it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. kriti: good morning and welcome

to "daybreak: europe." let's get to the top stories. chinese shares gain after industrial profits surge for the first time in over a year. china's property crisis rolls on. the founder of evergrande is put under police control. amazon taken a hit setting president for tech relation and the entire country. the ftc accusing the e-commerce giant of monopolizing online marketplace services in a landmark antitrust case. right here is europe, the ecb hawk telling bloomberg it is unclear whether european central bank has lifted borrowing costs to their peak. >> inflation is full of surprises. as a result, we cannot say for sure that now we have reached a peak and no more increase. the reason is that inflationary measure is on an in recent days

we have seen how much energy surprises have surprise up. kriti: let's get a quick check on the markets because we have a lot to digest and crosscurrents. we look at the equity market we are coming off the u.s. session where you sell quite a bit of pain. the s&p 500 closed down 1.5% from its peak in july. a 7.2% decline. why is the market higher? the idea being that when you see this much pain, it is natural to see a bounceback and buy the debt if you will. -- buy the dip. that is why you are seeing more of a bed into futures and especially the nasdaq 100 futures because of the pain in yesterday's overnight session. you are not seen the readthrough into europe yet. they get their cue from asia and that is where we are seeing the euro stoxx 50 futures unchanged with underperformance from the ftse 100. let's give you cross asset

action as well because you been watching the bond markets story in the selloff that you have seen the bond markets. now it is getting a bit of a bid this morning. the 10 year yield down at two basis points. the 2-year yields was moving and is down basis points. we are now at 54 basis points and negative territory in the 2s and 10s conversion. that is indicator for that recessionary call which has been inverted for over a year now is going to be seeing more action. that will be a spread lot of folks are trading. the euro-dollar the back of that 1.06 to round up. not a ton of action there but run dollar strength across the g10 currencies. brent crude at $94.92, close to $95 a barrel. let's get an update on asian markets. i am joined by avril hong and valerie tytel and jill disis.

i want to start with avril and singapore. how are the asian markets doing? avril: the asian markets are under pressure for another session as investors come to terms with the likelihood that we will see the protracted higher u.s. interest rates. they are also coming to terms with the relentless chinese poverty market slump -- property market slump. that is despite signs of optimism from the chinese economic data we are getting an improvement on the industrial profits. we saw an initial surge in the chinese benchmarks on the mainland and hong kong. i think the key concern here is certainly for investors in the public sector that has prompted economists surveyed bloomberg to trim the forecast for the chinese gdp for this year to 5%, still meeting 5% goal for this year but the single doubt of the

property crisis is a single biggest challenge for china. certainly that comes on the back of fresh developments. we have china evergrande's founder and chairman under police control and country garden let's not forget facing fresh interest payment deadlines. so there's a lot of headwinds for the sector. that is also weighing on the chinese currency not just being affected by the strong dollar but also the property market slump. we saw steadying a bit on the chinese yuan against the greenback today. that is thanks to the stronger-than-expected fixed from the pboc and tough messaging as well. kriti: a lot to digest there. the dollar-yen is what i have my eye on. it is 149 getting closer to the 150 level. a wrong in singapore -- a wrong in singapore.

the regulation around tech pacific story in the united states. a potentially landmark case for one the biggest tech companies not just in the u.s. but the world. i'm talking about amazon. take a listen to with ftc commissioner lina khan had to say. >> these are a set of tactics that ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the skill and momentum needed to effectively compete online. having achieved and protected its monopoly power, our complaint details how amazon is now the putting that monopoly power in ways that harm customers. kriti: in response to that commentary from lina khan, amazon saying the lawsuit is wrong on the facts and the law, and we look forward to making that case in court. there's a lot to digest. better to bring in dan valerie tytel. we know the ftc has been going

after the tech space and it started with microsoft activision they took a stab at alphabet. they have not had a great success record. the emphasis is been put in europe. why is this one different? valerie: this is the fourth loss of the agency has brought against amazon this year. the previously ones focus on a narrow part of the business, alexa or the ring camera. this is a sweeping antitrust lawsuit focusing on a very different cornerstone of monopoly law which is prices for consumers. they allege the online retailer illegally wields monopoly power that is prices artificially high, locks sellers into his platform, and harms its rivals. the ftc claims amazon's perverse tactic means that amazon collects one of every two dollars seller makes on the platform, effectively resulting in a 50% amazon tax as it was

