mark cranfield, thank you. coming up, taking the exit.he uber cfo is said to be leaving the company. we will get more on the c-suite changes next on bloomberg. ♪ dani: let's get to some of your top corporate stories this morning. bloomberg has learned that wall street banks are hoping to approach international investors for the syngenta mega ipo in shanghai. they are working on what could be the world's largest listing this year. a reprieve for the frozen ipo market. the chinese giant wants -- got regulatory approval last week. elsewhere, we have learned that the uber cfo is planning to leave the company. he has informed senior leaders of his intentions to move on. the decision on timing has not been made. he would be the most senior executive to leave since it went public in 2019. as we gear up for cpi tomorrow, i want to bring you a chart mark cranfield mentioned, use car prices. they have fallen 4.2% in june. that's the biggest drop since early in the pandemic. according to mannheim, the company that puts this together, not only was it

that is mark cranfield there.'s get to the tit-for-tat technology clash between china and the west because that is escalating. beijing will impose export restrictions on two metals widely use in the semiconductor industry but also telecoms and electric vehicles. furthermore we are joined by our asia government reporter. talk us through the significance because it is not so much the availability of the metal but the fact that it is produced at a cheap cost in china. that is the issue. >> absolutely china does dominate both of these two key metals. something like 94% comes from china, 84 for 8 -- your -- 84% for geranium. if they are important when it comes to supplying these models at a cheaper cost. the risk here for china is these types of measures backfire in a similar way to what happened when china tried to restrict its export of rare earth metals back in the 90's. essentially supply chains diversified away from china china's market share significantly diminished. that is the risk here particularly for these t

to tell us more we have bloomberg's mliv strategist mark cranfield on the line, why are china equitiesuddenly so happy? >> it is really all about removing the wording related to housing being speculative, that has really got traders fired up. that's what we're hearing earlier in the roundtable. stimulus measures have been going on for some time, there have been various different ways in which china has been putting in place ways to try to get the economy going. but really what was lacking was the confidence of people to bite the bullet get involved in the local equity market, especially on shore. the encouraging signs today we have seen is a big increase in turnover volumes in the onshore trading part of the chinese markets. hong kong usually has decent volume, there is a lot of to and fro there but people have been neglecting the onshore market. the trading minutes are very good, the market is up, it looks like they will sustain those gains into the close which they have been doing this year. we have seen a good morning session but in the afternoon the chinese markets fade away, it lo

things for that round up from bloomberg's mliv strategist mark cranfield, plenty more ahead.is is bloomberg. ♪ >> welcome back to bloomberg daybreak: europe, -- has reported net income for the second quarter beating estimates for 2.5 8 billion euros. net interest income at spain's biggest bank also beat with net loss -- net loan loss provision coming in lower than forecast. it does state is on track to meet its 2023 target. we will have an interview with the cfo josÉ garcia cutera just after 7 a.m. u.k. time. stay with us for that. we also have ceo allison rose stepping down after a rally over the way they closed nigel's bank account, she admitted leaking information about the politician turned pundit. the league related to for our's status as a customer of coutts bank which caters to some of the uk's wealthiest people including members of the royal family. also this hour we have the latest earnings from unicredit, it lifted is for your targets for a second straight quarter after surging income from lending boosted profit. the milan-based lender 2023 adjusted profit of at lea

let's discuss this with mark cranfield who joins us on the line.t was a pretty significant about-face treasuries yesterday. did we take the rally too far? mark: i think you've got to look at this will treasury move really as something in the context range trading. i don't think you are going to go very far particularly on the 10 year very far at all until traders have a clear signal on where the fed is going in september. we know about the lie. it does not matter now. it is really all about what happens beyond their. in the meantime, you have pretty solid demand for tenure treasuries in a yield gets near 4% and maybe if you rally a bit too close to three .25 that is a stretch. -- 3.25 that is a stretch. we will drift around that range for a while until we get clearer signaling that the fed is happy inflation is on a sustained downward path and we get other data, which starts to suggest that the next move is going to be lower. of course, the fed wants to hold rates for some time, but eventually people will be confident that when the change comes, it

thank you to mark cranfield for that tour around the globe in central banks. want to bring you breaking news out of unilever. it has named a new chair designator. we will have more news on that front the morning. we also have breaking earnings from airfrance klm. airfrance klm second net income coming in at 604 million euros, a big beat on estimates there. the second quarter operating income coming in it 733 million euros, another big beat estimates of 648.6 million euros. second-quarter revenue is 7.6 2 billion euros, another slight beat their. for airfrance, it has been a sharp end of the capacity issues with the amsterdam airport and cost inflation. the shares are up 27% year to date. we will speak to the cfo steven zaat on those issues at 6:45 a.m. here on "bloomberg daybreak: europe." stay with us for that conversation. this is bloomberg. ♪ lizzy: welcome back to "bloomberg daybreak europe." the bank of japan has jolted financial markets after announcing a tweak to its long time yield curve control policy. our markets reporter valerie tytel joins us now.

