kriti: optimism around chinese stocks. rescue measures were short-lived as stocks in asia try to make a comeback but across the pacific a different story. u.s. stocks notching another all-time high. lvmh sales show luxury still resilient but look at tech. intel with oblique forecast. -- with a bleak forecast. apple customers in the eu will be able to download content from outside the app store for the first time after antitrust laws on both sides of the atlantic. there is a lot to digest. the corporate story may be driving the market narrative. we are talking about continued optimism in the states met by the diversions in china. the futures session a mixed picture. 50 futures unchanged. you have seen this major optimism in europe every day this week which really tells that the tech story that has

driven the united states stock market to all-time highs may be starting to spill over into europe as well. today not seeing as much optimism but it is friday, it is early, we understand. ftse 100 futures the outperformer's higher by 0.4%. stark contrast to the optimism in the u.s.. the s&p 500 in yesterday's session notched an all-time high yet again days after it had done that last friday as well. the fact you are seeing pullback in futures, normal technicals at play. retracement levels kicking in. down 0.4%. tech may be outperforming in europe, underperforming in the u.s.. technicals at play as opposed to some fundamental narrative. the intel forecast is going to be feeding into that. nasdaq 100 futures down 0.7%. monetary policy is still around raging in everybody's background . 4.09 is where we are on the 10 year yield down by two basis

points. you would think he would see weakness in the dollar. we are seeing the opposite. that's pressuring the currencie s we like to keep a close eye on. euro-dollar at 1.08. brent crude trading at an $82 handle. it is they handle it matters because overnight you see volatility. that is your cross asset picture. let's get a quick check on asian markets. avril hong all over that story. avril: we are seeing a gauge of stocks in the region lower for the first time in seven sessions. i wanted to highlight in a week where we are talking about china stimulus, whether it was comments from the premier or the speculation about a market rescue package and a triple are cut that was frontloaded, we are not seeing that much of the optimism creeping through in the markets today. it really needs a strong finish

to the week on the csi 300 and the hang seng. to carry that momentum through. the csi 300 despite paring losses from earlier in the session and slipping into green very briefly in the past hour or so, is back in negative territory once again. we are seeing pressure on the offshore yen so you get the sense that unless there's a follow-through in chinese stimulus policies, that's going to keep the struggle going. it is also about intel warning and that is playing out in the tech space. the taiex also under pressure. let's look at japan because the chip making stocks are dragging the nikkei lower but jgb futures higher because we got tokyo cpi numbers earlier and this is a leading indicator of the nationwide trend. it was cooler than expected and indeed lower than the boj to percent target so it makes you question when we can see the

exit from negative interest rate policy. the yen is losing ground against the greenback and the euro. against that. kriti: thank you for that report. sticking with what she was ramping up for us, we are talking about stimulus in china and monetary policy in europe as well. traders aping up their bets on ecb rate cuts after christine lagarde said she stood by previous remarks around the timing of possible cuts alluding to the summer. she was speaking following the central bank decision to hold its deposit rate at 4% for a third meeting. >> the consensus around the table of the governing council was that it was premature to discuss rate cuts. in addition to that i typically stand by my comments. we had to continue to be data-dependent. rather than being fixated on any

kind of particular calendar which would be data-dependent, we reaffirmed our data dependency. kriti: i am joined by zoe stay vice. talk to us about the timing. why june? why is that what traders and the ecb are targeting? >> there are a few reasons. first of all wage data. probably it will not be available until the end of april which means the april rate decision is too early for that. that would push .2 june. the second reason is economic forecasts. those only come out once a quarter and that would be june. thirdly, the red sea. the situation has the danger of again pushing up inflation. right now there is not that much clarity around that. policymakers having a bit more

time to wait and see how the situation plays out also pushes toward june. >> is there a credibility issue? when you talk about this focus on june, traders are getting ahead of themselves. is this an issue around the world saying the ecb is going to fall on their sword faster than they are saying they will? talk to us about the credibility dynamic. zoe: there's a bit of a paradox. lagarde said june -- she said she stood by her comments so that would suggest june and traders ramped up their bets on april. there are a few points that would support april. the ecb keeps saying they are data dependent. if inflation data cooled very quickly, they will have an issue saying we are waiting for a forecast although inflation is already at that target.

