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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Day

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Speaker 1: Bake podcast, available every morning on Apples, Spotify or wherever

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Speaker 1: you listen. It's Friday, the sixteenth of August in London.

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Speaker 2: I'm Caroline Hepke and I'm Stephen Carroll. Coming up today.

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Speaker 2: As Western nations ratted up tariffs on Chinese electric vehicles

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Speaker 2: and chip technology, the country Central Bank offers caution on

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Speaker 2: stimulus Goldilock's returns.

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Speaker 1: Traders scaleback bets on FED ratecards as the latest US

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Speaker 1: economic data defies expectations.

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Speaker 2: Plus, as Gaza ceasefire talks restart in Doha, calls to

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Speaker 2: reconstruct the territory or growing louder, but it's not clear

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Speaker 2: who will pick up the eighty billion dollar bill.

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Speaker 1: Let's start with a roundup of our top stories.

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Speaker 2: European Union tariffs slowed the influx of Chinese made electric

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Speaker 2: vehicles in July as the block move to protect its

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Speaker 2: carmakers from low cost competition. According to research from Data FI,

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Speaker 2: the number of new evs that Chinese manufacturers like Bid

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Speaker 2: registered in the EU last month fell forty five percent

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Speaker 2: month on month, while the drop may have been exaggerated

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Speaker 2: by carmakers rushing to get evs to dealers before the

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Speaker 2: added levees took place. It reflects growing trade friction between

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Speaker 2: Western countries and the world's second largest economy.

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Speaker 3: Well.

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Speaker 1: The latest data comes as China faces increasing economic headwinds

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Speaker 1: at home, underscored by filtering domestic demand and a prolonged

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Speaker 1: downturn in the housing market. On Thursday, the country's central

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Speaker 1: bank chief pledged further steps to support the economic recovery

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Speaker 1: in China, whilst cautioning that it won't be adopting extreme measures.

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Speaker 1: Bloomberg's midmin Low has more.

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Speaker 3: The governor, Pangong Shin. He gave an interview to state

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Speaker 3: media and he meets some rather ambiguous comments. He talked

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Speaker 3: about the need to maintain policy stability and patience, that

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Speaker 3: there shouldn't be drastic easing or drastic tightening now. Obviously

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Speaker 3: the state on a Chinese economy now doesn't warrant any

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Speaker 3: drastic tightening given the rather leg laster economic data that

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Speaker 3: we saw yesterday, slight rebound in retail sales, but there

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Speaker 3: was from a very law base in June in an

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Speaker 3: unexpected decline in fixed asset investment as well.

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Speaker 4: Well.

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Speaker 1: That was Biinimberg's mid min low. President Shihingping's government is

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Speaker 1: targeting growth of about five percent this year as policymakers

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Speaker 1: try to shake off a post pandemic slump. However, economists

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Speaker 1: say that the government will need to accelerate spending on

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Speaker 1: infrastructure and other programs if that target is to be realized.

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Speaker 2: Traders are shredding bets on big federal reserve rate cuts

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Speaker 2: and treasury yield surge following signs of US economic resilience.

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Speaker 2: Retail sales accelerated in July by more than forecast in

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Speaker 2: the US, suggesting consumer strength despite higher prices and borrowing costs.

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Speaker 2: Matt Miskin co Chief economist John Hancock says the situation

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Speaker 2: is beneficial for investors.

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Speaker 5: We are now back to good news is good news and.

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Speaker 6: In our view, and we're moving out of that really

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Speaker 6: conundrum type market responses.

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Speaker 2: We used to get where it'd be.

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Speaker 5: Like, okay, this is bad news.

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Speaker 2: But now all of a sudden, Rachel Lord that's helping

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Speaker 2: small caps.

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Speaker 5: We good news is good news again for growth.

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Speaker 7: For a NASA like CATO, that's great news.

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Speaker 5: You know, it's been really messy.

