let's get to enda curran. ut, 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 undersco

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

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 chinese state authorities. let's get to sydney wang in taipei. -- cindy wang in taipei. this is happening. the first top-level officials and 25 years. she will not be defied by the chinese. good morning. >> exactly. house speaker nancy pelosi is expected to arrive in taiwan tuesday night around 10:20 p.m. according to taiwanese media. she is scheduled to meet with the taiwanese president tomorrow morning before heading to the legislature to meet with lawmakers and speakers. nancy is expected to leave taiwan around noon wednesday. nancy pelosi's visit is indeed a landmark, of great significance because this is the first time in 25 years someone in her position has visited this democratically ruled island. her visit is also a

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 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

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

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 inflation

we are joined by enda curran. talk to us about the significance. ere talking about how this could be money from china, but it also set a record. enda: it is a big headline. you are talking about 150 billion u.s. dollars. the big state policy bank has a fixture long-term on infrastructure projects and an exercise that new money seems to be going into the target. they were already cautious of spending. we are getting some extra cash there. the point is that already, people say that this is not going to be a game changer. this is not big in the context of china's economy with the drag in real estate and the drag from covid zero. they are still being conservative when it comes to stimulus. this is not the language you want to hear from a place like germany that is coming back from a pandemic. the question over how long china can hold on this line, just spending up and moving their change of the outlook of 3.4% growth for this year. tom: goldman sachs sticking to that 3% view despite that increase and step up and fiscal support. what needs to happen and

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

we are joined by enda curran. e 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 w

let's get more from our bloomberg chief asian economist, enda curran. ou have lack of clarity from the poster child of this crisis, china evergrande. is there any hint of a bottom in the property market? enda: not quite yet. the property sales 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

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

manus: enda curran--elon musk selling nearly $7 billion of tesla shares saying he may need the cash because he is possibly forced to buy twitter. he said he had no plans to sell additional stock. emme leads our business coverage in asia. he told the market he is done, he has just flogged $7 billion worth of stock, is he just taking advantage of a bounce? emma: it appears so. you have seen tesla stock come way up from lowe's we saw in may, around $600 now. trading around eight hundred $50 per share. it seems that is the reason he is giving. he is trying to cash in to avoid having to sell at a lower price if he is forced to complete that twitter deal. that is the reasoning he gave on twitter late night on the west coast. he also did say that he won't be selling more shares. dani: thank you for the roundup there. traders are awaiting july's u.s. cpi print to do at 8:30 time. they are nervous that it will yet again surprise to the upside. enda, that's a totally fair assumption given that economists have struggled getting inflation right. they keep surprising to the upside. what is at stake with

let's bring in enda curran. what is your main key take away from the data? enda: weakness across the board. weakness in retail sales, industrial output, investment, and more signs of softening in the all-important real estate sector. the month of july was meant to be when china's economy started to turn around and we have gained momentum from the big lockdowns earlier in the year, but it has not been playing out that is what forced the central bank this morning to respond by cutting its key interest rate for the first time since january. that move is not expected to be a big game changer for the chinese economy. given what is happening with covid zero and the real estate sector. but the move shows how policymakers are affected by the depth and breadth of the chinese economy and they are trying to pull whatever levers they can. this suggests ongoing downward pressure going into the second half of the year. francine: what does it mean for what policymakers could do next? we thought they weren't going to do much from now on. enda: this is a big question, how wel

let's bring in our chief asia economics correspondent enda curran for more. is pretty clear out of jackson hole but do we put an asterisk next to that? what about the situation in japan? enda: japan is always an asterisk when it comes to this conversation, but in general it seems the conversation that came out of jackson hole was pretty much all around the central banks have to keep raising borrowing costs even if that means further economic pain. there was an acknowledgment that economies are going to slow down. you have had top ecb officials making the point that look, pain is inevitable. none of these officials were using the recession word, but they were making clear that -- on japan, there was a standout. governor kuroda made the point that the inflation the are seeing in japan, even though it is above target, is above inflation. he sees the steam coming out of that eventually, which is why the boj is continuing to support their economy going in the opposite direction of western peers. but the overall message was one of ongoing hawkishness. i don't think

enda curran is here with us right now. we're going to flash the chart. inflation is rising in china here. enda: on the headline basis it reflects fruit and veg and pork, up over 20%. that has an outsized impact. joining the global story. core inflation today did not increase at all. that is the number authorities in in china, where we are going to keep a closer eye on. producer prices adding to the idea that maybe the inflation story in china remains relatively subdued. factory prices, there is a base effect compared to one year ago. also commodity prices are off, oil prices are off. yes, the headline is chinese inflation is accelerating. it does not strike me yet is a game changer. 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 in

yvonne: that is enda curran on the scoop of's well -- as well. hsbc executives are in town.y 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 one. ping an will spin off its most profitable side of the business. let's bring in our bloomberg by finance -- bloomberg finance reporter. what can we expect from this meeting? reporter: this is a good times that -- the hsbc meeting is among shareholders in three years, but also i will be meeting them since they have a push with the bank. dividends will be very much technical around concessio

let's bring in enda curran. we are talking about growth, but still missing expectations. ke of these numbers? enda: i think it reinforces the dovish outlook the bank of japan takes for japan's economy. it does look like the consumption side of things still softer than expected. there seems to have been a drag from inventory as well. the boj, we have been preaching for a long time that they are not seeing any animal spirits in the japanese economy. they point to ongoing week wage growth -- ongoing weak wage growth. it is transitory as it is due to energy prices. the hit might reflect that consumers are not spending as much because prices are increasing. maybe it does reflect the ongoing restrictions around travel to japan area i would say the overall number is a soft gdp number for japan and does speak to the reason why the boj has been on the dovish side. haidi: the domestic indicators out of china as well later. the aggregate lender levels were ugly. there are concerns we are seeing the signs of a classic liquidity trap. enda: there are concerns in china at the moment tha

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

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.

enda curran, breaking down the latest moves on the policy front..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 gdp. as we read on articles from bloomberg, the youth unemployment. amid the gloom, can i suggest how far we have come and on the record high watch, we are, spx up another 12%. nasdaq has a long way to go. i am looking at the bloomberg screen with dow 34,000, spx almost two 4003 hundred. things are not that bad. jonathan: things are not that bad, relative to what? middle of june? i agree with you. we have taken more than 50% of the draw down the s&p. tom: let's look at the gloom we have heard this week. the gloom is off the chart. jonathan: there is good reason for the gloom. a central bank tightening into what many people think will be weakness worldwide. if you ask anyone in europe, they are anticipating a recession in the second half of this year. we talked about the world's second larges

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!