called yesterday. they argue the costs are passed on to the consumers. this could have bigger ramifications. while the ftc did not necessarily outline pacific's the possible remedies, if it wins the case, it could ask the judge to restructure the company potentially ordering it to divest his logistic business was to be the big risk to amazon. kriti: lina khan when she was at yale law school wrote a massive dissertation about why amazon should be broken up. since her appointment the ftc, people have been waiting for this move. what is the likelihood this break of actually takes place? it feels like there are fears of that already because the stock dropped 4% in the u.s. session. valerie: this was a long-awaited awaited lawsuit from the ftc. analysts are pushing back on the risks to animals on -- to amazon calling it a benign scenario and expecting it will take years to play out. bloomberg intelligence actually calls it that the ftc does

eventually prove this liability but they don't believe a structural remedy such as a breakup will be imposed. it did have an impact on the stock yesterday following 4% in the session and caused the s&p information technology sector to enter a correction now. we are now down 10% from the peak when it comes to the technology sector of spx. kriti: it is crucial that you mentioned that piece. you're talking about a 7.2% decline for the entire s&p 500 from its peak in july. correction territory products. the selling gets worse and worse and accelerates from there as everyone dives into the momentum. valerie tytel there with the need -- the information you need to know. on investors minds is just what is going on with the u.s. shut down. this time it might actually get worse. let's talk about one of the key players and the negotiations,

kevin mccarthy. take a listen to what he had to say. >> we will move a continuing resolution, bring a rule to the floor to secure our border and keep government open. kriti: let's get more context here. bloomberg's jill disis joins us. i feel like we are playing a broken record over and over again but the timing is critical here. i am wondering how big of a deal this is. does this get solved before the deadline or has that ship sailed? jill: i have a feeling we will have this exact same conversation up until the finance deadline, funding deadline at the night on saturday. -- at midnight on saturday. it comes down to house speaker kevin mccarthy. at this stage we have incremental developments. the senate has put together a bill that is passing procedural vote and it would ultimately provide funding for ukraine,

about six billion dollars worth, far short of what baidu months but still gets that -- what biden wants. is a nonstarter for the house. mccarthy would not pass that. he is trying to get together a spending bill on his eye but has not made development. at this point there is a bipartisan group of republicans and democrats in the house considering pulling up a law firm -- a proposal from 1910 that could pull together something that skips the house speaker altogether to get something done before the deadline. it is a very narrow window before the october 1 deadline. kriti: i love how we are bringing back a law from 1910 the muscles really old laws to the constitution seem to make their appearance in the weirdest ways. the railroad strike hinged on a law from 1904. jill disis predicting we might

have this conversation again in a couple of months. thank you for explaining it. let's talk about what we will get today because economic data is on the horizon. gsk consumer confidence will come in today. it is something to put on your radar. we will get that in 50 minutes coming up at 7:00 a.m. u.k.. we will get more information on crude oil inventories. we are on the march to $100 a barrel for brent crude. how does the tightness in the u.s. market push prices upwards in the global markets. that will be a conversation we have at 3:30 p.m. u.k. time. on top of that earnings season creeping back on us. micron earnings after the bell, the largest u.s. tech manufacturer of semiconductors but has a massive base in china, asia and europe as well. how much of that 10% hit it will take from the chinese man -- ban

impact zero. you can get a full round up of the stories you need to get your day going in today's edition of the debris terminal. type in dayb and get a full round up. coming up, an ecb hawk warning of the threats of persistent inflation. we will have more bloomberg interview with robert holzmann next. this is bloomberg. ♪