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Speaker 2: John Hancocks Mount Meskin speaking there faed Cher. Jerome Powell

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Speaker 2: will speak next week at the Annual Central Bank Symposium

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Speaker 2: and Jackson Hole before the next US labor report is

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Speaker 2: released in early September.

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Speaker 1: Well as for the US presidential race, Joe Biden joins

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Speaker 1: Democratic nominee Kamala Harris on the campaign trail. It's the

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Speaker 1: first time that the two have appeared together since Biden

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Speaker 1: ended his own re election bid and endorse his current VP.

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Speaker 1: Harris was full of praise for her former running mates.

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Speaker 4: It is my eternal and great, great, great honor I

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Speaker 4: have to tell you to serve with this most extraordinary

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Speaker 4: human being, an American and leader our president.

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Speaker 1: Joel Biden, Kamala Harris. They're speaking at a campaign event. Elsewhere,

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Speaker 1: the Republican candidate Donald Trump held a press confidence at

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Speaker 1: his New Jersey golf club. The former president used the

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Speaker 1: event to criticize his opponent.

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Speaker 5: As far as the personal attacks. I'm very angry at

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Speaker 5: her that she'd weaponized the justices and against me and

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Speaker 5: other people.

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Speaker 4: Very angry at her.

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Speaker 5: I think I'm entitled to personal attacks. I don't have

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Speaker 5: a lot of respect for her.

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Speaker 1: Donald Trump speaking there. Biden and Harris together on the

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Speaker 1: campaign trail could offer Trump an opportunity to tie them

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Speaker 1: together on issues where he perceives an advantage, including on

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Speaker 1: immigration and on the administration's economic record as the US

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Speaker 1: economy continues to defy expectations, though Trump's lead on that

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Speaker 1: issue in particular has shrunk in comparison to Kamala Harris.

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Speaker 2: In the UK, victims of the contaminated blood scandalo set

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Speaker 2: in receiving payouts. The government has confirmed that some may

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Speaker 2: be entitled to up to two and a half million

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Speaker 2: pounds Bloomberg. James Wilcock has more.

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Speaker 7: It has been decades since thousands were infected with diseases

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Speaker 7: including HIV and appetitis C, caused by infusions of contaminated

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Speaker 7: blood given between the nineteen seventies and nineteen nineties. Roughly

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Speaker 7: one in ten of those affected have since died. All

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Speaker 7: the victims and their families are entitled to lifelong compensation

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Speaker 7: and support. Kate Burt as chief executive of the Hemophilia Society,

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Speaker 7: she wants to know how the sums were arrived at.

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Speaker 8: How do you put a value on a child that's died,

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Speaker 8: How do you put a value on your life being

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Speaker 8: destroyed by chronic hepatitis We hope to see a lot

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Speaker 8: of clarity around where these numbers came from. Was it

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Speaker 8: a legal framework, was it a medical framework.

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Speaker 7: The new government has confirmed those affected will start receiving

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Speaker 7: damage payments by the end of this year. The commitment

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Speaker 7: was never in question, but it will be an added

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Speaker 7: strain on an already stretched British state. In London, James

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Speaker 7: Wilcock limber Gradier.

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Speaker 1: Now to the Middle East as Gaza truce talks begin

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Speaker 1: in Cutter, Bloomberg has set out the enormous challenge of

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Speaker 1: rebuilding the strip. More than seventy percent of the area's

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Speaker 1: housing is reportedly damaged, with most of the territories two

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Speaker 1: point two million people now displaced. The first task would

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Speaker 1: be in reconstruction, the removal and sorting of some forty

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Speaker 1: two million tons of rubble. Gerald Feinstein is a former

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Speaker 1: US ambassador to Yemen. He predicts difficult discussions as part

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Speaker 1: of any Ceasepar deal.

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Speaker 5: The death and destruction in Gaza continued to mount, and also,

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Speaker 5: of course, according to the Iranians, there is a linkage

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Speaker 5: between the peace talks, the ceasefire talks and Gaza and

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Speaker 5: the loclihood of Iranian retaliation against Israel for the Hania assassination.