that is one of the things that speaks for april. it will be a fun thing to watch for all of us. kriti: a fun thing to watch for us. perhaps more painful for folks trying to trade. i do not envy their position. we thank you for joining us from frankfurt. we go from the monetary policy to the corporate one. lvmh sales rose at the end of last year as wealthy shoppers treated themselves to luxury goods and champagne. let's look at these numbers. caroline connan joins us to break it all down. what do we need to know about lvmh's story? caroline: it looks like a more glamorous story than expected. the luxury company has 75 brands. even if some may be suffering from softening demand as a group, lvmh did better than expected in the fourth quarter.

if you are looking to details, pretty much every single division did better than expected. fashion and leather going up 9% in the fourth quarter. even the wine and spirits division which includes champagne but also cognac, cognac has been suffering from the chinese probe of cognac makers in china. though -- the worst seems to be behind us. then you have tiffany and burberry up and selective retail with sephora up. more than 20% growth in the fourth quarter, so resilience, confidence for 2024, of course, we should not forget the challenges for lvmh in terms of prices is going to be difficult for them to continue to raise prices.

the aspirational consumer is still not back. still afraid of spending and indulging in luxury goods. chinese travelers have not returned to europe to do shopping quite yet. kriti: caroline connan walking us through the conglomerate results from the spirits business to everything to sephora. is it some sort of beacon of the consumer in europe and around the world, what strength? that is one way to measure it. the other is all the economic data we have ahead. in 50 minutes time the german consumer confidence data hitting the wire. it's going to talk to us about whether the narrative about germany being the sick man of europe holds or whether it was overdone. french consumer confidence, those numbers coming out. are we still dealing with a cost-of-living crisis across europe and how much of that is feeding into the numbers? then we go to the spotlight on the united states.

1:30 u.k. time, the fed's preferred gauge of inflation, the u.s. pce number is coming out. how quickly do you see the minds of accelerating? on the chart the line tells you of the story. does it change the pricing if we see a bigger number than expected? all of that coming up on your day ahead. you can get a full roundup of the stories you need to know to get your day going. all you have to do if you are a terminal subscriber is type d.a. why bigo on your terminal -- dayb . jamie dimon, bank of america, they are tracing and redoing the ways they are thinking about how they want to manage their business. going into an era where monetary policy is going to feed into their bottom line more and more. you can get the full analysis on your bloomberg terminal. coming up, the u.s. and u.k. impose sanctions on senior houthis as the military group

continues attacks on vessels in the red sea.

kriti: the united states and the u.k. have imposed sanctions on four senior who the -- senior houthi militants as the group continues attacks on vessels passing through the red sea. bloomberg's emea news director joins me. context is everything because the u.s. has not been friendly with the houthis for a long time. part of that in coalition with the saudi's. why now? >> they are concerned about weeks and weeks of attacks that the houthis have been carrying

out on ships in the red sea disrupting shipping. everything from livestock to fresh produce to oil and gas tankers. container shipping, seeing a knock on effect across the globe with companies disrupted, real problems in the supply chain. the u.s. is concerned about that and leaning on the houthis to pull back their efforts in the red sea but also more broadly to de-escalate in the middle east. the question is what does this actually achieve? this group has been heavily penalized for many years financially and in other ways and yet they have managed to be resilient. they have managed to continue attacks for a long time. it is more symbolic than anything else. it signals the u.s. does not have many tools left to try and constrain them. kriti: i'm curious, what the next steps actually are. this was a conversation that came up in the context of iran and russia.