>> inflation is full of surprises. and as a result, we cannot say for sure that now we have reached a peak in number increase. the reason is that the inflationary pressure is still on, and that just in recent days, we have seen how much energy races have surprised --

energy prices has a price. they may continue to surprise us. saudi arabia has decided to maximize their belts and this is happening by keeping supply short. there we make additional effects. we know we have el niño and it may create major have asked -- major havoc which affects crops and we make it place to pressures from there. we still have developments emerging from national policies like rates increases and negotiations in austria and other places. there are sharks out there which may force us -- there are shocks of their which may force us to go higher. ablation is to be kept under can -- inflation needs to be kept

under control. we don't want to further increase but push comes to shove we will have to. kriti: ecb governing council member robert holzmann speaking to bloomberg. zoé joins us now for more on the interview. an interesting interview will be talk about whether or not the hire for longer mantra is sustainable as we talk more and more about the calls for recession. where do you think we are headed? zoe: robert holzmann made quite clear that the hire for longer mantra is when we will be seeing and the idea of narrowly thinking about rate cuts is ridiculous. as he mentioned, we have the situation where inflation still is quite strong and new inflation data from the euro area thursday and those data --

sorry on friday and they are likely to show a slowdown in nowhere near the 2% goal that the ecb has. if we look at the ecb's forecast which just came out weeks ago now, that says that inflation will not be near the 2% until the end of 2025. to get there, they need to will this for quite some time. he indicated that october would be too soon for another hike. the next time we might see hike is december because then they have a new set of new economic forecasts. kriti: the concept of a pause also plays a double purpose and gives some of the fiscal authorities time to catch up when it comes to their budgets. we're are getting numbers from italy and france in the next 24 hours or so. talk to us a little bit about the appetite for rate cuts if we indeed are seeing on the physical side more and more

signs of -- physical side more and more signs of a deficit. zoe: the ecb has an inflation target and not growth target. the reason they would need to cut at some point in right now markets only see a cut in july and economists, some economists say later in several state there will not be a cut at all in 2024. that would need to be a sustainable growth slow down there. that is one of the things were now with the governments doing poorly with deficits numbers being more disappointing than expected, that is something the ecb says governments need to sort out what they need to sort it out without introducing measures that again will drive inflation. we had a lot of measures to protect households during the energy crisis but now that the energy crisis fading, those

measures need to be faded out. we now have the threat of $100 oil and that is something that would change everything. something like that is the reason why in of the rate hike cannot excluded. kriti: a game changing dynamic for the appetite not just for the european bond market for boones specifically but something in the fx space. bloomberg's zoe schneeweiss, thank you for joining us. speaking of the impact, let's check on markets because when we are talking about the hire for longer narrative, there is real confusion baked into the markets about how long that actually last. the euro-dollar is at 1.06. this speaks less to the newsmaking ability of robert holzmann but the idea that there is confusion baked into the market. is there believability and that the ecb can deliver a soft

landing or possibly even tackle inflation? that is why you see a tug-of-war in the currency. this was frank serves -- the swiss franc serves as a case study because we know last week the swiss national bank had spoken about pausing the rate cuts -- four rate hikes altogether. -- or rate hikes altogether. it creates weakness in the swiss franc. it is having his longest losing run since 1975, weakness there. we will keep an eye on that. the ust cnh 7.31. that is your fx trade this morning. coming up, we go stateside and a little bit of a european story. tesla will be part of a probe

into chinese ev's. this is bloomberg. ♪

kriti: welcome back to "daybreak: europe." the governing boards of hollywood's writers union have approved a contract studios ending month of disruption in the film and tv industries. the agreement includes bonuses for streaming shows and reassurances on ai replacement concerns. the deal will be put to a vote i members today. it looks like it has been approved on the screenwriter side. we are waiting for the actors to possibly agree. president biden has endorsed the united autoworkers demands for a major wage increase during a visit with picket lines in detroit. he told strikers to stick with it.

