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>> good morning. this is "bloomberg daybreak" i'm lizy burden. chinese stocks gain as beijing ramps up support expand stimulus for the property sector. and there's an unexpected rise in manufacturing activity. today's jobs report for clues on the next steps shows that the labor market schools in august. nancy pelosi tells bloomberg the u.s. an china need to learn to work together. >> we don't have shared values but we have shared planet and we have to work with the chinese to -- to save the planet. liz: happy friday. you made it and it's jobs day

all eyes on the u.s. labor market data. 1:30 london time today for clues on the next moves. worried that they might go longer, and we have the first monthly slide. and treasuries are steady. we keep an eye on the two-year yield. therefore the equity impacts. the estimates are for a softer print in august. the future is currently flat. shares in aja broadly higher on the news of the china stimulus. hong kong braces for what might be the strongest storm in years. let's go to avil on. >> we're seeing these asian equities having a good start to the month of set they're poised for their second weekly gains on the meci asia

pacific index. a lot of the tail wind is coming from asia from the property stimulus measures. they've cut the mortgage rates as well as the down payments and we have the pboc so a bit of a boost for the chinese currency. but that's not all. we also have the tyson manufacturing numbers surprising with expansion a day after the official print also came in better than expected so chinese stocks are rising today. and we're also seeing how, you know, there is that tail wind coming from the real estate related stocks. but hong kong markets are shot as you said and this is because the city is preparing for the approach of supertyphoon saola. it could be the worst to hit the city in five years. so hong kong markets are shut. colleagues also point out that this hong kong market being shut

might provide a bit of a benefit to the on-shore chinese equity system as we look at the chinese related stocks. but it is a good start for september for asian equities. lizy? liz: batton down the hatches thanks to avery on in sing poor. today, i'm joined by sofia orta acosta. i want to get into that p.m.i. data. better than expected. 51 for manufacturing. first, we have that official day to surprise the upside. now, it is private data cowed we say that the stimulus is working? >> it seems to be, lizy. this is the one that is focused on the coastal cities and reflects how private companies are doing. it is correlated to expert growth. so this is a more positive story

for china's economy. manufacturing isn't the part of the economy that china wants to ramp up. it's the consumer part, the services part. so we still have kind of weakening picture there. but it does suggest that that's businesses are ramping up. there is greater demands. this one for me was surprising because it is -- it should reflect it from overseas. it's meant to be a slow down that's in europe there's a key trade partner for chinese private companies. a very good surprise. and the fact that it was above 50 when economists expected it to be below 50. >> meanwhile, china's cut the amount of currency deposits that banks are required to hold as reserve. it seems like stocks light. the c.s.i. like it. the hen tseng is closed for the

typhoon as avery mentioned. is this finally the silver bullet? >> this is just the late nest a string of measures to prop up the yuan. what happens is essentially banks can off-load or there's more foreign forex available which should increase the yuan. there isn't exuberance. yes, that's a gain for on-shore markets. it could be a lot bigger given the news that we had today but also yesterday what ava was mentioning about the property market cutting that down payment to 20%. in some cities it's 50%. that's a huge shift. and that unleashes the household consumer spending that has been very muted so far. markets are happy. be they're not sharing this on very much. would say, maybe where the hang

seng open, we could see bigger moves there. but still a lot of work. not to silver bullet quite yet, lizy. liz: sticking with china and switching to geo politics. the chinese president is planning to skip next week's summit in new delhi. could this damage china-india ties? >> yes, i i think it certainly can. people familiar say this he will not attend. it's unclear who might attend in his place. one person said it would be chong. but another one said that it's yet to be determined. it's unclear what the reason would be that would prevent

president xi from going to the summit this month. it is worth noting that india has been getting closer to the united states. the prime minister had a stayed visit to washington just a few months ago. he gave a joint -- a speech to the joint session of congress. secretary of state said there was bound less potential for u.s.-india corporation. perhaps that's something that didn't sound very appealing in beijing. >> meanwhile, just days after val vladimir putin looking to seize control. we're going to be diving deeper in central africa but surely this just adds to the tinderbox. >> well, people familiar say