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Speaker 1: That was Gerald Firestein speaking. Then Israeli official say it's

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Speaker 1: too early to comment on reconstruction. Even if ap set

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Speaker 1: is ever reached, Rebuilding Gaza is estimated to cost more

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Speaker 1: than eighty billion dollars. Now, in a moment, we'll talk

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Speaker 1: more about the Chinese economy and those figures on electric

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Speaker 1: vehicle imports into Europe, plus our deep dive report into

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Speaker 1: how Gaza could be rebuilt when the war ends. But first,

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Speaker 1: there was another story that caught our ride this morning.

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Speaker 2: This is the trend of the remote CEO. So the

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Speaker 2: new boss of Starbucks isn't moving to Seattle, where its

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Speaker 2: headquarters is located. He's going to stay living in California

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Speaker 2: and commute to and from the coffee chain's HQ. The

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Speaker 2: company says Brian Nicol will spend most of his time

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Speaker 2: in Seattle and he'll get to use the corporate chat

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Speaker 2: for the journeys back and forth. Then there's Hillary super

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Speaker 2: at Victoria's Secret who is moving from California to New

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Speaker 2: York to take up the CEO position there. But the

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Speaker 2: lingerie company's headquarters are actually in Columbus, Ohio. So this

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Speaker 2: is a trend that we're seeing of corporate leaders being

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Speaker 2: given the option to run their businesses from hundreds or

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Speaker 2: thousands of kilometers away at least some of the time,

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Speaker 2: and part of the ongoing maybe evolution of workplace flexibility.

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Speaker 2: I think the people who work in companies that have

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Speaker 2: been told to go back to the office might not

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Speaker 2: be terribly happy to hear that CEOs are being able.

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Speaker 1: To move Sperista, I think, yes, would that bother you?

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Speaker 2: I don't know, Yeah, I mean it's Look, it's something

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Speaker 2: that the companies have been grappling with because it's a question,

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Speaker 2: of course true, of attracting the best talent today got

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Speaker 2: these very important jobs. A Victoria's spokesperson said to Bloomberg

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Speaker 2: that they have headquarters in many locations, included to New York,

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Speaker 2: and for them, what's most important is their teams feel

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Speaker 2: supported no matter where they're based. But perhaps could be

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Speaker 2: an interesting debate for someone who's being told that they

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Speaker 2: have to be an office a certain number of days

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Speaker 2: a week.

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Speaker 1: Yeah, absolutely, Look, it's one of the pieces on the

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Speaker 1: Blueberg terminal. Then the state of the world of work today, right.

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Speaker 1: Let's also turn our attention though to China. The central

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Speaker 1: Bank chief has pleased to do more to support the

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Speaker 1: economy after a week of economic data that highlighted continued

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Speaker 1: weakness in China. This is the new figures for Europe

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Speaker 1: show registrations of new Chinese made electric vehicles in EU

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Speaker 1: countries has fallen by all most half as the tariffs

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Speaker 1: have taken effect. Our executive editor Feel Greater China, John Leu,

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Speaker 1: joins us now for more. John, great to have you

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Speaker 1: on the program. In terms of the EV story, first,

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Speaker 1: what does the data show about sales of Chinese EV's

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Speaker 1: and much of the problem does seem to be being

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Speaker 1: posed really to Chinese EV makers.

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Speaker 9: I think it.

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Speaker 6: Shows the impact is quite noticeable. Even you talked about

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Speaker 6: it a little bit before, the forty five percent fall

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Speaker 6: from July from June. I think that's probably a little exaggerated,

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Speaker 6: given that people knew these tariffs were coming into places,

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Speaker 6: and so there was an effort to get cars into

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Speaker 6: Europe and sold. But I think it didn't take away

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Speaker 6: from the fact that going forward it's going to be

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Speaker 6: much harder for these companies to sell their cars in Europe.

