million. it does bridge the near-term it's an amazing thing funding gap and i think the when you show generosity company generally will be of spirit to someone. and you want people to be saved cheering the news that it has and to have a better life, been able to secure a liquidity then you don't stop. we have been able to reach over measure. kriti: talk to is about sbb's 100 million people impacted and affected, and at risk of hiv. lifeline. the rocket fund takes are we out of the woods when it all of the work that we're doing, comes to the property sector? all over the world, charles: that's a good question. and looks at the most effective ways, i don't think so. to get resources to them, the scale of the debt at sbb is to get services to them. the idea that we have saved five million people's lives, it's overwhelming. enormous. it has about $7.5 billion of it's everything. bond debt and that still needs refinancing or rolling over in the coming years. the company has set itself it needs to do more, it needs to raise further capital and it is off -- it is also looking for equity partners and other divisions. all of these things are incredibly challenging. kriti: they certainly all. dani: -- kriti: good morning and our markets reporter was talking about this, the ramifications

welcome to bloomberg daybreak: for the broader continent and the broader world are enormous. at what point do you have the fear factor for the housing asia europe. market? charles, thank you as always. meanwhile, china evergrande let's switch gears and talk running out of time to get back about the aviation sector. on track. the new qantas ceo has been chinese property stocks taking the biggest hit. in the eu, the chief trade forced to fix stress points. negotiator warning beijing that for more, let's get to benedict. they will be more forceful in let's talk about what the new upholding interest. qantas ceo has in mind. benedict: good morning. a lot of geopolitics to digest. the new ceo came out on friday if you look at what asian in a message and said the markets are doing, sentiment is company had essentially let a low, a lot of red on the screen. some of that flowing into lot of employees and customers european indexes as well. down. they felt their service was no the ftse 100 falling. longer what people associate with qantas. teams like long waiting lists on a real defensive tilt to the rest of the session, look at what s&p futures are doing higher,. calls, the in-flight food was not what people expected. nasdaq not far behind. she is putting money into this what you need to know, sentiment

around the world is lower, which problem, dipping into the profit creates a bid for tech broadly , putting in another 80 million and defensive assets across the australian dollars, about 50 pond. let's look across the board and million to write to the problem, talk about the treasury market. the 10 year yield moving as fix things, and she's trying to turn around the battered well, 4.46 on that note. reputation that her predecessor left behind. in theory, it will strengthen kriti: there's a lot going on in the dollar a little bit. on the surface, euro dollar is the aviation space. i want to bring it back to weaker, 10 6.5 is what we will europe. we also heard from a french call it, -- 1.065 is what can't quantify this. this is something the faa has warned about, what about the we will call it. updates? benedict: this scandal has been if you were believing inflation was here for longer, oil is your roiling the industry for a friend, that seems to be the couple of weeks. there is a small company in the trade at play this morning. time for the top stories of the u.k. that probably nobody has day, i'm joined by our reporters around the world. heard of but they are part of let's start with avril. the parts suppliers, used parts let's talk about markets in that go into aircraft and engines. what has come out is a lot of europe and singapore. these parts didn't have the avril: we are seeing asia stocks proper certification needed.

this is one of the very headed for another down day, a important parts of the aviation industry, that every part is lot of this is a bit of hangover certified and essentially from last week where we felt the traceable so that if something higher for longer narrative. goes wrong you know where it came from and who sold it. you can switch it out and that's that is translating into some of the losses and the sentiment in part of the chain that broke the region today. down through aog. on top of that, we have concerns about the chinese property sector, and that is saffron is one of the suppliers, overshadowing any pocket of optimism we are getting on the back of news from the u.s. and they make engines, and they say we have trouble tracing this, china, forming working groups to discuss issues related to the economy and finance. because they are at the other end of the scale. the msci asia pacific headed for engine makers, airlines are all another session of losses and racing to find out how many really at the center of it all is evergrande, after it said of these parts found their way it's reassessing its into the aviation industry and restructuring plan, and has how to get them back out. scrapped key creditor meetings it will probably be weeks if not months until these parts are scheduled for this week, raising concerns about liquidity woes located in accounted for. kriti: something we will be watching closely. in the sector. these things always give a we also have another company, little bit of a scare to the airline stock complex as well.

