♪ >> this is bloomberg daybreak:

europe your get i'm tom mackenzie in london and these are the stories that set your agenda. raising the stakes. wall street closes in the red as james bullard ups the ante on his new fed hikes. asian stocks push higher yet again, led by tech. jeremy hunt lays out a harsh economic future of weeks growth and rising taxes as britain's face a record drop in living standards. plus unprecedented chaos. the man overseeing the ruins of ftx reveals a complete failure of corporate controls as the fallen digital empire. this as twitter faces an exodus of remaining employees under elon musk. we check in on the futures there on the back of just increasing numbers of officials coming out of the fed, particularly bullard. bullard is suggesting that you can see rates between five and

5.25% in terms of the terminal rate from the federal reserve at the minimum. joining a chorus as fed officials push back on some of the narratives within these markets around any kind of pause. there will need to be further rate hikes. we wait for the update on the dot plots later this month. we continue to look ahead what's happening on bcb. they are moving closer to 50 basis points later this month. euro-dollar. 103, again of a 10th of 1% for the single currency. the tenure at 367. brent at $90 a barrel. that's a gain of seven tents of 1%. you are looking at a week of losses for brent. traders not showing a lot of demand for oil. on concerns about where we are going in terms of potential recession. bitcoin at 16,800.

again on the back of additional details coming out of the fallout of ftx. asian stocks are on track for a weekly game. annabelle droulers is tracking the moves for us in hong kong. alibaba is part of the mix as well in asia. annabelle: that's the big sentiment for us today. given that we had earnings out. yes there was a profit beat. what's driving the sentiment today amidst other incentives, that was that share buyback. the other is that the company says that it's actually starting to see some optimism around an easing of covid restrictions. some sense perhaps that the country is learning to live with covid, at least to some degree. even as we see cases rising back to the highest levels since the start of the pandemic and a real test for officials in terms of what they plan to do. that's what we have for alibaba

today. up around 2% now. it did pop as much a 6% at the start of trade, lifting the index. really, the optimism in asia today. we are seeing that based on covid zero policies and any sort of easing here. take a look at what we are seeing another benchmarks today. we are looking moderately high, focusing on the hang seng today. on track for a weekly gain here for the broader msci asia pacific index. goldman sachs as well upgrading their outlooks for china and korea. certainly that's the main trading sentiment. not so much the fed. tom: interesting. the upgrade for goldman sachs. thank you very much. let's get to our reporters from around the world. endocrine joins us for a look at the latest noises from fed officials. john step it has our breakdown. we've got the latest on crypto and ftx from stacy marie ishmael in singapore. let's start with ende karen.

fed officials keep making the case for further rate hikes. he has the breakdown. we are hearing from james bullard, raising his view of 5.25% at the minimum. it seems like further hikes and big hikes are still in the cards for these fed officials. enda: yes. more hawkish comments from these officials. mr. bullard making the point, that's the kind of zone where the fed funds rate needs to end up. he's not yet satisfied that the right hikes have had so far this year. it's not yet having the impact he wants to have. those comments were backed up by the other fed official who spoke overnight. he made the point that he satisfied with inflation where it sat. he says they have a lot more work to do. these comments gel with jerome powell. he said he thinks the fed rate

hike, mary daly coming out with a range. we are at an point where we don't know what the pace of rate hikes will be from here. there's a lot more work to do. tom: thank you very much. let's get back to what's happening in the u.k.. a bleak new reality for the country's economy and his autumn statement. one plagued by weak growth and rising taxes for years to come. for more, we are joined by john step back. what stood out for you? john: it was a budget of two half. on one hand, all of us will be

paying significantly more tax and most of that is being done through a mechanism called fiscal drag which is where taxation is frozen so more people are being dragged into them by inflation. there were a couple of main changes. dividend taxes and gains tax were also/. on the other hand, what was particularly interesting is that for all that we talked about, it's a gloomy outlook. much of the pain has been postponed. there was a lot of talk of austerity and spending cuts before this budget. over the next two years, there's going to be increased spending. most of that, the cuts have been to late until after the next election. you have to think here, the

