Good morning and welcome to do regular. Lets get to the top stories that set your agenda. Asian stocks fall in the wake of big tech declines on wall street. Traders stand by for a big week of centralbank decisions from the u. S. , the u. K. , japan, all around the world. We are bringing you the best analysis on Bloomberg Television and radio. The United Auto Workers bit union except a pay raise. The strike gets the big three u. S. Carmakers as they enter a new day as the team from the white house moves to detroit. Plus, as World Leaders gather for you u. N. General assembly, and Linda Burbach tells bloomberg they will end their reliance on china. All investors really bracing for what we will hear out of the centralbank decision. The ecb already kind of rocking everyones world last week. Really pulling back on a lot of pushback from across the continent. That will be significant when we talk about just how people are positioned going into the week of centralbank decisions. List are from the bottom up here. The fed will be the highlight this week followed by a lot of the moves from the boe but then all of the ball you have brazil reporting. The boj at the end of the week. What does the centralbank rhythm tell us about whether or not we are ending this time of heightening . This will be crucial as we talk about the equity market. How much of that will have an effect on the price of the market and the Ripple Effects into the equity market . Thus our sense of it coming off at the moment. The futures, not that much reaction in the top 50 but a lot of that might be sentiment coming from asia. We will dive into what is going on in that part of the world right now. Green on the screen in the u. S. Session. A little bit of a defensive trade at play there. The inflationary measures, specifically one talk about brent crude. That is where well see a lot of green on the screen. Higher by. 6 . Almost 95 per barrel for that commodity. That will be crucial. We are already seeing a little bit of Ripple Effect into the commodity exposed currencies. Look at the kiwi. The biggest contributors on the bloomberg dollar index, even the swissie. Now paring back some of that earlier weakness. It is something we will keep a lot of our eyes on at the moment. We are getting breaking news. They are talking about revisiting some of their strategy. Right now they are trading at their lowest price, lagging all of their computer their european competitors right now. Now theyre talking about what that strategy looks like. They are phasing in their cet1 ratio by 30 from the end of 2025 in the 2600 basil four program. We are going to keep you apprised of all of those developments. We can dive into what this all actually means right now. Lets get to our stories from all around the world. I want to start with you. The market story will be the crucial driver. Specifically when we talk about the Federal Reserve. Lets start there. They came in with some analysis as we can saying that the legs are not priced into the economy. We will still see a lot of that. To me that his front of mind. What is front of mind for you . How far they shift those dots. A lot of speculation on a possible shift higher. That is the way the fed members communicate where they think the rate is by the end of the year. They could possibly shift those 2024 dots higher in a bid to convince markets that hire for longer is here. There is some speculation that we could also see some shift in this threat of additional hikes moving through this year into next year which would be a very interesting way for the fed to communicate that threat of additional hikes on the cards. Maybe not until 2024. Those would be the dynamics at play for the fed. What would that set for the bank of england . Is jay powell central banker central bankers of the world right now . It we have the ecb already signaling, we get the same was from the bank of england. We do get that cpi print on the people of this bank of england decision. Possibly harvey acceleration and core inflation would prevent the bank of england from signaling that the rates have peaked here in the u. K. But i think the market is expecting bailey to sound as dovish as he did two weeks ago on the Treasury Select Committee and very much and that the peak of rates is here. What is so interesting about that is even over the weekend you heard some people saying from some european leaders really pushing back on the strategy. I heard that she is living on mars. Some of the big fighting words coming out of the european leaders, this divergence you are going to see in between the monetary and fiscal policy really escalating for lack of a better term. Is pretty interesting to watch. We think you as always for that story. The the fed and the centralbank anxiety april is standing by. Walk us through. You talk about the centralbank anxiety. It is not just the fed. We are watching here in asia but also keeping close watch on the chinese real estate sector. The pessimism surrounding the health of that. Offsetting the signs of optimism we see stabilization coming off of the chinese economy. At least based on some of the data. Then we have the tech sector today, it is dragging the benchmark in the region. Taiex underperforming. Dragged by tech after the declines on wall street last week. Unsurprising the kind of moves we are seeing. I want to focus on these because this was to the lowest level we have seen early on in the session. Into the green now. The focus on the chinese property stocks. There is a boat that is due for their extension. In evergrande, another stock watch. Developments over the weekend where we got those police arresting or detaining some of the Wealth Management units. We saw it dropping 25 early on in the session. Pulled into positive territory now. The concern is this could be a sign that