benedict, thank you as always and to give you an idea of how much sentiment has been hit in for joining the program. the sector, we are seeing losses coming up, we talk about the eu trade chief. of evaluation of about $55 a warning to china that the bloc billion so far this year, just will be more assertive in based on losses on one of the defending interest. more on that just ahead. this is bloomberg. ♪ gauges of chinese property developers that sunk the most since december last year. kriti: i think the most shocking thing is you see these massive moves in evergrande and country garden but on the surface, it's not reflective of how important they are to the global economy. let's dive into more detail of what avril was talking about, specifically with evergrande. joining us is our china credit editor. kevin, what exactly happened over the weekend? kevin: evergrande said late friday they would no longer go forward with debt restructuring votes scheduled for this week.

they said after talking with creditors in advisors and in light of sales declining in the sector more generally, it decided it needs to free -- re look at the offer. and the company said because of an onshore investigation, it won't be able to issue dollar bonds based on the debt restructuring plan now. new bonds was a key factor in the original plan along with equity of evergrande, it's property management unit and energy vehicle unit. equity of all three of those has only resumed in the past six weeks or so and they are all down at least 70%. the question is how much recovery creditors can get. kriti: what are the implications? you talk about the developments you walked us through, talk about restructuring some of the offshore debt as well. what does that even look like? kevin: that's the question. evergrande was going to be one of the most complex and biggest

restructurings ever for china and now that we are here 21 months after the initially defaulted and seemingly are going to have to redo their debt structuring plan, it raises questions about these other developers who have defaulted in are going through their own restructuring efforts, how complex they might be in whether they need to reconsider compensation to creditors. kriti: certainly something we will be keeping a close eye on. i can't emphasize enough how important the property sector is for the global economy. >> to start with your question, kevin walking us through that crucial story and hong kong. speaking of the global economy, a year ago under our statute, we we are watching the chinese property sector and i imagine the fed is as well. were asked to begin a process to a lot to digest on top of the evaluate the effectiveness of comments from giorgia meloni and the svb updates from stockholm the tariffs. as well. it is important to be really let's bring in our markets specific about the statutory reporter, she is all over those requirements because we've got stories. what is top of your agenda? to follow the law. and so we began that just about valerie: i'm interested to see a year ago very robust how italian markets trade this

maloney tax update, the escape interagency process. we requested comments from the clause to the windfall tax. public across our economy. maybe the market will read it as we had an open public commentary a way for her government to get that closed earlier this year banks to hold more italian debt. that generated about 1500 rather than paying the one-off windfall tax, the banks can use comments that we are going through very carefully. the money to bolster reserves instead. kriti: the u.s. trade perhaps the market will read through this and this is a way for her government to representative speaking at the incentivize banks, hold more atlantic council forum, saying italian debt on their balance her agency is aiming to finish sheet, which would help bring borrowing costs for the italian its review of tariffs on more than $300 billion in chinese government down and perhaps goods by the end of this year. allow torture maloney in the -- she adds that washington is being thoughtful about how to georgia maloni to deal with rebalance its trade relationship with beijing. turning to eu-china relations, the eu chief trade negotiator says the bloc's trade relations the slowing growth, and this could be a backdoor way to with china are very imbalanced. continue spending. kriti: that's just the italian maria tadeo joins us from story. brussels. what is the message about trade? talk to us about the german story as an extension of what we maria: as you say, he is leading

