Heat 2 tablespoons of olive oil in a large Dutch oven over medium-high heat. Add the beef in two batches and brown the beef. Add all the beef back to the pot and add chopped onion to the pot and cook until tender.
Wrap the cloves and whole peppercorns in a cheesecloth or use a tea infuser ball.
Add the 8 whole cloves of garlic, the peppercorns, and cloves in the cheesecloth, rosemary sprig, bay leaves, beef broth, tomato sauce, cinnamon stick, red wine vinegar and red wine to the pot and simmer over low heat for 1.5 hours.
Meanwhile, peel the onions and shallots and set them aside.
Once the beef has simmered for 1.5 hours, add the pearl onions and shallots to the stew. Cook over low heat for another 25 minutes until the onions are tender. If needed, add 1 - 2 cups additional beef broth if the liquid is low.
Remove the rosemary stem, cinnamon stick, cheesecloth or tea ball infuser with the cloves and peppercorns and the bay leaves before serving.