>> good morning, this is "bloomberg daybreak: europe". the global stock rally skids as risk appetite cools ahead of jerome powell's jackson hole speech on friday. we have fed minutes later today. barack obama headlines the second night of the democratic national convention as kamala

harris and her supporters look to recapture the 2008 electoral magic. >> america is ready for a better story, we are ready for president kamala harris. lizzy: secretary of state antony blinken leaves the middle east without securing a gaza ceasefire with israel and hamas signaling major obstacles remain. lizzy: a very good morning. welcome to wednesday. we are at that point in the week where stocks feel like they need something to latch onto. we're waiting for jerome powell at jackson hole on friday. we're waiting for signals that cuts are coming in september. that bout of panic selling at

the start of the month seems like a long time ago. if it hadn't been for yesterday's dropped, the s&p 500 would have hit its longest winning streak in 20 years. doesn't look like it is coming today though. futures pointing higher on both sides of the atlantic. if we flip to the cross as it picture, 10-year u.s. treasury yields steady at 3.8%. we had a fall after canada's down side surprise and core cpi. now we look ahead to potential revisions to data for a catalyst today. euro-dollar at 1.11, propping up g10 effects globally. gold a new record and brent still hovering at $77 a barrel as traders assess the stalled equity rally animal concerns over global demand. avril hong is in singapore with a check on markets. >> we are seeing a risk off day in the asia-pacific.

potential downward revisions in payrolls and waiting for fed minutes. ahead of all that, the risk is being taken off from the markets, as investors pull money out of the markets. we are seeing the japanese stocks reversing from a day ago, the strength of the japanese currency can't be helping. we have chinese equities in focus as the outflows and the hang seng tech, you can see is coming from. i will show you just what the drivers are because there is this sense that investors are pulling money increasingly out of the chinese stock market. when you hear from the likes of walmart and how it is exiting its stake in jd.com, this is a long-standing relationship, it raised 3.6 billion dollars from the selling of its stake, it tells you how the challenging economic backdrop in china is prompting investors to pare down

given the diminishing returns of chinese bets. that is playing out among the ev names. the likes of xpeng already in its earnings showing that white guidance, that disappointment amid the price war. the bright spot geely coming back online after the lunch break. it did show first-half profits at a record. maybe that is helping flip it from the negative sentiment earlier coming into the lunch break. xiaomi earnings are also due later today. we could see a pickup. this is a relative new player in the ev space. as we talk about chinese economy and demand, something interesting emerging is how we have been doubling down on the idea that the chinese economy is banking on its exports. today the pboc sending a signal via a weaker than expected fix versus estimates for the first time in about a year.

the signal through that shows they might not want too strong a chinese currency because that would make their exports less attractive. all this against the backdrop of weakness in the u.s. dollar. lizzy: avril hong, thanks for the update from singapore. bond traders are taking on record risk as they bet big on a treasury rally fueled by rate cuts. we will get an insight today with the release of the fomc minutes for july. mliv strategist mark cranfield will be watching at all. >> it is not surprising that they have these enormous positions in the bond market. when you consider there is so much going on in the treasury curve. it is not just that traders expect interest rates soon and multiple once they start going but you have all these maneuvers going on. at one stage, we had a very inverted treasury curve up to 100 basis points, and that coincided with a lot of

positions put on between two years and five years pass the curve. it has cooled down a bit but we still have inversion. we have this shape where two is higher than five and 10 years, yet 30 years is higher than all of them, so these strange kinks in the curve mean more traders can play of the curve and the other without taking. directional positions on the market. that is where you get inflatedly large positions as people not only expect lower interest rates but also big movements within different sectors of the curve, and the treasury market is so big, it can absorb huge swings between traders' positioning. there is room for a lot of volatility after own powell doesn't satisfy the big expectations. when you look at what is priced in the next year to 18 months, people expect a consistent decline in interest rates. mr. powell may try to dial back