it is a new phase for the Property Developer and whether this will mean more problems to come for chinese real estate. As we look ahead to some of the centralbank positions this week. At the core of it will be the inflationary story. But this is not something we are talking about, the wage piece of that inflation. How the asian markets are faring right now. At the core of it, it comes to the stickiness of inflation. A big part of that is going to be the wage story. It is going to be how a lot of these unions specifically in the United States are setting prices for the Ripple Effects around the world there. This is in response to one of the biggest rag stories in the world right now. I was that we doubt with the semiconductor shortage. They have continued to persist from covid. Our team knows how to manage these situations. We will do what is right for the company. We will make sure everyone stays safe. Responded to some of the fighting words coming out of the United Auto Workers. Representing about 150,000 workers. Oliver cook in berlin is monitoring the International Impact there. Walk us through the updates over the weekend. Lets remind where we are going through this weekend. On friday, for the coming out of the side of the union. Record profits in the form of record contracts. We heard from the president of the union. Not impressed. Question, percent is a no go for you. Definitely. We made a very clear to the companies. No go, there were reasonably productive conversations over the weekend with ford, gm was at the table on sunday but there is still a very massive void between where the two parties are and it is hard to see how there will be a resolution anytime soon. I had to jump in, ali. The strike story is fascinating. What will the white house do with this . Was there to trip dish deploying a team led by julie sue. This will help facilitate negotiations to be there as a media moderator and to be actively involved. The union very deliberate they said they will be strategic about how they deployed the strikes. In the sense that it hit three states, three companies. It has been a shallow strike. Only 13,000 people. This is a union of 150,000 people. What they are contending with is the strike fund. That will be slowly about as people go on strike. If every single worker were to strike. The way they are building it out, this is something that could last for quiet sometime. That will be something of course. Oliver in berlin. All over all of the updates. We have two more for you. We will start with this internet comedy based in johannesburg. Their ceo is stepping down. Instead, they have an interim chief executive. It is unclear what the reasoning is there. Or how long the interim chief will be in charge but for now, it is something we will be watching and of course the market open beforeandafter. Another Major Corporate story we are watching comes right back to the banking sector. They are talking about how much they will be re revisiting their strategy. This has been a pretty dismal summer when it comes to some of the recovery they were expecting. Stockton has been lagging. They are seeing their cet1 ratio. Of course i am more in that throughout the show. You can round up all the stories you need to know in this at addition of daybreak. Subscribers can very easily type in da y ego. Coming up, we go to the u. S. , Kevin Mccarthy demands a percent spending cut for domestic agencies to avoid the u. S. Government shutdown more on that next, this is bloomberg. Make a splash with the ultimate pool party essential. Blendjet gives you icecrushing, big blender power onthego, so you can soak up the sun with a frosty beverage. Enjoy 15 blends before rapidly recharging via usbc. And it even cleans itself with a drop of soap and water. Stand out even when youre accidentally twinning with our kaleidoscope of colors. Make this summer the coolest ever. Order yours now from blendjet. Com. Germanys foreign minister says the European Union must reduce its reliance on china and Linda Burbach tells bloomberg how the regions has changed based on the global fallout from the war in ukraine. We have learned our lesson from our russian dependencies. I believe it is if you can be self reflective and say this was obvious and not the right way to go, we had such a high dependence on russian russian gas and oil but especially gasp that obviously in the past, the four government decisions that were not the right one. Speaking of this as a purely economic thing, nothing to do with geopolitics. I was in a position back then and it was also at the peninsula for example where there was a source of this pipe coming through. Too many people there. I could not only fear for our partners in the baltics but i said this was always the geopolitical dimension. I was always arguing before election that we have to see the action. We set a collision treaty. We formulated this before russian war. We would renew china strategy and after the invasion, the fall invasion, we not only were the strategy, this is limiting. What about chinese retaliation . Yes. First of all, understanding that if you are bound to closely, it can endanger yourself. If you are having such a high dependency of a regime like in russia which is taking your own peace therefore, cutting down Oil Dependency from russia but also with regard to china, derisking is no decoupling. You cant decouple interconnected world. A connected world is a way to peace. We should be able to defend ourselves, not be naive. Being a partner in climate issues. Being a competitor with china with new pet with new technology but also seeing we are systematic rivals and we have to protect our own vulnerability and this is where the Commission President comes in to our Critical Infrastructure in europe but also in looking at Outbound Investment screenings. The