed to an china sees as an attempt to contain the rise of china's economic growth. you see the difficulty the biden administration is having to improve relations but continuing to do the things that make the relationships worsen. she has another person trying to

explain the contradiction. trying to convince the chinese there is no contradiction. it will be a difficult question. you are also looking ahead, president xi is to visit the u.s. this year to visit the aipac summit. but it is a difficult position that xi has. but you are seeing an attempt by the biden administration to improve relations with the chinese government. host: laying the diplomatic groundwork. diplomatically puts. i want to stick with china. you have seen china weakness rippling across international markets. james has said we get more chinese data this week. who is hardest hit? are there any beneficiaries? >> europe would be extremely

happy to see china in a recovery. german words to china are down to half what they were during the pandemic. most of europe and especially germany would be very encouraged if they saw china turned a corner. but also from a markets point of view. globally. it would mean there would be a crossover boost across the world. money would go into china on a relative value basis. it is been underperforming for so long. but at the same time european markets coming off the edge. about the only market that has held up well is the u.s. they are probably the least beneficiary of an improvement in china but there will be a lot of crossover effects. if the chinese currency studies on the back of all of that it would give a dollar a nudge lower which would help so many places not least the japanese

yen and the emerging market. there is a lot resting on this. we will see if it really does gain traction in the next few days. host: indeed trade was a theme at jackson hole. the inflation impact of trade. let's turn to jackson hole. markets are still digesting what we learned at the symposium. one thing we learned is fed chair's -- he also hinted multiple times that real interest rates are already quite restrictive. take a listen. >> we see the current policy as restrictive putting downward pressure on economic activity and higher inflation. we cannot identify with certainty the neutral rate. there is always uncertainty as to the precise level of restraint. host: the market interpretation of his speech went from dovish

to mixed talk is. what was going on there? >> he left some things for everyone in his speech. there has been improvement in inflation. there is a lot of data coming that shows the risk of the inflation numbers may not be the yet. we have the employment report and one more inflation report before the fed's in september as well. they are in a position where they want to leave september open as much as they can. they don't want the market getting ahead of itself thinking rate cuts have come to an end because once the market is sure of that they will be looking for the rates to come down on the others which is not something the fed is ready for. they want to hold this mantra that rates are high, they will stay high and they will be high for a long time. when you are trading in the

market you are always looking for the next move whether it is up or down. whatever jerome powell says is difficult. he had a pretty good neutral line at jackson hole but the data coming in the next few weeks will be a challenge. we will have choppy trading conditions through to the end of august. in september we have -- we will have a clearer idea of whether the fed is an position to hold or not. for now the markets are not giving much either way. host: thank you for the warning. mark cranfield, we will come back to you later in the program. powell was not the only highlight. we heard from christine bogard. in an exclusive interview she explained the ecb will leave rates at high as needed for as long as it takes to bring the inflation back into target. she also talked about shifts in labor, energy and geopolitics.

>> we are facing major shifts. i will mention three for you. one is there is a complete change in the labor market. there is a complete change in the energy future that we are facing. there is a complete shift in how geopolitical forces organize our economies. host: how did those comments from low guard w -- from christine lugg guard weigh -- christine lagarde weigh with other comments? >> she specifically and deliberately did not want to provide a message to markets. she did not want to show an indication or hint at an inclination when it comes to the september meeting and when you look at that speech, to me

frankly it was not the point. if you look at the speech overall and the interview that followed with bloomberg news, it had a very intellectual flair to it. she talked not about the daily tribulations of the economy or the monthly decisions the central bank has to make but the economy on a global picture and the challenges faced when it comes to the economy but -- she talked about major changes in the labor market. she talked about energy security. she talked about the volatile nature of geopolitics and how that feeds into setting policy decisions. if you were hoping to get any clarity in terms of the september move you probably did not get it. we don't know much more today than we did a week ago.

i don't think that was a goal of the speech. there was almost a deliberate intention to keep it vague. and waiting for the incoming data, the cpr print for august and also the ecb's own forecast in september. host: thank you to maria. you can watch the full interview with tom keene online. definitely worth a watch for the intellectual stimulation if not the clarity. to run you through what else we have. 2:30 p.m. on thursday funded time we got the latest china pmi's for august. expected to have a broad deterioration with services teetering. and manufacturing shrinking at a faster rate. thursday, 10:00, we get the euro area/inflation reading for august. it is expected to drop to 5.1%.