are seeing in sweden for example. over the week and i think the most read story on the terminal was the saga with svb. the delegation and this is a i'm not going to try to very political, very experienced pronounce the real name, we've political operator in the gone through iterations of that. european commission. why do we care about sweden when someone who really knows how the it comes to the broader committee -- commission works. continent? valerie: if sweden is dealing also very good on technical with the housing market having detail. he's been at this for a number issues with higher rates, maybe of years. to china, a very clear message, it's not long until we see a similar problem crop up in europe. the european union says this is most people have their eye on germany. a relationship that needs to be recalibrated, it is imbalanced we got some data from germany on and needs to be fixed. friday that showed german he also says -- into me this is housing prices are slumping the worst on record last month. striking -- that ultimately the european union and china as it many have their eye on a possible read across to germany stands today find each other at with the situation with as -- a crossroads where they either find a win-win formula or they svb. kriti: we talk about the housing will move apart. let's take a look. >> broadening access to china's market, and i think in you case, and then we talk about a market for foreign companies and different story for europe and asia. maintaining a stable business for the u.s., a lot of people environment is necessary to are seeing their so much demand ensure fair and mutually right now, specifically in the beneficial trade relationships. housing market. when do you see that pop? it's also necessary to maintain are we in a 2005, 2006 deja vu

our mutual trust as partners working together to address a moment? and where does the fed stand on number of global challenges. that? maria: that was the trade boss valerie: it doesn't help we had hawkish fed speak on friday, for the european union. susan collins calling for what is striking about the speech, happening on a four day further tightening. we also heard from governor michelle bowman signaling not visit to china, he essentially says we are facing a choice one but two more hikes might be on the table. where we either recalibrate the relationship and make it a she used the word plural to win-win for both, fixing the describe hikes, saying i expect trade deficit the european has with china, or both will take to further rate hikes will be needed to return inflation to 2% in a timely way. different turns and it will be most of banks across the street ultimately detrimental in the think the fed is done. economic relationship. we should also note the context morgan stanley still predict the of the speech, at a time in which the european union will be fomc will stay on hold and that more assertive in defending its chimes with most of the banks own interests, no to decouple across the street, not necessarily agreeing with the but yesterday risk. hawkish speak but it is notable in the back ground, the probe that they are chiming much with into chinese electric vehicles. what powell told us even ahead head of the commission said of the risks on the table, one china was flooding the market with cheap subsidies. of which being the government shutdown that could possibly go kriti: at the same time you have

through by the end of this week. kriti: the immediate impact we the eu calling for the chinese trade recap l or -- will see in the treasury market but also the s&p 500. recalibration. i think there was a chart over this is not the first time. why do we care this time around? the weekend basically saying if maria: it is fair to say this is you look at the one year chart of the s&p 493, essentially not the first time the european taking out the big tech names, union has said this, that the it hasn't moved much. relationship was headed the wrong way because it's not the majority of the gains, the winners will be heavyweights. mutually beneficial to the same extent. it is kind of flat. this is a number that set off what happens here,? maybe not alarms but concerns, is this a trigger for a broader correction in the s&p 500 if the and a wake-up call, is the trade shutdown happens? deficit. it's almost 400 billion euros. valerie: it was interesting to hopefully the producers can put see the s&p equal weight index the animations on the screen so basically flat on the year. you can see the breakdown for the weight of those big tech the european union. it's clear that china has to stocks really dragging a lot of open up the way the european the equity indices higher. if you strip them out there union has opened to china. hasn't been a lot of progress in at the same time, they need to the equity markets. i think the government shutdown grasp the change in political sentiment. there is an almost growing is another possible hit to growth that economists and assertiveness, going back to my people in the market have to interview with the french deal with. finance minister who said, this it's not just the government idea of being scared of china shutdown it's also student loan constantly, potentially a trade repayments that started back at

the end of this week, it's other war, all of this, has prevented effective action for the consumer headwinds on the horizon that we have our eye on. european union, they are valid this is not the first time we've and legitimate. kriti: certainly something we gotten excited about a possible will be watching very closely. turn lower in u.s. economic growth in it continues to maria tadeo monitoring all those surprise again and again. developments and we thank you. we get another estimate of the let's bring you some breaking second quarter gdp out of the news from the middle east. u.s. ahead of u.s. pce on we know the ipo market is very hot right now around the world. friday. maybe that will do a bit to change the narrative and maybe we will see consumer strength in saudi -- a saudi air cargo firm the gdp print this week. kriti: it's all connected. seeks up to 2.5 4 billion riyals we treat these as isolated stories but around the world, in its ipo. weakness in the property sector, the manufacturing sector, and that's about 600 million pounds. already weakness in the markets. valerie, thank you as always. it will not be your biggest ipo, we talked about the german data. but the fact that people are ipo at 9:00 a.m. u.k. time, we will -ing anyway is a good sign for markets. get an update on that and we will also get a fantastic guest the greek prime minister says to talk about it, how the his country could benefit from a warming climate because it may outlook for the eu's largest extent the tourist season beyond economy is looking as we head into the winter months. the traditional summer months. he told us greece needs to focus on short-term adaptation to we will speak with him coming up