the dispute centers on benefits, representation and the government's clean energy push. tesla boss elon musk has weighed in same the union's demands would drive gm, ford, and chrysler bankrupt into the fast lane. tesla is looming large in the eu's anti-subsidy pros -- probe into ev's. regulators suggest they are benefiting from beijing support of the ev industry. let's get more insight with bloomberg's oliver crook on this. while cluster tesla is the focus of the eu investigation. -- walk us through tesla is the focus of the investigation. they were part of the pack to talk about pricing. how does the eu story translate? oliver: this was in the lead up before the eu probe was launched basically according to people familiar they said it is good that tesla benefited from

subsidies and this is part of what the entire probe is about. china has gotten unique treatment. they are one of the only car companies that has launched operations in china and do not have to do joint enter. how many ev's of tesla's coming to europe? according to schmidt automotive, 93,000 cars were shipped from china into the eu, 50% of the deliveries that tesla has in europe. a means that china's biggest ev exporter to europe is american. they have a massive facility in shanghai where they turn out his cars. there a factory outside of berlin that puts out a quarter million cars a year with a supplement that the china ones the lower cost space. they are going to investigate the chinese automakers will look at the european automakers operating in china. kriti: you factor in u.k. as

well when it comes to the tariffs. how does the probe and ep story all fit -- u.k. story all fit together? oliver: they have been playing hardball on the rules of origin question. 45% of the value of your car will have to be produced in the -- in the u.k. were eu orchids slapped with tariffs. the eu has been playing hardball. does the probe plaintiff the hand of the u.k. and the eu carmakers because they have said basically do you want to make us less competitive and make it harder and give more market share to global competitors, china? this'll be the center of the debate in a discussion between the u.k. and eu today. in terms of battery capacity, china has 10 times the battery capacity of the eu today. they are not able to produce the value in the ev's they need to do here at home.

kriti: it is a fascinating story here. the ev momentum is accelerated and scrutiny as as well. bloomberg's oliver crook thank you for the context. we will stick with a similar theme, climate spending will be front and center in france's budget which is doomed to be unveiled today. we will bring you the details next with everything you need to know about france, italy, and spain in the fiscal policies in continental europe. we have all the updates for you. don't go anywhere. stick with us. this is bloomberg. ♪

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dani: good morning. welcome to "bloomberg daybreak: europe." i am kriti gupta in london. chinese shares gaining after industrial profits surge for the first time in more than a year. but china's property crisis rose on. the founder of evergrande now put under police control. amazon takes a hit, potentially setting precedent for tech regulation across the u.s. the ftc accusing the e-commerce giant of monopolizing online marketplace services in a landmark antitrust case. ecb hawk robert holtzman tells bloomberg it is unclear whether the european central lifted borrowing costs to their peak. we will bring you our interview on the program. >> inflation is full of surprises and as a result, we cannot say for sure now now we have reached the peak and no more increase. the reason is that the inflationary pressure is still on and that just in recent days,

we have seen how much energy prices have surprised. >> a quick check on the markets because we see selling pressure in asia, which is having a read through into sentiment in europe. the ftse 100 underperforming. your bid into the u.s. futures is interesting given we saw a 1.5 percent selloff overnight in the u.s. session. your bid coming off really just buying the dip seems to be in play. going across assets, the bond market gets very interesting. the 10 year yield starting to see a bit of movement, as is the two-year yield. the two-year yield moving down , creating an of 54 basis points on the twos, tense, which should help the dollar. that dollar strength in theory should have a that a bit of an effect on brent crude. that does not seem to be stopping unstoppable will right

now -- unstoppable oil right now, $95 a barrel on that commodity. let's get eight quick check on those asian markets. averill hung standing by in singapore. >> we see asian markets coming under pressure for yet another session. it's not just about the higher for a longer narrative that we have been talking about for the past weekend a half that past week and a half. we have the chinese property slump a key concern for investors. we see the csi 300 hung saying paring gains -- hang seng paring gains despite the initial surge after data showed we see improvements in industrial profits from china. the property sector is so much of a concern that economists have trimmed their forecast for china gdp for this year to 5%, still meeting their target for this year. but certainly, they singled out the property crisis as the biggest challenge for china.

and indeed, this comes on the back of these fresh challenges for the sector. we have the china evergrande founder and chairman under police control. and country garden is also facing fresh interest payment deadlines. the property sector is also weighing on the chinese currency. let's take a look at how it's very. it's not just because of the strong dollar that we see the weakness in the chinese yen. we saw it hitting almost that weak end of the trading band yesterday, it is standing a bit today thanks to the pboc's stronger-than-expected fix, but also tough messaging. kritit: avril hong in singapore, thank you for that. let's go to some stories on the continent. the french government will present its budget today.