slightly. he may think the market is ahead of itself and may want to cool expectations and we could see quite a bit more volatility. so those large positions will probably stay quite a long time. lizzy: where does it leave the dollar? >> the dollar is probably on a declining path anyway. that is as much to do with what is happening away from the united states. it is important, the fact that u.s. yields are coming down, but you mentioned it earlier in your briefing that the euro is the big currency making a difference. the euro now above 1.11 and that is the one taking the driving seat pushing currencies. that's where people are looking for direction. the euro typically is the second largest currency in most weightings when people do their baskets of currencies. they put that usually number two after the u.s. dollar. that means when there is

traction for euro strength, it has significant impact, because it will pull up most currencies with it. all the asian currencies, a lot of latin american and eastern european as well, not to mention the rest of g10, so they will be in the slipstream behind the euro. the numbers are large, we have seen people taking larger option positions on the euro. even in the weekly data, there are still some short positions among leveraged traders. that is a further impetus for the euro. on top of that, it looks as though the ecb will not be as dovish as the fed. christine lagarde speaks in september. she may say that's the last cut for this year and that is not what people expect from the fed so that is a boost for the euro. watch the from here. it's going to be driving the currency world. lizzy: 1.11 is where we trade. mark cranfield, we thank you, as

we await potentially christine lagarde putting her foot down in frankfurt. now to u.s. politics. it's a day two of the democratic national convention in chicago. barack obama told hello democrats that the u.s. is ready for kamala harris to become president. he said the torch had been passed and took aim at the republican nominee donald trump. >> we do not need four more years of bluster and bumbling and chaos. you all know that the sequel is usually worse. america is ready for a better story. we are ready for a president kamala harris. lizzy: let's get analysis with vonnie quinn. i'm feeling the 2008 vibes. harris is bringing in the veterans from the obama white house. but i wonder how much the electorate has changed in the 16

years since then? >> it has changed, lizzy, but one thing for sure the obama coalition that elect him the first time around is still there. that's what all these veterans of the obama campaign that have been brought on to harris' campaign, the man who ran the 2008 campaign, that's what they will be targeting. the dnc told us 20 million people watched the first night of the dnc, more than watched the rnc's first night by 2 million. this is being watched by the american public. you saw michelle and barack obama whip up that crowd and just inject some urgency into this campaign. that coalition that elected obama the first time and second time in 2008 and 2012, you are talking about multiethnic, multigenerational voters.

particularly black people, we know that black men have been moving away ever so slightly from democrats. suggesting they might vote to donald trump. one in five registered like voters in swing states say that now. that was before biden pulled off the ticket. they will want more independents and suburban white voters. lizzy: speaking of trump, he is casting himself as a purveyor of common sense. i wonder if he thinks that will be in them effective counter when you have harris and tim walz taunting trump and jd vance saying they are quote weird. >> the harris campaign seems to be leaning into this weird meme. they keep dismissing the opponent as he is the weird one. his advisors have obviously told him to dial back his rhetoric and talk about himself as being a sensible human being. we saw this yesterday when he

spoke about the federal reserve saying he was jawboning with the fed president in office. in michigan on tuesday he did lean in to rebrand himself as somebody who is not as interested in culture wars. he wanted to appear levelheaded, saying i am not radical, i am just a common sense person that was successful. whether that is believed by his voters or whether they want to hear that from somebody like donald trump is up for question. lizzy: one of our reporters summed this election up well, he said it is more dominated by the vibes than the policy. vonnie quinn keeping across at all for us. some other things on the docket today. before market open, we have results from macy's and target. bit more of a read on the health of the u.s. consumer. at 12:00 p.m. london time, more

ecb speak from the governor of the bank of italy. that will feed into the euro picture we were discussing with mark cranfield. at 7:00 p.m. london time, but had minutes for july, do they change rate cut bets before we hear from powell on friday? you can get a round up in today's edition of debris. terminal subscribers can find it by going to dayb . coming up, u.s. secretary of state antony blinken leaves the middle east empty-handed. no ceasefire deal for gaza yet. we will get into the details next. this is bloomberg. ♪

lizzy: it is 6:15 a.m. in london. to the middle east where u.s. secretary of state antony blinken left without securing a ceasefire between israel and hamas, after spending tuesday meeting with egyptian and qatari officials, he emphasized the urgency of reaching agreement. >> our message is simple. it's clear and it's a urgent. we need to get a ceasefire and hostage agreement over the finish line. time is of the essence. lizzy: hamas pushed back against u.s. claims that it is telling talks, saying it is keen to reach an agreement. let's get more from galit in tel aviv. if not israel or hamas, what is standing in the way of a deal?