chancellor's priority was to make sure that markets are peaceful in mortgage rates don't strike -- bike. after we go through the pain of next year, he's got his fingers crossed that things won't be quite as bad as feared and then perhaps some of this can be unwound. tom: black loading -- back loading of the pain. thank you for breaking down the autumn statement for us. you can read more of his analysis and tips as well in terms of what's happening with the u.k.. it's money distilled. check it out on bloomberg.com. ftx's new boss who previously oversaw the liquidation of none other than enron has revealed the chaos left behind by sam bankman-fried.

he said, never in my career have i seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information. that from the man who oversaw the mess that was enron. with more on this story, we have bloomberg managing at her for -- editor for crypto. what is the latest on the fallout from ftx. we are getting updates. what do we know at this point? stacy-marie: i think one of the big things that we know at this point is how worrying it is that the ftx folks themselves, how little they knew about what was going on, especially in the last couple of days before they filed for bankruptcy. that has a couple of potential consequences. the first is that creditors to ftx, people who had invested with them, people who were trading with them, people who had exposures to the platform don't feel very reassured that they are going to be able to get any of their money back, given the kind of statements that you just alluded to.

across crypto, folks are asking, how -- this is a company that presented themselves as the responsible ones in the room. they would say things like, we are the best regulated crypto exchange in the world. he had a lot of relationships in various jurisdictions including the u.s. with legislators and regulators, people trying to set the stage for what crypto regulation should look like. it's come -- becoming clear that none of those conversations had any sort of preventative effects in terms of consumer protection for the industry. tom: what do we know about the linkages at this point between ftx and other parts of this kind of sprawling empire? tom: -- stacy-marie: yes stacy-marie:. there's a dispute between

lawyers between the folks in the bahamas government and the regulator and the folks overseeing the liquidation of the bahamas, registered ftx entities, the folks that are overseeing the liquidation of the entities that were based and exposed to the u.s.. that confusion suggests there was a lot of linkages even though they said over and over again, these are totally hands-off relationships. those assertions were not supported by the fact that we could see. bitcoin prices were somewhat positive over the past couple of days. there is still a perception that it's fairly well contained within crypto right now. we are not seeing spill over into other markets. tom: thank you. excellent. fantastic reporting as well.

including our own conversations with spf before all of this unfolded. earlier this week, elon musk issued an ultimatum to twitter employees. he said commit to the company's new hard-core work environment or leave. the deadline has passed and sources tell bloomberg that so many more workers have chosen to go then he expected. major complications are now resulting. su keenan has more. su: new levels of chaos and confusion. they say twitter offices in san francisco are now closed until monday. this after the new billionaire owner elon musk put out an effective put up or shut up ultimatum, telling them to either commit to working long hours at high intensity, 80 hour work weeks, or to leave and except us average package. so many more people than

expected opted to leave anticline mosques pledge. it puts twitters operations at risk. a memo also urges staff to refrain from discussing confidential information on social media or elsewhere. some employees who were leaving speculated that so many are now departing, along with their knowledge of how the product works, that the social media network may have trouble fixing or updating systems during its normal operations. things were also complicated by a possible national security review of musk's deal by u.s. government officials. that's according to people close to the matter. musk consummated his deal to take twitter private at the end of october and there have been multiple problems and headlines ever since. su keenan in new york. tom: ok. su keenan on the latest at twitter. i couldn't help but notice that

one of his most recent tweets was a picture of a gravestone with the twitter logo on it. coming up, rate rises will roll on. more on that next. the context for these markets. later in the show, we have google's global head of government affairs and public policy joining us live from the aipac economic leaders meeting in bangkok. this is bloomberg. ♪