that a contractor affiliated with the defense ministry. we'll be take change of waggner's operation which is one of the main places in africa where the group has been very active. people familiar also say that russia will. the russian military will take charge of other operation throughout africa. waggner has a place in libya, in sudan including the central republic. having waggner be in charge of the presence there did potentially give russia plausible denybility that it wasn't directly involved with those operations. the plausibility there was stretched though since it was pretty clear all along. so this takes all the pretense away and makes it more clearer

that this is directly under vladimir putin. >> diplomatically put, bruce. and i have to say you have the sharpest book shelf i've seen all week. thanks for joining us. let's go back to the echo data. sofia what are investors looking out for in these numbers? >> they're looking for a soft neighborhood market but resilient. that's the message we've got out of the u.s. data all week so the consensus is 170. they actually estimate 149 so a little bit below consensus. let's look at the hourly wages. the wages have really kind of -- could muddy the picture a little bit basify if we do get

softening in payrolls. that will -- can confuse markets all over again. i seem to think that that's the narrative right now, right? markets look for softening that the u.s. economy is softening but not quite enough. again, are we getting wayneing wage pressures. august is a bit of a stricty one. we had the hollywood worker strikes. but lizy, this will set the tone for september. so it could be an interesting one. >> as you say, you need to look ahead. is it a busy one. 7:00 a.m. london time. we get the latest nation numbers. con sense siv is for a deep drop. mine is 3.8% minus 4.9%. higher mortgage rates. continue to weigh on the market.

we've got the manufacturing p.m.i. for august, the final reading and then finally at 1:30 p.m. it's the u.s. payroll's data as we were discussing. liking to show it cooled in august. it's not just yours it is p.m.i. i'm sure you'll be tracking that today. >> but interesting to see how the september 9 and after the words from the chief economists yesterday. >> yes, i love that. he is in cape town and had to compare interest rates. essentially how markets read, it was -- the pace of interest rate increase es weren't going to be as fast. >> interest rate care for the b.o.e. and then it will flatten. but marks don't quite believe in that part. they're expecting a less --

interest rate increase from the v.o.e. let's think about the that. so essentially what the market is looking for is perhaps a pause in accept. i think that's a dangerous thing because we know that wage growth pressure is very, very difficult for the b.o.e. and inflation in the developed world. pricing in pools can andrew bailey and his team can afford in accept. will they are be able to hike after that. that's a big question for markets this month. but again, any optimism that the mark can get it will take it. >> well, i wonder whether he's going to take the car and get you to the finish. thank you, sofia orta acosta. >> today, we are lead on the yuan moves after the p.b.o.c.

>> the austrian central bank chief saying that he's leading toward a hike. so terminal subscribers can go to dayb no. >> expanding stimulus for the property sector. we'll get the latest market reaction for you next. plus, later on, we'll get more from the fallout from the coup and look ahead to the swearing in of a new transitional president. stay with us for a deep dive into that, later this hour. this is bloomberg

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♪ liz: welcome back to bloomberg daybreak europe. if you're just joining us it's

gone 6:16. we've got stocks in asia as china has rolled out more stimulus to help its company. the pboc cut the requirement first banks in another bid to support the yuan. we heard the manufacturing p.m.i. data. that came in better than expected. so to break down what it means for markets we've got the strategist ben ram. you've seen china cut down the forex reserve to support the yuan. but it seems there's support for all. >> money, lizy, absolutely there's an appetite for more what we need is more of its real economy. they've -- they're trying to flood the system with dollars so kit become more appealing to buy the yuan. earlier this week they got the stamp duty on stocks.

and forbid major shareholders from selling stocks. what they are trying to do is manufacture sentiment what they'd really need to manage is the real economy not sentiments. the currency reflects underlying the strength of the underlying economy. they can get away from that. no one can get away from that. >> china, one of is it rising unemployment against the root. the property market is in a deep place. we've got an economy on the cusp of the inflation. those are the issues you need to address. they're -- sentiment will lift when the real economy does better. we heard from them this morning that they're going to give some property -- tax breaks for education. that's going to boost productivity. but any improvement is going to

come gray wally addressing sentiments is i'm going to quite work. >> the c.s.i.300. but 5/10 of a -- i loved you latest macro view. you talk about the poe ten for because central banks are still playing catchup. i was talking about the future race with sofia. do you think that's realistic for the b.o.e.? >> i think that is -- realistic and definitely what the doctor ordered for the b.o.e. you know rates have risen steeply in the uk. we have gone from near zero rates. 500-plus, basis points. >> you know, mortgage holders

already treating. now, what do you take away from pillows. this given how ripe inflation is in the uk economy, i don't think they can afford to pause here because that will send their own kind of message. i do think that they need to take it gradually, because otherwise shocks will mown especially at the time when the rate trajectory has already been pretty seep in the cycle. >> underneath the headline. figure looking ugly as well. but if you look at the european picture we heard that the stag frustration in nair picture. is the market too long? >> it is a bit overenthusiastic the number. it is unconsiderable.

