>> good morning. i am kriti gupta in london. tuesday. tesla jumps 10%, driving gains on wall street chip designer arm's click close early as well over subscribed by as much as 15 times. apple's new iphone launches later today. country garden shares rebound on a report of the distressed 90's developer has won bondholder approval to stretch payments and six notes into 2026. u.s. clears the way for $6 billion in oil proceeds to be returned to "daybreak europe and iran and agrees to release five iranian prisoners with a slap. we are seeing u.s. futures taking a back step on read on the screen. this follows a turnaround that we saw in the u.s. session and the idea that you had tesla,

apple driving the gains in yesterday's session. it is only natural that futures take a breather, a pullback if you well. that is what you are seeing in nasdaq 100 futures. it is not that much of a selloff. you're not seeing that in europe either but there is a dynamic at play were europe is seeing her momentum than the u.s. right now. that is going to be a factor of technicals that you will see factor into the u.s. market especially after the 10% gain in tesla. overnight, the asian story gets interesting. specifically in the bond market and oil market there are game changers. the bond market commodity correlation remains important especially when you look at japan. that is going to be a big story. we are coming off a five year option and jgb's. the five year yield at 27 basis points, continuing to see weakness in the end but not -- in the yen but not the momentum

that we saw 24 hours ago. we saw the fx markets take the yen and yuan by storm pushing the dollar lower. a little bit of paring back of yesterday's fitting action. the 10 year yield is 4.28. not much action but anything can happen in the next few hours especially after the u.k. jobs data in 60 minutes or so. the brent crude is $91 a barrel, higher by 0.5%. we will get the opec monthly report later today. let's get to the asian story because we talked about japan and let's talk about china. charlotte yang is standing by. talk about how the asian markets are faring and walk us through it. charlotte: we are looking at a muted session for asian equities this morning with several trading the narrow range as traders here look forward to inflation data on wednesday and economic data from china on friday. starting with china, hong kong

equities opened and weaker putting today with the hang seng china entering third consecutive section -- session of losing. over the hours they erased the losses after reuters reported that country garden, one largest developers, has won approval from bondholders to extend repayment for six notes for another three years. to the context, the distressed developer has been asking to stretch principal payments for notes by three years. we have our colleagues at bloomberg that had a scoop saying two of the yen notes had a deadline extended to tonight. will still be watching the voting results coming out of that. elsewhere in the region, japan and taiwan stocks provided some support to the regional msci asia index which gained as much

as 0.3%. japan stocks are the positive territory today. the nikkei was gaining 0.9% was support from the auto stocks. the korea kospi remains negative territory. there are some losses in the ev stocks. the arthritis tech range and narrow range. -- australia stock in narrow range. kriti: charlotte yang, thank you as always. a lot going on in asian story outside the property developer story will be tech focused. that is where we bring expertise. time for the morning roundtable and we are joined by valerie tytel and lizzy burden. let's start with the tech story because that is where the action was overnight and today. valerie i want to start with you. talk about apple and get to the macro in a moment. a lot of the big tech names continue to see major gains over slumping sales potentially in apple.

not much progress in tesla. what is going on here? valerie: tesla caught many's eyes yesterday with a 10% jump adding $80 billion in market cap and other terms, that is nearly 1.5 times the value of volkswagen that they added to their markets cap in just one session. it is all about the morgan stanley upgrade on this dojo supercomputer saying it could add $500 billion in market value because the potential market value of this self-driving software, morgan stanley is saying could be $10 trillion. what a number there. tesla turning a momentum when it comes to tech stocks survey and we are seeing nasdaq back above the 100 day moving average. it was only last week that apple was souring mood when it came to the nasdaq. we have may be turned the corner and turn the page very quickly.

we are not focused on the gains ahead. there is the chart for the nasdaq 100 back above the 50 day moving average thanks to tesla's intraday move yesterday. kriti: at a time when you're looking at the fundamentals, yes, there is a supercomputer in potential new apple iphone being released later today. you are still looking at fundamentals that are ultimately slowing down. for the bulls on wall street, you're wondering is tech going to be leading rally which brings us to the macro story. how much of a damp or will the fed put on it when economists are saying maybe the fed is done? valerie: we are hearing many out there thinking that the last fed hike was last one and they will extend the pause when they meet next week. but the risk is especially to the tech stocks that they try to message the dot plot that they really are serious about keeping rates higher for longer. the way they would do that is by upping the 2024 dots.