>> even under these generous assumptions, the policy rate isn't that is on that might be considered sufficiently restrictive. to get to that level of policy, we will need to increase the policy rate further. >> we are all united in our commitment to getting inflation back down to the 2% target. it's an open question of how far we are going to have to go with interest rates to bring that demand down. we've raised interest rates a lot this year. there's a lot of tightening in the pipeline. we haven't felt the full effects of that. yet inflation is still very high. tom: fed officials pushing back against market hopes for a pivot. joining us today to unpack some of this is parisha saimbi. good morning. thank you for joining us. how much more work to these markets have to do to price in a plus 5% terminal rate? parisha: there certainly needs to be more that could be price. for that exact reason, we think

the dollar can rich and and unwind some of the moves that we've seen over the past few weeks. we've heard from many fed speakers overnight and they all seem to be singing from the same sheet. the pace of hikes may need to slow but we are not quite at the level yet where we can say we've reached the peak terminal rate. for us, we think that it's 5.25%, similar to the minimal lever that bullard has been alluding to overnight. we think that will be reached in q1. yes, we may get downshift to 50 basis points in december but ultimately the pack is higher and it's more than what markets are pricing in. tom: 5.25% is your view. how much ballast does that give the u.s. dollar? the yield advantage for the u.s. and what that does for the greenback in the quarters ahead. parisha: i think there's two things we need to consider. one is that the markets need to price in these higher interest rates and that will be supportive for the dollar,

especially given the yield advantage. we will be continuing to increase with the fed continuing to raise rates. secondly, we think that markets will increase the downturn to come. getting interest rates up to these levels is not going to come without a cost. that's likely to be a recession coming through the course of next year. we don't think that fundamental risk is being priced in de-risk assets like equities and credits. as markets move to pricing in that risk as the data continues to turn, we think that will give the dollar some more support via safe haven demand. for the next three to six months , we see the dollar as stronger for longer. thereafter, we still expect a pivot as that advantage reaches that key top-level and starts to pivot as we go through the course of the second half of next year. tom: you are quite clear that that pivot comes through from central banks in the first quarter of next year.

my question is, in terms of timing, what do you thinking about? do you have to wait until the first quarter, until it's baked in? can you start to position earlier? parisha: we think that we will have to wait until q1. central bank policy is still going to be rising up until the end of q1. the second is also, there's a significant amount of supply hitting market, particularly in europe. that's typical of the cycle. until the supply is out-of-the-way, we think it will be hard for yields to be falling in that environment. after we get over that peak, policy rates at their terminal levels and supply out-of-the-way, we think that will mark a shift on the path for bonds to rally. certainly more so than equities next year. tom: switching focus to the ecb. we have reporting from bloomberg suggesting that officials at the central bank in frankfurt are

considering edging down in terms of the next hike, from 75 to 50 basis points later in december. is that pushing the euro back below parody? parisha: we do see risks of the euro heading back toward parity levels over the course of the next few months. i wouldn't say that it will be ecb driven though. we've had inflation surprises to the upside, even more recently inflation expectations data for the long-term has also been on the rise. we think that could call into question some of the tweaks that we've seen from the ecb at their last meeting. maybe suggesting that the downshift could have been premature. going into the december meeting, it's going to be a fine balance. we are calling for 50 basis points of rate hikes. getting that downshift but certainly we wouldn't be surprised if we saw another 75. the key reason why we could get a retest of parity is going to be this dollar move higher that

will emerge over the coming months, driven by safe haven demand and fed repricing higher with terminal expectation being revised higher again from the fed at their meeting. tom: when we look at the u.k., obviously central to what the chancellor was trying to achieve, convincing the markets that credibility has now been restored. was the team convinced? what do you expect to see in terms of the risk premium within u.k. asset? parisha: completely agree. the clear statement from the budget was to come across as being more credible. certainly we've had quite a tumultuous last few weeks. that was the sign that was needed. it came across. the pendulum has shifted quite significantly from one of fiscal evening -- easing to tightening. clearly that message came across. that's a good sign for markets.