-- all while withdrawing support for inflation had households. the budget is set to delay previously promised tax cuts and at the same time, francis new packs -- france's new package will include a lot to curb power prices to encourage the investment needed for its energy transition. let's talk about the nation's green ambitions. somesha ferdinand joins us on the program. she's a financial services lawyer over at ferdinand law group. a pleasure to have you on this morning. let's talk about the reality of the situation here. somesha: good morning. >> good morning. a lot of leaders around the world have tried to lean into this agreement transition. you saw it with president biden, you initially saw it with rishi sunak as well, only for them to be backtracked. how sticky do you think these plans are? somesha: i think it is a very obviously difficult macroenvironment, so what president macron has tried to do is really focus on, how can we

encourage investments? how can we, rather than focus on a series of contractual or regulatory obligations, really encourage infrastructure and really encourage the different market participants to be ready for a green transition. kriti: but again, who really benefits from this? if you look at these numbers, i believed something like the allocation goes from 7 billion euros to 40 billion euros. how much pushback could you really get? you just talked about the macroenvironment. if i am a french citizen feeling the inflation hit, where is my appetite for that green transition? somesha: i think it is a very difficult situation for certain consumers. so what president macron has done is he has included some different initiatives for example for consumers that fit a certain profile to be able to benefit from being able to lease

electric vehicles. but it is true that most of the initiatives are focused on investing in the clean energy economy, investing in energy efficient buildings. there are some investments for farmers and forest developments. and i think focusing on these kind of investments, rather than divesting, having an opportunity mindset is what president macron has decided to places bets. kritit when you talk: about where he is placing their bets, let's talk about the infrastructure that comes with it. it's nice secret that the european union has been out front when it comes to some of these green initiatives. but where is the execution? cost aside, does the infrastructure, does the labor exist to make this a possibility? somesha: i think it absolutely exists. what president macron is trying to do is focus on getting those resources ready, so in terms of

permissions,s in terms of corporate having employees ready to work on these kind of projects, what president macron is doing is focusing on that. for banks and financial institutions, we are thinking really about how sustainability can be looked at as a driver profit, how investing in some of these green technologies, whilst facing the reality that there will be some oil and gas projects that will remain, finding that balance between financing those priority legacy projects, but also focusing on new investments, new innovations, new technologies that can be scaled up will be the path forward. kriti: i think the genius of this almost, and again, i am not taking a political stance, but i think the genius of the european push for green energy is that there is an economic incentive to do it, a lot of that stemming from the repercussions of the

war in ukraine. the united states, for example, getting rid of some of the oil precedents is a more expensive project. talk to us about the other sectors of the economy that could be affected by the budget. for example, the banks. french banks some of the largest on the continent. when we talk about allocation, that's talk a little bit about capital requirements as well. your take on new requirements when it comes to capital for french banks? somesha: well, the new capital requirements that are in the pipeline are actually capital requirements that were already envisioned as part of basel three. there nothing new the -- there is nothing new there. thinking about the capital buffer and how to have the best solution, in terms of calculating additional capital, is key. but it's also key for banks to continue to focus on their risk management framework. this was something that was

developed very much after the financial crisis. and by including nature and climate-related risks in those core risk management programs, it will be a way for banks to be on the front foot instead of on the back foot and to be proactive instead of reactive. and being able to manage any kinds of risk or issues related to sustainability, climate, nature related losses or issues that may arise. >> it starts with the fiscal policy. somesha ferdinand from ferdinand law group joining us on a day where we are expected to get an update on the french budget. thank you for joining the program. it's not just the french budget we will get an update for, we are also getting one from italy, their outlook do later today. bloomberg has learned that prime minister giorgia meloni paring back ambitions to bring italy's deficit towards the eu's 3% limit next year. let's get more insight. alessandro migliaccio joins us this morning.