i do think that one year from now it will be one and a half years from now, will be in a much better place than it is now. having said that -- who is kind of the more hawkish-leaning members of the committee. you've got to pay heed. and think that's -- we heard that it would go slower. on the one hand. inflation is pretty readily sup born. from the euros and numbers. from the gentleman. at the same time the economy is moving it rapidly. as far as if euro is concerned that's a shot that took a long-term if you buy into the story that the u.s. economy is -- the fed is going to cut traits in the first half of 2024. i think think the not so great

but long-term very good prospects. >> yeah, we wait for that euro zone p.m.i. at 9:00. thanks for bloomberg and ben ram. coming up former u.s. house speaker, nancy pelosi shares her views on donald trump and relations with china.

♪ >> i'm more afraid of him now because as you see his desperation -- in other words, it's one thing to say we have a disagreement on policy, ok, and we do. but there's another thing to say that -- that truth is not prevailing. but it's another thing to say

there's a recognition of all the violations of the rule of law that any person is above the law undermining the press which is the freedom of the press is the guardian of the get a of freedom. so he was clever. undermine the press. undermine the rule of law. i'm above the law. seeing the length to which he will go, of course, is more frightening. he's a threat to our democracy but we intend to win. >> he's so popular. >> he's popular among his group are >> you surpriseed? >> i'm never surprised. it's not a word i use. i just don't use -- it's interesting to see how there's a certain lem of the population who will just go for him. they're people we would never get. they don't share our values in terms of the worth and digfullyity of every person. but there are some who are

supporting him are just afraid. they don't see a place for their families in the future. they're concerned about globe zation, immigration, innovation. they're concerned about diversity, women, minorities, other people coming into the leadership arena. and they -- and that's to be respected. so i respect all the people of america. and when people ask me, are you afraid of what might happen? no because of the goodness of the american people, the strength of our democracy. we will prevail. and my motto is the flag is still there as we say in our national anthem. >> is there a republican candidate that you can live with? >> i'm not into republicans. i'm into the democrats. and hopefully the republican party can find a candidate that they can live with. take back your part party. the republican party is a great

party. you've cut the done great things to our country. you're not a cult to a thug. you're a great grand old party. and we capture that because america needs a strong republican party. a strong democratic party too. but strong republican party. so hopefully as soons we get through this -- shall we say, cancerous situation that we're in, the malignancy of trump, they will emerge in a strong way with the leadership that i know is there in the republican pear. not necessarily in the congress. but in the country. >> so that was the unsurprisable former u.s. speaker, nancy fellowsy you can watch that full interview on "leaders with lacqua" on september the 28th here in europe if you're just joining us, is it 6:27 a.m. in the city of london. if we just check in on your

future's here ahead of the cash equity trading, the future futures are pretty flat. trade is waiting for the u.s. job data at 1:30 p.m. london time. we'll have full coverage for you right here on bloomberg tv. the s&p ending august with the first monthly slide. and asia markets in the green but hong kong closed because of the typhoon. next up, we speak with francois from ox ford economics africa. that's next. this is bloomberg 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.

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>> good morning. this is "bloomberg daybreak: europe." chinese stocks gain as beijing wraps up support for the economy. this is among reserve ratios and the expanding index. there's also news from an unexpected rise in manufacturing activity. they are now awaiting a u.s. job support. the latest forecast has shown that the labor market has cooled. plus, speaker nancy pelosi tells bloomberg that the u.s. and china need to learn to work together. >> we do not have shared values but we are on a shared planet. we have to work with the chinese face the planet.

lizzy: those are your headlines. all eyes on the u.s. market data that comes out 1:00 p.m. london time. send be ended august with this first monthly slide since february. treasuries are steady now but keep an eye on the two year yield after this afternoon. the estimates are currently for a softer print in august. features are flat the moment. more stimulus out of china. hong kong is racing -- bracing for what could be the strongest storm in more than five years. let's get more. what is happening where you are? >> we're seeing asian

stockmarkets rising. a lot of this is coming from developments out of china. we are watching the eco-data from manufacturing pmi. it comes a day after the official numbers also came in better than expected. we also had property stimulus coming out of china, cutting on the down payment as well as mortgage rates. this morning, we are seeing these chinese stocks rising. csi 300 is paring some gains from early on in the session. hong kong markets are shot so we do not have the numbers. this is in preparation of a super typhoon, what could be the worst typhoon to hit the city and at least five years. our colleagues at mliv have

pointed out -- you can see someone tried to clear the screen for us. our colleagues pointing out the onshore equities might benefit given that these hong kong markets are shot. there is positivity in the markets, a lot of it coming out of china. lizzy: let also ask you about china loosing its support for the yuan. how likely is it that this move will be effective? >> good question. if you take a look at the initial reaction to cut the reserve ratio for financial institutions, we initial -- we initially saw a gain but it has been paired quite a bit. just to cut through the noise for you, it boosts the amount of

foreign currency in the market. and makes it more appealing for traders. there are also fundamentals at stake. take a look at how we are seeing that divergence with the u.s. and the uncertainty about the economic trajectory in china. these key questions remain about whether this latest move will be anything but a near term boost for the chinese currency. lizzy: thank you, avril hong. want to dig a deeper into the china story. it is the subject of the big take today. bloomberg has learned that it is being seen as an opportunity from the west. they believe beijing's problems will strengthen their hand. for more, i'm joined by --

is the slowdown a long-term thing? >> yes, it looks like it now. there are structural problems. there is a geographic issue. demographic problems. a declining aging population. there is also the debt and real estate issue. it looks like the slowdown is a permit structural issue. for a long time, it seemed like a challenge to u.s. diplomacy. the issue is how to deal with china work with china. lizzy: something we have been

talking about all week. i wonder whether in your analysis -- the attitude towards the west is changing? >> we did see the west make an effort to talk to the king. they may benefit from a more moderate approach to china. that is become -- because this should not lead them into a situation where backs are against the wall hence tension can lead to political issues.

you don't want to create a situation where there are all these political situations in china. lizzy: tying together the economics and politics. thank you. lovely to see you this morning. i want to turn to corporate news. aiming to shore up the position, the move comes just hours after they unveiled the new model-t. it has a sleeker look and moderate range. despite coming under increased pressure from local ev rivals. now to politics. nancy pelosi says u.s. and china

leaders do not have shared values but they much -- must reach accommodation on how they react to each other. >> on security, what is happening in ukraine is a challenge to democracy, not just their but to the world. what a tribute to democracy that that ukrainian people are. putin does not share any values of democracy, justice, respect for the lives of people, concern for children, anything. he is frightening. what is doubly frightening is our former president who thinks is ok. he is sad. it is an opportunity.

francine: what you see the china and how they should treat china going forward? >> china is a big country. so are we. we have defined accommodation in how we treat each other. china has been a fine leader in transferring weapons of mass technology. they have violated almost every trade standard, obeying rules of governance. we do not have shared values we are assured planet and we have to work with the chinese to save

the planet. they are now i think the biggest emitter, if not us, the second. lizzy: i was former u.s. house speaker nancy pelosi. if you want to watch the full interview, catching september 28, here in europe. the russian president vladimir putin is moving to take control of -- days after the chief. the defense ministry is set to resume charge of the operations in the central african republic. this is after for goes a -- this is after he died.

a new transmission leader is set to be sworn in on the fourth of september. for more, we are joined by oxford economics africa lead political economics -- economi st francois conradie. do you think they will be able to honor the commitments and short and long-term, if sanctions are imposed, do you think there is significant risk for the bondholders? francois: good morning. in the long term, yes. in the short-term, there may act -- there may be an impact. for the long-term view, we noticed yesterday a statement issued ensuring -- specifically

naming the bond's creditors as people who should be insured that the bonds are going to honorable national and international commanders. that is a statement by the rulers that they tend to honor the obligations. we are waiting to see -- that is the economic community of central african states. they can inhibit access to the central bank. we need to see what happens there. i'm not really too confident in making that call. they issued a statement wednesday evening where they expressed concerns about the meeting.

yesterday the president visited his counterpart in the congo republic. both rejected the coup and called on military leaders to respect the boundaries of the congo family. then he had a remote meeting where they read condemned the coup. we have not heard anything more explicit from their intentions as far as sanctions. >> we are a few weeks out from -- and what happened there. we saw a coalition try to assert some power, to restore democracy. that has not worked. what is it they can actually do to give confidence to people that this is going to change?

francois: not much. the situation is somewhat different in that there were not the same questions about the legitimacy of the president. especially because he very obviously she did. -- heat very obviously cheated. it makes it difficult, if not impossible for anyone to insist that he is a legitimate leader. there have not been calls to reinstate him as president. that is different.

what is noticeable, at least to agree -- to a degree, preserving itself is that it also sees they are not going to recount the votes, something the opposition is calling for. they know if there is a recount, the joint opposition candidate would be the winner and new president. that is an example. lizzy: we have to leave it there. i really appreciate your time. oxford economics africa private and political economist lead. >> coming up, we speak to former italian president mario monti about italy under the current prime minister.

that is next. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe." the italian prime minister's government has made a series of interventionist moves. that is the backdrop to this week's conference. as for maloney, she will skip it , leaving her deputies to represent the government. now, we can go to that summit. bloomberg's francine lacqua is there on the ground with another interview to bring us. francine: beautiful background. it is always windy. three main focuses.

italy, europe, the u.s. -- where we have a number of u.s. dignitaries arriving later. i am happy to be joined by professor mario monti. thank you so much for joining us on bloomberg tv. there's something in the air with this government that they are trying to change the way italian capitalism is made. i don't know if this is bad news for investors or are we in a wait and see mode? mario: investors all over the world, there is a likelihood they are concerned. -- to put it immediately on the

line of the international markets, our allies in the u.s.. all that ranges from standing on your crane to discipline, mature discussion. which was previously viewed in a skepticism way. this is a phrase in the markets concerning italy. notice time to look at the financial budget for next year. it almost immediately comes up, the obvious. stick to budgetary figures, the other thing is to deliver them. since very little has been done in terms of eradicating the

thousands of big public expenditures, now it is difficult to reconcile. francine: are you worried it will send the wrong message to investors or is this a clever way of giving something back without upsetting the norm? mario: this is the attempts that is being done. for example, all previous governments how to operate -- to try and cut in many small places or have big consequences. this is not that at all. also, it was until fairly recently, including isla previous gala, that has come

back with these high interest rates. this also shows up. nothing to worry about very much from investors. some pressure would not be entirely bad from the markets for the government to continue along its prudent and physical science. francine: when you look at what the government is doing with backlogs. is this good, bad, was it mean for investors? mario: i think it is not the main policy item. whenever the rest of the markets are, in my view, overly concerned about the banks --

this is happened several times over the last three years. it is a serious problem. i think some intervention on bad loans is necessary. but as always, please do not be silly enough to mess things up. we will all then have better protections on the banks. francine: i know when you start talking about italian bad loans and banks, the wind picks up. [laughter] are you worried about stagflation? >> yes, indeed. when some picked up a couple years ago in europe, it was tribute to energy, ukraine. i of voice been convinced this was not the whole story.

i think in europe and the u.s., the policy of qe has been going on for much too long and mushy future amounts. it has two implications. one, it gave somewhat unrealistic sense of comfort. it reduced the incentive to go on with forms, budgetary restructuring. this means that the flexibility of the supply is less than it might have been. on the other hand, little by little, all of that will contribute. francine: thank you, as always, for your thoughtful insight.

that was former senator and professor mario monti. francine: "the pulse." -- lizzy: thank you. that shady let's check in on the markets. this is after the cuts that russia singled they would reject. this is also meant the u.s. is dipping into stockpiles and has that -- and baz help to the mood. if you look at the three-month spread, it has increased to more than two dollars a barrel. you have the widest differential since last november. if you take a look, currently.

this is just over 83 a barrel. speaking of moves. world wrestling entertainment shares backslid as much as 50% yesterday, closing down. sis on the professional fighter leaks partnership, proving to be quite the chokehold. as we look ahead to the u.s. open, sent bns tech features, pretty flat. we will break down all the moves for you, next, on markets -- on "markets today". ♪

anna: this is "bloomberg markets today."