a slight moderation there. and finally on friday at 1:30 p.m. we get u.s. payrolls data for august. this is the last jobs printed over the feds meeting. it is even more important. the market really is lacking conviction about the feds next move after the jackson hole speech. and the estimates for this reading are a softer print in august after you have had two mrs. after 14 straight beats. you can get a round up of the stories you need to know to get your day going. terminal subscribers can go to -- d.a. why bigo. they look to the end of the month in the coming of september. 19 sessions coming and going in august without a single back up again in the s&p 500 and

september is not looking much better. chinese equities rally after beijing takes new measures to boost market sentiment. we talk with our m live team next. this bloomberg. ♪

host: welcome back. if you are joining us it is 6:17 london time. the new china stimulus measures -- we will break them down with our strategist. great to have you. you see china cutting the stock trade stamp duty. how does that compare to the rest of the drip of stimulus measures we have had so far? >> i think what china has done this morning is like putting a band-aid over a bleeding artery. it is very symptomatic.

look at the larger issues. you have an economy on the cusp of deflation. soaring unemployment rate among the youth, so much so they stopped publishing the data altogether. the property market is in the doldrums. and a new problem after the pandemic which is the fragmentation of global supply chains which is challenging the notion that china is the ultimate factory to the world. these are early days yet in the fragmentation narrative. the challenges are humongous. what they have done today in terms of stamp duty measures is symptomatic and it will not address the problem in any way. i think this is going to be a short-lived bounce. they need to let the yuan we can to address some of those issues

and they are not doing that yet. host: call the surgeon, you heard that here first. we have been focused on jackson hole and lagarde and powell. what about what we have learned from the bank of japan? powell's speech weighed on it itself. >> i think the be oj has not been -- the boj has not been rattled by the weakness in the yen. they are looking at inflation. if you look at headline measures in japan you would think that inflation is around 3% give or take. but for the governor it is the underlying inflation that matters. by his calculations they don't see it anywhere more than 2%. which is why there is little urgency on the part of the boj to move away from the low rate

scenario. in a world where the fed is saying -- we heard from powell, they may raise rates more perhaps to 6%. if the boj is going to stick to that in this world we will get a weaker yen. boj is not concerned about it but the finance ministry is antsy about letting the yen we can more. we are set up for interesting times on the yen. host: a new import in europe, taking wall street by storm. explain what that offers. will it get much take up? >> the euro markets are kind of more shallow and less deep than what the u.s. markets are. the u.s. market is north of

a $1 trillion. this will have a limited impact. it will allow the investors all the same to hedge things. they are offering standardized options and so it will bring big -- it will make covering those risks cheaper. host: thank you to our strategist. great to have you on. coming up, the zimbabwean president wins another five-year term in the general election but criticism is pouring in. we will get the latest next. this is bloomberg. ♪

host: welcome back to "bloomberg daybreak: europe." the zimbabwean president has won another five-year term. joining us now to discuss is our bloomberg african consultant. she is here with me in london. give me a flavor of the criticism of these elections. >> this is not something that this country wanted. international observers were there and they have given some scathing criticism. european union, u.k. and u.s. embassies are saying the elections were deeply flawed and there were a lot of policies counter to voters' rights and intimidation happening. there was a lot of concern about this election being marred by this especially because the president has been in office for

five years. this was going to be his second time running against the opposition party. there was a lot weighing on this election to be seen as being democratic. what we are hearing from observers is that it did not meet international, regional or the standards of the constitution. not smelling well for the country especially given the economic position this country is in this is not what they needed. host: you mentioned intimidation. was it peaceful? >> that is important. these elections for the last 30 something years have been characterized by violence and there has been a lot of deaths in the past. there was focus on whether this was peaceful. human rights observers have said it was largely peaceful. the concern though was that it was not a free and fair election. despite what we are hearing from

the president that it was. we got the results over the weekend. we are paying attention to the fallout. yes, the president has declared victory. but this country has been going through a lot of turmoil. the economy has been tanking for a number of years. the zimbabwean dollar which the president revived has not been doing well. hyper inflation, unemployment are skyrocketing. the government has been unable to pay back debt. and any reprieve was hanging on this election being seen as doing well. the concern is that this may not be the end of the story. host: we will continue the story on blue -- on bloomberg here with you. i want to check in on the asian markets. we have had news of more china stimulus. currently you have the csi 300

