manus. manus: thank you very much for juliette saly in singapore.'s big take was on credit suisse and the start is anticipating deep cuts from the latest emergency restriction as the lender gives up on his ambitions to be a wall street titan. we spoke to david about the issue on friday. >> the last 10 years have been very bad for the bank but you look at the situation today, trades at less than one third of book value. it still has a robust private wealth business. all you have to do is prevent the investment bank from losing money and get it back to some sort of growth. manus: this morning, the bank has named the new chief financial officer. joining us now is jonas. the scale of the shakeup, they want to rip up the script at ubs . what number of job cuts does credit suisse need to credibly put on the table? what do we expect of the investment bank? >> we are talking with the new ceo with a pretty huge shakeup for the investment banking arm to leave it more focused on wealth management. the scope of the shape up is not clear right now but from what

manus: the u.k.s have a government, it has a prime minister, albeit a less powerful one, and it will have a new prime ministers shortly, but i understand the point you are making. you're seeing the workers suffering a cost-of-living crisis, it is folly for them. this is what the bank of england governor said. it did not go down very well. how do you communicate that to the working public that they need to ask for smaller pay rises? >> it is not feasible to give this pay rise. where is the money going to come from? those are going to be reflected in prices. you're going to want higher pay rises. manus: that brings us to the natural question, it is how much action -- central banks have to deal with price caps, deal with government. the inflation we have at the moment is supply-side driven. that seems to be the building consensus. how can central banks contribute to the breaking of that? do we need a paul volcker style response? he drove rates up to 20% and unemployment rates of 11%. is that what needs

manus: i manus cranny, with "bloomberg daybreak: europe."abolic shift over gas prices jumped to near record levels. as france's macron travels to algeria in the struggle to secure more energy supplies. beijing announces in the additional one million true on -- one million yuan stimulus. we turn our attention to jackson hole, where jay powell is said to take the stage. equities are clawing their way back on the china stimulus story. the narrative will shift from jay powell in the fed, ts lombard sees a soft dish kind of landing. in terms of the markets, you got crude oil, up .5%. other nations falling in behind saudi arabia, the issued statements supporting the saudi narrative. we know what the put option is for the saudi's. euro-dollar again, a little recruit -- repeat, up .25%. europe starting slightly larger this morning. some hot -- huge moves on the ibex. there is the equity narrative now, up slightly this morning. let's get to the rest of the stories. the world is grappling with story inflation and the effects of the war in ukraine and

manus? manus: jules, thank you very much. coming up on the show, we are going to have the big take.us: this is bloomberg daybreak: europe, i'm manus cranny in dubai with dani burger in london. >> restoring price stability will likely require maintaining a restrictive policy stands for some time. the historical record cautions strongly against prematurely loosening policy. dani: hawks all around. jerome powell puts global economies on alert with a warning of prolonged tightening. the european central signals for the hikes asian market. s tumble and u.s. markets tumbled from friday's post-speech selloff. germany looks to hit its october gas storage targets a month early as the economy minister proposes an overhaul of power prices. risk assets crushed yet again. it feels naive to have been talking about peak dollar, they are off to the races yet again. manus: i have a producer in dubai who says i am forever young. it is about constriction and no rollover in the rates market. that is might take away from jackson hole. dani: we have seen it come out this morning, how much tightening they

manus: good morning from our middle east headquarters in dubai. i'm manus cranny. this is daybreak europe, the stories etc. agenda. chinese manufacturing unexpectedly contracts in july, services weekend, highlighting the fragility of the nations rebound. powering through, hsbc profit beats estimate propelled by rising interest rates. the lender commits to restoring its dividend to pre-covered levels. >> we committed to pay half of that return out by way of dividend, a 50% ratio. mathematically what people see is a very material step up in next year's dividends. manus: kashkari the hawk, the fed doubts says the fomc is committed to reducing inflation to the 2% goal. future's debt but asian stocks point higher. hsbc has delivered a monster beat, $5.96 billion, way ahead of what the market estimated driven in part by the upgrade on interest rates. but they are beginning to build a defensive case against a major shareholder about breaking up the business. he was clear, united we stand. it will be three to five years away from a material event, this hong kong stock is u

manus: i'm manus cranny in dubai with the stories that set your agenda. surprise rate cuts. china unexpectedly lowers the keep borrowing comps as retail sales missed the full count. bond yields slump. $532 million a day. that is the daily profit of saudi aramco in the second quarter, the second ever by any listed company. plus, a u.s. congressional delegation arrives in taipei after a visit by nancy pelosi spurred china to launch its most aggressive military drills in decades. warm welcome to the show. we spoke about a bear market rally. are you reading michael burry's tweets? either way, it is an equity rally that has been much maligned and deeply questioned. i had a conversation with hsbc. we are coming off the back of this trifecta of misses in the china data, which we will dig into in a moment. dennis gartman says you have to cut stocks. he recommends them cut 2% to 3%. this is a bear market rally. he or she who loses the least will be the winner. stocks are lower this morning, nasdaq down by 0.25%. there is a quantum of bad news coming in across the asset classes from c