thank you for waking up bright and early. let's talk about these new budget forecasts. how much pain, how much criticism is in the works? how much worse than what we got last april? >> unfortunately, it looks like it's a lot worse. the reasons are many. there's the economy that was going strong, by italian standards, until the first quarter and now it's looking much more complex, the situation, the economy is not growing enough. giorgia meloni promised voters she would help the poor, she said she would help those suffering because of inflation. there is some big transition incentives that will be in the budget. and she promised, tax cuts to businesses and that's very important and expensive. you put all that together, they are obviously going to get a deficit that's higher. it's going to be one percentage point worse, it could be 6% worse because there is a one-off

bet of a tax incentive from past governments all of that is creating a situation where you see italy with a high deficit and that's a very bad for a country with mammoth debt. how they keep that under control is basically the issue. >> again, also comes on the back of her kind of backtracking her windfall tax plan for some of the italian banks. which by the way, there was a thaw in the market sink without perhaps this was a tactic to get some of the italian banks to hold more btp's, lower, down the borrowing costs help her on that front. all of that will have a reader to the bond market, not just for italy, but for the broader content. does not look like they are pricing that in, should they be? that's a great question, should they be -- somesha: that's a great question, should they be? next year's deficit was supposed to be around 3.7%, which is much

closer to the recommended 3% limit which they were discussing. it looks like it's going to be maybe 4.5, 4.3, very high for italy. mammoth debt, hard to keep it under control if you don't have a limited deficit, it doesn't look good. investors are watching this budget very carefully. if she does not come up with good explanations and a good plan to reduce that day in the long run, there could be trouble coming. i think investors are right to look closely. they are waiting, but anything could happen, you know, today, tomorrow, once she actually announces what she plans to do. >> certainly something that's going to be very crucial to watch my investors around the world. alessandro migliaccio joining us to talk about the italian debt story. just in case you did not get enough on the european continent, we've got one more story for your agenda. spain's opposition leader, alberto nuñez trejo, is facing a vote today in his bid to become prime minister.

if the people's party leader fails to get fellow lawmakers' backing, he hands his opponent, pedro sanchez a clear shot at forming his own government. joining us, rodrigo. today is the very first vote to potentially elect the opposition leader. it looks like he is set to lose. why even bother? rodrigo: because he has made a very strong case that he wants to follow protocol and that if the responsible thing to do from an institutional point of view. also, and more importantly, he's used this debate around today's vote to portray what he thinks are the weaknesses and the flaws inpedro sanchez's government and style. it is kind of laying the land for the opposition strategy he will apply in the next few years when sanchez will likely be prime minister, if everything goes as most people expect. and as a result of what we saw yesterday in the debate, where most lawmakers, or most parties,

said there was no way they would support the chief of the opposition. kriti: it's fascinating because even though this is dragging on, this is so important for some of the fiscal policies italy, france already putting forward, spain falling behind. roderigo joining us from madrid, thank you for joining the program. let's get you what else we are watching today. 9:00 a.m. u.k. 10, we will get ecb credit growth data for august at 1:30 p.m. u.k. time, an update on u.s. durable goods. 3:30, the u.s. eia will release its crude inventory report, closely watched in light of the recent drop in global oil inventories. on that march toward $100 a barrel, how does the inventory report accelerate that margin? thomas jordan due to speak at an event. some earnings from the u.s. as well on our radar. chipmaker micron set to report

after the closing bell. coming up on this program, shut down showdown. the u.s. senate reaches expanding do to keep the government open but more obstacles are set to follow. that story coming up next. stick with us. this is bloomberg. ♪

kriti: welcome back to "bloomberg daybreak: europe." i am kriti gupta in london. nancy pelosi has spoken out against the divisions in the u.s. in an interview with bloomberg' francine lacquas. she also talks about standing up to donald trump, the biggest geopolitical threats and what she has learned from more than 35 years in public office. take a listen. sen. pelosi: we have an operation in our country right

now, but hopefully that won't last too much longer, but nonetheless, we still have to strive for unity. sometimes, you achieve it, sometimes you don't, but we have a responsibility to act in a bipartisan, unified, transparent, accountable way. kriti: former u.s. house speaker nancy pelosi there. see that for interview leaders with lacrosse airing at 9:30 p.m. u.k. time tonight and the united states and at 6:30 p.m. london time on thursday. the u.s. government is on track for an october 1 shutdown, despite incremental progress late yesterday in the house in rival spending bills. the senate has no clear path to pass -- the bill has no clear path to pass the house. the senate bill would keep the government open through mid-november and provide about $6 billion in assistance to ukraine. a new york judge has found donald trump liable for fraud, a major blow to the former president and the biggest civil