>> let's start by saying this morning that u.s. secretary of state antony blinken left the middle east last night without achieving a ceasefire deal with israel and hamas. the two sides were so supposed to start new negotiations in cairo this week but no date has been set. initial reports talked about that happening today or by the end of this week at most. on the table now is a bridging agreement which is an extension of a proposal that was laid out by u.s. president joe biden last may. that was three months ago. according to secretary blinken during his visit, israel said yes to that bridging agreement, now it is hamas' turn. the main sticking points are once again hamas' demand that a ceasefire be permanent while netanyahu the prime minister

insists on preserving israel's right to resume the fighting after a temporary ceasefire of six weeks. there are tensions over israel wanting to keep troops stationed along the gaza-egypt border to prevent weapons smuggling. that includes the very strategic rafah crossing. hamas fees to take part last week in the doha talks. now they say the bridging agreement is far from the biden outline presented in may and refused to abide by what they call new demands put forward by israel. the bottom line is that we have no agreements, no date for renewed talks in cairo and no knowledge that this time hamas will participate if they resume. efforts are still being made to make these three things happened. these efforts are led by the u.s. and mediators qatar and egypt. lizzy: no agreement, no date.

does that make an iran's strike more likely? >> that is a good question because on a larger scale, these ceasefire talks do affect not just gaza but also other fronts. that is why it has been repeatedly said that a ceasefire in gaza could prevent wider regional escalation. on that note, hamas is thought to be stalling because it's leader wants other fronts to flare up in a way that would potentially devastate israel, like the ongoing front with hezbollah alongside israel's northern border and possibly a direct front with iran itself. we have been talking for months on the fire exchanges between israel and hezbollah. those are escalating as we move forward. yesterday 125 missiles and three

drones were fired at israel from lebanon, while the israeli army attacked hezbollah targets very deep into lebanon, as far as 100 kilometers from its border with israel. there is anticipation ahead of an expected iranian retaliation against israel, after a senior hamas leader was assassinated in tehran. israel is being blamed although it is not claimed responsibility publicly. iran says that could take a while and time is on its side but that as well as a promised hezbollah retaliation for a different assassination of its military leaders are still very much on the agenda. and expect more of a ceasefire deal in gaza isn't reached. lizzy: it does look like traders are focusing more on the demand

story around china and the u.s. than the geopolitical tensions. brent trading weaker 0.1%, still at $77 a barrel. the world's biggest shipping centers are getting caught in the crossfire of intensifying geopolitical conflict. today's big take looks at how the ports have turned to strategic battlefields as global powers use them to defend economic interests. government reporter james mayger joins us from beijing. talk to me about how the ports are jockeying for influence in these volatile regions. >> many countries around the world are trying to develop their port infrastructure for a number of reasons. one of them is geopolitical influence and control. it's also because throughout the pandemic we saw there were not enough ports and they did not have capacity to deal with the spike in global trade especially

across the pacific but in other places as well which is one of the causes of the rampant inflation the last three years in the u.s. and europe. countries and some companies are trying to develop ports. you see big new ports being open up in peru, in south america. there is a new port in india as well. in other places around the world where people are trying to both build out their infrastructure so they don't see those kinds of backlogs of hundreds of ships waiting to unload their cargo, but also, so they can take more control of the trade they do from more distant places. india doesn't have a big deep water port sufficient for the trade it is doing, so a lot of trade has to go through places like colombo, the port of sri lanka and singapore. that development is becoming a point of contention.