German Foreign minister speaking there. Lets look at some of the other stories we are tracking from around the world. The death toll from devastating floods in Eastern Libya has surged past 11,000 in the city of durham alone. United nations estimates more than 10,000 people remain unaccounted for in the city after rare hurricane like storms slammed into the north african nation last week. Almost a quarter of the entire population are either missing or confirmed dead. U. S. National security advisor Jake Sullivan and the Chinese Foreign minister have met over the weekend in malta. Among the agenda items, a possible meeting between President Biden and president xi at the apec summit in november. This comes at a quicker time in u. S. China relations. And elon musk has visited the turkish president in new york, spending about 45 minutes discussing Artificial Intelligence and a potential tesla factory in the region. Spacex has also been working with turkeys Space Program to launch communication satellites. The meaning comes as World Leaders begin to gather for the annual meeting of the United Nations general assembly. And now to some news overnight from the United States. Kevin mccarthy has made demands to hold off a Government Shutdown for a month. For more insight, we are joined by derek. You are reading the stories. Kevin mccarthy has the social programs, really tight deadline and a fiscal calamity. Walk us through the difference between this Government Shutdown and the debt ceiling debate we had just a couple of months ago. You are right to notice a lot of the similarities. It is sort of like if you have a hollywood movie and then the sequel is not what is good but it has some of the same notes. That is how i would look for an International Audience at this fight here. It is not as serious as the debt limit fight. The debt limit fight was something that may have gone spectacularly wrong. This one is more annoying initially. It is quiet severe if you happen to be caught in the crosshairs. What youre talking about specifically is a funding lapse. A government funding lapse. The u. S. Government runs on an october to september calendar. October 1 is the fiscal know your soap be fiscal new year to everyone out there. But it will be a very celebratory mood in washington. Specifically in all of these places in the u. S. That have real connection to federal dollars. A lot of those dry up very quickly. The government has to go through. What is essential, what is not essential . The essential stuff, some of this continues but sometimes it reduces. It is a complicated sort of situation but basically, october 1, midnight, washington time, that is the deadline. Kevin mccarthy loves to hammer on. Talk to us about what can actually be done. One thing that both sides can agree on is some sort of shortterm funding response. Look at that actually look like . You would think so but the math isnt actually white so easy. Kevin mccarthy is trying to figure out what he can get through the house to give him a little bit of a leveraging and leveraging edge. Republicans are trying to figure that out. The current offer seems like it is going to be about one month stopgap spending bill. Attached to it, Border Security money. The problem is the white house doesnt really want to do that. The senate doesnt either. They dont want the republican Border Security bill because it contains a whole bunch of things they dont like. The senate also wants to put some money in for ukraine. There is some disaster aid money that could ride along with this as well. It is a little bit more complex. Mccarthy has a math problem and he could lose at most for republican votes. Just on statements on x, i counted since his plan came out, or than for people who said they dont like this plan from within the House Republican conference chair so it is not quickly or how the math goes here, how you get to the number that gets you across the line. Im sure as a fundamental baseline that there are the votes to fund the government in some form. If you get democrats and republicans working together. Right now, that is not really on the cards as an opening play. Remember when we were talking about the debt thing and i said at point, sometimes you go now, no, no, yes. We are on the first one or two nose on that cycle. I love that you say Kevin Mccarthy has a math problem because naturally americans are known for their math skills. Arent they . Something we will be watching very closely from around the world. We can walk what is really a crucial story for the u. S. Government. It doesnt really feel like that. Perhaps a little bit of a different approach from australia. We will bring you all the details, what that actually looks like. We will dive into it next. This is bloomberg. Welcome back. This is daybreak europe. Lets get to some corporate stories from around the world. Foxconn plans to double its investment and employment in india. Highlighted in accelerating manufacturing shift away from china and a linkedin post. The Taiwanese Company says it plans to double the size of his business. The plant is likely to assemble iphones. This will create 100,000 jobs. That comes after the lost Taxfree Shopping for visitors. Jonathan says the gap has opened up. Territory sales are steadily increasing over the past couple of years. It is a good trend. There is a gap between our tourist in mainland europe versus the u. K. We will keep communicating that. You would have been an opportunity to bring more tourists in. The bradberry ceo talking about the changing landscape in front of the fashion. Lets get a quick check on the rockets. We look at the futures trading, you are seeing an accelerated bed. We will call this down. 1 . Not releasing all that pressure that perhaps a lot of people would expect after the pain you saw this weekend or a