manus: good morning, i am manus cranny. it is "bloomberg daybreak: europe." china begins military exercises around taiwan. in retaliation for nancy pelosi's visit to the island. opec-plus delivers one of the smallest increases in its six decade history. the street in focus. bank of england expected to announce its biggest rate hike in years. fed officials keep up tough talk of fighting inflation. let's bring you bank numbers. 1.9 8 billion, way ahead of the 1.6 expected. way ahead of estimates. you are looking at left density -- at lufthansa, looking to ramp up and meet revenge tourism. it will remain high for the rest of the year. they see a full year above half a billion euros. 585 million euros. clearly positive. stock is down nearly 15%. let me give you a snapshot. to date drop. nasdaq is down most percent -- almost 3%. they talk about risk, perhaps they stepped into early. -- they stepped in too early. equity trading does not reflect headwinds in the world. let's look across assets. oil at a six-month low last night. some of the biggest moves in these ma

manus: what is your take? pelosi talked about security, economy, and governance and she made it very, very clear, an unequivocal message that the u.s. stands by taiwan. your take? >> that's right. pelelow see told taiwan's president this morning in their meeting the u.s. won't abandon tie won and right now, more than ever, u.s. solidarity with taiwan is crucial. that's the message she wants to bring to the tie what wan ease people. -- tie what these people -- taiwanese president. pelosi said she wants taiwan to be secure in freedom as well. that's really a strong and powerful message she's bringing to taiwan right now. she's also saying that, they discussed -- she discussed the possibility, the trade possibilities with taiwanese leaders as well as other possibilities for deepening cooperation from both sides. so that's a huge boost for the taiwanese people, confidence, and the taiwanese government, since the president took office in 016 she has tried her best to seek u.s. support. pelosi's visit undoubtedly wi

manus: right.et's talk about the dollar again following the hawkish fed commentary, cpi prints and what does it mean for the dollar? let's put that to our end line reporter. you have had time in a bit of peace and quiet. you don't have to watch bloomberg for 24 hours to make up your mind on if it is dollar exhaustion. good afternoon. >> the basic reason is to play along with the data from year. i do think the dollar is unlikely to go too much further from here. the fed shows that it is reading the data in a different way than how the market is reading it. the market has been focused on if we are at peak inflation. then, everybody can relax and the clock is ticking from widen the fed pivots. we have our inflation peak so, that is it. the fed is going, hang on. inflation is really high. core cpi, that has peaked some time ago. but they are still willing to hike rates. it has still proven sticky and they have not come down much. i think the fed officials are still really altered by what went on in the

manus: crisis compounded. european gas prices continue to surge ahead of another supply disruption, as the german chancellor goes dutch looks to canada and search of alternatives. -- looks to canada in search of alternatives. >> we are doing a lot of investments to make it happen and doing it as fast as possible. manus: parity recession fears and the euro is pushed down to a two decade low. losses after saudi arabia's energy minister warns opec could cut production to curb a drop. his royal highness else a floor in the market but it is about fx in terms of risk for me. good morning. dani: good morning. it is amazing how the narrative of the market has changed. equities the higher with hopes of the fed pivot to of session over the energy crisis in europe with prices rocketing ever higher. manus: surging away. we are not in extreme volatility yet. let me take you to ground zero for unseeded risk. volumes on short positions on euro-dollar going into jackson hole are monster. oil has a floor, 4%, his royal highnes

manus:. on mar-a-lago. the fbi searches the florida residents of donald trump as part of an investigation to whether he took classified documents from the white house. gas prices fall and expectations for u.s. inflation declined sharply. citi says it would not be surprised by a 100 basis point hike in core inflation is stronger-than-expected. kenya votes. africa's largest economy heads to the polls to elect its next president. we are live in nairobi. it is a moving story about mar-a-lago. we will have all of that in just a moment. i am more a lit up by the risk of a 100 basis point hike in september, takes me back. dani: there is a lot of talk of that. you have goldman talking about disinflation to come. you will take a look at gasoline. let me show you what equities are doing. it does seem that this rally we saw last month is taking a bit of a pause as we await the cpi data. yes, we are higher and s&p 500 futures are up .2%, nasdaq peters up as well., kalanovich says it is time to trim equities and perhaps

manus. manus: what are the investors saying? you know, we are looking about the movement of alibaba from the mainland, relisting in hong kong. i was starting -- chatting to stephen earlier. lots of people saying they couldn't without chinese exposure at the moment. can you tie that together for me? >> that has been already a movement from, as you say, from new york to hong kong. hong kong is seen as a big fish eerie of that. we are seeing volumes pick up and if you look at the report, the deal would benefit hong kong in the way the financial auditing would take place here so really kind of reinforcing hong kong's position as a global financial center so that is being taken positively. the key concern, you are seeing that reflected in market today. hang seng tech index is not really rising. no follow-through from that big move overnight and that is because the big question is, will the fcc accept this? is the u.s. going to push back again on a deal with china? or are we really nearing a deal where the two sides will meet halfway?