specifically, the port in peru, which is built and run by a chinese company. the american government is not happy because for more than a hundred years the u.s. government has power american influence. they had to turn to a chinese company to build that. these kinds of necessary infrastructure and development are caught up in these geopolitical tensions. lizzy: james mayger, our senior economy and government reporter, thank you for that preview of the big take. it is on your terminal now. coming up, as mpox spreads in africa. the focus turns to securing vaccines on the continent. we will bring you the latest next. this is bloomberg. ♪

lizzy: 6:25 a.m. in london. mpox vaccines arrive in africa by the end of next week as a new strain spreads from the democratic republic of congo. the director general of africa's cdc's as stopping the outbreak will save lives around the world. jennifer zabasajja joins me for more. give us an update on what we have learned from authorities yesterday. >> you were just pointing to some comments we did get from the africa cdc on tuesday. we did hear from the who, which is trying to dispel concerns that what we're seeing from mpox whether it is a new or old strain, is anything like what we saw with covid and instead trying to stress that we need to avoid the panic before and instead be proactive. you mentioned proactive vaccine

distribution which we did hear the africa cdc director talking about how important it is to get africans vaccinated and for that to then help for global health emergency. health officials spending tuesday focusing at least on educating the public on that front. lizzy: which vaccine manufacturers will provide those jabs? >> we have heard a lot of interest from vaccine manufacturers wanting to be part of this global flight. when it comes to testing capabilities, we heard from roche saying they want to update their laboratories to support mpox testing. but we did hear from him in -- emergen and south africa's bio back and vary in nordic interested in being part of this, but we did learn that bavarian nordic is working with the africa cdc potentially to

get doses to the african continent. but it is expensive and difficult to ensure that everyone is vaccinated. we will have to pay attention to which manufacturers are able to do this. lizzy: bloomberg's chief africa correspondent jennifer zabasajja. we go to ukraine next. the pentagon sounding the alarm on where the russia-ukraine war is headed. ♪

>> good morning, this is bloomberg daybreak: europe. i'm in dubai of these of the

stories it's at your agenda. the global stock rally skids as risks -- risk act the tight pools as there is jackson hole speech. get the fed minutes. former u.s. president barack obama headlines the second night of the democratic national convention is kamala harris supporters look to recapture the magic of 2008. president obama: america is ready for a better story, we are ready for a president, kamala harris. quex heading towards a stalemate, the latest from the pentagon say u.s. and russia both lack the military might against each other. a very good morning, welcome to wednesday, just got half past 6:00 in london, you are looking at futures pointing higher on both sides of the atlantic, we saw a bit of a pause in the stock market rally yesterday. if it hadn't been for that drop, the s&p 500 would've hit its longest winning streak in 20 years. maybe taking a bit of a

breather, but we are waiting for powell to speak at jackson hole on friday. in the meantime, we could get a bit of a revision to the payrolls data later. economist at goldman sachs and wells fargo looking for that, goldman says it could be as big as a million, still, if we look over to the cross as a picture, you've got the treasury yield on the 10 year study at 3.8%. we have brent price at $77 a barrel as the demand story continues to outweigh the geopolitics, go at another record in euro-dollar out 111 really setting the tone therefore g10 effects. let's get to the latest in the geopolitics, now to ukraine, the pentagon's intelligence agency saying that kyiv and russia both lack military assets to mark major offensives against each other, the latest report suggests the two sides are headed towards more of a stalemate as ukraine continues its incursion into russia's region. we could get analysis now from tony who leads our russia

economy and government coverage. kyiv is waiting for deliveries from some nato allies. real disappointment from president zelensky. i wonder if these delays continue into the renter -- into the winter. >> ukrainian officials are concerned they need to improve defenses of their energy infrastructure when winter comes because it's clear from the last two winters that russia has made a campaign of targeting energy installations in ukraine to try to ride down the ukrainian population, break morale and they expect something similar. they want to be better prepared for it and they say that their allies did provide offers of more air defense systems at last month's nato summit and they are really looking for the allies to deliver, zelensky particularly said he address the u.s.-britain and france and other countries have promised their defense systems. >> to you foresee ukrainian support for military action against russian forces in africa