up 1.3%. the hang seng up 1.1%. the hang seng 225 -- the nikkei to 2-5 up 1.5%. we are going to get more china data through the week. the msci specific -- the msc pacific index up 1% this morning. we will take a deeper dive into the support measures straight ahead. stay tuned for that conversation. this is bloomberg. ♪ every business deserves a great deal. that's why comcast business is launching the mobile made free event. with our business internet, new and existing customers can get one year of unlimited mobile for free. it's our best internet. powered by the next generation 10g network and with 99.9% reliability. plus one line of free mobile for an entire year. it's the mobile made free event-happening now. get started for just $39 a month.

plus, ask how to get one free line of unlimited mobile. comcast business, powering possibilities. i may be known for my legendary football career, but truth is, i love a bunch of sports. the only trouble is knowing where to find them. that's why i got xfinity. so, i can easily find and watch whatever sport i'm into all in one place without missing a thing. even if it's football, australian football, or football football. in a word—it's fitz-credible. i got to trademark that one. this season, eligible xfinity rewards members can get up to $100 off nfl sunday ticket from youtube. sign up for xfinity rewards now. i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight?

sure, honey! this generation is so dramatic! move with the xfinity 10g network. host: good morning. this is "bloomberg daybreak: europe."

these are the stories to set your agenda. euro stoxx 50 futures getting a boost after beijing announced new measures to win back investors including cutting stamp duty on stock trades. jerome powell has the bond market where he wants it -- lacking conviction about the feds next steps as he signals the u.s. could hike again. >> we are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down to our objective. host: ecb president warns of three key shifts in the modern world and how they could impact the global economy. we will bring you more from our exclusive interview. good morning and happy monday and welcome to a new week. traders are cautious except in asia and the conclusion to jackson hole was that rates are

likely to stay higher for longer. as expected it is all very data dependent. we don't have clues as to where the neutral right lies. powell's speech on friday did boost yields on the front end of the curve even if the market reaction had to go from dovish to mixed to hawkish. the 2 year yield down a basis point but still above 5%. u.s. docs rallied after powell's comments but now futures are pretty flat. the s&p -- the nasdaq futures up .1%. this morning it is all about asia. we heard news of more china stimulus. we have a rural with us to -- we have averil with us. >> it is all about the rally and

the tailwind coming from china. msci pacific benchmark 1% higher and even the csi 300 it has paired gains from the earlier session keeping its head above water heading for one of its best days in over a month. this has a lot to do what the measures from the chinese government to boost confidence in the market promising to slow the pace of the ipos. there is a lot going on in terms of stimulus and potential stimulus. it has to be said that as soon the csi 300 came back from the lunch break we saw it pairing further the gains from earlier in the session. china seems to want more meat on the bones. take a look at what we are seeing out of the jacket -- out of the japanese stock market. they are benefiting from the

weakness in the japanese currency after the dovish comments out of jackson hole saying the price growth in the country is below the central banks target. we see the u.s. gdp why -- host: getting back to the hang seng, ever grant down 80%. -- evergrande down 80%. >> interesting moves and the stock markets. a lot to do with the corporate development. evergrande is back resuming trading after 17 months. its stock plunged losing about 80%. it is now a penny stock. not surprising given the fact that it reported a loss of 4.5 billion dollars for the first half. we are seeing developments out of evergrande in that it has

delayed a meeting with creditors. we are also seeing another company going in the other direction after news it will buy the smart element of dd. it potentially eliminates a competitor in the crowded ev space and it also gives it a tech savvy partner in this venture. host: you have to wonder if consolidation was always inevitable in the ev space. thank you for the asia market check. i want to dig deeper into the measures rolled out by chinese authorities. give us more details about what has been announced. how do these measures way with previous drip feed stimulus measures we have had before? >> first we are seeing a cut in

the stamp duty. the csi 300 trading volume and turnover are pretty high today. more or less the stamp duty cut has boosted the market sentiment. and apart from that there are rules from the government that want to limit the state cuts by major shareholders in some asian companies. that is also seen by some local brokers as -- for the markets because now we will see a massive off flow by the major holders as we have seen in the first half. we have other rules including the easing rules on the properties sector. despite the pullback we have seen today, it has also removed

or kind of removed them overhanging the market but we are still waiting for the updates. they have just postponed a meeting with the creditor in hong kong. we will see how that goes. in general the rest of the package is not as big as some people had expected. that is why we are seeing the csi 300 and the benchmarks in hong kong pairing their gains especially after the large break. and we are also seeing accelerating of the -- we will see how it goes. so far the sentiment is still quite fragile and very sensitive to any news on the negative side. host: bloomberg's asia stocks reporter, thank you for the update. green across the screen but pairing gains at this point.