thanks to mliv strategist mark cranfield.his is bloomberg. ♪ lizzy: welcome back to "bloomberg daybreak: europe". it isn't just the fed that is looking more hawkish. it's also the bank of england. we hear from j.p. morgan yesterday that they see rates going as high as 7% in the u.k. to cool red hot inflation. traders the a 55% chance of the peak by march, that is his central case, but it is notable that a scenario like this is being floated in the mainstream. in parliament yesterday, wadwani who is an economic advisor to jeremy hunt blamed dovish language around previous hikes for inflation getting to where it is now. keeping an eye on that commentary in the u.k. now in corporate news. bank of america has joined rivals in raising its quarterly dividends after passing the fed's stress test. that's while the lender said it had started a dialogue with the central bank to understand differences in test results. bank of america says it will raise payouts from $.22 a share to $.24. the u.s. is reported to have stopped the radiant f

david: mark cranfield, our mliv strategist, in singapore for us.look at what is next for chinese markets and relations. how the former will affect the latter after the trip of janet yellen. also talking about the state of the economy. the u.s. has an inflation problem, china has a different inflation problem. john anthony quelch is with us right now, a professor at the university of miami business school. he was also the former dean at the business school and in a previous life over at europe and harvard, i do not know where to start with your cv, so let's take the miami side of things right now. we were just talking with mike cranfield and he laid out for us the disparity in the economics between where you are in the u.s. with inflation and where you are with china. how do you think that should inform our view of foreign relations between the two? john: markets are correct that inflation in the u.s. is higher than it used to be, and it translates to a considerable problem as they are in many western countries, whereas the opposite is true in china

rishaad: mark cranfield, mliv strategist. cohead of asia affects and rates strategy. that is the question. what is the hard red line as it were? >> exactly. i think the yen and yuan are trading similarly and both carry trade's. in both cases you have the risk of intervention. the main point we made as 2023 is very different from 2022 are both china and japan. in china's case, the renminbi is depreciating but it has been contained in that's part of the reason the pboc is responding but not much beyond that. in japan, the key difference was mentioned. look at the tankan survey in the domestic economy is doing better. the pressure comes from small businesses who are happier than they were in 2022. energy importers and energy prices are lower than they were and 2022 by completely agree with mark. the whole intervention is high and not until we get closer to 150 that we see intervention. of course, the directorate -- the rhetoric will ratchet up. rishaad: maybe the yuan is reflective of a domestic economy and how it is doing. does

bloomberg mliv strategist mark cranfield, thank you so much for joining this morning.g up on the shelf, the saudi back pga liv golf merger comes under fire in a u.s. senate hearing. the latest performance of the pif. this is bloomberg. ♪ ♪ dani: paying for the pif as it emerges that saudi arabia's sovereign wealth fund lost at least $11 billion on investments last year. let's get the latest. what were their drivers behind this loss for the sovereign wealth fund? >> good morning. yeah, as you said, the pif reported an almost $11 billion loss on investment activities last year. a big part of that is for fair value adjustments for market securities. you will remember last year, of course, ended with a pretty torrid time for global markets. that's fed through to impact the pif. that's in contrast to the previous year where they reported 85% return on assets. -- reported a 25% return on assets. this latest figure clearly show the impact of this burgeoning asset portfolio they have been building up for the past few years. they revealed that the assets have ballooned to a tot

the pboc smack down, as mark cranfield calls it, tweaking of capital controls as well, it is helping inflows. helping the whole em asia conflicts. stocks are relatively higher. japan is the clear exception. we will see that after the lunch break. commodities are doing well. bonds are mostly in the red. we are watching all the assets as well. david: on the back of that strong job support, double the figure. slightly lower on the unemployment rate which came in. ozzie yields as you can see here, on this next graphic. the aussie is stronger against the u.s. dollar and against the kiwi. in terms of soft commodities, agriculture -- corn, wheat, cattle. you talk about the disinflation story, does it mean things are getting easier? 2% up on wheat, 8% up the day before yesterday. cap love markets coming online now. you have thailand. and we will talk about the rally in the i.t. space there. it is up 0.2 5%. stronger across emfx comp. 0.6% down on dollar-thailand. yvonne: let's talk about the renminbi. we continue to see dollar-china heading lower this morning, that women be against its peers

. >> mark cranfield with our global economics correspondent. u.s. treasury secretary janet yellen will look to find areas of common economic ground when she begins her trip to china. she's set for three days of meetings in beijing. re-weeks after the secretary of state's visit. talking to rebecca. if you take a look at low hanging fruit, what was going into the meeting, what are we watching? >> a number of different things. it janet yellen is there to find the ground between two countries which look interested in outlining where there are divergences. there will be some interest talking about china providing debt relief to developing nations. china has become the biggest sovereign distressed debt creditor to those nations. the preliminary agreement to provide an agreement. elsewhere, we may see janet raising the issue of the crackdown on foreign companies operating in china. waves of consultancies previously. and an increasingly difficult operating environment. that is one area where beijing is keen to try and attract foreign talent. inevitably, bec

haidi: mark cranfield there with us. let's get to annabelle for a look at what she is watching. the top of the hour but it is the monthly china credit tracker and its great data coming out because we just got china announcing support for the ailing property sector asking banks to renegotiate loans in the market, trying to prop up support because in the latest credit tracker we saw stress reaching level for in the onshore market, up from level 3 three in the reading prior. the level of stress is the highest that we have seen since february and it does speak to the magnitude of the problems even though in the offshore space we inch down to level three from a rating of level four in may. if you change on, what drove the increase to level four for the onshore market was moves that we saw in terms of some developers default thing on their debt obligations. this was the ocean group and country garden holdings and essentially that played a big role in the increase of stress that is being felt in chongqing in particular. that is the reason facing the biggest defaults. hsbc among those s