increasing? lexus is a strange story. they accuse ukraine of involvement in an attack by rebels that killed government soldiers and russian mercenaries last month, ukraine denied that, but there is a clear competition between ukraine and russia for influence in africa. the importance africa has in the global south. and while this particular incident is a mystery and they didn't really provide any evidence, there is evidence that ukraine is trying to counter russian influence, which has been growing over recent months and years. >> bloomberg's russia economy and government team leader. we can get more analysis from an expert in security who has been with ukrainian military on the border with russia's region where this incursion has happened, really good to have you with me, maria. i wonder when you are there what

morale felt like on the ground, on both sides among the troops. quakes very good morning, the morale is on the boost, and when we were with the ukrainian military we were very close to the ukrainian-russia border, you can feel how energetic and passionate they are about this operation. the weapons are heading into russia from ukraine, and they say that even those not specifically involved in the operation, the soldiers who are fighting in the region in other regions, there morale boost is also very high because they see that luckily, now, finally ukraine is progressing, ukraine is moving forward in this advance was happening when there was a successful operation in the kharkiv region. so this is very important for

ukrainian soldiers and also for the population in ukraine, for civilians who see it as a very successful progress from the ukrainian side, and everyone says that now ukrainian partners has also chance to see how strong ukraine still is in that ukraine is still capable of winning in this war. >> to what extent is ukraine's advance into russia hindering russia's advantage ukraine? >> this operation came as a surprise, if you wish, as a symmetrical move, because currently russia is progressing in the direction, not dramatically, but trying to cut the most logistical route between it and they didn't ask region. if ukraine would just put these troops over there, then russia would bombard them with bombs

and arms attacks of artillery, which ukraine are still not having enough, otherwise ukraine decided to move into the region and create what president zelenskyy calls the exchange fund for territories, exchange fund for prisoners of war, so russia basically has now to decide whether they relocate troops from other direction to liberate or to defend their territory in the region, or they progress there and then ukraine also has more chances to move forward into russian territory. >> it's interesting that you say the morale among the troops is more focused on the deliveries that are arrive sing. i wonder how much more effective this buffer zone as zelensky puts it, would be if his allies lifted restrictions on the use of their weapons in the region. >> ukraine can use weapons

there, but we are talking about the smaller and medium range artillery. for example, ukraine is constantly asking to leave this weapon deep inside russia where russia is having their military fighter jets and military facilities because this is from where they lift up fighter jets that later bombard ukrainian territory. this does not allow ukraine to put this down before they launch the deadly missiles of civilian objects with energy facilities in ukraine. so, would ukraine be able to do this, this would completely undermine russian military and more effort in the russian war machine would start struggling

to bring more resources to their war in ukraine. quakes we know that the indian prime minister, narendra modi is headed to kyiv on friday. he has ruled out a role as a mediator in the conflict. i wonder what role you do see india and china playing in this conflict. quakes ukraine is constantly pushing for more countries, including india and china to take part in the ukrainian peace formula. as you know, there was already an assignment in june and ukraine is preparing to have one more later in the autumn and ukraine asks all partners and all other countries to participate, and the aim of this piece summit is to push russia for peace because this is what ukraine wants. ukraine says we want peace but we do not want peace on the conditions of russia, we want peace that guarantees the

territorial integrity and sovereignty of ukraine. and there is possibility and struggle for such countries as india and china will be on the ukrainian side here and will push russia to stop the war and stop talking. it will save ukrainian lives in russia's. and also being able to talk to some russian pows in ukraine. ukraine takes them massively and they also say that they don't want this war. many of them are as young as 18 and 19, and they have been brought into this war by putin by the military elite and that we don't want this. people in russia also don't want this war. >> maria, really good to have

you on the program. thank you so much for your time. security expert at the foreign policy research institute. thank you so much. let's look at some of the other items we have on the docket today. we have u.s. retail earnings coming from macy's, tjx and target. margarito to the health of the u.s. consumer. we get more ecb speak from bank of italy. governor fob jo panetta. see how that plays into the euro-dollar story. then we are going to get jim tenure and u.s. 20 year options. in those fed minutes perhaps more of an idea of where the great path is heading before finally on this day three of the dnc, we get tim walz acceptance speech as kamala harris running mate. coming up on daybreak europe, the eu's plan to introduce an extra 9% tariff on tesla's from china, oliver crook will be note -- bring us the latest next. this is bloomberg. ♪