manus: the u.s.orney general and says he personally approved the search of donald trump's residence. the washington post reports the fbi was looking for classified documents. u.k. gdp is out in the next hour, expectations are for a contraction as the battle for prime minister continues to rage between liz truss and rishi sunak. oil heads for the biggest weekly gain in four months, speculation that the fuel situation will guide the demand trajectory. goldman sachs predicting the rises. u.s. gas back at five bucks by the end of the year, not what the white house will want to hear. stephen stapczynski talks me through the bullish week that was, good to have you with me. supply constriction. geopolitical neurosis. what drives this week? >> is a bit of both isn't it? you have issues in the gulf of mexico, output is off-line. the market is spooked. it is seeing a bit of a price increase the last few days. you have fears that russia was going to cut supply via pipeline to europe. while it did not cause shor

manus: it is.have been batting these numbers, so let's put fact, 28.7 billion went out in q2, investors withdrawing money. equities tanked, bonds and commodities tanked, but if you add that to q1, 13 billion come by my rough math it is a 15% drawdown in pimco's asset management in the first six months of 2022. this is monster. dani: end of march, 1.5 trillion euros, and at the end of this quarter, 3.9 trillion euros. second quarter of outflows, first time we are seeing outflows since the onset of the pandemic. manus: we will talk about the pricing they are seeing in the insurance market in general, and the impact of global rate hikes. we will talk about that move from the bank of millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never

this is bloomberg. ♪ manus: it is daybreak europe. i am manus cranny in london.rger in london. demand remains resilient. the first interview since taking over. >> september 5 is when we will meet. i have demonstrated time and again that we are willing to do whatever it takes to do with the market requires, but i can't preempt and tell you what we will do, whether it will be an increase of more than 100 are not. it depends on when we sit down and look at the market parameters. manus: do you think there will be more pressure on the u.s. for you as a group to do more? >> i can't say. prices are coming off nicely for the interest of the u.s. for whoever wants the prices to go down, so the noise depends on what rice levels are acceptable to whoever will make that noise. for us, the noise doesn't make us make a decision. the noise we are use to. what counts is when we sit down and look at the numbers. manus: russia was in that opec-plus meeting. did they lobby hard against a more substantial increase? was this the most you can do without fracturing opec-plus? >> i thin

go ahead manus. manus: thank you very much for taking the time.did not get to whether your story would -- in germany for the weekend. returning to wall street, the most prominent investment banks remove some of their last or meaning covid-19 protocols and pave the way for the return to the office 2022 right here on bloomberg. ♪ dani: we'll come back to "bloomberg daybreak: europe. you thought everyone was back in the office but i guess not. goldman and morgan stanley still trying to get them back. manus: they are indeed, they are using covid rules, vaccination requirements. ordering staff back to the office five days a week. similar moves by morgan stanley. everybody is grappling with what to do this winter. can you afford to heat your own home? goldman sachs and morgan stanley order staff back. >> yeah, they have eased a lot of the reasons people might not have been coming back. outside of new york you can go into a goldman sachs office regardless of your vaccination status without a mask and without the requirements for regular testing. that has

this is bloomberg. ♪ manus: it is daybreak europe from london and dubai with me, manus cranny.his chart is the definition of angst in the bond market. government bonds could reach 2% in the next six to 12 months. the economy could slow down. how deep is that slowdown? this is the most inverted since the year 2000. the tendency for the market is to outweigh. if you are expecting to pivot from the fed, no. that would be somewhat overdone. that is driving risk and somewhat counterproductive. let's take a deeply inverted yield curve, the deepest in 22 years, and take it to our guest. let's get to my guest on the markets, it is rupert thompson. investment strategist at kingswood. the deepest inversion since 2000. how many more rate hikes will there be an how deep will be go in the inversion? >> in terms of recession, yes, there will be. i don't think it is going to be deep, i think it is going to be a shallow recession at the end of the year even though we have just had two consecutive quarters of growth. in terms of the fed, the market is expecting the actual cutting rate and i thi

manus: absolutely.ting a bigger than expected loss in three months through to june with downturns at the subsidiary and the russian business. 429 million euros loss. certainly less than expected. outweighing strong orders in gas and power. the ceo of siemens energy. the market will be disappointed with this level of loss you are telling the market and the guidance, lowering the next guidance. how low can we go, how bad can we get? what would bruise you the most? >> good morning. maybe just to give a different view, i'm very glad how resilient the business is. we see a superstrong order intake. all the orders are needed for the energy transition. they have been resilient in this very difficult market environment. we have two factors that make me not satisfied with the business performance. the one you mentioned already, you can see they have revised their outlook for 2022. and posted substantial losses. the restructuring of the russia business. with regard to russia, we are to conclude everything in 2022