i want to turn to geopolitics. the u.s. commerce secretary stressing the importance of global ties on her visit to beijing. addressing her chinese counterpart she said the u.s. seeks healthy competition and has no intention of hindering china's economic progress. she is the fourth high profile u.s. official to visit beijing in the last three months. apples major supplies list shows 80% of its manufacturing partners last year had a foot print in china. data compiled by bloomberg has how that could be changing. let's bring in the works asia tech editor. what does this list show about apple supply chain? >> i think everybody knows at this point apple does not make iphones. it has hundreds of partners

around the world it works with to make iphones, computers, ipads. it has to partner with companies around the world. this was the brainchild of tim cook. he worked to develop the sophistication of the supply chain especially in china and concentrated the development of these products in china. apple began a decade ago to disclose the identities of these partners and their locations. what we did for this project was that we looked at the 10 years of data we have gotten to see how the supply chain has changed over the last decade. it was interesting to see the specific details. china remains at the heart of the apple supply chain. it is very efficient. it still produces the vast majority of iphones. but there are important manufacturing centers around the

world including india and vietnam. uc suppliers for apple build new factories and those locations. they are hiring hundreds of workers. the governance are doing whatever they -- the governments are doing whatever they can to build up those supply chains. they see the benefit from high-tech manufacturing that has been such an engine of growth for china's economy the last few decades. host: trade and the inflationary impact came up at jackson hole. what does this mean for the costs and prices of apple products? >> as the apple supply chain has splintered around the world, more locations, more suppliers in different areas, bloomberg has pretty good resources. we sent reporters into vietnam and india to see how the factors are evolving.

they are hiring many workers. they have a lot of infrastructure they still need to build to get products in and out of these locations. the apple costs will go up as it tries to operate across more geographies in the future. the cost will probably rise which raises the possibility that apple could increase the prices of its iphones. a key question for apple is whether it passes the costs along to its customers or if it tries to keep the prices under control going forward. host: thank you for that fantastic reporting to peter. i want to bring you breaking news out of saudi arabia. the public investment fund and others have announced they will sell101.6 million existing

shares. offering a 30% stake in added holding in this ipo. the shares represent 9% and that the sale shares and the new shares represent 21% of the companies issued shared capital. upon completion of the offering. that news out of saudi arabia. let's take a look at some of the events we are following this week. the uk's stock market is closed for the summer bank holiday. on the geopolitical front the u.s. commerce secretary visiting beijing this week. the u.k. foreign secretary is also set to visit china for talks on russia and ukraine. wednesday and thursday we get flash cpi ratings from europe.

and then ubs's second-quarter results are due on thursday. we expect the bank to give an update on credit suisse. we end the week with u.s. jobs data. we will be live for the am brosetti forum. coming up christine lagarde says the world is going through three major changes. stay with us, this is bloomberg. ♪

>> we are facing major shifts. i will mention three for you. one is there is a complete change in the labor market. there is a complete change in

the energy future we are facing. and there is a complete shift in how geopolitical forces organize our economies. not to mention in the background the climate change impact on our economies, our life and the imperative it becomes as we have seen during the whole summer for instance. in terms of major heat waves, major hurricanes and so on and so forth. you have these three key ships and the background of climate change. we need to address each and every one of these three which we inherited from the pandemic and the major supply chain disruptions and from the geopolitical tensions we see developing between the united states, europe and japan and many other countries around the world, in particular china. >> i was talking to our reporter

out of frankfurt on this beach and i want to take the 60,000 foot nature of the speech. if i look at clarity, flexibility and humility, your backdrop is the same as your backdrop on september 16 which is to pick the tensions between two nations. germany and portugal. how do you get to these lofty goals given the fractious original nature of the ecb? >> i would disagree with that. i think the ecb and the way it has been constructed is intended for collaboration, for controversies, for debates but at the end of the day for large consensus. this is how we have been operating at the ecb. the fact that monetary policy is