a lot of that was arguably being priced in as soon rich he sunak took his place as prime minister. there was already that confidence or feeling that we will have a more stable government, a more fiscally prudent government than we had previously. so that's why we didn't see a significant reaction yesterday to the budget. also, we need to unpack a couple of details here. growth expectations for -- are quite punchy. five percentage points higher than what the bank of england would be looking for. over 2.5 in their later years which is a level we haven't really seen since 2000. there is some question over whether that growth number is realistic. also, yes there's fiscal tightening. it is backloaded to these later years. there is some question as to whether even this tightening will be delivered. there's a couple things we need to unpack. ultimately, yes we've got lower

this year. that's great news for markets. we will have a significant amount of more supply coming. the view is still bearish on guilt. ultimately, the outlook for the u.k. is still relatively bleak. we are still very much bearish on the pound. tom: parisha saimbi. fantastic insights. thank you for joining us. ready for kick off. we are live from qatar for a look ahead to the increasingly controversial world cup. it begins this sunday. this is bloomberg. ♪

>> believe you me, back in 1934, the world cup was in italy, it

was used as a vehicle to promote fascism for most of england. there were riots on the streets by people saying, we shouldn't spend all that money, we should spend it on social care. then it russia invaded crimea just a few years before. tom: former player gary, comparing some controversy as to previous world cups. you can watch the full interview he game on bloomberg quicktake. 12 years after being awarded the tournament, the world cup is nearly upon us. the opening ceremony and first match happened on sunday. the world will be watching, not just for the action on the field, but for potential unrest around human rights issues. let's bring anna simone, who is outside the stadium where the opening match at the world cup will be played. what makes this world cup unique? what is the atmosphere on the ground? simone: it is certainly probably one of the most controversial

world cups ever. the first major sporting event in the middle east, the first major sporting event since the end of the pandemic, the first time we are seeing a world cup, november december, that was controversial. the first time we are seeing the world cup held in a single city. that is important, as well. there are some 1.2 one million people expected to descend on this country over the course of the next month. mind you, there are only 3 million people who live here. that will put a lot of stress on the infrastructure that qatar has built to maintain and how people enjoy this event. tom: simone on the ground for us, thank you very much, indeed. coming up, more fr

♪

tom: happy friday. i am tom mackenzie in london. these are the stories that set your agenda. raising the stakes, wall street closes in the red as james is anti-on his view on fed hikes. asia stocks push higher. then again, by technology. plus, unprecedented chaos. the man overseeing the ruins of ftx reveals a boat, complete hellyer of corporate controls at the following digital empire. this is -- as twitter faces an accident of remaining employees under elon musk. a bleak reality. jeremy hunt lays out a harsh economic future of weak growth and rising taxes as britain's face a record drop in living standards. let's check in on the markets and the futures in the u.s.. need fed officials pushing back around any views that there is going to be a pause or a pipit

when it comes to the rate hike cycle. james suggesting the five to 5% is the minimum in terms of the rate. joined now by neil, suggesting that a pivot is not even in the cards. the asia-pacific up 1/10 of a percent. some optimism within the technology sector in asia. nasdaq futures eight points down. here in europe, futures are high by 5/10 of a percent. officials in the ecb are looking to a rate hike of 50 basis points from 75 basis points in december, continue to watch that story on concerns about the recessionary impact and possibly inflation easing at the edges, more data needs to come through on that. let's get back to what is happening in the u.k.. we had some consumer confidence data that came in stronger for a

