希音港股首日跌10%估值较峰值降70%，美债收益率创2008年以来新高

[music] Bloomberg Audio Studios podcasts radio news. This is the Bloomberg Daybreak Europe podcast. Good morning. It's Tuesday the 1st of September. I'm Steven Carroll in London. Coming up today, shares [music] in Shien tumble on their first days trading in Hong Kong, a sign of the fast fashion giants fall from grace. Global bond yields return to highs not seen since 2008 as markets fret over higher inflation and bigger deficits.

Plus, hanging up the golden boots, Lionel Messi announces his retirement from international football after more than two decades. Let's start with a roundup of our top stories. Shares in Shien, one of the world's largest fashion retailers, are plunging on their first day of trading. The stock has fallen by as much as 10% from its IPO price at its debut with investors questioning its value in a world of trade tensions.

Bloomberg's Asia equities reporter Winnie Sue is at the Hong Kong Stock Exchange.

The IPO raised $1.7 billion, taking its valuation to about $26 billion. And that is just a fraction and in fact 70% lower than what it used to back in 2022, which was at about a hundred billion dollars. And this is coming as the company faces lots of challenges whether it's the impact from US tariffs some of the regulatory changes in the US in Europe and also questions about the sustainability of the business. Now Sue says that if the stock were to close near its session low it would be the worst debut for a Hong Kong listing of its size in more than six years.

We have seen Sheen shares bounce off that low but still lower on the day. She was once talked up as a major prospect for London's stock market, but its attempts to list here and in New York ran into regulatory and political hurdles. Global bond yields are continuing to climb as investors fear higher inflation ahead of a series of key central bank meetings this month. In the US, the 30-year Treasury is on its worst stretch since 2006.

Bloomberg data shows the 30-year yield has settled above 5% on 55 days since the start of this year. US Treasury Secretary Scott Besson told CNBC that he and Fed Chair Kevin Worsh agree on the outlook for US debt.

Of course, we're on the same page that does that mean the Well, uh we we we both believe that that the the US bond market is the most resilient in the world. And let's let's just level set here for a minute, Sarah. You know, every everyone's talking about the US bond market. US bond market the this month will have been the best performing bond market. the the 30-year the yield is down. Uh the 10 year the yield is flat.

No other major bond market can say that.

Scott Bess was speaking to CNBC at the G20 gathering of finance ministers in North Carolina. Worries over inflation, elevated government spending, and AI debt are pushing investors in the US, Britain, and Japan to seek more compensation for debt. In Japan, the 10-year yield touched 3% for the first time in 30 years as investors ramp up bets the BOJ will raise interest rates again soon, potentially this month or next.

Also comes after Scott Bessant reportedly told Japan's finance minister and central bank governor that the country should raise interest rates and communicate its path towards more sustainable finances. That's according to the Japanese broadcaster NHK, which cites an interview with the US Treasury with a US Treasury official. The comments are likely to fuel further expectations that the Bank of Japan will raise rates at this month's meeting.

US President Donald Trump has dismissed concerns that the Iran war was draining America's firepower as both sides restart hostilities. The US President says he intends the conflict to be a limited war and denied that it has burned through US munitions.

This is a relatively little war for us. This is not a big war. You know where the money went was Ukraine. Uh the money was really taken out the ammunition. If you talk about low, we have tremendous amounts, unlimited amounts of mid-grade and older stuff that's also very powerful.

Trump's comments come as the two sides exchanged strikes for the first time in about a month. US Army Army Secretary Dan Driscoll became the latest senior military figure to step down during the conflict. His departure leaves the army with no Senate confirmed leadership. NATO and European Union countries are pressuring Spain and Greece to give Ukraine Patriot interceptor missiles. The news comes as Keev says it's struggling to repels Russia's mounting air strikes.

Bloomberg understands the requests were made over the summer and could include the possibility that Norway could buy the missiles before donating them to Ukraine. According to an EU official, the issue will be on the agenda this week when EU defense and foreign ministers meet in Dublin. And after more than two decades playing for Argentina's national team, football edged, Lionel Messi is hanging up his international boots.

Bloomberg's Tu Adabio has more. Just over a month ago, a 39year-old Lionel Messi led his country to the World Cup final, narrowly losing to Spain in extra time. He did so as one of the most decorated players in international history, scoring 121 goals and recording 66 assists for Argentina whilst winning six titles. Over the weekend, Messi called time on his career with the national team, concluding a summer which saw him become the oldest outfield player ever to start a World Cup final.

In a handwritten letter posted on social media, the forward said that the decision hurts a lot, but said that he has nothing left to give. The news comes after his father and longtime business manager passed away earlier this month. Messi said at the time he didn't know how to go on. Messi will continue to play club football for Major League Soccers into Miami. In London, Tiwa Adio, Bloomberg Radio.

And those are your top stories on the markets this morning. We're watching the 10-year Treasury yield up another three basis points at 4.78%. Japan's 10-year yield after brushing 3% for the first time since 1996 currently just below that level, but up six basis points on the day after the auction today came in largely with demand in line with the one-year average. But that pressure on global bonds continues. The Bloomberg dollar spot index is a touch stronger this morning.

Brent crude oil up another 1.2% at $9154. Euro stocks 50 futures are down by 2/10en of 1% this morning. In a moment, we'll bring you more on Shien's first day on the stock market, plus the latest on the Iran war. But I just wanted to mention another story that I've been reading this morning on the need for cluster cities. This is where a place becomes synonymous for an industry. Think of the city of London for finance, maybe Paris for luxury goods, or even Dublin for the tech industry.

Bloomberg opinion columnist Allison Shger has been writing about this in the context of the United States and the challenge that challenges that Los Angeles's film industry faces with more production being lowered elsewhere by tax incentives or lower costs. Allison talks about success for these kind of cities didn't necessarily require living there, but it did make it more likely which draws more people there and thus more companies set up there and it creates an ecosystem that can sustain itself and provide further success in a particular industry.

But she points to the central lesson from economics that behavior on the margins is often revealing about what's happening in a in an economy. There's still value to living in a cluster city, but if costs rise and the benefits diminish, that calculation can change and we know the pandemic and the rise of remote work has meant that for many industries as well. Now, Allison says this is a big risk to innovation in the US, but it's an interesting thing to think about in a European context as well. populations might be, if we think about the continent as a whole, less mobile across borders due to language and cultural difficu