how effective sanctions are in an era were so many are de-dolla rizing. how might this escalate further if you are only tackling four militants at the moment, could more be in the pipeline? >> each take -- if you take russia's invasion of ukraine, russia has had penalties on individuals, sectors, companies. they've done everything they can to squeeze the russian economy to push putin to stop his war in ukraine. we are coming up to the start of the third year of that conflict. it has inflicted damage on the russian economy and the russian people no doubt also. has it deterred vladimir putin? absolutely not. if you look at russia and ukraine is an example in recent history, how much do sanctions impact the decision-making of those people? they believe they are on a mission. they are quite happy with the results they are getting. this is not going to stop them. kriti: this is why the other

world powers make a difference. what china is doing, india, iran. because they are able to help russia get around these dollar focused sanctions. i want to pivot. israel also bracing itself for an interim decision when it comes to the international court of justice. this was the legal case brought on by south africa that even u.s. government officials said was a waste of time and unproductive. what could we know from this? will it make a difference? >> the actual ruling on whether israel committed genocide in gaza which israel obviously denies, that will not come for a long time. this is on whether israel needs to stop its conflict now in gaza. the main thing is this is not enforceable. they cannot make israel do anything. they can issue this order but it does not compel israel to follow through. it is more a signal about where the global community is sitting increasingly on israel's conflict in gaza against thomas.

and the level of concern around the global south, countries in europe and elsewhere saying the death toll in gaza is so high, calling on israel to pull back. it is more about showing the extent to which israel is isolated on the global stage. will it change the trajectory of the war on the ground? very much unlikely. but it is signaling the way the world is concerned about this conflict. kriti: i want to zoom in more. it is interesting this case was filed in the international court of justice which targets countries as well as individuals -- as opposed to individuals. tell us about the symbolic gesture from south africa. it does not have the support of the u.s. >> south africa has been interesting in recent years coming out of the pandemic, increasingly vocal voice of what you call the global south, countries that feel left behind by the west, the u.s. and others , abandoned during the pandemic

over accessing vaccines for example. and then feeling they are obliged or expected by the u.s. to condemn russia for its invasion of ukraine. south africa is one of those groupings of nations that says we do not want to be forced to follow the u.s. line on this. south africa, russia, china, india, they are saying we will use our own powers our own ways to make our own decisions about foreign policy. kriti: interesting point coming out a time when people are leaning away from the u.s.. we thank you for the tour around the world of what we need to know. we continue that especially with the united states, antony blinken has finished his four nation african visit in angola pledging millions of new investments and highlighting strengthened ties with the region. >> we are announcing $45 million in new funding to promote stability for west african states. with this investment, the united

states will invest in nearly $300 billion over the past two years in stability focused assistance in coastal west africa. kriti: ondiro, several other countries in the region in focus. why is the u.s. paying such close attention now? ondiro: they have one of the largest drone bays in africa and it is valued at $110 million on top of that. they have staff in that country. america has also had military operations in mali and burkina faso. there have been military coups in these countries and they have veered away from constitutional order. countries that do not have a good track record for democracy and human rights. this is a point of concern for america but then again this is very strategic because it is a hotspot for jihadi extremists.

it is also a hotspot for drug trafficking and human smuggling. that could destabilize other countries that are of strategic importance to the u.s.. that is why they are invested in this region and even though they've expressed displeasure at the military coups they are still keeping diplomatic channels open. kriti: russia's waggoner forces slowly but steadily making their way into the sale. tell us about the implications now that their leader is no more. ondiro: they are gaining mileage and momentum. because france has exited the region there is a power vacuum that wagner is seeking to fill. this is what antony blinken was speaking to saying the u.s. is a security partner because anywhere the group goes, they take advantage of the chaos and all they do is exploit the people and their resources. outside of that, america is working to strengthen security ties with other west african coastal countries by building

