let's get to enda curran.cut, it was the reaction, some would say, to a backdrop that is tough. how tough is it in china at the moment? enda: it looks to be pretty tough. weakness across the board in july. retail sales down more than expected. industrial production down more than expected even though exports are holding up. investment weaker, especially private sector investment. on the housing side, new home prices, housing investment all weaker. that's why the central bank took the decision it did tonight to lower one of its key interest rates. it hasn't made a move since january. why that move will not be a game changer in and of itself, because the cost of -- because the problem in china is not the cost of borrowing, it does show how serious they are taking these things, trying to pull levers where they can. the other take away all of the data was weak, and july was meant to be the good month, when things pick up momentum again. the third quarter supposed to be better than the first quarter. now it undersc

let's get to enda curran. how far do these measures go as putting a floor under the current set of woes in the market? enda: they are more than expected. it is the benchmark for five-year mortgages by 15 basis points, a bigger cut than anticipated. the second thing that is happening is they are coming up with ways to funnel funds into properties to ensure that those projects get finished so it speaks to two things. a, additional support for the real estate sector in the broader economy but b, this sense of urgency that the central government is intervening in trying to ensure there is a floor for the economy. we know it continues to worsen. the ongoing impact from the lockdowns are around containing covid. all of that is putting much more pressure on china's economy then was asked acted. this time of year, something a were -- something of a recovery period. dani: thank you very much. enda curran. that is the scene for us. let's get to the market reaction to what he was just describing with juliette saly who is

that is what we will get to end on. -- enda on. the aussie dollar, we will have a look in just a moment. you have yields dropping on the 10 year government bond. bank of america says you are careering toward 2%. there is a tendency to overweight. dollar-yen, a six-day, four-day, five rally. angst in geopolitics, the growth narrative from china downgraded. people want to belong of the end -- want to be long off the yen. there is your aussie dollar on the drop because it is the third hike in a row but we are not on a preset path. inflation will peak later in the year. perhaps the top of the rate hiking cycle. let's get around the world to set the agenda for you. nancy pelosi is expected to touchdown in taipei in a few hours. enda curran is on the tliv on the chinese gdp. and joseph joins us taking through what will happen at credit suisse. if you are rainmaker and you have not left the bank yet, juliette is in singapore. let's kick off with reports that nancy pelosi is expected to touchdown in taiwan defining the objections of the ch

enda: it has to be negative. again, the past downturns, we could rely on china to be a question for some of the global growth, given the record of stimulus in the economy. that is not happening this time around. we are in a global recession right now, basically the u.s. jobs market because china is offering a pivot not like they have done for previous downturns. francine: thank you. let's get to the key market drivers with wei li, blackrock chief investment strategist. we look at valuations, but let's with china. how worrisome is this for the global economy? wei: we have the covid policy and also exports decreasing as well. thinking about global economies shifting from goods to services, that would decrease demand of exports from china. we are expecting exports from china decreasing to single digits for the next two years. all of that is also why we are seeing policymakers wanting to come out, but we have not -- the expectations for growth this year. francine: no one predicted we would get this from the pboc. are

francine: that is enda curran. running us now is emmanuel cau, the head of european equity strategy at barclays. i can't believe we are in august already. what do you take away from the earnings season so far? emmanuel: good morning. demand is holding up. that is one of the key takeaways for now. it has not been the disaster that some have been expecting. volumes are under pressure. at the top line, the drivers remain strong. corporate -- volumes are the biggest contributor, which contributes to earnings. we look at the guidance on the companies are committed to -- and are affected by significant moves. it looks like the number is sufficient to drive a bit of data. francine: how much does the fed need to step up to fight against inflation? emmanuel: this'll have quite a bit to do and it is a move that we expect them to take. by giving the impression that we are close to a neutral rate, this might come down the market and give the impression that the job is done and now the market has a proper sense of what they wil

rishaad: enda, what about the u.s.? the big question for the fed is going to be when will they see peak inflation, or have we already seen the peak? enda: on the headline basis tonight, it is expected to show a cooling from 9.1% back to 8.7%. that reflects a sickly a drop in gasoline prices. the headline story might lend itself towards peak u.s. inflation. in the u.s., core inflation is having the opposite direction. that is expected to increase flooding both wage increases and the rent story. even if we do get a cooling headline inflation story i think a lot of people think the fed will have a lot of work to do. some investment houses talking about maybe 100 basis points of a hike after the next meeting. it is hard to think the narrative around the fed will change dramatically. it will take a significant downside surprise to suggest the u.s. has seen peak inflation. if it comes in and around where you can expect magin -- you could argue maybe it is high inflation. david: still just on how people approach spending patte