if you look at the dot plot now, it does imply that there are cuts on the horizon next year. if they really do want to blood narrative -- budget the narrative out of our minds they would move the dots higher and higher than a bid to commence the market that cuts are not on the horizon. kriti: asset inflation part of the story. the wage growth continues to be a massive burden for the fed. we are talking about strikes from the uaw and they have a deadline thursday in the u.s.. how much of that gets in the way of jerome powell and his colleague? it is a global issue and you are seeing that. lizzy, the wage growth story getting in the way of andrew bailey's plans and what is notable in the u.k. is fiscal authorities and monetary authorities are kind of on the same page when tackling inflation. lizzy: we get the job numbers at the top of the hour at 7:00 and over recent months, you have seen labor market cooling and

vacancies falling, unemployment rising. it is the wage growth number that the bank of england is focused on expected to stay on hold at 7.8 cents. interestingly, we heard from -- at 7.8%. we heard from swati and parliament and she said that it a lagging indicator suggesting she is looking at more forward-looking indicators like the pmi's and suggesting that we are nearing the end of the tightening cycle. we also heard from cap your man, one of the -- catherine man one of the hawks signaling that more hikes are needed to control inflation expectations. at the september meeting, it will be contentious. kriti: we talked about the fed and the idea that april cause may be in the books for the federal reserve. that that a pause may be in the books. is the boe going to pause? lizzy: that is not what we reckon and there's a risk that you upset the markets if you have hawkish talk from cap your man in the bank of england goes

with the pause. what you could see his yields going up in the pound going lower in the market saying this is disastrous when you have an economy that needs to be cool. kriti: when did interest rate differentials work against the currency? lizzy burden and valerie tytel walking us through the story that will be something we are watching closely. the day ahead, the u.k. labor market data will be top of the agenda. the labor market is cooling that is a good sign and your seen that in the u.k., u.s., eurozone. the wage growth remains a story and does that change the boe narrative when it comes to how hawkish it will be? we will see that in 60 minutes. you have german data coming out as well him of his ew -- his ew. zew. if you are forecasting a recession from europe will germany be the way?

that is the station -- expectation right now. we're talking about a shallow recession in the u.s.. does germany have the same consequence or a split in terms of the two major economies that are driving the recession talk. we don't talk about results that much. this is important and has important ramifications for around the world. cpi coming at 1:00 p.m. u.k. time. if 50 basis point hike is expected in the september 20 meeting in what i love about latin america is these were the countries that hiked first. the commodity exposure made them move and change their economy even faster than the developed economies. is it the canary-in-a-coal-mine moment? we'll find out at one 5 p.m. u.k. for the resilient cpi. you will get a roundup of the stories you need to know to get your day going in today's edition of the debris terminal. subscribers can hop on the terminal and type in dayb

and get all of those headlines. an interesting dynamic between bill gross jeffrey gundlach. he says to be a bond king you need a kingdom. you have to log on to daybreak europe and the terminal page to find out what jeffrey gundlach' response was that. coming up we dive into the markets and look at the fed's rate path. some economists saying the u.s. central bank is done raising rates and will cut them next year. is that a new argument for more of the same? stick with us. this is bloomberg. ♪

kriti: welcome back. this is "bloomberg daybreak: europe" i'm kriti gupta. top of mind is the meeting on

thursday and that brings us to the fx markets. take a look at the euro pared the euro-dollar is at one point your seven right now. the question is if you start to see the ecb potentially pause on september, what does that do to the euro? is it a positive or saying that the ecb strategy has been successful or is it ultimately a negative? interest-rate differential may not taken for the pound and arguably the dollar as well. who better to bring in for analysis than ven ram who joins us from dubai. it is a pause from the ecb a positive the euro? ven: i don't think it can be positive for the euro for the reasons that you mentioned. it is going to open up interest-rate differential and cause them to diverge away from the euro in favor of the euro. that's can be good for the euro but it can still get upside if

the u.s. economy stopped hiking rates. it will put real interest rates on the dollar side of the equation. the euro is going to be bouncing around in fits and starts here. we will get information from the ecb and they may pause. even if we get a rate hike this week, it does definitely feel like they're going to stop after this. if we get a stop after this, the euro will pause but it is not going to be written off. kriti: this idea of pausing though, walk us through its. this is something i feel like the federal reserve has really made their own playbook and terms of navigating the recovery. is this something that is really accurately going to be this same effective strategy to use around the world at a time when the world are not all created equal? ven: well, absolutely. i do think that in terms of the u.s. markets, i do think that