manus: elon musk does it again. the world's richest man unloads nearly $7 billion of tesla stock months after he said he was done selling. stocks slide before u.s. cpi a software number is expected with core inflation heating up. the u.k. plans possible blackouts in january in a worst-case scenario. industry and households face organized power outages. very good morning, we are talking about terror in tech and particularly of outages in the u.k. waiting for a bit of news flow but this is a moment of a mini terror attack in tech. dani: tech is just such a huge proportion of the market. an analyst asked the question, what is the point of buying the stock market if tech isn't attractive? let me jump into stocks speaking of which because we are seeing other regions catch up with the negativity when it comes to yesterday's session because of micron issuing that morning. the msci asia pacific down by .8%, asian tech underperforming given that. you are also looking at european tech, or a futures i should say, down .2%. s&p

manus. manus: i will see you in thailand. another six days, very happy to chill on the beach in thailand with you. get the passport out. see you on the beach. juliette saly keeping it real. we can bring dani, too. bring everybody. revenge terrorism is live on daybreak -- what show am i on? daybreak era. american firms optimism about china has fallen to a record low. a little bit more brevity. xi jinping's covid zero policy is a top concern. let's get to colin murphy in beijing. good to have you with us. this has got some serious consequences, hasn't it? tell me how doom laden is it? what does this mean? >> i think maybe the main takeaway is to see how the concerns of covid have become the number one concern for u.s. businesses in china taking over geopolitics. even within covid, there is two separate areas that they were surveying. we continue to see lockdowns here in china. the restrictions on travel -- the executives cannot come into visit their branches here, cannot come into factories and make plans for the future. dani:

manus: we certainly aren't. all part of the narrative around the sanctions over russia in terms of how they hope to come to bear different sanctions on different areas. perhaps with that dominant outcome. thank you great context for a week that has seen substantial earnings in the semiconductor business. let's get to juliette saly who is with us for the first word news. she's had a long week. juliette: european natural gas futures extend their gains as an energy supply crunch continues. the contract settled at 241 euros, above the previous record in early march. weeks after russia's invasion of ukraine. they are 11 times higher than usual for this time of year. u.k. consumer confidence has fallen to a record low this month as concerns about a recession increase in soaring inflation squeezes household finances. jfk declined three points to -44, the lowest since records started in 1974. their survey comes as the annual rate inflation top 10% last month. i u.s. federal judge says portions of the affidavit justifyin

manus cranny indiana, he will be back shortly on the program -- manus cranny in vienna.ompanies are choosing european venues for overseas fundraising as regulatory scrutiny and geopolitical tensions make the u.s. more difficult. a few reasons i just said there in terms of fine chinese companies are looking to europe, but break it down for us. a lot of these are happening in switzerland. what exactly is the appeal? >> we've seen all these chinese firms listing so far this year and a bunch more are expected. in a very wide market, it's a cyber leave in a way. all are delisted in china, but it is better than nothing, right? dani: how have investors reacted? had they embraced these deals? >> most of these deals are seen as friends and family deals. they are listed in china, and they are the ones going into these gdr's. those with mandates, he gives them exposure to asia and more importantly, china. but largely speaking, they are friends and family deals. they are targeted at a very niche set of directors. dani: what does that mean for banks that might be generating these lis

so is manu. they moved closer to final passage of the sweeping climate and healthcare bill. >> right now, senators are nearing their eighth straight hour of considering amendments in a so-called vote-a-rama, sounds like a festival, it really isn't. that marathon process began when the senate voted to advance the bill. senate majority leader chuck schumer says it will help struggling americans. >> this is one of the most comprehensive and impactful bills congress has seen in decades. for families struggling to pay the bills, for seniors struggling to pay for medication, for kids struggling with asthma, this bill is for them. >> republican senator lindsey graham blasted the legislation, saying it will hurt americans already coping with sky high inflation. >> so you're the same people that told us if we passed american rescue plan, all would be well. we're at 9.1% inflation. you're increasing gas taxes. now you want to expand medicare. this is going to hurt the american people. stop the madness. vot

let's get right to cnn's manu raju live on capitol hill. manu, walk us through the process. >> reporter: democrats are trying to get to final passage of this bill after this marathon voting session that started at 11:30 p.m. eastern time last night. it is still ongoing. there have not been any breaks. it's unclear exactly how this is going to play out because there has been some last-minute drama that's affected senate democrats' ability to get to final passage, this dealing with the issue of the corporate minimum tax, a 15% tax that would be imposed on businesses with more than $1 billion in income. that is a central component in this bill that would help pay for a number of the provisions dealing with health care and climate change, energy issues and the like. but there has been some concerns from senator kyrsten sinema about the 15% corporate minimum tax and its impact on some businesses that may make less than $1 billion, specifically companies that are subsidiaries of private equity companies that make more than $1 billion. sinema is c