enda curran, thank you. chief asia correspondent coming out of hong kong, breaking down the fiscal stimulus we have had from officials in beijing. 146 billion u.s. dollars in terms of infrastructure spending and covid zero restrictions continue to restrain the economy. and we have a drought in sichuan that is affecting the economic basis. let's look at the gains. it is about 0.7% of gains across the board. macron heads to algeria to try to secure extra supplies of gas. how successful he will be, we continue to monitor. coming up, socgen's kit juckes. this is bloomberg. ♪ pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mobile, at&t, and verizon. wow. i can do better! yes you can! i can do better, too! now you really can do better! switch to the fastest mobile service - xfinity mobile. now with the best price on two

we are joined by enda curran.re some economists thinking at this point that inflation is speaking? what are they seeing in the data? enda: it is mostly about the commodities markets. there has been a retreat in prices for oil and other key commodities like wheat and copper, for example. the thinking is that is going to take pressure off manufacturers and producers, so it takes pressure off of goods, and eventually that will flow through to consumers. the thinking is you will start to see a turn because of what is happening in commodity markets. but as you say, it is a pretty nuanced story. it certainly changes region by region. europe going through that chronic energy crisis at the moment. i think the point is that even if there is agreement or even if we reach a point where it is clear that headline inflation may have peaked, nobody is tipping a quick retrade in prices back to where they were say before all this began. even if we are turning a corner, the price shock is far from over. tom: that nuance presumably

enda curran on the data.s year's meeting in germany brings together 19 laureates of nobel prize for economic sciences. one of those attending as a london school of economic professor who joins me now. he won the prize in 2010 for his paper on friction in markets. thank you so much for joining us. an awful lot to get through. i am drawn to your specialty on the labor markets and frictions therein. when you look at britain on strike, europe on strike, wages, demands are rising, double-digit inflation is here, inflation may hit 8% in the united kingdom. when you see the wage demands being faced, are we about to evolve into a much more aggressive wage spiral inflation? good morning, professor. >> good morning, i am happy to be here. i'm afraid it is not simply i have with -- i'm afraid what is happening in europe is hitting those workers who are on strike with wage demands. the answer is not to go for very aggressive wage demands because they will make the situation worse. the answer is much more difficult for th

enda curran is with us. there is this line from kashkari that he is happy to see the market essentially taking jay powell seriously. that is my read. enda: he's either saying he's unhappy to see the markets rally in july, happy to see the markets come off in response to chairman powell's speech, he warned the fed will not repeat the mistake of the 1970's when they began to ease up too soon, and he said he did not want to see them raising rates until inflation is licked. it is striking language for any fed official and it drives in how determined they are to keep ramming home this message to markets that they are not going to stop raising interest rates until inflation is well back down to within their comfort zone, closer to their mandate. we are starting to see global markets to as a realization -- too as a realization sinks in. dani: he stopped short of saying markets need to go down. enda curran, our chief economics correspondent in hong kong. china has intervened to stem its weakening currency. let's get

enda: the expectation at least is headline inflation will slow to maybe 8.7% from 9.1%. that might be the narrative about a peak inflation, but the court number is expected to accelerate mostly due to higher wages and rents. following gasoline prices brings down the headline number but right rents and wages pushes up the core. even at the numbers suggest the u.s. is turning a corner, i think there is still worried that it is very high inflation and the fed has a lot of work to do. some banks talking about very aggressive rate hikes again the next time they need. it might suggest peak inflation, if it is lower, perhaps the fed pivot will be sooner. but one way or another, the fed is not finished. manus: some strategy warnings coming from the likes of cathie wood in regards to the scale of the slowdown that could, in china relative to the rest of the world. we are banking on a quick turnaround in the housing market. let's see what the data is later in the day. and the in hong kong. investors in asia appeared to be cautious ahead of the ridge on u.s. cpi. jules is putting t

dani: enda curran there. let's get the latest on the asia market reactions, juliette saly joins us in singapore. juliette: initially we had stabilization in chinese stocks because there was that modest read in terms of pmi. but you had anz cutting their gdp forecast to china. we are watching byd shares being sold off after brookshire hathaway sold off its stake. a stronger yen weighing on the nikkei, although you see upside in reopening stocks. the pboc once again trying to defend this weak currency, and that is seeing upside on of the offshore yuan, rising .4%. let's have a look at the month of august, it has not been a good one. we are on track for a monthly loss of 1.3%, wiping out july's gains. we saw a major market seeing about a 60% drop, the biggest drop in turnover in 17 years. $320 million worth of shares changing hands in august, down from a billion last year. manus: that is a resplendent chart. juliette saly in singapore, keeping it real with pretty hectic charts. u.s. job openings, consumer confid