the inflation dynamics are more complicated. core inflation is running above the headline inflation, which in itself is likely a different dynamic. that is going to keep the fed on the front burner, fed rate hikes. if you have been in the situation where the markets are thinking at the start of the year that the fed is going to have to cut rates the second half, and clearly, that has not panned out. markets are now thinking that the fed will start cutting rates sometime in spring 2024. the way the economy is going, the u.s. economy is resilient and the labor market given the strength of it is questionable whether the fed will be able to stop by the end of this year. kriti: if we do ultimately see that same playbook being applied to the ecb, is that something that is going to last? is the last potential hike from the ecb in the rearview mirror then? ven: that is hard to say for the

simple reason that the ecb's real policy rate adjusted for inflation outlook next year is just about 75 basis points. it is hard to argue that 75 basis points in the real policy rate is enough to put a restraint when inflation is running, the headline inflation is running well above 5%. we may get a pause from the ecb after this week is my thinking, but how long that cause lasts -- that pause last is open to question because as i said, the real policy rate is not sufficiently high to restrict inflation going forward. kriti: when we are talking about the real policy rate though, it feels like perhaps the u.s. has gotten that under control. it brings us again to the inflation data we will get tomorrow out of the u.s.. is the idea that headline inflation will be driven higher by commodities of all places, gasoline and oil prices turning

to take higher and higher, will the fed care if the core number continues to drop? ven: well, i think if the court continues to drop and if it continues to drop along the lines of they have projected in the june dot plots, definitely that will give the fed some encouragement that the medicine is working. how far it needs to will, are we going to get to the 2% that the fed wants, that is open to question. until that happens there's no point second-guessing the message. the markets have done that and what they have consistently seen in the cycle is that they have consistently got it wrong and therefore i do think that we should prepare for a hawkish fed for the fed to keep going and not cut rates soon. kriti: certainly something we will be adjusting. -- we will be digesting. the next times i will ask about the digital dollar in the dollarization story and digital yuan and euro that you will get

out of the major central banks. for now, bloomberg mliv strategist ven ram, we thank you for joining the conversation. as we speak about the digital dollar and digital assets, let's check on bitcoin. in last 24 hours, bitcoin dropped below 25,000. it has recovered and is back above the 25,000 level but what is important for the global audience to understand is just how susceptible this cryptocurrency is to what you are seeing from the sec and how much exposure, passive investment can people get to? a volatile asset through the etf's. that seems to be the biggest driver in both directions for the cryptocurrency, trading 25,621. meanwhile, coming up on the show, the u.s. allowing $6 billion to be released to iran. we will discuss the prisoner swap coming up next. this is bloomberg. ♪

kriti: welcome back. this is "bloomberg daybreak: europe" i'm pretty good to. kyle bass says apple is set to face distress and china. he told bloomberg how geopolitical tensions are a risk for the tech giants future performance. >> apple, from what i can see expects to sell 5 million iphones in china this year. with the band at the national level and even the state own provision level and china, the difference between the u.s. government banning something for government employees in the chinese government banning something for government employees, the people of china will focus more on the state than the market-based economy or so-called market-based economy. whether it is the renewal cycle

of four or 5 million iphones this year whether it is the actual 45 million they expect to sell, i think apple is in fourth let's just say a much, much longer period of distress in china. i think you have seen apple try to move to india on the production side, and they have been successful in moving a very large portion of their production in a short period of time. >> that point you saw president biden in vietnam and jgb is being formed there with u.s. companies. if you look at a stock, is it as simple as a get x amount percentage of revenue from china and therefore i have to short you are not invest in you? kyle: no, i think it is really simple. where does apple trade in a forward sales basis and what percentage of their assemblies are done today by foxconn in china? that number is coming down, but it is still a big number.