manus: is it 5%, 10%? ? how bad can it get?e signaled for the full year we expected to approach toward 30. so we definitely see some uplift coming in the second half. it is definitely weakening at the moment. manus: a ceo said to me they see leveraging bottoming out in china. do you agree? >> what we are seeing is a stabilization in terms of what had been in recent quarters. when we look at all the structures, it's accommodation of upfront cost. it would take 3-5 years to implement structural changes, and we haven't completed our work, but based on what we see today, it's been very hard to find any matching things to put in front of shareholders. manus: you are actively talking about a separation or chinese listing for hsbc. >> not at all, actually our conclusion is that doesn't stack up. we don't see the value case to do it relative to the plan that we see for near-term value for shareholders. manus: is that part of why the dividend narrative is in the release today? >> we've been keeping costs flat and reallocating capital an

let's bring in manu raju. tomorrow is ten weeks until the midterms.licans once pretty bullish about a red wave are bracing for a tighter house majority. what are you learn sng. >> expectations changing dramatically in the aftermath of the supreme court decision to overturn roe v. wade. something that has led to increased democratic enthusiasm in the midterms. there had been a significant enthusiasm gap between republicans and democrats. that has closed. also, some special election races have gone democrats' favor, including with some positive news in polling suggests that perhaps those margins that republicans had been hoping for could be a lot tighter. now, republicans just need five seats to net five seats to pick up the house. that still seems likely. republicans are still expecting that. the talk of getting up to five dozen seats that kevin mccarthy floated last year, seems increasingly unlikely according to more than a dozen republicans we spoke to. they expect potentially 15 to 30 seats. some expect even a single digit pickup, which could mean t

manus cranny.on tech players in the region, they are being dragged lower today after alibaba fell amid escalating concerns that the stock could be booted off american stock exchange is for failing to comply with disclosure rules. shares adding to declines we saw at the end of last week, tencent is also under pressure. the hang seng tech index has switched into positive territory. when it comes to broader chip stocks, they are mostly lower. the u.s. is tightening china access to chipmaking gear, the asia-pacific semiconductor index has fallen today by as much as 1%. we are seeing the u.s. expand according to lam research told analysts there is quite a bit of weakness coming through in china chip players. rishaad: overall markets, quick check on what is going on. mixed. the hang seng is down, others are showing some positivity including the csi 300 which has flipped around and is positive. as far as other asset classes, at the moment, the dollar is a tad weaker but recovery. the taiwan dollar is belo

good to see you, manu. thank you for that. >>> all right, so the passage of the democrats' bill would be a major reversal of fortune for president biden. it revives his stalled agenda and includes the largest investment to fight climate change in u.s. history. >> let's bring in cnn white house reporter kevin liptak. you covered every iteration of this proposal from its very, very significant and large initial stages to where we are now. how momentous would passing this be for president biden? >> reporter: well, phil, you know too, so much of what has included in this bill had been basically left for dead at various points over the past year amid this internal feuding among democrats. and so this agreement is a hard won agreement and it is for the president something of a vindication of his approach towards this. he left room for these negotiations to proceed. he didn't necessarily give in to these calls from democrats for a little more urgency. and he didn't shy away from compromise. and this bill does incl

manu raju is out front.t's as if this was a done deal, now it is could they even get it through? where are we right now? >> right now, the democrats believe they have all 50 of their members in line after intensive negotiations over the last several days with senator kyrsten sinema who cut a deal with democratic leaders after raising objections to some key tax provisions part of the deal. instead, they fast-moving a different direction, including tax on -- help make up the shortfall that is a result of her demands. because of their deal that she got behind as well as the support from senator joe manchin, the two key holdouts, from manchin in particular, who paired back the presidents initial build back better plan. they believe they have the support to push this through. there are still some key hurdles in the hours ahead, including one from the senate paramilitary and who still have to decide whether or not these key provisions in the bill with the test under the budget rules to allow this bill to be approv

but manu gave a preview. the most important thing is to get this bill passed. it is a bold and ambitious bill that reduces prescription drug prices, cap out of pocket prices for millions of americans, reduce partly cloudy health care costs, pay down the deficit by as much as $300 billion, and makes significant progress on combatting climate change. that larger framework i am confident all 50 democrats will support and we will get this bill to president biden's desk. >> but the issue is that senator sinema doesn't want to close the carry interest loophole, thereby allowing wealthy hedge fund and private equity managers to keep paying this reduced tax rate on income instead of the rate that most americans watching pay. has she given a reason as to why this loophole should not be closed? >> this is something that i have supported our closing. everyone else in our caucus has supported closing, moving the time that you have to hold on assets in order to get this particular treatment from three to five years. it would raise $14 billion and would help us both pay down

manu raju is joining us now. what's going on on the senate floor? a little party for some of these senators, right? >> reporter: they've been going since 11:30 p.m. eastern time last night. there are hours more of amendment votes ahead. no way to estimate exactly what time this will end. under the rules of the senate, senators can offer a limitless number of amendments because of the process that democrats are employing to pass this bill. because they're using the budget process, essentially it allows a republican or democrat to offer any amendment they want. you need 100 senators to agree to one amendment vote. not now, which is why it's really uncertain when this will come together. what's certain so far is democrats have been sticking together, defending off republican efforts to amend the bill. actually right mao the democrats are going to push back against one of their own, senator bernie sanders has an amendment on the floor right now to extend the child tax credit and raise the corporate tax rate which most democrats agree with, but they're c

manu raju is on capitol hill for us. this was once called the build back better agenda for joe biden. he didn't get everything he wanted, but they got a lot of what they initially were going after. how did it get resolved? there was some last-minute drama here. >> reporter: yeah, this capped more than a year of negotiations within the democratic party. you mentioned the build back better agenda. this is scaled back from this, but still significant in size and scope, dealing with health care, drug prices, climate and energy issues, imposing a new 15% corporate minimum tax that make more than a billion dollars. it was that tax that caused last-minute drama on the floor of the senate, when senator kyrsten sinema of arizona, she negotiated some changes at the end, but she also negotiated on the floor today, because of her concerns that this 15% tax could hit some companies that were essentially subsidiaries of large, private equity firms, that she believes would have been unfairly hit. he was going to -- he did support a rep

manus: you are watching the best of the qatar economic forum. i'm manus cranny in doha.

manu raju, this is not a visit the white house was at least encouraging.ials said to me it's up to the speaker and we will work to keep her safe while there, et cetera but president biden let on in his public comments the defense department didn't believe this was the right time. is pelosi going there over in effect the objections of the biden administration? >> yeah, look, there were concerns this would only exacerbate tensions. the u.s. is trying to keep china out of the russian war against ukraine and a whole host of issues that are leading to tensions between the two countries but nancy pelosi has long been a sharp kcritic of china. this is a key part of her record through the course of her long career in congress, of course, in 1991 when she was in china, she walked -- she without permission of the chinese leadership, she and two other members of congress went to the square and unferrelled a prodemocracy banner -- >> manu, hold the thought for a moment. on the steps there, believe that is the speaker, nancy pelosi wearing a mask setting foot on tiawan

manu, with sinema on board, it is looking good for democrats. republicans say they're going to go after that bill, though. what are you hearing? >> reporter: this morning they're laying out what their strategy is to try to derail this proposal. they have very little recourse if no democrats defect. but they are going to try to make it as difficult as possible for democrats, when this hits the senate floor tomorrow. after they vote to open debate, which i'll 50 democrats need to do, to do that, 50 republicans will vote against it, the vice president could break the tie, moving ahead there, then afterwards ten hours of debate on each side and then a gauntlet of amendments, series of amendments in which republicans can offer and democrats too anything they want and democrats -- republicans plan an aggressive floor strategy to try to change the bill, scuttle the bill and convince joe manchin, kyrsten sinema or anyone else to defect and sink this bill at the end of the day. what lindsey graham told me, he said you can expect hell on the senate floor.

our chief correspondent manu raju is joining us live from capitol hill right now.re the chances democrats can actually pass this bill before their august break? >> reporter: it is still uncertain. even though the senate majority leader chuck schumer indicated that he still plans to bring this bill to the floor this week, but there are two big reasons why it is uncertain. one, senator kyrsten sinema of arizona and procedures. now sinema is waiting for the senate procedure to play out and that is a review by the senate parliamentarian to make sure this bill could pass by the budget process and that is significant because if the parliamentarian agrees that the provisions in the bill dealing with health care and climate change, dealing with taxes, could be approved in the budget process, this means they could approve it by straight party lines. they don't need any republicans to support this. it could be filibustered. but they do need all 50 democrats on board. and sinema is declining to comment tonight ant facing pressure on both sides, democrats on the left urging he

manu raju is on capitol hill. manu, what does senator sinema want?> she has been concerned about taxes for some time. that had been an issue in which she scuttled provisions in the president's build back better plan to raise corporate income tax rates and personal income tax rates and has raised concerns about that privately. this proposal does not have those taxes, but it has two other taxes. one to set a corporate minimum tax of 15% on big corporations as well as dealing with the issue of so-called carried interest, which is a tax that would impact hedge fund managers as well as private equity. she wants that carried interest provision out of this proposal. that would raise about $14 billion for the democrats' package here to help pay for their big proposal. also, this issue of dealing with the corporate minimum tax would generate much more revenue to pay for everything from climate change proposals, energy proposals as well as extending health care subsidies under the affordable health care act. she had a private call with business groups yesterda

manu raju is on the phone. manu, bring us up to speed, what is going on? significant development in a clear sign that joe biden could very well land a major legislative victory here in the days ahead. senator -- who has been the key holdout in the major economic package by joe manchin and chuck schumer being put forward for his health care loss on turkey, as well as new taxes, she said she would agree to move forward with this legislation after a deal she cut with chuck schumer, the senate majority leader. let me break it down. to get this bill through, you need all the democrats to be on board. sinema was one of the biggest holdup because of her concern over the tax provision. one of the tax in their was hedge funds on private equity. she has an agreement to remove that from this proposal. that is about 14 billion dollars on a plan that democrats estimate -- that she's also raised concerns about the issue about 50% minimum tax on major corporations. now, this will be confirmed for her because manufacturers in new york talk about how they were -- whether t

manu raju is on the hill with much more on this. manu, what are you hearing today?t here, because she's the one democratic senator who is a noncommittal about this piece of legislation. and it remains to be seen where she ultimately comes down. this bill is moving along a process that they can approve it along straight party lines because they do not expect any republicans to get on board behind this. and in order for it to move along, it has to pass muster by the senate parliamentarian, who has to ensure all the provision meet some of the strict senate budget rules to allow it to circumvent the filibuster. it's so significant, because if she agrees that the parliamentarian does, that it does meet the test about the senate budget rules, it can be approved along party lines, but it requires kirsten cinema and all the other democrats to vote yes to send this to the house. joe manchin, who was central in this negotiation, indicated that he and chuck schumer were the only two people involved in these intense negotiations, but he argued in talking to reporters about how

let me bring back in manu raju. give us an idea what's happening rights now. >> this is the final passage vote. this is what democrats have been waiting for really more than a year. but certainly since the beginning of last night when this voting process began. amendments started at 11:30 p.m. eastern time. we are now at just past 3:00 p.m. eastern time there have been no sleep for many of these senators, or cat naps, a few minutes here and there. but they have been going nonstop through the night, through this process to get to this point, which would achieve a significant portion of joe biden's domestic agenda. this is something that had been stalled for so long because of disagreements between liberals and moderates, and because of efforts, the unsuccessful efforts for some time to win over those key democratic moderate, joe manchin, kyrsten sinema, who had significant concerns over aspects of this bill. but after a deal was reached, unexpectedly as broad as it was, just a little under two weeks ago that democrat

manu, what's the latest? >> reporter: there are some late discussions happening right now among senate democrats trying to change some of the tax language dealing with that 15% corporate minimum tax that democrats want to impose through the legislation that would help pay for this legislation, these proposed programs under this bill. that would affect big companies, companies that have about a billion dollars or more in income. but there is some concern that some of the language could impact some of the smaller companies, so right now behind the scenes they're actually discussions happening, joe manchin, kyrsten sinema have been in talks with the republican senator john thune who has an amendment targeting this issue that he plans to push forward. those two senators, democratic senators, just left thune's office. thune confirmed the discussions are still ongoing. now, even as they're making potential changes to that, there have been also big change that happened recently. that was republicans succeeded in pul

manu, you have been up all night. you don't look it, but you've been up all night with the senators watching it all unfold. what's the latest? >> reporter: the senators are expecting several more hours of voting after starting the votes at 11:30 p.m. eastern time last night, going all through the night. i just walked into the senate chamber. senators appear surprisingly energetic. we expect this to wrap up probably some time early afternoon. because of the procedure they are employing here, democrats are trying to pass this bill along straight party lines. cannot be filibustered because they're using the budget process. that same process gives senators an endless amount of amendments and essentially they can offer amendments until they decide to give up, essentially here. now, republicans have offered a series of amendments targeting immigration, the irs enforcement as well as energy provisions. democrats have banded together, they have stuck together and rejected all of the republican attempts. they have even voted d

francine: the new opec secretary general speaking to manus cranny.ook at the events we are following today. at 1:30 the u.s. jobless claims and business outlook, that is followed by earnings news. the company is expected to benefit from a cosmetics renaissance in the u.s. and europe. and then we will have u.s. july existing home sales data. and tonight separate events about the economic outlook. coming up, manchester united's owners are considering selling a minority stake in the football club. could the richest man be one of them? this is bloomberg. ♪ >> when it comes to the russian assets, we have been instructed by the government to exit these for the time being. they do not really trade, we cannot be certain where they end up. we have not sold them yet. we came into this year underweight and shares, and lest risky bond portfolio, we have taken that underweight. we remain slightly cautious on the outlook. markets do not go down in a straight line. we are uncertain and whether we have seen a bottom or if we will see a continuation. francine: that w

dani: mark -- manus: -- through the start of next year.ani: bank of america says it could induce a 7% reduction in equities, how are you looking at the effects of qt and what markets are most mispriced and perhaps expecting qt not to follow through in qe in the future? mark: well, i think the one way -- i am concerned about the u.s. without a shadow of a doubt, but on the other hand, it is the fact that european equities facing this energy crisis that isn't going away, with all of the problems related to the drought in europe and power supply and transport, it is the fact that european equities have rallied so hard. and secondly, we have seen this big crunch in credit spreads, particularly the last five to six weeks. which worries me, apart from anything else it encourages the fed to say sorry, markets, you are meant to be doing some other work for us here and we are telling you we are not actually going to relent at the moment, why are you loosening financial conditions? dani: i know we have a great chart from our markets editor valerie,

manus: do we need energy -- do we need to accept that energy is delayed not denied?sitioning out of the use of coal, the world uses coal so we need to agree on the definition of energy transition and i do not think it means we should stop using oil and gas on fossil fuels. i think we should collectively work together with tech providers and international oil and energy companies to find ways to advanced technology and de-the production of oil or gas -- and de carbonized the production of oil or gas. the solution is to try to find technology, ways and means to de carbonize fossil fuels instead of moving away from them. you cannot just take one and -- take one and replace one and it would overnight. shery: a heat wave in southwestern china is curving hydropower generation and a growing threat to the energy supply. the world's top battery maker is closing a plant in the province as drought crisis work in -- worsens and this extremely hot weather is going to persist. well above the 30 year average. it will moderate slightly at the end of the month. let's bring in the hea

with me to share the reporting and insights, manu raju, jackie kucinich.ormer president's lawyers are in direct communication with senior attorneys at the justice department that tells you what? >> it tells me that they are looking for information by engains with a dialogue with the justice department, i think that they are there in part to be able to by asking questions find out as much as they possibly can about the scope of the investigation. about whether mark meadows is going to be charged. about how close the investigation is coming to the former president. so while they can engage in conversation about executive privilege and attorney/client privilege, i think the most that they have to gain through these meetings is what they can glean from them. >> a fascinating moment the timing. we know the federal grand jury is looking into this, the fake electors plot, should we seize voting machine, not just about the violence on january 6, it includes the who's who of the trump administration, people involved in the plan. two top aides to mike pence. white h

to manu raju on capitol hill to break down these changes and also if you can update us on where the senate parliamentarian stands on all this. still need that stamp of approval. >> that's right, jim. the changes were significant. this left for several days of negotiations to get sinema on board, get all 50 democrats en board and move forward on this major piece of legislation. sinema raised concerns about the taxes in this bill that helped pay for the spending on climate change, and on healthcare initiatives and energy initiatives, but she had concerns about you mentioned the carried interest loophole, so-called loophole, that is the tax that democrats wanted to impose on hedge fund manager and private equity. she got that eliminated from its proposal. she also raised concerns about how the 15% corporate minimum tax on major corporations, how that would be structured in this bill. she had raised concerns about how the changing language and how companies can deduct depreciated assets on their annual tax returns. they narrowed that as a result of concerns she raised about what the democrats

she told our colleague, manu raju this morning -- i believe it was manu, that she's taking time to readscience of it. does that change the politic, the frustration of washington? >> i don't know if that will impact the political environment perhaps as much as abortion should as we talked about at the top of the show. but you'd rather go to the voters with a list of accomplishments than not on some of these high priority items. and again, this has been core to your point of joe biden's identity, of trying to get people together in terms of the bipartisan bills or in the reconciliation bill delivering on some of his key core campaign promises to voters in hopes democrats will get enthused around that. i am less of the mind that getting that agenda passed, which is significantly important to democrats and the president, is going to be the thing that can upend. >> but collapsing now would be a fatal blow or a hard blow anyway. is there any chance -- you cover the hill a lot -- sinema walks away from this and can't do it? >> it's hard to tell. she's keeping people guessing. i will say, thoug

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cnn chief correspondent manu raju is on capitol hill for us.u have learned. >> reporter: this is the first step to moving forward on this big package. this deal that was reached just days ago between chuck schumer and joe manchin, dealing with health care and going after prescription drug prices and spe spending hundreds of billion dollars on climate and providing a 15% corporate minimum tax. s schumer saying they will have a procedural vote on saturday to take up this bill. it still does not mean that they have votes to get this out of the united states senate. and large part because of one senator, kyrsten sinema who has raised concerns over the tax provisions there, one of them dealing with the issue of taxes on so-called carried interest rate which refers to hedge fund and private equity. but they're trying to resolve her concerns on that issue and other issues and they need all 50 democrats to be on board in order to advance this package. if schumer does get sinema support, then it will go through the gauntlet and after 20 hours of debate,