let's bring in enda curran. it's good to get frisky two way action in the rates market, citi, lumped me up with 100 basis points, but does that stack up with the fed in new york rolling over? enda: the ny fed indicates the peak inflation debate is back in play. on a one-year horizon, consumers now looking at 6%, three years just over 3%. this is a survey of 1300 on households read the reason expectations for price hikes are coming down is because of unexpected fall back on an prices forecast, rent and food. this new york survey suggests that the peak inflation might be close. we will get inflation data officially tonight with the market saying it may have accelerated by 8.7 percent, down from 9.1%. it almost suggests that the u.s. has had peak inflation. to your point about citigroup and others calling for more jumbo hikes, if we get inflation close to expectations or higher, the fed will have more work to do especially after the jobs report that was so strong suggesting they have a long way to go until inflatio

we are speaking with enda curran about that. juliette saly is in singapore to gauge the asian market reaction. manus: we are going to discuss the gas market with stephen stapczynski. let's focus on the jackson hole narrative. jerome powell doubled down on the need to curb inflation. saying the price pressures will require forceful action. >> the overarching focus right now is to bring inflation back to our 2% goal. price stability is the responsibility of the federal reserve and serves as the bedrock of our economy. without a price stability, the economy does not work for anyone. without price stability, we will not achieve a sustained period of strong labor market conditions. the burdens of high inflation fall heaviest on those who are least able to bear them. manus: let's get to our chief asia economics correspondent, and the current from hong kong. they have lined up behind him, it was a short, plan to speech about getting to 4% and staying there. >> it really was, manus. a very simple message which was, interest rates are no

enda: i think it has already happened with property.y want banks to lend to those property developers who are running out of cash. they want to make sure that developers who are not yet finished yet finished. they have come a long way. that was also the language from the politburo. it is safe to say that the three red lines are on pause at the moment. yvonne: that is enda curran on the scoop of's well -- as well. hsbc executives are in town. they are meeting with investors in the city later today and on the agenda, spinning off hsbc's most profitable side of its business. the hsbc cfo told bloomberg he is yet to be convinced. >> we were continuing to talk with ping and taking it seriously. we have not yet completed our work, but it is hard to find any value cash we can put on the front of shareholders. david: there is the cfo at 17% over the past one year, so that is the listing. we are down 2.5% today. yvonne is pointing out some of the topics at the hsbc. they will be meeting with investors today and we will certainly be watching this

kailey: in the current -- enda curran, thank you.ing up next, michael kushma will be joining us as we see losses steepening. the nasdaq down more than 2%. what are you buying? the dollar. the dollar is up half of 1%. this is bloomberg. ♪ kailey: we are an hour into the u.s. trading session and it is getting ugly out here. losses steepening, being led by technology stocks. nasdaq down more than 2% compared to a decline of 1.7% on the s&p 500. it is true on all risk assets. you are seeing pressure in commodity. oil down 4%. money coming out of the bond market, you are up two basis points on the 10 year yield. trading at 2.9942. the only place you are seeing money going in today is the dollar, stronger than everything going in g10. the meme stocks, amc is down 36%. all of the other meme trades are lower as well. gamestop, beth -- bed, bath & beyond and weber are down 6% or 7% or so. i want to take one more look at the bond market. all we are talking about is what will happen on friday when chairman powell takes the helm at jackson hole.

kathleen: enda, thank you so much.ou're going to be interested in what is happening in the treasury market. we are seeing the two-year note yield actually going up 3.45%, the highest yield since 2007. a very powerful signal when the short end moves like that. that indicates they are taking it very seriously what jay powell said, and yes, they will be more rate hikes and maybe even bigger ones and they have to reprice again. now let's look at how futures are going in europe, because same thing. when we heard from hawkish jay powell on friday, we were waiting to see what would happen with the ecb, because they have been not quite as aggressive as a group and we have heard some very aggressive talk so we are showing you now the fed rate hike forecast for a six months, up to 3.6%. we wonder if it will go higher. in terms of the stock futures, down across the board. is this a surprise? of course not. 50 futures, msci europe, dax futures, all the bond markets are saying, hey, central banks are sending a strong message, we ar