capacity and empowering them with military equipment. they are also considering building another base in ivory coast. something that is in the works. kriti: it is a really interesting dynamic. it is the idea of what ros was talking about, that you are seeing tensions between the u.s. and other powers at play in a crucial region. ondiro oganga in to golly, rwanda -- kigali, rwanda. vladimir putin testing the waters on whether the u.s. is ready to engage in talks on ending the war in ukraine. he has put out signals in indirect channels to signal he is open to security arrangements for ukraine according to people close to the kremlin. u.s. officials say they are not aware of the supposed overtures. the eu forging ahead with a new tariff on imported steel and carbon intensive materials.

we are going to dive into what it all means. this is bloomberg. ♪

kriti: we are getting this, volvo cars fourth-quarter adjusted operating profit at 18.4 billion swedish krona. the estimate was 17.5. seeing a big jump in operating profit. net sales for the fourth quarter at 148.1 billion swedish krona. the estimate was 137 billion. good numbers there, we will see if that continues later on in the european market open and if that sets the stock up for success. for years the european union has

carbon pricing. the eu set up the first carbon market in 2005. now taking things further, launching the world's first carbon border tariff targeting steel and iron. covering this, antoine jones at bloomberg nef. what exactly is the you trying to achieve here? >> the eu has this historically really high carbon tariff. it makes it expensive for companies in the eu to pollute. the price is rising. even though this is incentivizing emissions reductions, this could also be an issue because it makes their operations more expensive, they are more vulnerable to imports. so pursuing these targets, there is a fear the eu's crippling its economy, running that risk. this extends the carbon price on domestic producers to imported goods and levels the playing field.

it allows the eu to the carbonized without -- decarbon ize without de-industrializing. by 2034 you see the cost of delivered steel from india for example going up i-87 percent -- going up by 87%. redrawing the landscape. it is for lots of different commodities including steel and aluminum, cement. it redraws the competitive landscape based on emissions which is a first in international trade. kriti: when the eu tends to do things like that it does not necessarily go well with other countries. how was the international community responding? antoine: not great read there's a big push back from emerging economies in particular. you have india trying to get some sort of exemption.

there have been calls for litigation of the wto. we are probably going to see compliance in the end and we are seeing countries like turkey for example trying to figure out a way of putting in place carbon pricing to reduce the tariff they would have to play. and there's the prospect of more on the horizon as the u.k. for example is defining its own version of this it announced in december. kriti: we thank you. antoine wagner jones at bloomberg nef bringing us that story. we are going to be hearing from the ecb governing council member and governor of

kriti: let's get to the top

stories that set your agenda. optimism around chinese rescue measures short-lived as stocks in asia try to make a comeback. across the pacific, u.s. stocks notching another all-time high overnight. in the corporate space lvmh sales show luxury is resilient. intel giving a very bleak forecast. apple opens up customers in the eu will be allowed to download software from outside its app store for the first time ever. it comes ahead of around of new antitrust laws on both sides of the atlantic. you are seeing a lot of optimism on the u.s. and european side. this morning a little bit of risk reversal. euro stoxx 50 futures down 0.2%. notable outperformance in the u.k.. as the s&p 500, notches that record high, you start to see a pullback. u.s. futures down 0.5%, underperforms the nasdaq 100.

really coming off the sentiment out of intel, 49 hundred on the s&p contracts, speaks to the idea that there are retracement's in play. bond market matters just as much. continued sustainability above the 4% level. you would think that would mean the dollar is doing the opposite. instead you are seeing weakness in european currencies. even weakness in brent crude despite the sentiment around the world. brent crude trading on an $82 handle. i want to bring you headlines crossing the terminal, specifically around a french spirits company. remi contra coming out with third-quarter sales numbers. organic revenue down 24%. the estimate was 23%. third-quarter revenues numbers coming in at 319 million euros, the estimate was 320 nine euros. softer numbers out of the