at 9:10 a.m. london time. global heating while still trying to reduce causes coming up on the program, long-term. president biden says he will >> climate change is an visit autoworkers on the picket line. is there a following opportunity for us to expand our relationship between the unions tourist season. and the u.s. president? yes, it may be hot come in july that is next. and august but we will away seven of people interested to this is bloomberg. ♪ come to greece during those months. we have no people interested in coming in march and april, or october and november. more people interested to visit our cities's year-round, and expanding our tourism season has always been an important priority. i think it will be more people who, given the choice, will choose not to take their holidays in the light or august, not just because it is hot come up -- but because it is is crowded. this also gives us the opportunity to open new destinations on the mainland for people to explore. it will still be sometime until the scandinavian or danish beaches compete with greek

beaches, i don't see that happening soon. [laughter] >> you deface criticism on the way you handled the wildfires this year. what lessons did you learn? >> the climate crisis is here for good. we've always had wildfires in the mediterranean but we had particularly intense wildfires ke aash this year and unprecedented with the ultimate pool party essential. floods. blendjet gives it is very clear we need to you ice-crushing, focus more on short-term big blender power on-the-go, adaptation. this is a case am also making to so you can soak up the sun my european colleagues. with a frosty beverage. we spend trillions of euros on enjoy 15+ blends before rapidly recharging via usb-c. long-term mitigation and rightly so because we want to be leaders in the climate transition. and it even cleans itself with a drop of soap and water. but we also need to support people when they lose their stand out even when you're accidentally twinning livelihoods, their houses, as a with our kaleidoscope result of climate disasters of colors. make this summer today. the coolest ever. order yours now we need to be much more from blendjet.com. effective in dealing with these disasters. we've made good progress. in greece, we have our emergency number that we used very successfully to evacuate people and make sure we saved a lot of lives. this is something that was not

present in maui. on a look at the maui disaster it is painful because we had gone through similar disasters five years ago but we learned from them and we are using technology in a smarter way today to make sure we can at least save lives. >> the climate crisis is going to cost more money in terms of either dealing with events or also where you get your energy. where will you get reliable, affordable energy from and where you get it? >> from the wind and the sun. kriti: welcome back to >> affordable? >> it is affordable. "daybreak: europe." this is the program where you it is people and it is reliable wake up and find out what because we have a lot of sun and happened overnight, stories you wind. need to know. it will not do the trick on its a great place to also get that own but we are one of the top 10 on your bloomberg terminal is producers of renewable energy today's edition of daybreak. from wind and sun, 12 gigawatts of installed wind and sun energy in greece and much more to come. chinese markets at the top of in the short to medium-term we that. in addition to nomura losing a will also need to rely on natural gas as a transition senior banker, we also have an fuel. there is a case to be made that update on giorgia meloni's greece is playing an important latest development in the role in the european energy windfall taxes, and of course

the hollywood strikes. system because we are also an entry point for natural gas to finally a deal perhaps being made and that is crucial as we serve not just eastern europe talk about a new labor agreement but even pumping gas to ukraine. between the writers guild and studios including walt disney and netflix. our global business editor is our role as a pillar of energy stability in the eastern all over that story and joins us mediterranean has been enhanced now. this has been in the works for a while. i think we've been striking after the russian invasion of since early may. ukraine. kriti: greece has a lot of what do we know about the deal itself? karen: we've been striking since sunshine and a lot of wind. the prime minister talking about early may and this is the first renewable energy in the writers strike in hollywood sustainability story. since 2007, which shows you just let's take a look at some of the how big the issues are for the other stories we are following writers. around the world. europe's main auto lobby group what we are dealing with now is a tentative agreement between urging policymakers to delay the wga and hollywood studios. post-brexit tariffs on electric this hasn't been ratified yet, vehicles, saying they could reduce production in the region it is a tentative three year agreement. by 480,000 cars over three once it is ratified, it will be years. what the wga calls gains to its ev's have become a major focal point of global trade tensions in recent weeks as europe has said they will lose out to chinese manufacturers. 11,000 members and it will give the eu launched an investigation hope that perhaps a concurrent of beijing support for the ev