enda: not quite yet.s for the top 100 developers came down 40% last month, that was a slight improvement, but still a big gu lf to fail. the problem is developers need to raise revenues to finish development that they promised to those who have bought them. that is why we are in this vicious cycle. share prices continue to decline. property sales remain soft according to analysts. sentiment in the economy is down. authorities are taking steps. last week they talked about the need for stability in the real estate sector. they talked about bringing down borrowing costs, trying to encourage banks to get the money through to developers who may be in trouble, to make sure unfinished projects get completed. that is behind the whole mortgage boycott story. but what is going on at the property sector is that it hasn't yet turned the corner and is spilling over into other sectors. we have the bloomberg story this morning worrying about the impact on steel. the sector of the economy that makes up around 20% of over

haidi: our chief asia nymex correspondent enda curran.r hawkish talk from fed officials at jackson hole this week, but this guest thinks jay powell will signal a slower rate increase. >> i think the u.s. doesn't have the same headwinds as both china and europe and europe -- and china, you have zero covid policy and the property market downturn, which is a multi year development. in europe, you have the gas issue, nothing to point the same degree we have in the u.s. that it is going to be a slow growth environment, below trend. the fed wants below trend. that is why financial conditions are where they are, because the fed is tightening aggressively. and you have the fiscal right, so plenty of headwinds, but i don't think it is quite as bad as in china or the euro area. >> how do you expect german powell another gate that this friday? >> he will be balancing between two things. he will lay out a case for slowing the pace of increases, you have two 75 basis point moves. our expectation would become a barring significant data surprises, that

haidi: enda curran. rates are set to continue rising, earnings set to slow. across market under for performers -- underperformers will run out of steam. jun bei liu's joining us. how difficult is it navigating the in begin witty -- the ambiguity? guest: it is incredibly difficult at this point because not many of us have seen high inflation and then a sharp increase in interest rate expectations. the economy is still recovering from the pandemic. there are a lot of moving parts at this point. the markets are trying to deal with that. i think what is interesting is if we look at where the share market is, the australian market has 18 times earnings. the markets are reasonably priced. over the next 12 months, we just talked about these uncertainties, but what we do know is the corporate earnings growth will slow, and we know the interest rate will go up, but we don't know how far, so all of that combined it does mean the overall index level, we only have marginal gains in the next 12 months. shery: it was interesting in the u.s. we are seeing the busiest month

enda: obviously it's all important.mportant for the incumbent party mandate and the social contract of economic uplift and jobs for everybody. so, when you have these young people facing long-term structural challenges for the economy and potential long-term damage in the economy, it's not helped. it certainly is a bit of a crunch. china is not an outlier in the youth unemployment globally because of the pandemic, it's still higher than it was before pandemic. nonetheless, certainly mission-critical for the party is creating jobs at this time of year and i wouldn't be surprised if you see more of a focus on job creation now. jonathan: i want to go back to it, the central data from this morning, the finance response, the data coming out of china on friday, is this a liquidity trap? enda: it does go back to the money markets. they actually took money out and that was lost in all the news. the problems are either more structurally linked to the covid europe policy and how do they back out of what they are seeing or are the

enda: it is an interesting question.n in china, not on a consumer level. there was sky high factory and producer prices last year that is impacting factory costs. there was the bait of how much costs were overseas in terms of merchandise. consumer prices are higher at the moment, mostly due to core prices. there is distortion there in terms of how this skits -- this gets skewed. we are worried about inflation, but they are trying to sell themselves. they are critical of qe, critical of the western approach to the crisis. they are critical of laks, fiscal and monetary standards. they are trying to model paragon probity. there is no warning of a major inflation outbreak in china, not yet. jonathan: you are the best. enda curran, breaking down the latest moves on the policy front. looking at forecasts, they are unreal. to see 2.8% as a number for the forecast for gdp in china. tom: the carner -- cardinal rule, the pressure to employ people has ways been 6%. that has been the run rate. from past, 6% to 3% is or than 3% on gd

enda: we had a technical read on the economy overnight.usted gdp slowing less than expected. that is good sign. on the other hand, gross domestic income, a measure of income, goods and services, that was weaker than expected. normally, these gauges, the gdp and gdi go together and move in sync. not this time. there is diversions. the takeaway suggest that there is a weakening in the u.s. economy and weakening in consumer spending as well. nonetheless, it doesn't seem as though the weakening is broad-based at the moment. consumer spending is holding up. the jobs market in the u.s. is holding up, so that backdrop is expected to feed into chairman powell's speech. i am looking for commentary from the fed that inflation will remain elevated and the fed will continue raising rates in the near term. there is a question of the magnitude of the rate hikes from here. haidi: it is a question of magnitude for as well, what do the minutes tell us? enda: the minutes overnight, it looked like most of the ecb council members were on board for 50 basis po