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Speaker 6: I think it's really interesting that in this data we

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Speaker 6: saw that BID actually did quite well so Bid in

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Speaker 6: July sold three times more cars than they did a

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Speaker 6: year ago in Europe, and so Bid is building a

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Speaker 6: big factory in Hungary. It's also got the smallest tariff

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Speaker 6: being imposed on it among all the Chinese car makers.

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Speaker 6: So I think that suggests to me that you're going

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Speaker 6: to see more Chinese car makers start to move production

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Speaker 6: to Europe because they see Europe as being a very

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Speaker 6: important market given the US is basically shut off to them.

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Speaker 6: So I think that's what we will continue to see

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Speaker 6: in the future.

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Speaker 2: John on the broader economic picture facing China, the Center

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Speaker 2: Blank governor has said this, he'll help, but it won't

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Speaker 2: be drastic. What should we read into that.

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Speaker 6: I think the Central Bank governor was trying to accomplish

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Speaker 6: two things. So on one hand, he's sort of saying

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Speaker 6: things are our right, We've done these things in terms

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Speaker 6: of policy steps to address the slowdown. If we need

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Speaker 6: to do more, we will, we will do more, so

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Speaker 6: we have things under control, So trying to give markets

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Speaker 6: consumers here in China some bit of confidence. But at

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Speaker 6: the same time, I think he was trying to set

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Speaker 6: expectations that Beijing is not pulling out the Bazuka there's

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Speaker 6: not going to be some gigantic, enormous stimulus coming down

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Speaker 6: the pike, and so trying to get those two messages

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Speaker 6: across at the same time.

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Speaker 1: Yeah, and then can you put together what we've learned

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Speaker 1: this week about the Chinese economy in terms of the

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Speaker 1: outlook now?

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Speaker 6: So I would say the data that we've gotten so

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Speaker 6: far would show that the economy is losing momentum. And

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Speaker 6: I think the piece of data that really highlights this

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Speaker 6: is investment. There was a surprise slowdown and fixed asset investment.

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Speaker 6: The problem with China's economy has been the consumer the

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Speaker 6: housing crisis. People are not spending money, and so the

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Speaker 6: big hope was that the government would open up its

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Speaker 6: coffers and start to spend and get the economy going again.

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Speaker 6: And that spending really should be showing up in the

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Speaker 6: data in the form of investment. But if investment is

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Speaker 6: now slowing down, that's really a cause for concern because

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Speaker 6: that was supposed to make things better. And so that

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Speaker 6: is why I think we are a little bit more

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Speaker 6: worried now than we were a month ago.

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Speaker 2: Okay, John Ley, our executive abs are for Greater China.

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Speaker 2: Thank you for much for joining us Now.

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Speaker 1: Today's Bloomberg Big Take report looks at the costs and

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Speaker 1: challenges of rebuilding gals Up when the war between Israel

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Speaker 1: and Hamas finally ends after nine months of conflict. There

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Speaker 1: are more than forty two million tons of rubble across

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Speaker 1: the street. Removing that will be the first stage of

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Speaker 1: any reconstruction project. Our reporter Fadwajdali joins us Now from

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Speaker 1: Bethlehem in the West Bank for more on this piece.

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Speaker 1: Lots of deep reporting on this fad work. Firstly, talks

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Speaker 1: are happening in Cutter. What hope is there of the

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Speaker 1: of the war ending.

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Speaker 9: Well? While expectation of a breakthrough remains low, the talks

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Speaker 9: are crucial for preventing further escalation and reach on the

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Speaker 9: regional For regional conflict, this situation is complex with issues

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Speaker 9: like Israel is demanding a continued control all of the

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Speaker 9: Gaza Egypt border, the restriction on displaced the gasen to

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Speaker 9: return to the northern Gaza. Hamas continues to demand a

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Speaker 9: complete cessation of fire, of ceasefire, a complete withdraw from

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Speaker 9: the Gaza strip. The return of this list gozen without

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Speaker 9: any conditions. So the situation is complex. Let's hope for

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Speaker 9: a breakthrough. What challenges are still persisting in there?