case he faces. trump is accused of exaggerating his net worth by billions of dollars a year on financial records submitted to banks and insurers, both of which he denies. the ruling revolves -- resolves the state's biggest claim against trump i had of a nonjury trial set to start as soon as october 2. jp morgan has announced two more settlements to resolve legal woes over its banking relationship with the deceased pedophile jeffrey epstein. the biggest u.s. bank has tentatively agreed to pay $75 million to the u.s. virgin islands and also reached a confidential agreement with former executive just sa -- jes staley. they settled with epstein victims for $290 million back in june. we will look at oil's rise. valerie tytel joins us with all the market moves you need to know. this is bloomberg. ♪

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kriti: now for a look at some of the other stories we are following. openai talking to investors about a potential share sale that would value the start up at about $80 billion to $90 billion. the wall street journal says the valuation will be almost three times what the company was worth earlier this year. the deal would allow employers to sell existing shares instead of the company issuing new ones to raise fresh capital. retailer target is closing nine stores in four states to stem losses from rising retail theft. the company has been fuming on its earning calls for more than a year about losses from theft, which are adding to pressure on its lender profit margins. in may, the company said inventory losses from external and internal theft would be $500 million worse this year than last. target extremely exposed to what is going on in china, just given how much of that inventory comes from there. which brings us to how much pain you see in china. when you talk about the property stock sector specifically, the

index filing for their lowest since 2011, so a real correction he see in the chinese market. how much of that incentivizes some sort of bid to buy at the bottom? let's get a quick markets update. valerie tytel is all over the major moves. walk us through it. valerie: one thing that caught my eye is how resilient oil has been to equities essentially getting hammered in yesterday's session. we have both wti and brent crude above 1% this morning, a 1% rally. i want to take a look at how it performed yesterday, even though equities were so soggy. if we look at the today move in wti, really surprised me, up nearly 2%. the big rally yesterday in oil prices happened as equities were falling. this just goes to show that the concerns around the oil market are really trumping the risk off tone. we are concerned about supply. and we get more data about supply later today. we have the crude oil inventory

report out from the u.s. highs are going to be on the inventory from cushing, oklahoma. it is now dropped for six straight weeks, its lowest since july of 2022. this is a key concern for the u.s., these stockpiles, and cushing, oklahoma, which is a key hub for the u.s., we get this data out later today, this could be the next kicker for oil prices to move higher if we again see these stockpiles fall. kriti: a lot to watch. i think the point you made about the oil prices and equity sentiment not being on the same page crucial when we talk about cross as the correlations. valerie tytel all over that for us. later on in the day, jfk consumer confidence will beat -- gfk consumer confidence will be crucial. to what extent is the consumer the indicator? this particular data set has not historically been market moving but it out so the incremental narrative of just how much pain

is in germany. right now, you're are going to get that data i believe at 7:00 a.m. u.k. time. brace yourself for what we are about to get. on the agenda, h&m earnings will be crucial as well. we were just talking about target and the pain they see in their retail sector, a lot of it coming from theft, even as we talk about slim margins. h&m dealing with a similar story, not the theft part, but the margins part. we will get those earnings and see what they have to say about how they will keep their profit story churning. again, watch for those earnings coming in at about 7:00 a.m. u.k. time. news when it comes to telefonica as well, we are getting some news that spain is weighing potentially placing conditions on saudi's telefonica state bid. as we talk about some of those provisions, they could include limits on things like asset sales, the dividend, a framework pretty similar to the natergy

purchase as well. that's something you will watch very closely, a crucial story that combines the european and middle eastern narrative. we hear from the pegasus airline's ceo live from the world aviation festival in lisbon at about 7:30 a.m. london time. iag ceo joining us at about 11:45 london time. we've also got the iata director willie walsh with us. you do not want to miss these interviews. up next, "bloomberg markets today." stick with us. this is bloomberg. ♪

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