>> welcome back to bloomberg daybreak: europe. the european union is planning to introduce an action 9% tariff on tesla's imports from china. it's the latest move aimed at countering subsidies from beijing. we get more from oliver crook who joins us from berlin.

just talk us through the latest twist in this road for eu tariffs. oliver: this is basically the latest revision the eu put forward in terms of the numbers and percentage point tariffs on each of the automakers from their production and china and the tariffs they are going to face bringing those cars into europe. they've actually brought them down across the board for carmakers. many of the chinese ones will have at the very upper end, a 36% tariff, geely which owns volvo will have a 19%, byd is the main player in china, 17% tariff, but it's interesting because when you compare tesla to all the rest at 9%, that's lower than it had been previously and much more than anybody else, previously tesla was closer to 21%, which is about the average across the board and the eu says because of their investigation, what they have found is that many foreign carmakers get much less in terms of subsidies from the chinese states, however, tesla still did benefit from land u.s. rights,

income tax reductions, a bunch of different grants with a national subsidy for all producers that export out. you can imagine the eu is not pleased about and catches the other non--- other european automakers, bmw had their terror produce, they make the electric many in china, so these conversations are going to continue for a while between the automakers in the eu and until the end of october when we get the final tariffs in place and those tariffs were as for five years, so really important for everybody to get this right. >> why do tariffs need to be a discussion for tesla when they've already got a factory in germany? oliver: they have a factory not too far from here, just in brandenburg. they are building up more and more production. the reason is, they built only model y's. they are tesla's most important product in europe. the most popular ev sold in europe. all of the model 3's are built over in the shanghai facility, which is an absolutely mammoth

one. if you look at their global footprint in terms of production , they made a 1.8 million cars last year, they native -- they made about 800,000 in china just under 700,000 of those over in the u.s.. in europe they are only making 350,000. that really shows how much bigger it is. it does put a little bit of pressure, potentially for tesla, which is well-positioned to begin production further here in brandenburg, though they have had issues in terms of labor relations, we know tesla and elon musk are not bad of unions. but also environmental concerns expanding their factory, they did get the approval to do it, though they were not able to expand the factory, elon musk did open a nightclub in the basement of the brandenburg gigafactory. and we know with interest he open the so called hamster ralph cave after he was reportedly rejected from one of the most prestigious clubs here in berlin. so i guess maybe hell hath no

fury like a billionaire scorn here. sort of saying, if i get rejected, i will open my own club in my own factory. >> i don't even dare ask whether you have been to his club. i will ask instead how china is responding. all of her: it's for tesla employees only, so i need a badge to get in. >> bloomberg's oliver crook, we thank you, waiting for his badge from elon musk. now to the latest earnings out of the u.s. do not bury against the u.s. consumer, that was the conclusion many true from last week's u.s. retail sales data, we get a clear picture on the health of the american shopper, we can bring in bloomberg's -- for more. just take us through the results yesterday? >> lows yesterday downgraded its outlet, both in terms of sales and operating margin and now expects a bigger contraction than it did before.

this is because people are not doing t.r.y. at the moment, they are not buying big ticket items, and that is a trend that started back in november for them, and the biggest driver of that trend is that people are not moving house or buying new houses. the turnover of housing is the lowest it has been since the 1990's, and that's not expected to get any better until there is a cut in interest rates. quakes and we give target, macy's and tjx calls today very what should traders brace for today? >> obviously the key thing is the strength of the u.s. consumer. i think the other factors a few apes at this very difficult to grow the top line, what is it that companies are doing to grow profitability, because that is the only way you are going to grow your earnings share, so are they doing cost-cutting? walmart last week talked about

using ai to cut costs in marketing. are they finding other ways to be more agile and respond to the consumer. the other thing that we found is that companies like walmart that position themselves in tj max position themselves is really good value and are seen as the deal, particularly the sam's club line of walmart, which is a membership program, are they a good deal for the consumer, is that how they market themselves because those products do better because the consumer is more discerning, they don't have enough money to spend on things and they are just cutting back, or as a lowe's rival home depot spoke about they are deferring their expense and they are waiting until products are better value.