let's get more from enda. how far do these measures go in terms of firming up the chinese economy?> we had developments. on one side we see the five-year rate is coming down by 15 basis points, more than expected and that was the key one for mortgages. that will bring down the cost of borrowing. on the others we have authorities talking about financing loans through developers that need money to ensure they finish the developments that they have run into trouble over. it is a sign for more support for the real estate sector. it brings down the cost of our wing. it indicates more urgency among the officials. as you mentioned, the issue has been about suppressed animal spirits. it is another step to support the economy but no one is saying in and of itself this will turn things around. francine: they are saying you have to do more. >> is expected -- it is expected that more support is coming for infrastructure spending for example. we have been reporting recently about the accelerated pickup and spending there. authorities told to -- we are not going to see a dramatic turnaround in t

enda curran there, our chief asia economics correspondent. the u.s. house speakers trip started in singapore where she was sent to meet the prime minister and other officials. questions and world about whether she would defy chinese warnings and stop in taiwan. so far there has been no mention of the island on the schedule. let's get to our breaking news editor in taipei, will she risk it? one article saying the chinese would be prepared to shoot down any military aircraft that escorted her. >> will she or won't she? many in taiwan and around the world are eager to find out. if she does visit, it will be the first time in 25 years someone in her position will visit the democratic island. it will be a huge boost to taiwan. due to the seven city -- sensitivity of the trip, we have very little information. this statement from her office gives mention of the taiwan stopover. taiwan's government has been very tightlipped. when asked whether taiwan is prepared for any possible pelosi visit, that premier neither denied nor confirmed. and said, we reflect the

trance from the point of view of milana jalladdin rumi it was the shortest way to the supreme. the endaight on the busy city streets. iconya was first recognized as a surrounding dervish, who soon developed dozens of followers. telei kept the simple props of the first sufis and their musical instruments spinning around under the noise of the street was not too much fun. so the dervishes decided to spin like that with music. he claimed that everyone is equal before god, and therefore among his students there were representatives different religions and muslims jews and christians were people of different nations, and slaves armenians turks persians greeks begins with the onset of twilight in a spacious room called semakhana - this is a square hall, the floor of which is expelled with walnut boards. the window of the dervishes comes out in high hats and capes made of wool, by the way, wool in arabic is suf, hence the word sufi, when the dervishes decisively drop capes right on the floor - this is a symbolic gesture, meaning that they have freed their souls from worldly worries. and when t

enda: this is undoubtedly the big question.xports are stopping, will they tolerate the yuan where it is, and this is a time of year when trade is expected to slow down. it has been one of the pillars of this recovery of the last few years. but they might see the authorities under pressure. the one weakening as well. -- yuan weakening. trade is a big part of that. lisa: we have also been talking about power outages, slowing down mid fracture output. that is coming back online but you are seeing around the rest of the nation, lockdowns be ensuing, like in beijing. they try to keep covid under control. at what point does this have a permanent effect on the world reputation of china and the structural changes of international companies? enda: notre dame had more perceptions and lockdowns, they say the government is sticking with the covid zero policy, everybody else can stick with it, more perceptions in testing. shenzhen and hong kong, the world's biggest wholesale electricity markets, restrictions on the lockdown at the moment. e

cheers and high fives for democratic senators after they passed a cornerstone of president biden's enda a health care and tax reform bill. >> reporter: are you disappointed it took until the last minute? >> climate and seniors, a big win. >> reporter: after an all-night session the final vote tied 50/50 with all republicans opposed. vice president kamala harris stepped in to hand democrats the victory. >> the vice president votes in the affirmative and the bill as amended is passed. >> we never gave up and here we are. we got it done. >> reporter: the bill directs nearly $400 billion to fight climate ing cha, the biggest investment in that area ever, allowed medicare to negotiate prices on some prescription drugs and raises the corporate tax on business to 15%. president biden said the government would make government work for working families again. >> this is an historic bill and there's no way it can be characterized as anything other than than. are. >> narrator: independent analysis projects the act will have little immediate impact on inflation, with an eye toward the midterm elect

enda curran out of hong kong.n in china right now, the forecast for china gdp, 3% from goldman sachs this year. the forecast for europe, a lot of people call it a recession in the euro zone economy. anytime we ask this this week, pressure for the chairman. lisa: how much momentum can the u.s. economy maintain in the face of what is going on overseas? is this a corporate profits issue or does this go further to the core of what is driving growth in the u.s.? jonathan: we will start the segment with how things have been turned upside down. we have gone from max elvish to max -- max dovish to max hawkish. we have gone from, i want a weaker currency to, jk, can i have a stronger one? tom: toxic. jonathan: jackson hole, up next. pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mobile, at&t, and verizon. wow. i can do better!