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Speaker 2: Turning to your reporting now on the reconstruction of Gaza,

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Speaker 2: eventually the story shows in visual terms one of the

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Speaker 2: really key challenges, and that's the rubble that's been left

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Speaker 2: from buildings that have been destroyed. Can you explain the

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Speaker 2: scale of this and what would be needed then to

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Speaker 2: remove that?

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Speaker 9: The scale is tremendous. You can imagine forty two million

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Speaker 9: tons of rubble in ten months, and the war has

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Speaker 9: not ended yet, and challenges challenges. You have unexplosive, unexplosive

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Speaker 9: ordinance under the rubble. You estimation of twenty thousand bodies

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Speaker 9: still under the rubble, the pollution that this is going

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Speaker 9: to cause for in there. So you just can imagine

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Speaker 9: demand power that you need, the machinery that you need

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Speaker 9: in order to remove all that, and these are challenges.

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Speaker 9: Eighty percent of the machinery has been destroyed in the

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Speaker 9: Gaza strip and you require new machinery, you require teams

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Speaker 9: to go on the ground. We are talking about all estimates.

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Speaker 9: This is not a war has not ended, so you

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Speaker 9: can imagine if there will be an o cease fire,

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Speaker 9: the amount of rubble that will also accumulate the amount

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Speaker 9: of unexplosive the dead bodies that this all is affecting

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Speaker 9: the soil, the people, the health system, the sanitary system,

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Speaker 9: so everything is affecting that. And not to forget the

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Speaker 9: biggest challenge of this, if the cease fire takes place,

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Speaker 9: this all requires coordination. You cannot start working into the

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Speaker 9: rubble and removing grubble and doing anything without coordination. Coordination

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Speaker 9: is a must because Israel controls it's the borders, and

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Speaker 9: in order for the machinery to enter into the strip,

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Speaker 9: this has to be an approved by the Israeli government.

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Speaker 9: So everybody has to work into making sure that there

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Speaker 9: will be a plan that will be agreed on by

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Speaker 9: all parties. And when we talk about all parties and

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Speaker 9: the piece that we worked on, it would be the

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Speaker 9: You and Agencies. UNDP is heavily involved into this because

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Speaker 9: they've been having the previous experiences before, the Palestinian Authority,

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Speaker 9: the donor country, civil Society, and the Israeli government. Without

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Speaker 9: its approval, none of this could happen.

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Speaker 1: Will happen in terms of the rebuilding, I mean just

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Speaker 1: the beginning of the rebuilding would be to remove the rubble.

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Speaker 1: In terms of the cost. What are the cost estimates

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Speaker 1: of how this could be done?

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Speaker 9: Well, the cost are estimating it about eighty billion dollars

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Speaker 9: for cost, and this is only just an estimate and

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Speaker 9: war has not ended. So you can imagine you need funding,

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Speaker 9: you need people to commit to that, and you need

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Speaker 9: the teams to go inside Gaza evaluate good evaluation in

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Speaker 9: order to estimate how this will be uh uh will

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Speaker 9: be paid for. But there's a major challenge. First of all,

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Speaker 9: ceasefire has to take place, and then the rubble process

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Speaker 9: will start. Without without a cease fire, none of this

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Speaker 9: is going to happen. We can stock from now till

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Speaker 9: a long time, but without a cease fire, this cannot

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Speaker 9: be removed fad.

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Speaker 2: You spoke to people in Gaza for this report, do

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Speaker 2: they have any hope for what Gaza's future could look like?

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Speaker 9: With the war continuing, people will lose hope, but gauesn't

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Speaker 9: want gause of People want hope, want peace, want stability,

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Speaker 9: want this to end. They don't want towards anymore. They

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Speaker 9: have endured so many wars, not one or two or three,

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Speaker 9: So there might look like there are in desperate and

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Speaker 9: they are desperate, but hope always have to be there

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Speaker 9: and this is what can bring the Gosens back. This

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Speaker 9: what can rebuild Gaza back is people have to continue

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Speaker 9: to have the hope for peace and for stability and

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Speaker 9: for them.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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