strike by the actors guild could industry. at home, the u.k. prime minister also come to an agreement. facing growing anger from this has brought hollywood to a business leaders and politicians stop and we are headed into alike as he weighs whether to shorten a flagship rail project award season and studios want to that could cause the u.k. $122 wrap this up. kriti: i want to be there for billion. awards season and see what that he and his chancellor are locked looks like. talk about the impact to the in talks over concerns that the broader economy. cost is spiraling out of if i remember correctly, the control. a decision could come as early last time we saw a strike of as this week for conservatives this size from the writers guild gather for the annual conference. on the data front, we have a ton was back in 2007, and the damage done was billions of dollars on today, we get german ifo data, a the industry. i think california as a whole percentagewise did not see as much of a hit. lot of questions about what that indicates about the broader this time, how much worse is it? german economy. karen: this has been billions of are we on step closer tipping into recession and dragging the dollars to the l.a. economy entire continent into it? already. this is a city that lives and breathes hollywood, this is the tomorrow, u.s. data, new-home home sales and consumer biggest show in town quite literally. confidence. wednesday, the french budget for you think about everyone from restaurants to makeup artists to 2024. president of kong ho promised to hairstylists dependent on the find at least $15 billion -- industry and they've taken that hit. in addition, the studios employ president emmanuel macron has thousands of people and have promised to find at least for been unable to release slates, dean billion euros.

to put new shows and movies into the world. this has affected not just then, on thursday, nike earnings entertainment but business people's livelihoods and and european inflation. on friday, pce, that might be everyone wants it to come to a conclusion. while today's news is terrific, you also have to remember that the game changer of the entire week. sag is still striking, and we coming up, we look at the biggest market stories today, will wait to see if the momentum including an eye on evergrande, from today's deal rubs off on that strike as well. kriti: a big part of that story whose liquidation worries have hit china property stocks. that conversation next. is ai. this is bloomberg. ♪ when will we see the actors back promoting their movies? karen, thank you for joining the program. we will stick with the theme of labor, it's not just hollywood striking or discussing a deal, it is autoworkers as well. president biden says he will travel to michigan on tuesday to support striking united auto worker union members, essentially joining the picket line. this comes as gm and still until -- stellantis facing more walkouts.

we've been monitoring this closely. where are we on negotiations? oliver: as you mentioned, expansion to 38 different plans, and we should mention these are the big profit centers. the union trying to keep some of its powder dry and ford being spared. we know conversations have gone through the weekend. nothing really concrete from that, we know everybody at about 20% increases but the thorniest issues are things that are not similar to the writers strike, what the future of the industry looks like and what they will do for guarantees for jobs in the future. even 40 says these issues are very complex, interconnected and there are still significant gaps to close. if you look at what happened in the background asked week in canada where you had the threat of a union strike against ford, they came to an agreement, 50 percent increases and we understand the union will take

that to negotiate with gm and stellantis. we wonder if there might be some divide and conquer for the united states as well. kriti: and on top of that a political dimension. one i think democrats, i think they are appealing to blue-collar workers and unions, but they are also appealing specifically to detroit. how does this get more relevant going into 2024? oliver: we are at the foothills in terms of the election and these are key states, michigan, pennsylvania, wisconsin. went from democrat to republican and then back in 2020. these are key states and biden kriti: welcome back to will join the picket line on tuesday. he was called to join them and "daybreak: europe." he answered the call. this is the sort of event we now take a quick look at the without a great deal of resident markets. valerie is all over it. in human history. on wednesday will speak in front valerie: a quick glance on how of autoworkers and other bad that fall in china property blue-collar workers, all trying stocks was viewed the worst