company at a time when lvmh has just said they had a surprisingly up eight quarter when it comes to their spirits business. is this a question of management between the two companies? that should be something they are monitoring very closely in the corporate space. we are also monitoring the monetary policy story. christine lagarde standing by her comment that rate cuts may come this summer but markets betting it may be sooner. for more i want to go to our correspondent maria tadeo at an ecb conference in latvia. over to you. >> good morning. this is a conference put together by the bank of latvia. to debrief, we are joined by the head of the central bank of latvia. how are you? good morning. obviously it is 2024, a new year. this will be the year a rate cuts, that's what the market believes. there is a sense that there was a dovish tilt by the european

central bank. was there a dovish tilt by the ecb? >> the main thing was characterized by two words. confidence and patience. confidence because monetary policy is working. inflation has come down. we see underlying measures also. we are certainly on the path to it. and patience. we are data-dependent. we will see. maria: so not date dependent. you know for markets, they do look at the dates and they believe may be april, june, split 50-50. do you want to send a message on that front? >> let's see what the forecast does in march and where the data takes us. for instance, wages. we see some softening in the labor market. some vacancies.

getting smaller. however, of course wage growth is relatively strong and we will see what happens with them going forward. that's not only the wage growth. we are looking at the wide set of variables with forward-looking and also actual ones. maria: some believe going back to the timing, i know you said we are not going to focus on the dates but some say if you were to cut rates in april, that would not solve the macro situation for the euro area. is that something you would agree with? martins: the economy has been weekend it is quite possible there's going to be recession issues but we are not talking about a major recession. the labor market is still strong. we also see tentative signs of bottoming out. the economy has been week.

but our target of course is inflation. 2%. symmetric. to get to 2%, there are many ways. you could cut sooner and follow through later steps. could cut later and follow through larger steps. barring any major surprises this year, the rates should start to go down. when and how much, we will see but the data tells us. maria: is the summer too much of a pinpoint on the calendar for you? martins: we will see. we must wait for wage data. the first quarter wage data will come out in the second quarter. that is the june meeting. but it is not only the wage data we are looking at. we are looking at a broader set. let us the patient. monetary policy is working.

inflation has come down sharply. we will continue -- it will continue to do so. but how quickly, we will see. the last recent months have been on the positive side. inflation has been lower than forecast. but still, by the baseline scenario, given the high observance we have. maria: you have mentioned wage dynamics four times. it seems to me that is the data point that will guide your decision. or is there anything else? martins: that is one important point. what happens with negotiated wages. but it is not the only variable. what happens with unemployment. we have seen this puzzle of labor in the past. we will see how it develops going forward. maria: do you feel pressured by markets or is the governing council confident you can make differentiation between what the market prices and what you believe is the right thing to do? martins: we will do what we believe is the right thing.

maria: you do not feel any pressure from markets? martins: all options are open. the data will tell us -- that is what we will do. day by day, we get closer. but when will it happen? we will see what the data tells us. maria: how much do you worry about the situation in the red sea? some say it is a problem but not a pandemic level shock to the supply chains. martins: so far it has been contained. unfortunately what we are in my view in is a new regime which is largely to produce more volatility, more conflict. what is certain is the conclusion they are going to be much more regular. supply-side shocks are likely to be there. that's one of the reasons one should be patient.

maria: some say the risk however of waiting too much is that that could damage the economy. inflation is on the right path. when you look at doing too much or too little, what concerns you the most? martins: 70's and 80's, if it starts to be relaxed too early, inflation starts to come back and then one would need to raise rates much more. maria: that would be worse. martins: that would be worse than waiting just a bit. there are many ways to get to 2%. you could do earlier smaller steps or later larger steps. that will be all data dependent. so you know, our reaction function is very clearly spelled out. we are following those rules. it is still appropriate to follow. maria: do you keep an eye on the fed?