really european monetary policy is a plus. we are bound up by the same currency. we exchange the same banknotes. host: that was the ecb president christine lagarde speaking exclusively to bloomberg's tom kean. maria tadeo will bring us analysis. that was a wonderfully paradise conversation but -- that was a wonderfully erudite conversation but did we get any more clarity on policy? >> the short answer is no. i don't think that was the goal. in the interview we played with tom, there was almost an intellectual flared of the conversation. if you look at the speech and i would recommend everyone does this is almost a step back from the daily tribulations with the

economy. but also look at the economy with the bigger picture. she identified big changes happening in the economy. the labor market. she said there are significant changes in the labor market. energy security has been a huge point of debate when it comes to the european story and even the inflation story at the start of it. and geopolitics features heavily. in terms of monetary decision i don't think we know more. i think it was deliberate. we know she stressed the 2% target is unchanged but all will henge on the data. it will be difficult for the head of the ecb to give a sense of direction a month before that decision without the data. am i shocked we did not get clues?

not really. i also don't think that was the goal of hers going into this speech. host: christine lagarde was not the only ecb representative we heard at jackson hole. interesting she said the governing council is intended for debate and consensus at the same time. reading between the lines, how united is the governing council? >> the answer we will get in september. we know it is difficult for the governing council to get to full unanimity. she talked about consensus. there were a number of central bankers and governing council members that were present at jackson hole. some expressed a more clear view looking at september. when it comes to september, what is interesting about her and you could see it in the way she

pushed back against the idea there is tension going on behind the governing council, while she may not be an economist i training she does have a great skill. she is good at making sure everyone feels listened to when it comes to decision and building the consensus. european central bank is in some ways at a crow -- at a crossroad. a lot of this will be about finesse and the language. we probably won't know until decision day if there is unanimity or large consensus. host: plenty more to come. this is bloomberg. ♪

>> i hope india would put nontariff barriers or barriers

for the importing of steel. >> chinese steel? >> any steel. >> speaking of china, how do you view the recovery of the chinese economy right now? most people call it tepid. whereas india's demand has been strong over the years. >> i think china particularly though we read it is slowing down its interest rates and the real estate market there is going down. in reality, as far as steel is concerned, we don't see that kind of action or reaction in china. the steel production remains elevated. they produce over 50% of the

world's steel production. and exports have gone up a little bit but not to the extent that domestic demand would -- but that would not reflect that domestic demand has gone down. india on the other hand has gone -- europe on the other hand has gone down. >> and india? >> india is very strong. the last two years india has been strong. going forward i think india will remain strong because of the government spend on infrastructure is high. india remains very strong. since 2004-2005 i have not seen india as strong as it is now. >> let me ask you -- i know you have said you are interested in steel assets.

where are you in that transaction? >> tech is a high quality mental -- metallurgical core that we need in india for steelmaking. we have low-quality end and it is limited. our need for coking coal is high in our country. it is a strategic asset tech is getting divested by tech resources. we as an indian company and the largest indian steel company believe this could be a strategic fit for us. we are taking a significant estate. between 20% and 40%. host: that was the chairman. if you are just joining us it is

just -- i want to bring you an update from the chinese markets. the big news is more china stimulus. the government touching the stamp duty on stock trades for the first time since 2008 and promising to slow the pace. the hang seng index up nearly 1.5%. we will be breaking more of that down in the next program. that is markets. stay with us. this is bloomberg. ♪

(aidyl) hi, i'm aidyl, and i lost 90 pounds on golo. i struggled with weight loss and weight gain my entire life. with all the yo-yo dieting i did in the past, i would lose 20, 30, 50 pounds just to gain them over and over again. thanks to golo, i've been able to steadily go down the sizes in my closet and keep the weight off. for the first time in forever, i feel in control. (announcer) change your life at golo.com. that's golo.com.

wake up, achievers. you're making the most of every hour of your life. except the hours that you're sleeping.

so why do we leave so much untapped potential on the table? this is a next level bed, for a next level you. my circadian rhythm is kicking your circadian rhythms butt! it's not a competition. i know, but i'm still winning! so, it is a competition. save 50% on the sleep number® limited edition smart bed. plus, 60-month financing on all smart beds. shop now only at sleep number®. anna: this is "bloomberg markets today." mark