it is still north of 60%. i think that apple is one of the companies, the most widely held stock in america, and it is one that unfortunately could fall in the crosshairs of xi jinping's ambitions with taiwan. i think it is worth talking about. warren buffett did not sell his taiwan some position because he thought -- semi position because he thought it got too expensive or was not a great investment. the geopolitical atmosphere is something that came into play in their decisions taiwan semi. the last 20 years of the world has been driven by economics and economic interests. we are at a hinge in history now for the next 20 years will be driven more by geopolitics and economics -- van economics. if you own apple, should consider what a belligerent xi jinping could do to your portfolio. kriti: hayman capital management cio kyle bass speaking there

with alix steel. he is talking of the distress story and apple and that is what is driving the narrative right now. we put a lot of emphasis on tesla's the last 24 hours. a massive 10% move up the big upgrade from morgan stanley. they are talking of the supercomputer. apple is a hidden talent in the idea that it is a multitrillion dollar company that seems to have this relationship with the s&p 500. every time it hits the trillion dollar mark, one showing dollars or $2 trillion, you are seeing a selloff in the broader market. that is due two weightings as well and that is significant when you look at where the macro takeaway is. the end of the day, you see a pullback in apple shares rally because of the fundamentals. we will talk about iphone sales later today. we are also going to be talking about just how much that means about the consumer. apple is a luxury company.

the biggest market is the united states. if you are not see momentum from the united dates, then -- united states, where is momentum in the broader economy? that is the macro standpoint. is that going to mean a broader pullback when you look at the stock market? futures are down 0.1%. you can see the two-day apple charts, higher by 0.7%. let's take a tour around the world because it is a commodities story. apple is moving quite a bit because they are saying there chips are not done yet. qualcomm is something they will have to reenlist in terms of really making sure their supply chain a steady and not making there chips in house. it becomes a global issue in terms of access to chips and other commodities, specifically in countries like japan for example where we are seeing the yen seeing weakness in the boj and focus. import pricing will be

significant and that is where brent crude is important. a $90 and neck moderately -- and that commodity, higher by 0.3%. it is sickened with the effect that is -- it is significant the on countries like japan and u.s.. we are seeing monetary policies saying they had to slow down because of the asset price inflation. consumer inflation as well. that the narrative we will explore all week, the inflation story out of the u.s., ecb on thursday. coming up, we will go back to asia and take a look at markets. country garden rallying after the developer got approval to extend six yuan bond payments. extend six yuan bond payments. we will dive into why th every s 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.

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>> good morning this is daybreak europe, let us get to the stories that set your agenda. tech tuesday, tesla jumps 10% overnight driving gains in the wall street u.s. session. meanwhile chip designers arm ipo could close early as he gets oversubscribed by as much as 15 times. looking ahead to today apple's new iphone launches. and across the continent country garden shares rebound on a report, the distressed chinese developer has won approval to stretch payments on six notes into 2026. more on that in a moment. and of course it is the market moving event of the morning.

an update on the u.k. labor market do in the next 30 minutes. it could really change just how hawkish the boe it remains. let's get more analysis on the asian market story reunion paul dobson on how those asian markets are faring. i think one of the top stories coming out of asia this morning, the country garden story. a pleasure to have you, let's start there. the country garden story, why should someone outside of china care about a penny stock? paul: great question. good morning nice to be on the show. i think the rest of the world has taken quite profound interest in country garden just like it did in evergrande a couple of years ago and the reason is the importance of this company is not restricted to its stock but really restricted to what it does in the chinese economy and how much of an important part of that it is and how much of an tell whether it is. -- this is one of the biggest

chinese property developers out there, it was number one a couple years ago and has fallen down the list but it has properties all over the country. a lot of are half complete at the moment and needing funding to keep coming through to finish them off so they can be able to move for the people that bought them and interested in buying them as well. it is crucial because the property sector is a big part of the chinese economy for that engine to carry rolling each time so with the country face and all these difficulties in repaying its debts at the moment and the crunch that entails, and what it does for our corporate confidence and confidence in chinese companies overall, what it tells us about corporate governance as well. it is an important and significant story. six out of eight of those bonds it wanted to extend repayments on, it has managed to win approval for. two more remain outstanding. we will have votes on them later today. if it can get across that line

then it will be some temporary relief and take a little heat off the company's back and give it a little more breathing room. >> that is the main story out of china i would argue overnight. let's talk about japan for a moment. you and i used to work together on the market live desk so i know you can answer the question about the trades in the market. when you are talking about the trade around the yen and jgb's right now, about a year ago or six months ago the popular trade or at least the fashionable trendy one was you basically short jgb's because that's how little faith you had in the boj. is that fashionable trendy trade still en vogue? paul: i think that is still very much on the table for a lot of the bond players out there at least. bet on ever-increasing interest rates. today we had a little respect their with the five-year data auction that went better than the market feared. but at those higher yields we continue to see those escalating