to woo this demographic. slump in the chinese property market since december 2022. last week sean fain had a statement saying we can't keep there were various developers in electing billionaires and millionaires don't have any the summer of 2022 raising understanding of what it is like to live paycheck-to-paycheck and finance via share sales. struggle to get by and expecting surprising to see that given the them to solve the problems of the working class. negativity about chinese so he's playing hardball and not property markets, the biggest giving it to anybody, saying slump year-to-date came today. if we have a quick check on u.s. maybe this political class does not understand fundamentally equity markets, i want to note what these workers need. kriti: really fascinating words there really is no negativity readthrough at the moment to u.s. stocks. fromfain, because historically i still seeing s&p futures in the believe the uaw has endorsed green. nasdaq futures also in the green. democrats. maybe some exhaustion around the negativity around the chinese both president trump and president biden fighting for an endorsement. property market story. how much longer could this go on it is not impacting risk of for? oliver: if you will indulge my sentiment this morning. nice to see this bounce today sort of non-cpa accounting, if because s&p futures had the you look at the strike fund, 825 worst week last year since mid-march. million dollars, they get $500 a week for every striking worker. we are seeing the equal weight index only up 1% so far this that means $9 million a week and year in the s&p 500. that could go on for 90 weeks. kriti: it's fascinating because this is part of the whole union

that was the conversation out of ambition of keeping things apollo over the weekend. ambiguous and a lot of dry valerie walking us through that powder. story. where do you invest if everyone there are only 12% of unions is maxed out? striking right now, there are we will dive into that in the still over 100,000 union workers hours to come. coming up ubs says it is working that could walk out. now with the parts walk out you full speed on integration with will start to see dealership and credit suisse. we speak with the ceo later service, high-margin parts of today. the industry, come under coming up, marcus today -- pressure. kriti: oliver bringing us to update and the math this markets today. morning. thank you for joining the this is bloomberg. program. ♪ let's look at some other stories from around the world, kind of the same theme, striking not just in the states but in france as well. apple workers began trekking over pay and working conditions on friday as the launch of the iphone 15 was underway. staff at an apple store in barcelona set to join french colleagues following a french mandate earlier this month to require the tech giant to stop selling the iphone 15. flu shots at cvs are pretty... flex. congress has into a make or break week for avoiding a schedule one for you... or the whole crew.

government shutdown. plus, they're free. leaders of the republican-controlled house really? hoping to persuade gop holdouts healthier is getting a flu shot on your schedule. to get on board with four four cvs. healthier happens together. year bills shutdown is set for october 1 and most congress acts. hundreds of thousands of federal workers are set to be furloughed. back to new york, the former cochairman of goldman sachs and governor of new jersey will shutter the hedge fund he started after the collapse of mf global holdings. it is the end of his attempt to rebound from one of the largest accuracies in u.s. history. they have about $510 million of gross assets at the end of last year. coming up on the program, we go around the world. armenia has slammed the lack of support from regional allies in its conflict with neighboring azerbaijan. more on that next. this is bloomberg. ♪

anna: this is "bloomberg markets today."

kriti: welcome back, this is "daybreak: europe." some headlines from around the world -- the chief economic advisor to the german chancellor says europe shouldn't be too nervous about the u.s. inflation reduction act, speaking at a forum in berlin. he reveals germany has air may -- earmarked $119 billion to invest next year in decarbonization. he was speaking in berlin at the atlantic council. i want to emphasize how important this is, it's crucial as he talks about making his way not just in his allies around the world but also simply the idea that he is now competing with the likes of emmanuel macron and others to incentivize investment coming back to a continent.