martins: we look at the global economy. the fed decisions affect the u.s. economy. implicitly all things are connected. maria: it is an election year. the head of the ecb did say it does pose a risk to some extent for the european economy. tariffs could be back in place. martins: what we are saying is globally tariffs are increasing. so for global trade it is not good news. the indicators show global trade is on the upswing. but of course these geopolitical's. maria: latvia, when you look at the situation in ukraine, they are playing out in real time and they continue. yesterday you were in frankfurt. i have to ask a personal question on your views about the head of the ecb. there was a survey that leaked. comments suggesting there's a

little bit of discontent inside the ecb. what are your thoughts about the leadership of madame lagarde? martins: i think the president is doing a very good job. maria: what about economists? do you think they are to cliqu e-y? maybe it did not go well. martins: i'm an economist myself. of course we stick together. past 20, 30, 40 years, we are seeing major breakthroughs in the economy. economic analysis when you combine different areas, different views. so of course, speaking to other professionals is beneficial. mark: -- maria: so there is no tension internally? it is a happy house? martins: people have different

views but as for the president, take a look at the inflation traffic. the moves have been very appropriate so far. overall the president is doing a very good job. maria: governor, thank you so much and thank you for hosting us in this conference. on that note i'm going to send it back to you. coverage continues. kriti: maria tadeo in latvia with a crucial interview. talking about with the sentiment is for european governors around the ecb. more exclusive interviews, the latvian president will join us and later the croatian national bank governor. coming up, apple undergoes a historic overhaul of its app store and operating system to appease the eu. that conversation next. this is bloomberg.

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kriti: apple is embarking on a historic overhaul of its app store and web browser in the european union to placate regulators that are set to impose antitrust rules. matt bloxham is me this morning. -- matt bloxham joins me this morning. what is the readthrough? mat ift you think about europe as a region: it is 25% of revenues. and services, which captures a lot of things put including app store payment revenue putting up 25%. if you boil it down it is maybe 1% to 2% of apple revenues exposed here. maybe half of that could be potentially at risk depending on how this shakes out on what app

developers decide to do. in the grand scheme of things it is a relatively small impact directly. i guess we will have to wait to see whether this kind of european move becomes a global issue. then it is more challenging for the business and has implications for people like google. kriti: is the eu going to be receptive to some sort of middle ground? matt: we have seen reserve judgment. saw the official press release yesterday. but you know they are going to look over that and scrutinize it in the coming weeks to decide whether it does meet all the requirements of the markets act which is why apple is making these changes. kriti: we are going to talk about whether they are setting the precedent for some of the others as well. we thank you so much for your analysis this morning.

i want to stick with the tech story, intel shares tumbled in late trading after delivering a first-quarter forecast for sales in profit that fell well short of expectations. the outlook renews doubts about a long promised turnaround at the once dominant chipmaker. more tech news. microsoft will lay off 1900 people across its videogame divisions including an activision blizzard which initially bought for $69 billion. emailed to staff seen by bloomberg said the cuts represented 8% of microsoft's 22,000 gaming workers. more than 60 other tech companies including amazon and alphabet have fired almost 11,000 employees so far this year. the federal trade commission is probing three tech giants over their relationships with ai startups. alphabet, amazon, and microsoft have received inquiries as part of a study about how ai is implement and competition -- is impacting competition. we go to the bigger players in europe, let's talk about the

biggest corporate story out of this region. the world's largest luxury conglomerate lvmh has reported to 10% boost in sales at the end of last year. the french company says business is normalizing after a period of exceptional growth following the pandemic. i want to dive deeper. caroline conan us in paris -- joins us in paris. is this a fluke or indicative of a broader trend? caroline: i do not know if you have some tiffany jewelry from christmas but some people did because lvmh did better than expected in the fourth quarter. organic sales up 10% if you look at the divisions, fashion and leather, wines and spirits, perfumes, even selective retail, good performance there. 20% in the fourth quarter. basically we had growth in the two key markets, china, so asia,