lizzie: kind of another economic barometer to feed into that fed story. our bloomberg correspondent, we thank you for the preview. now to some of the stories making news this morning. shares in jd.com have slumped after bloomberg revealed that its bigger shareholder, walmart, is selling at stake. the u.s. retailers said to be offering 100 44 million sales for dashers for as much as $25-80 five dollars each. that would raise more than $3.7 billion in end an eight-year partnership between the two companies. elsewhere, the italian coast guard says it's unlikely to find any more survivors from the sinking of a luxury yacht off sicily, it means that british tech tycoon mike lynch, jonathan blumer, and for others are presumed dead. the yacht was hit by a violent storm early monday with lynch, his family and associates on board celebrating his acquittal in a long running fraud case. and, geely has posted record first-half profit thanks to

surging exports and demand for electric cars. net income rose more than six fold in the six months ending june 30 compared to a year ago, they were raise their target to 2 million from 1.9 million vehicles. coming up on the program, we've got plenty more for you, so do stay with us. this is bloomberg.♪

>> everyone is looking for a way to get into the bond market and frustrated beyond belief because they never got to buy at yields of 5%-6%. once rates start coming down and money market fund returned start to drift lower, that many will come in. >> j.p. morgan asset management bob michele speaking to

bloomberg there. as you can hear, traders ready for the rate cuts. we are waiting for jerome powell speech at jackson hole on friday. before i go i want to leave you with this couple of charts to set you up with the potential market movers today. first off, we could see the payrolls data. you have economist at goldman and wells fargo saying that the preliminary revisions could show the payrolls growth in the year through march was at least 600,000 a a weaker than currently estimated. goldman says it could be as big as a million, so it changed the chart, but if we flip the board, we are also waiting for the july fed minutes today, will they give us more clues as to the great path ahead while we wait for powell on friday. currently, as you could see on the screen, for rate cuts our price before the end of the year, that compares to two since june 30, do we see a shift in this chart before the week is out? all eyes on wyoming with plenty to watch out for today.

that does it for daybreak europe. i've been lizzy burden in dubai. kriti gupta and guy johnson are up next with the opening trade. we look at futures as we head towards a cash open pointing higher. the euro stoxx 50 higher .10% -- .1%. nasdaq futures are also higher .1% it looks like that pause in the stock market rally yesterday will be over today. could we see an even more of a boost on the s&p 500. waiting for a boost to the sentiment as we look to the 10 year u.s. treasury yield, currently steady at three point percent. weaker .10%. these command concerns continuing to outweigh the geopolitical risks and traders are really mulling that equity rally that has stalls for now. if it hadn't been for the drop yesterday, you would've seen the s&p 500 hitting its longest winning streak in 20 years. will it be enough of a breather

when we get back to the action today? you've got euro-dollar currently trading at 111, weaker .10%. setting the tone for the rest of the g10 currencies. we will keep an eye on the dollar as we have those fomc minutes and potentially that revision to the payrolls data. guy and greedy up next -- guy up next. opening trade is next. this is bloomberg. ♪ my heart desires soft. sleep number does that. your ideal firmness and effortless comfort, all night. during our biggest sale of the year, save 50% on the sleep number limited edition smart bed. shop now at a sleep number store near you.

>> good morning, i'm guy johnson alongside kriti gupta. an hour away from the opening trade. what you need to know this wednesday morning? equity rally running out of momentum as the bounceback comes to an end. the obama's attack trump and back hairs on the second night of the d&c in chicago. the former president drawing parallels to his own historic

victo