i want to bring some other stories we are following from around the world. the armenian prime minister said his country is no longer being protected by regional allies and security blocs in its conflict with neighboring azerbaijan. this comes after russia opted not to intervene when azerbaijan tried to take control of the disputed region. in india, indians holding 2000 rupee big nose have less than a week to deposit or change in with with banks before the rbi withdraws the bills. after that they won't be accepted for transactions and can only be exchanged with the central bank. about 7% of the notes were still in circulation at the start of september. a nasa capsule containing terms of an asteroid landed in the utah desert on sunday. nasa says it marks the first

sample return nation of its kind. the mission launched in 2016 and scooped up a large sample of rocks from a near earth asteroid. a lot to digest it there, a crucial moment for those who love to look at space and also a crucial moment for geopolitics around the world. that brings me back to europe, where we are looking at some of the developments over the weekend, specifically coming out of italy. giorgia meloni perhaps backtracking some of the moves about the windfall tax for some of the italian banks. let me tell you why it is crucial. we watch debt to gdp ratios across europe, italy at about 1.4%. the reason this is so important is simply because there are questions about whether the meloni government could incentivize italian banks to hold more btp's. does this create more affordability for the italian bank? that's the understanding and we

will be monitoring that closely in the hours to come. when it comes to broader markets, weakness in euro stoxx futures and that will be weakness early being pulled over from the asian markets as well, down about two tens of 1%. ftse 100 down for chance of 1%. a defensive bid at play. in the u.s., nasdaq 100 futures outperforming. we will bring you the latest updates on the show coming up. we have a big story out of stockholm. this is bloomberg. ♪

kriti: good morning, welcome to "daybreak: europe." let's get to the top stories that set your agenda. stocks across asia trading lower

as property loss continues to weigh on sentiment around the world. fx markets rattled as well. sticking with the property story, china's evergrande group running out of time to get restructuring back on track. china property stocks taking the brunt of the hit. the eu's chief trade negotiator warning beijing during a trip to china that the bloc will be more forceful about fair competition and defending interests. let's get a quick check on the markets. the sentiment already souring around the world and this is a function of the pain you've seen in the asian markets. we will get to that in a moment. yours talk 50 futures down about 2/10 of 1%. ftse 100 down to 10's 1%. -- 2/10 of 1%. in the u.s. futures -- and by the way, u.s. assets broadly, if you're looking at the world economy buy american, that has

been the playbook. s&p futures higher by 2/10 of 1%. a lot of this is the idea that inflation might be here to stay come up the fat comments over the we having an impact. a 10 year yield higher by 30 basis points, pulling up the dollar, and arguably pulling up oil commodities as well. recruit higher by, trading at $94 a barrel. nymex crude at about $90 a barrel as well. it comes back to the global economy, and i think the story centers on asia. let's get a quick market update from that part of the world. avril is monitoring those developments. avril: centers on asia and the giant important sector, that is property. we will get to that in a bit. the regions of benchmarks mostly

lower, chinese stocks hit the hardest, fragile sentiment calling over from the higher for longer concern. even pockets of optimism we are getting from news in the u.s. and china forming working groups, not boosting sentiment. it's about property in china and it is centered on one company, today at least -- evergrande. it says it needs to review it's restructuring plans and are scrapping some meetings that were supposed to take place this week. we have another property country -- company in distress, lost the most on record after trading resumed. property developers slumping the most since december last year, taking the loss and valuation to about $55 billion for this year. just to give you a sense of how

much the concern is in the investment fear about liquidity despite policy support that has come through from some of these chinese authorities. kriti: it is really something we are watching very closely. i want to get a quick check on evergrande as well. your thoughts on the severity of what is going on? avril: absolutely. taking a look at the amount of total liabilities that evergrande has, to the tune of about $330 billion. you can imagine how much it not making any headway toward the restructuring of its offshore debt is affecting. the sentiment around the company and given this was once one of the top developers in china, really illustrates how far it has fallen. in the past two years, not much headway has been made toward

their restructuring and that is a key concern for investors. kriti: property issues in china, property issues in europe. they an idiosyncratic story, but part of a sector we are watching closely when it comes to sweden. a major step toward some stabilizing, svb has agreed to sell a 1.16% holding to brookfield. sbb would get $272 million in cash injection. our bureau chief is all over this. this doesn't seem like a small amount but you look at the

percentage basis and it feels kind of small. how big of a deal is this? charles: good morning. i think it is quite a big deal