japan is up 15% as you see on this graphic, and in the u.s. as well, 8%, better than the last quarter. these are the key markets for lvmh. together they represent more than 50% of the conglomerate sales. there are challenges ahead. the aspirational consumer is more careful at spending, indulging in big luxury goods. of course chinese travel has not returned to europe quite yet to do luxury shopping. semi limits remain cautious. for lvmh and the rest of the sector. analysts from barclays are talking about slowing brand heat at christian dior. another one talks about profit that might be shabbier than the past year. we will see whether that bodes well for 2024 for lvmh. kriti: those are the numbers, let's talk about the succession story. it is like a european succession if we can.

what does that mean exactly? caroline: arnault announced two of his sons taking a seat on the board. only the youngest does not have a seat quite yet. it is a bit suspenseful. lvmh is a big conglomerate, 75 brands. of course investors are always concerned about what succession might mean for the stock. whether the sentiment might be influenced by succession. all five children of bernard arnault, the french billionaire who runs and funded lvmh have key roles inside the company. you have delphine, you have antoine who runs imaging communications, you have

alexander who runs tiffany. you have the divisions -- bernard arnault is 74 years old. he has changed the rules to make sure he can run the company until he is 80. clearly the succession story will be in everybody's mind the next few years. kriti: something we are going to be watching very closely kriti: caroling conan, thank you for your reporting out of paris. i want to go from big luxury to big banks. jamie dimon moving his top lieutenants into new senior roles, shuffles include moving jennifer piepszak to oversee the corporate bank. from j.p. morgan to bank of america, they are splitting a roughly $800 million pool of restricted stock with a majority of staff. according to a memo from brian moynihan the incentive will go to workers who earned as much as

half a million in total annual pay as the bank looks to retain employees even as it works to keep a lid on expenses. plenty more ahead. this is bloomberg. ♪

kriti: a couple of charts i want to put on your radar. consumer resilience seems to be a theme. we were talking about european luxury but it is a bigger theme in the united states. this divergence you are seeing, more weakness perhaps in europe. certainly weakness in china. you are not seeing the same

margin of weakness in the u.s.. resilience still. this chart shows this. fourth quarter gdp numbers were actually seeing a bigger bump than expected. take a look at this. the past couple quarters, this is a pretty substantial dump. although do not get me wrong it is deceleration at its core. that speaks to the idea of the federal reserve is not in a hurry to cut rates and it creates this underpinning of the idea that on the others, the ecb may feel the urgency more. it is why you are seeing divergence between with the ecb is saying and what traders are betting on. which brings us to today's data. u.s. pce is going to be on everybody's agenda. this is the fed's preferred gauge of inflation as we talk about whether or not it actually still needs to be addressed. this is a big deal in terms of when we talk about core cpi numbers and whether you are seeing those rate cuts take full effect. remember, the lag is still one question economists are saying, is this something that takes a

normal amount of time or are we still applying the 18 month rule? data coming out at 1:30 p.m. u.k. time. i need to take a moment and give a public shout out to our senior producer here on bloomberg daybreak. she has led a team including benjamin irwin and our technical director -- i need to probably say thank you. every morning they wake up early to put together what you are seeing on the screen right now and it is important we say thank you and recognize their work really brings you all the news you are seeing this morning. other things i want to put on your radar, the interviews coming up not to mention the new products. on monday bloomberg is launching the london rush, a morning newsletter with the uk's top morning business headlines and morning calls.

markets today next, plenty more to digest the market narrative as well as the corporate story as well. the telly a ceo -- telia ceo joins us. anna edwards and mark cudmore are going to lead you through the european market open. they are going to be marrying the corporate story with what you are seeing in the monetary policy. a lot to digest. stick with us. markets today begins in just a few seconds. this is bloomberg. ♪

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♪ anna: