tom: good morning, this is bloomberg daybreak: europe. these other stories that set your agenda. wall street notches up a new record high as investors shrug off hotter than expected u.s. inflation with market still optimistic on fed rate cuts. in japan, the end strengthens at the world's largest carmaker toyota agrees to raise hike demands from unions adding for the case for a boj policy shift next week. we bring you comments from the governor this hour. plus, another big warning with volkswagen inditex all set to report. let's check in on markets after a strong session for european equities. fresh eyes for both the benchmarks in europe and the s&p as well. powered by the days that came through from oracle. nvidia back with gains of 7%. in europe it was porsche that was the top gaining stock in the session. futures looking flat despite the

fact that the inflation printout was stickier and higher than expected. ftse 100 futures in the u.k. looking to modest gains of a 10th of a percent. keeping an eye on iron ore in the session. s&p futures flat. nasdaq futures also flat. a bit of a breather after the upside they came through yesterday. let's look across asset. the yen is in focus for us today. wedged at -- wage data informing the debate over where the boj goes next. u.s. dollar japanese yen at 14753. a little bit of strength up for the japanese yen. meanwhile, the u.s. 10 year saw yelled sticking up in the session. there was a big auction of sovereign debt. yields moving one places point in the session. there is the iron ore pressure again at a seven month low, looking set, potentially to cross that $100 per ton, down 3.2%. on the buildup of stockpiles in

china and a lack of aggressive fiscal stimulus. brent crude trading at 8256. a very different story on shrinking stock piles of oil according to some reports. let's cross over to singapore and get the latest on how that session is faring. avril hong standing by. what are you looking at? avril: we are looking at a bit of a divergence starting with chinese equities, apart from tech, not much optimism to go by. we see chinese tech names. it has extended gains for a fourth session in yesterday we saw a entering the bowl market. today is driven by what we see from nvidia and oracle that will provide a lift. beyond that, there's not much to go by, especially given the property woes in china. csi 300 lower by a third of a percent with a gauge of

developers listed in hong kong under pressure. let's flip the board. country garden, the developer of royal markets defaulted on dollar debt. we are hearing about how it has missed a coupon payment for the first time. it does have a 30 day grace. certainly enough to send jitters through the investor space. we are seeing bonds have been under a lot of pressure. let's take a look at what we see in japan. we have been keeping a close watch on wage negotiations this week. that is the final piece of the puzzle before it can take its foot off the stimulus petal. today we hear from toyota. it is seen as a bellwether for the economy, because of the number of people it employs. it is agreeing to the wage hike

demand of the labor union. once we saw the story job, the nikkei arrays gains from early in the session where it started the day quite right in shrug off what we got from the hotter than expected cpi. dragging what we saw on wall street. bonds were under pressure for the most part, but we see a recovery. let's take a deeper dive into what we see for the japanese currency and how it has been fearing this week. yesterday after that cpi prints, this is the dollar story, but it saw that strength coming through after the toyota lines came through. we have bank of america coming through with an interesting perspective that is beyond the hike next week. it doesn't provide forward guidance, boj does not provide forward guidance. we could actually see the yen weaker. tom: we will stay on the japan story and get more details on

what is unfolding. we look ahead to that decision for the boj and its whether or not they raise it. expectations are rising for the boj to move on rates after toyota confirmed it will meet its labor union demands for wage hikes in full. let's bring in our bloomberg senior reporter who standing by in tokyo. what are we seeing from toyota and other companies in japan ahead of that policy decision next week? >> as you know, there is a steady drumbeat of wage data coming out this week ahead of the policy board meeting on monday and tuesday of next week. we are effectively seeing a lot of companies agreeing to union demands for higher wages, which of course as a result of higher living costs for workers across the country. toyota, in this specific case is a bellwether for more than 5 million workers of all the

suppliers and affiliated companies. we know that toyota has agreed to all of its units demands, and we are seeing rises of honda and nissan than other japanese companies, which is essentially giving the bank of japan a certain amount of comfort or justification as it seeks to end its decades long experiment with negative interest rates. tom: is it enough talking to investors and people on the ground in tokyo and japan as to whether or not this will be enough to shift the needle for the boj when it comes to next week? >> what the collective bargaining group for all of japan's labor unions has been demanding is a 5.85% wage raise. most companies are either above that were slightly below, but the key level really is 3%.

that's what the government and the bank of japan have said needs to be the minimum threshold in order to shift policy. it looks like this year, this time around we will clear that. tom: minimum level of 3% as we look at toyota with increases of around 5%. bloomberg senior editor reed stevenson with the implications around wage negotiations and what it could mean for the boj. let's get you up to speed. elon, the german energy provider coming through with details around the expanding investments through 22028. it's looking to boost investments across europe by 30% in the next five years as it tries to speed up the energy transition. that's about 70% of the 42 billion euros. 42 billion euros will be vested in projects in germany focus on energy networks and energy solutions. the redhead crossing around and

ramping up the investment around the green transition 70% of the 42 billion euros to be invested in germany. 42 billion euros is the target. let's get to the story around the u.s. inflation print. underlying u.s. inflation topping forecast for a second month. it's likely to re--- reinforce the fed's cautious approach to cutting rates. let's bring in kriti gupta for the details. what stood out to you from this data in the market reaction? >> there was so much speculation about whether it would work -- whether it would be brushed off by the markets. everyone has to find a different reason. ultimately, the trend is still different -- disinflationary. so much was driven by goods inflation. you have used vehicles, medical services, which we are taking higher, but the kind of, economists are putting out,

including bloomberg economics. the disinflationary forces are still there because the tailwind for this, even though it was goods driven, will be housing. the prices will come down. that's where she's pointing the deceleration will come. from a headline point of view, you aren't going to see this uptick last long. therefore, it is a one-off for a to off coming off of the january story. i think this is the one that matches the market narrative, which is that even though some of it is not housing related, the shelving component will balance the numbers out. the other side is maybe not because the uptick is coming in goods inflation. if you see things like tariffs, supply chain out of the red sea, that's expected to show up in the second quarter and beyond. is that where you see the inflation. tom: what is it leave market pricing around the fed?

>> i think it's a little strange, this is why i point to it being a one-off for a two off. you look at two to three cuts and you look further cuts to start in june, intraday yesterday those cuts move further to artist -- august on back to june. they don't really know to do but we are going into a phase where we are saying, we are not paying attention to cpi, we go to ppi. we go through the cycle again and we are looking for more data. tom: bloomberg anchor breaking down the u.s. inflation data for us. the implications for the federal reserve, here's what else we are watching. we talked about their earnings story and we get important prints crossing at 6:30 a.m. u.k. time. we will be looking for the demand for ev's, the demand out of the important china market, and whether or not they will return cash to shareholders. that stock up just a little over

8%. porsche rallying yesterday on the back of their outlook for that company of which there is a major stake. we also get a touch on the retail space. same time, adidas earnings, is the restructuring or the re-shift in rebalancing around this business, is it starting to pay off. they've had a number of challenges, will 2024 be brighter. those drop 6:30 a.m. u.k. time. demand out of china is all factors that will be watched for adidas. 7:00 a.m. u.k. time, industrial production and u.k. gdp. you've heard from economist suggesting the recession we are in now will be short-lived if we are still in it. that data out at 7:00 a.m. u.k., suggesting the u.k. economy is showing more resilience after we edged into official recession. coming up, the biden administration warns israel

smashing into rafah, calling for the protection of civilians in one of gaza's biggest cities. more on that story, next. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. updates coming through from bnp paribas out. this stock up over the last 12 months. an update coming through from bnp paribas. they see about 20 billion euros in shareholder returns from 2024 to 2026 or of 20 billion euros in shareholders. they also see 2024 net income

surpassing last year's distributable net. net income for 2024 looking to surpass last year's net income. they also reiterated some return on tangible equity targets today as well. topline seems to be in terms of the update coming through, 20 billion euros from 2020 42 2026. this stock over the last 12 months up. let's switch focus to the geopolitics of the middle east. the biden administration has warned israel against smashing into rafah, underlying its planned assault on gaza's biggest city. jake sullivan said the u.s. would see no credible plan to protect civilians. >> the president is focused on the substance, the policy, his concern about civilians and about israel being able to sustain a campaign in a way that

ultimately leads to an outcome in which the people of israel are secure. hamas is crushed. he believes there is a path to do that and that path does not lie where there are 1.3 million people in the absence of a critical -- credible plan to deal with the population. as things stand today, we have not seen what that plan is. tom: let's bring in paul wallace as we listen to the rhetoric becoming sharp -- sharpened in terms of their critique and approach to this conflict. i ask you this on a daily basis, but are we any closer to a cease-fire? >> it is a crucial question. i think the answer is, no. we are not any closer to a cease-fire. it does not look like hamas and israel are bridging the whitecaps that still exist between them. the bigger picture is, hamas would probably want a long-term

cease-fire effectively and in in -- and an end to the world -- war. israel needs to continue fighting until it has completely destroyed hamas as a military organization. israel says hamas still has brigades, up to 8000 fighters in the city of raw vote. this war has to keep going until it's no longer the case. tom: if a cease-fire is not likely, is any of it coming through from the u.s. and other israeli allies cutting through to the government in terms of restraint around what they plan on rafah? >> i think if you looking -- listen to the words of prime minister that's in -- prime minister netanyahu and his

coalition members, it seems they don't have an election impact on israeli thinking. they are sticking to the lie that rafah is moving forward, it's a question of when, not if. you do see a lot happening on the ground that suggests the increasing frustration of the u.s., in particular, is having an impact. we are seeing aid go to gaza and we see the maritime route over the last few days with aid going by ship from cyprus into gaza. i think that something israel has that says it welcomes the move but says it was a bit resistant to accept, until very recently. in terms of raw folk, it's a difficult one to know. joe biden did say the other day that going into rafah was a red line as far as he was concerned. but his officials are still

sticking to the line. not that an attack on rafah must be ruled out entirely, but that it cannot happen under the current circumstances, which means they cannot happen while more than a million civilians are located there. netanyahu has pledged that if he sends troops into raw for, he will allow the civilians out. but the u.s. is yet to see a credible plan to how it will happen. moving a million people is a hugely complex thing to do, especially in a war zone, and especially in a short space of time. there are a lot of skeptics within the israeli establishment that doubts they can move civilians out of raw for quickly to somewhere else in the strip. tom: paul wallace, we appreciate the update in terms of how the story is evolving and unfolding.

to africa now where the militant islamic state is using cryptocurrencies to raise and move money around the world. at this point let's bring in our bloomberg correspondent. how widespread is this problem, what do we know at this point? >> we know that it's in the horn of africa and parts of west africa. this is because the islamic state does not have the same on iraq and syria and lost major revenue sources. their assets have fallen from hundreds of millions of dollars to 10 to $20 million in cash and liquid assets. so they are waging a very violent campaign in a place like somalia, which is their bread-and-butter generating $6 million from extortion and local taxes. governments are beginning to clamp down on their financial sources. because of that we are seeing the islamic state going on

social media, asking their sympathizers to use its crypto and they are gravitating towards that because it is not as volatile as bitcoin because it's against the u.s. dollar. tom: what impact could the crypto clamp down in the short term and longer term? >> we are likely to see governments begin to enforce legislation for flow funds. take nigeria, they are pushing it to really lose -- release data and transaction history in the last six months. governments are becoming more vigilant. where is the source of the money, where is it going on what will it be used for. it will out on calls for cryptocurrencies to be more responsible to have usage of their coins outside. they are disappointed with the u.n. report saying all actions using their coin can be traced and that explains this season

for the $300 million in assets. tom: the important update on the usages of crypto, at least in some form by some criminal entities, including islamic state. we will get more on this. let's check in on how the crypto markets are performing. you continue to smash records and bitcoin currently trading at 72,430. up 2% in the session for bitcoin. the context is after the sec approved those spot bitcoin etf's on january 11, fun flows of around 9.5 billion u.s. dollars since january 11. just last week around 2.7 billion u.s. dollars flowed into crypto related assets. it continues to grind higher. it is the backing of those etf's and the expectation of what comes through when you cap the number of bitcoin in circulation that will provide support. this is all a reminder of some

frothiness in the market. depends where you live. 72,000 412 on bitcoin. plenty more coming up. stay with us. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. now to some stories making news this wednsy. bloomberg has learned the pentagon has pulled out and they plan to spend as much as $2.5 billion on a chip grant to intel. the funding was for the company to produce advanced intelligence related semiconductors. sources say it may force the commerce department to make up the shortfall. the government wants a bigger share of investments made by st micro to go to italy. there's a stake in the semiconductor company.

it's favoring france. italy is said to be opposed to a new three-year term for the ceo. one of the front runners to replace bill winters is leaving the bank as part of a broader management reis shuffle. simon cooper has led the institutional banking division for eight years. according to a statement, cooper is exiting to pursue other interests. coco futures have risen to a fresh intraday record topping 7000. higher costs are putting pressure on chipmakers. the top producers continue to buckle amidst adverse weather conditions. arrivals are below 30% -- about 30% below level see at this time last year. and, sales are making a comeback as commodities giant experiments with them in an effort to make it shipping vessels -- and they

have fitted to wind wings made from steel encompassing glass to 80,000 bolt carrier. the 120 structures should save three tons of fuel on average each day. coming up, wall street powers high as investors shrug off hotter than expected u.s. inflation with it still optimistic. we bring you the details on analysis. that is next. this is bloomberg. ♪

tom: good morning, this is

bloomberg daybreak: europe, i'm tom mackenzie in london, these are the stories that set your agenda. wall street notches up a new record high. investors shrug off hotter than expected u.s. inflations with market still optimistic on fed rate cuts. in japan, the end strengthens as the world largest carmaker agreed so wage hike demands adding to the case for a boj policy shift next week. we bring you comments from the governor this hour. plus, another big warning for europe as it reports. we have breaking lines from adidas right now but also vw as well. let's bring you the adidas lines for your revenue coming in at 21 .4 3 billion euros. there's a number of setbacks, not least is working through those profits coming in at 268 million euros for the full year

for adidas. in terms of the margins, slightly missing the estimates. adidas fourth-quarter growth margin 44.6%, slightly then below the estimates of 45% and we are looking at a fourth-quarter operating loss coming in above the estimates for adidas 377 million euros. the estimates for the loss at been for 372 million euros. the fourth-quarter operating loss coming in slightly higher than had been expected for the fourth quarter for adidas. for your dividend per share 0.7 shares is comfortably above the estimates of just half the euro. a dividend coming in above the estimates. let's check in on these markets as we think about the earnings story, of course, and reflect on what came out yesterday across the u.s. session and european session. it says through the headlines, another fresh record on the u.s. driver coming through from

oracle notching up data around 11% on the cloud division. nvidia coming back after a couple of days of losses for the ai chipmaker. the top of the list in europe we have porsche, futures coming a little lower across the ftse 100. s&p futures at 5240 one, still above the 5200 level. unchanged. s&p futures with a breather after the record set. nasdaq futures pointing 18,400 70, edging slightly lower. european stock futures are flat after european equities yesterday. all of this despite this stickier than expected inflation. month on month in terms of core inflation. let's flip the board across cross asset with the eye on yen, given what was around the wage negotiations. it does seem to suggest there is a little bit more evidence now that the boj could go with its first hike since 2007 next week. the yen, a little bit of

strength coming through at 147 56. iron ore interesting. watching the minors at the open 8:00 a.m. u.k. time. further price pressures coming through at a seven month low getting closer to that hundred attend. on the back of less fiscal stimulus. u.s. benchmark 10 year currently at 413. the is cross asset. let's get to the earnings story of the morning. four-year operating profit then for vw coming in as 22.6 billion euros, estimates have been for just above 22 billion euros. four-year operating profit for deep -- for vw. ? surround evey's and around the continued investment around renewables or at least the eeev part of the business all in focus. let's bring you bloomberg's oliver crook standing by with the details. what do you make of these

earnings? oliver: we are just going through the numbers and going through a little bit more of the details. some information. one thing to take away as they are launching more than 30 different models. they will hit the road this very year. when you look into it further, you look at the january to february timeframe. there was a growth and battery electric vehicle sales from this year to last year, which is significant because we talked about ev demand not being anywhere near where people in the market anticipated. we look at the different brands as we get a break down, the volume brand, that grew 5% but what we see in tech is the premium brands continuing to pull ahead 13% growth last year and we look into the bev's and they reach 10% of all the cars of volkswagen sold in the fourth quarter with battery electric vehicles. one glaring omission is there's not a lot of information on china. when you look at the proportion of sales, full swag and had 50% increase in sales last year.

20% came from the united states in 18% came from europe. you thick about the journey of the critical chinese market, we will be talking to the cfo later about what's going on in china. tom: that's interesting, lack of detail for vw. they have been operating there for decades. would you know about the competitive challenges that ev is building? >> the fact that the battery electric vehicle sales are nowhere near anyone anticipated makes it all the more difficult. it means a slice of the pie is even smaller where there are a ton of companies all competing for that lunch. all the newcomers coming from china is a wake-up call for a lot of the legacy automakers in germany. you see the iia in munich. byd came and strong. they are trying to build up the

market in europe specifically because is not a very friendly place in the united states for the chinese auto companies. you think about it for genesis. last year they announced a 180 billion euros spending plan. the last year was really about restructuring. this year was about restructuring and this year they hope to open up by 2026. if you look at what happen with porsche where you had a very gloomy outlook, you had margins lower than anticipated but investors focused on the long-term story and they rose by 11% yesterday. i suspect that's what volkswagen would like to see after their presentations. tom: of course we will have a lot more on vw's results when we speak to the cfo on bloomberg markets today, it :00 a.m. u.k. time. let's switch focus for the automakers to the retail space

in detective the parent company zahra. the headline, the redhead across the terminal is a detail around the dividend. we know analysts have been scrutinizing this. the dividend was in focus. they have raised dividends, proposing the way -- raise to 2023 dividend by 28% to one euro 54 per share. the market had have to euro per share. they came in with a dividend proposal way above the market expectations of 154 per share. on the fourth quarter in the text, earnings coming in at 1.6 2 billion euros bang in line with the estimates. the sales, marginally softer. it's essentially in line with the estimates for the fourth quarter. -- foursquare to net sales coming in. net income, a little bit of a miss, 1.28 billion euros net income for the fourth quarter.

but really it's the dividend increase, 28% that will be the main takeaway for many analysts and investors out there on the story. u.s. inflation topping forecast. the advances likely to reinforce the cautious approach to cutting rates. let's bring in bloomberg mliv's mark cranfield for the analysis. what are traders looking for from the fed after that cpi data is the focus on the revisions or potential revisions around the forecaster around the dot plot. >> dot plot very much. you've got a interesting situation where we have reached march, which initially, some people thought would be the first rate cut of the year from the federal reserve. that will not be the case. the median for the dot plots are still for three this year. a big decision from the fed's point of view is if they stick with three, they still have time. there's enough the rest of the

year and they could squeeze in three rate cuts were that they think the stubbornly high inflation numbers mean they should make the adjustment now or wait to make the adjustment may be at the next fomc meeting. that's what bond traders, especially are watching this very closely. we have heard plenty of times the federal reserve speakers in the past couple of weeks, may be to is sufficient. neel kashkari says one is sufficient for this year. there are disagreements within the fed people. jerome powell said he thought it might be the first rate cut in the middle of the year, which people are taking for being june, the markets think it's the right time. everything could be upended if they change the dot plots next week and maybe they reduce the number to this year for cuts, and may be in an extreme case they go for one. there is plenty hinging on this, and that's probably why there's nervousness in the treasury market, they may see a

follow-through in the equity markets as well. they might take a cautious stance between now and next week's decision. tom: lines crossing from the governor who has been given evidence again in front of parliament in tokyo. the boj saying spring wage talks are important in terms of monitoring that for the boj. he's reiterating what we heard. he is saying they will mall policy adjustment once the price target is insight. a bit more detail coming through. it doesn't shift the needle much, but maybe the wages do. to what extent is the resilience of these markets to the prospect of a boj hike next week, or is that a risk still for these markets? quex there is still a risk, it's only a recent thing people are

giving an idea that march could mean something. until a few days ago, there was an agreement that april would be the earliest from any move for the bank of japan. we've had a slew of media stories, we've had a few wage agreements on the high side and we have the very big one on friday, trade unions in japan and it looks as though will be a high number. things are falling into place and we have not been getting pushback from bank of japan people. by now, you would expect stories in the media from unnamed bank of japan people saying is way too early. that has not happened. so it's making people think something will happen with the next great decision. so the intensity is typing up. we have seen big banks, bank of america today change their forecast. they expect to change next week. it could be in stages. because of the fiscal year and, bank of japan might not want to risk disrupt markets too much. maybe they mention yield curve

control first, see how the market response and follow-up with a great change in april. the way things are going, march really looks as though something will happen from the boj. tom: very interesting in terms of the potential sequencing from the bank of japan. mark cranfield from our mliv team, thank you very much. just crossing the lines, the governors saying they will decide policy, a little bit of softness coming through from the japanese yen. let's switch focus now. the president has warned the russian president will attack other countries if the kremlin wins its war in ukraine. because as the polish leader seeks to convince the u.s. to approve further assistance for kyiv. >> we are the nation who was enslaved by russia several times. if russia wins the war in ukraine, he will attack one more

time, he will attack other states because this is russian imperialism reborn and that is why it has to be stopped, it has to be blocked, and has to be punished. this is the most important task facing the community of the west today. this community is led by the united states of america. >> mr. president, essentially was your message that if the u.s. congress fails to provide additional support to ukraine, not only could they be harming ukraine's war effort, but potentially harming ukraine's neighbors, such as poland? >> let me repeat once again, it is necessary to make sure russia and putin do not win this war, he has to be stopped and the only way that we can do that today without getting involved directly in the war without the need to send soldiers to fight is support with equipment, with

state-of-the-art -- given to ukraine. yesterday i made an appeal to look at that because that is the condition today and i've said very clearly to the speaker of the house of representatives, also to the leaders attending the meetings, i told them today, putin can be stopped at a cheap price because only by providing equipment and money, if they send troops against russia, because if russia keeps attacking because russia might want to expand, then this price will be very high. tom: that was poland's president speaking exclusively to bloomberg. there's plenty more coming up. stay with us. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. let's get more stories with the particular lens on the retail space. earnings broadly meeting, but the big point that has come through from what has dropped is the increase to the dividend around 20% increase to the dividend coming in at 1.5 euros with a markets have seen half a euro. big uptick. very pleased to say right now. bloomberg's correspondent joins me now. what stood out to you? >> it seems to just keep performing in outperformed h&m and other rivals. in recent years. we see that again with these results. i think it was a 28% boost to dividend, which is very hefty. last year's performance was very good and inches shows that there strategy of investing further in north america optimizing this source space, their online

strategy is paying off for them. tom: they continue to have that lead versus their rivals and a dividend paid off. they've had a challenging year or two. the exposure and all that challenge. is 2020 four looking brighter? >> i think so. he has a turnaround in plan. he seems quite conservative, but i think if you look at last year's performance, it did better than expected. they say growth can come back the second half this year. they are still getting rid of some of the easy inventory. i think you would be happy with where they are tracking right now. there is still a lot of buzz and interest in some of their classic lines. i think they have a habit of undergoing promising and over delivering. i think potentially could see that in 2024. tom: potentially a bright future for adidas. the contacts around the earnings coming through.

thank you very much in it -- thank you very much indeed on the broader retail. let's switch focus to the drug -- from the drugmakers. the uk's medical regulator has seized more fake ozempic bends than other european countries. and by most of them combined. unlike most drug regulators, it's taking on a very hands-on approach with trying to track these products and clamp down on this illicit trade. let's bring in bloomberg's ashlee for the details. ashley has spoken to the head of enforcement at the uk's mhr a. what are the dangers of these products? >> potentially they could have insulin in the drug regulator told us many of these pens contain insulin, which is a product that should be given to diabetics. if you don't have diabetes and you get insulin, you could potentially die. tom: you have been speaking to the man who leads his crackdown and he says mabel we are past

the peak in terms of the danger right now. but it's really important reporting. how is the u.k. approaching this differently to its european counterparts? >> it's really hands-on. it's carrying out raids, monitoring social media, monitoring the dark web, it's even going undercover and actually communicating with the people who are selling these products. so we have seen that in some countries, but in many european countries they leave that to the police or criminal enforcement. they often wait for -- if i see something that looks suspicious online, report it. the u.k. drug regulators taking a hands-on approach. tom: are you convinced he's right when he says we think we've got our hands on this in the u.k.? in addition, are these predictions being made here in the u.k. or being shipped in from somewhere else? >> they are shipped in from abroad. most are stopped at the border.

there was a large amount of pen stopped at a warehouse, which is nearing the -- mirroring the legitimate supply chain, but the u.k. think he is convinced that they have come down hard and fast. but this is a global picture, we have seen the demand for obesity drugs increasing as more companies come to markets. while the u.k. might have it under control, we will have to wait and see what happens with the rest of the world. tom: really important reporting as they have been filling the gap around the demand picture for ozempic. the -- the inability for others to meet that demand, filling the space. thank you very much. there is plenty more coming up with the breakdown inflation story out of japan and the u.s. as well. stay with us. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. we wanted to zoom in on the u.s. inflation data that crossed yesterday. the stock markets seem to be immune to the data that came through. you got a tick up in core on a month on month basis and year on year basis. that's the second straight month. january and february, 0.4%, the most recent print in terms of poor cpi month on month coming in about the estimates of 0.3%. on a yearly basis, three point 8% was the print. year on year for core above the estimates at 3.7%. again, a reminder that the work to get back down to that 2% target could be a challenge for this federal reserve. the relative stickiness seems like the markets from the equities perspective are able to look through that at least for now. i want to switch focus from the

u.s. cpi story to what's unfolding in -- we are getting more data that could inform the boj's decision. most notably toyota in negotiations around wages, agreeing to meet union demands. japanese yen at 147 so far. look at what hsbc had to say about what could unfold in terms of the move from japanese equities, potentially into chinese equities, depending on how the boj responds. take a listen. >> japan wages interest rate, the u.s. goes lower. the end strengthens a little bit. the stock market has performed very well on the weaker yen. that could take a bit of the zest out of that. if the money leaves japan, where does it go? that could bring us back may be to china. tom: maybe, potentially china could be a beneficiary. potentially a beneficiary when we think about flows from japan. one may be to bear in mind.

here's what's happening in terms of wage data and how it starting to catch up with cpi in japan. you can see the cap that has formed on the fact that it starting to close with most recent data. again, toyota meeting the demands, all of those demands in terms of the bonuses and wages coming through from the unions. the steelmakers meeting many of those demands. we get the main unit coming through with its wage data and agreements on friday. that will be crucial in terms of how the boj is thinking on whether or not next week is the week they hike rates. we will dig into the vw results. earning story continues with analysis on markets. we speak to the cfo. stay with us. this is bloomberg. ♪

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anna: good morning, this is "bloomberg markets: today." i'm anna edwards alongside kriti gupta and guy johnson. u.s. stocks gained despite hotter than expected cpi, wall street