Dani good morning and happy friday edition of bloomberg daybreak europe. Im dani burger in london. U. S. Inflation reading, but San Francisco fed president mary daly says the bank has more work to do to combat rising prices. Country garden a penny stock after the largest Property Developer expects multi billion dollar loss for the first half of the year. Ubs has repaid the Credit Suisse liquidity assistance in full, and is voluntarily ending the 9 billion swiss franc government protection. Ubs confirming not only that they are not going to use the backstop, they are not using the safety net given to them by the swiss government. They are saving saying, take away the safety net. The first part was they have terminated the 9 billion swiss franc loss protection agreement. This was the backstop they needed to guarantee that they would acquire Credit Suisse. Second, they have terminated the public with quiddity backstop by smb, that was up to 100 billion swiss francs. The third point is the
Economists were expecting at least a 4 . Property investment is a sore point, still eight. 5 down. Worse still 8. 5 down. A slight pickup in the jobless rate. I cannot seem to find a be. It seems like a miss across the board on activity numbers coming through. We are still waiting on some other numbers. In some ways we thought this would be soft but not this soft but the rate cuts in the seven day. Markets are not really reacting as much. Yvonne currency continues to be something traders are ignoring, pboc fixes given the pressures we are sitting on the currencies. Yields are taken higher globally. We could be seeing a scenario of 754 china but looking at how markets do say were seeing slight declines so taking it in stride right now. Maybe a cushion in markets in terms of sentiment. The retail sales print is the lowest we have seen since last december. National bureau of statistics should start their press briefing to give more context. And we have helen chow out of bank of america. W
Welcome to daybreak asia. We are coming down to ages major market opens. Haidi the top stories this hour. The market searching for motivation as a tame u. S. Inflation report the case for a fed rate skip. A weak 30 year option. Alibaba returns to Revenue Growth across all major divisions define chinas define chinas economic woes. Bloomberg learns chinas market regulators will meet developers and financiers on friday seeking solutions to a worsening property crisis. Kathleen we are waiting for the Rate Decision from the banco ce ntral peru central bank. Expected to hold again even though inflation is falling. They did holder key rate at seven and recorders percent exactly as expected. We are going to be looking for messaging because Goldman Sachs had predicted they might cut their key rate today because inflation has had a nice downward trend lately. If not today they will do it at their next meeting. That is the latest from latin america. We will be waiting for any Additional Informati
There is the nonevent on your screen visually if that is even possible. U. S. Futures slightly higher about four points as we approach the midmorning parts of the session. Still tracking developments across Country Garden, or the lack of it, and the payments that we believe have yet to arrive on this coupon payment. Down about four. Guys, were looking after the three year bond option it is a 10 year yield coming up next. I believe it is thursday or Early Morning our time, but that is relative because we are all over the place. Yvonne overnight it was well received but when you take a look at where yields went, actually went lower despite all these auctions taking place. It is an indication of how there is trepidation in the markets. Given the china slowdown. The trade numbers yesterday was what triggered a lot of the selloff in stocks. Then you have this inflation picture. Yes it is better than expected in terms of cpi prices but overall both and contraction for the First Time Since la
Well reveal the company and speak with the ceo and an interesting three buys and a build gina sanchez is buying the u. S. Consumer and selling the chinese one. But first, to the inflation reading. Im still raising my eyebrows. And mike santoli is here to explain. A big part of the story is the bond yields. Yesterday, we had a failed rally on a benign cp ireport today, a telloff on a slightly hotter than expected ppi this really has been chopping around as the seasonals get a little more challenging coming into august. If you look at where it sits in a oneyear term, that pullback did get us right to the precipice of that 50day average. 4443 was the intraday low. This morning in the s p, why did that matter, if at all take it back, and ill tell you on july 11, the high for the day was 4443 what happened the next day really nice cp ireport, reported july 12. The market popped from there we filled it this morning. People think this matters, but it matters on a macro basis, because july 12,