yields, the market is not really interestingly pricing in the possibility that the boj takes its first step from negative rates as soon as january. i think the other thing the stock market has latched onto now is the potential for japanese banks to profit from this change in the interest rate firemen. some of the most successful investors we've seen on the street in terms of their japanese equity market performance are talking up the banks as the place you want to be touting the possibility that they could double in value or even go further than that from here. profiting from the ability to borrow cheaper and lend out higher interest rates over a longer term so maybe that is evolving into the number one player on the japanese market space now. >> it feels really interesting as an american sitting in london how easily japan weaves its way in and out of the market trade from the idea that everything was going to break if you started to see the yield curve control if you see the slightest

cracks to saying now there is a lot of cracks in the market seems to be doing fine yet still very much a big part of the trade. we thank you for walking us through with the asian markets are doing this morning. from age that we go to the middle east. morocco's government has pledged to help survivors of friday's earthquake that killed more than 27 hundred people including financial assistance for reconstructing homes and schools. despite the construction the government says it expects the imf and world bank annual meetings in marrakech next month to go ahead. and we returned to the asian story. north korean leader kim jong-un has crossed into russia for talks with vladimir putin. a north korean news agency said his train left on sunday afternoon. the u.s. has and kim are set to discuss arms as russia seeks support for its war in ukraine. and over to the united states it has cleared the way for the release of $6 billion to iran before a prisoner swap. for more we're joined by bloomberg's bill faries walking us through what is something i

think a lot of people have been monitoring for almost 20 years. talk us through the quid pro quo here in terms of allowing this money transfer relative to the release of those american hostages. >> the u.s. certainly does not want to call it a quid pro quo but that is exactly what it looks like. we know there have been talks going on since march according to the iranian officials about how to get these american hostages out and from iran's point of view how to get $6 billion in money that is locked up in banks and south korea for years. back into the iranian economy. both sides have some big interests here and have to deal with some domestic politics but for the u.s. it wants to have these americans back. it wants to see effectively iranian oil continue to flow despite sanctions. we know now somewhere between 1.5 million and 2 million barrels -- barrels of iranian

oil are flowing each day largely to china. that helps keep energy prices down amid the ukraine war and iran's economy desperately needs any of the revenue it can get because it sells that oil at a discount. it's economy has been damaged for years because of the u.s. led sanctions so both sides here trying to find a middle ground without calling any of it quid pro quo. >> i think what's interesting is you are still seeing these negotiations come from iran under the biden administration. one of the biggest criticisms in terms of foreign policy for the previous democratic administration under obama was that he went to easy on iran, that is just one narrative that surrounded that administration. are we going to continue to see this detente between the u.s. and iran, especially at a time when emotions are running high in the rest of the middle east? >> i think even the u.s. will hesitate to call it a detente. there is still a lot of big

issues they disagree with iran on. near the top of that list is iran is accused of sending military drones, providing military drones to russia. it is still accused of a sponsor of terror across the middle east including israel. and it is still seen as basically a bad actor by the biden administration across the middle east. it is a very sensitive political issue for the biden administration just a year before election. they're going to get an have been getting a lot of criticism from republicans. i think they are trying to see a silver lining here when it comes to energy prices, when it comes to getting americans who have long been held hostage. at least one of these people who is believed to be free to has been in prison since 2015. so i think they have seen the advantages, the short-term advantages to that and they are hoping they can't sustain some of the political criticism that is likely to come with it. >> there was a time you mention those oil prices as well going into that presidential election there is a lot at stake here.

it bill faries joining us from singapore to walk us through that crucial story between u.s. and iran. let's get that quick check on the oil markets because one of the criticisms of this was simply that if you do start to see this kind of detente progress does that mean more iranian barrels on the market, that is going to be something that the oil community will be watching closely. right now you are seeing brent crude trade at $90 a barrel, -- not far behind $87 a barrel. a three dollar spread between rent and imax is significant. you have seen that narrow down on a day were going to get that monthly opec report so keep an eye on that coming in about 9 a.m. u.k. time so keep an eye. to see what events were following today, 7:00 a.m. will have the u.k. labor market data. in about 20 minutes bloomberg economics forecasting the unemployment rate will take up to about 4.4% in the three months leading up to july. that up from 4.2 percent previously. at 10 a.m. u.k. time as

germany's z e w survey, there will be particular interest in this release given those concerns but the weakness of germany's economy. will it take the rest of europe with it if you start to see worsening in those economic conditions. that followed by brazilian cpi at 1 p.m. u.k. time inflation set to rise. does it start to test the upper limits of their -- and what president does that set for the rest of latin america. and d.o.e. policymaker catherine man do to speak at an event in ontario canada on post-pandemic economics. something we watch closely. coming up apple launches a new iphone today will bring you all the details and the deal with the qualcomm chip, that coming up next. this is bloomberg. ♪

>> i think apple is in for a much longer period of distress in china and i think you've seen apple tried to move india on the production side and they have been successful in moving a very large portion of their production in a short period of time. i think that is going to be something we have to do. >> hayman capital founder cao they're speaking on apple's prospects in china to bloomberg earlier with alix steel. apple's latest iphone will be unveiled today at 10 a.m. california time. the macbook -- macbook and iphone maker just renewed their contract to get modem chips from qualcomm. a lot of apple news to digest. who better to walk us through from bloomberg tech reporter joining us from berlin. let's start with the chips story because apple made a massive deal saying we are going to develop our in-house chip. we don't need qualcomm anymore.

it sent qualcomm shares plunging and here we are again. friends again. how do we get here? >> essentially the reason for this is apple is not really stuck to the timeline it was hoping for to make sure all of its chips are being developed in-house. apple has been trying for a long time to make sure they can essentially develop these chips, this critical part of the supply of apple's technology. they brought people over from qualcomm to invest in this for apple including an x qualcomm executive now heading up this effort but apple, it seems i you're not doing it in the timeline they wanted. this iphone that was supposed to be launched today was supposed to be the last one with the qualcomm chip in it but now they've extended it in the agreement says for 20242025 and

that does not mean that the apple timeline is for their own ships is all the way up until 2026. this means that apple is giving itself a buffer so that it still has the supply of the chips it needs from qualcomm while still very much focused on developing them in-house. this is a big deal for qualcomm too because it is a significant thing when your biggest buyer apple decides they're going to be building your product in-house. it is important that this steel has been extended as apple is somewhat delayed in their efforts. >> you would expect qualcomm to try to diversify and it's me time and learn its lesson from last time. apple pulled something like this. let's talk about other product launch is because apple also dealing with that. what is significant to me is every time apple launches a new iphone the actual changes in the design seem to be fewer and fewer. the 15 launching today. why is this year worth paying attention to? >> the thing that is worth thing

attention to this year is that this is being launched at a time where there is a broader slump in the iphone purchasing market. the smartphone market in general. and iphones of course are at the upper end of the price range of the smartphones on the market and this is especially significant when you are seeing other products being launched from other companies and apple is still needing to compete in a way that will basically justify it significant high price point compared to other models from other suppliers. apple has been for a long time developing new iphones and putting them out and those need to justify why this one is a significant build on the last one. and they are also developing these higher end models this year which is interesting because not only are they looking to expand their appeal to a broader audience by also making sure that places like india where they are putting

their supply chain, they are looking at india as a consumer of apple iphones in the future. they are also looking at these very high models and they are now seeing there is value in apple also is a luxury product as well as part of the smartphone market. >> i love that you mentioned india, a luxury market because we know samsung is still if you look at it globally the major driver of smartphones for the majority of the world even though apple is a significantly larger company. bloomberg walking us through what you need to know on the bloomberg story -- apple story but it's not the only tech story were watching. oracle shares slumped in extended trading in the u.s. yesterday after a slowdown in quarterly sales growth. units revenue jump by 30% to $4.6 billion down from the previous quarter's 54% surge. oracle focused on expanding its cloud infrastructure business to better compete with the likes of amazon, microsoft and alphabet. and u.s. cable company charter communications set to offer

disney's flagship streaming service at no additional cost to its subscribers. the country's second largest cable provider will include disney plus in its $60 month spectrum tv select offering. it sources say charter will pay disney a wholesale price for the service. if you are an american like me you know how big of a deal cable is so this is something you really want to watch. i want to get a little more tech news this time in the ipo space. we will call it may be tech. instacart in its backers have set the stage for an ipo that could value the business around $9.3 billion. bloomberg's abigail doolittle reports from new york. >> the ipo window is open and one well-known name, instacart, is considering pricing its listing on tuesday, september 19 through nasdaq but at a significant discount to back in the pandemic heyday. instacart in its backers have slashed to about $9.3 billion, a quarter of what it was worth in the pandemic.

this will allow the largest grocery delivery company to raise about 6:16 million dollars by offering 14.1 million new shares for 26 to $28 each. existing shareholders are selling 7.9 million shares at the same price, wherever it is determined to land. the $9.3 billion valuation is not finalized and it can still move higher based on investor demand but it is a tremendous and noticeable drop from the pandemic high valuation 2021 of about $39 billion. at that time there were versions of lockdowns and difficulties for people to shop in stores, that same year the company did replace it ceo. in conjunction with the ipo pepsico is buying 170 $5 million of its preferred convertible stock another source of funding. from a broader perspective instacart's perspective could help unstick backlog of companies whose plans to go public have been stymied for the longest wall in u.s. listings

since the financial crisis all the way back in 2009. in new york abigail doolittle. >> of course that instacart ipo is certainly something that has been watched closely, as is the arm ipo. bloomberg has learned it is already subscribed -- oversubscribed by more than 10 times. they plan to stop taking orders later today a day earlier than planned. the offer for the british chip designer could end up over 15 times oversubscribed shares due to start trading in the united states on thursday. coming up we preview u.k. jobs data hitting the terminal at 7 a.m. london time. what does it mean it for the boe's battle to tame inflation. we will walk you through it, stick with us. this is bloomberg. ♪

>> if we don't change course we're going to see taxes going up and how do you change course? you have to increase growth and you will be hearing a lot for me in the months ahead about how we increase our growth levels. >> u.k. chancellor jeremy hunt speaking there to bloomberg television. it let's look ahead to u.k. jobs data hitting the turn on -- terminal in a few minutes. joining us now is lizzie, before we touch on the job story let's talk about with the u.k. chancellor actually said. as i read i am really learning just how much on the same page the fiscal and monetary authorities really are. that is not something you were sitting around the world. what you make of that, how successful is that going to be? >> if you were not here this time last year when they were very much not on the same page, you had the prime minister criticizing the bank of england and she paid the price.

that is why they are very keen to be on the same page. you heard that on the eve of this job stayed at we get in seven minutes, a really great timing for that interview and he's talking about growing the economy so that at some stage she can cut taxes. that is what the conservative voters want we have a general election on the horizon. he wants to grow the economy so that they can try and reduce inflation. but it comes back to the jobs data because the state pension is meant to go up with one of the highest of the three. wage growth, the reading we get this morning, inflation or 2.5%. if wage growth comes in as it is expected to this morning, on hold at 7.8%, -- sorry no 8.2%, this is the weekly earnings including bonus figures for july, that is going to be a substantial cost for the treasury. we have already reported that

actually the chancellor is looking at cutting benefits in order to have a bit more headroom to cut taxes. but if he whacks the poor and protects the pensioners a he is going to look really callous. >> does that change anything for the boe though, we're looking at the pricing here and thinking maybe they will not be as hawkish. do you think they will change their tune? >> are economists reckon there is another quarter-point hike in the pipeline on the 21st of september. we heard from catherine man one of the big hawks on the committee yesterday, she says in order to control inflation expectations she reckons more hikes are needed. we also heard last week from -- testifying to the treasury select, she was talking about this jobs data and actually whereas the bank of england has been going on and on about how they are looking at wage growth to see the inflation story, the domestically driven inflation story, she says it is a lagging indicator which suggests we are getting to that point near the peak of table mountain as the chief economist put it.

>> so control inflation, grow the economy, try to track foreign investment but don't move taxes at all. it sounds like a recipe for success, bloomberg's lizzie verdin walking us through this. thank you, coming up on the program french to bankers set to hold its first capital market stand 10 years after restructuring. will talk to the group chairman and ceo at 7:40 am u.k. time than it 9:30 weird joined by ralph schloss dean joining the program a conversation you don't want to miss. on the pulse with francine lacqua, meanwhile a quick check. s&p futures down a little more green on the screen for ftse 100 in euro stock futures but again nothing to write home about yet. is this low volume, is this low t i would argue it is just a turnaround from yesterday's trading session. nothing to write home about. is that going to change after four minutes time when we get that u.k. jobs data, i am willing to say yes. stick with us we have full

market coverage ahead, up next mark -- markets today with tom mackenzie, this is bloomberg. ♪ wherever you are! recharge quickly with any usb port. best of all, it even cleans itself! just blend water with a drop of soap. what are you waiting for? order yours now from blendjet.com before they sell out again! the power goes out and we still have wifi bleto do our homework.ey and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network.