second month. how long will that really last? u.k. chancellor jeremy hunt, has laid bare a bleak new reality for the u.k., one plagued by weak growth and rising taxes for years to come. here is what he had to say about that outlook. >> they also judge that the u.k., like other countries, is now in recession. overall, the economy is still forecast to grow by 4.2%. gdp then falls in 2023 by 1.4%. tom: joining us now is alex, u.k. country director and a former special advisor to previous prime minister's. thanks for joining us in the studio. what are the key aims for the chancellor yesterday was to reassure the markets around credibility, but also not to get to a point where the measures he was putting in in terms of cuts to public services was going to prove so damaging that it wrecks

and cripples public services already under threat. did he manage to achieve that balance? >> he has clearly delivered something that has been clearly better pitched than the uni budget -- many budget in 2017. public services are already under strain. he is acknowledging that by having a 5545 spending tax rises spending cut balance. very different than what economics was in the early part of the last decade. i still think it will be a real strain and real struggle, i don't see where the political capital is for having public sector reform over the wars of the next 18 months that will maybe make some of these quite difficult squeezes particularly in light of rising inflation, how are you going to get public services to adapt to that? tom: presumably, he would point to the additional spending for the nhs and education services, as well. i want to get your views on the

back loading. a lot of this is being backloaded. the prime minister says inflation is his central focus. if you are back loading and a lot of these measures, is that really going to inflation around the edges, and while they have the political wherewithal to push through on those measures postelection? >> i think that reflects the fact they have done a ton of measures that counseled the -- canceled the previous many budget. obviously, they are really relying on the bank to make sure that inflation is coming down and that they are not making a mistake of being oblivious to what the bank was doing. i think there is a really good question about the politics of it. i think to a certain extent, they are hoping something will turn up. if you have read your dickens, he is always thinking something must turn up. i think it is a little bit of a present for labor in 2024, and

it is saying, ahead of that election, do you back the spending plans? if you are so in favor of fiscal responsibility? or are you going to abandon them? tom: you have a finger in the business community, there was the windfall tax on energy, the regular complaint is that will slow down investment. are you getting any sense as to what the business community's reaction is to this autumn statement? >> in terms of the levees, there is an expectation that they are making so much money to an extent that they feel they can probably afford some of that hit. obviously, what they have done, is protecting r&d spending, protecting capital spending, and effectively being as progressive as possible on those issues where, when it comes to things like business rates, there is a view that they are actually listening and they are being

sensible. it makes a bit of a change from how it has been over the course of the last few years. i don't think anyone is under any illusions that it will be a difficult few years. at least, if you have a government that is being sensible, keeps the pound slightly elevated, certainly better than where it was when i was here two months ago. that is obviously a very good thing for a lot of businesses. tom: i think brexit was mentioned once. the financial times has describe something as a conspiracy of silence around grexit. you look at trade or productivity or the labor question, b.o.e. officials have been mentioning this now. is the dam starting to break in terms of addressing and acknowledging the damaging impacts of brexit? >> i think that brexit suffers from not having of its own advocates in power. i think rishi sunak has always struggled to be -- doesn't -- i

think that is clearly problematic as well. you brexit, you fix it. this is something we have been dealing with for the last six years now. what we haven't had is a government that has focused in a strategic way on how you do take advantage of basically being outside of the regulatory orbits in order to deliver on some of those benefits and some of those dividends. liz truss tried to do it, but she failed. i think the approach that we set up yesterday with regards to life-sciences and data and having a regulatory review that is a bit more strategic has not benefit. while grexit wasn't mentioned by name, if you look at these solvency two package, the insurance industry there is pretty pleased about, and has the ability to unlock a load of private capital that we have been looking to do in the u.k. for a long time, that is a benefit of brexit.

tom: with your political hat on, what is your sense of the ability for this conservative party under rishi sunak to close that polling gap? can they survive and get through to 2025? what are their prospects at the election? >> they can close the gap, i think it will still be there. i don't think they are going to totally follow through and actually turn it into a polling lead. however, campaigns are unusual and different. i worked on two campaigns where the polls at the beginning were very different then what the polls were at the end. and, there is still fundamentally, the political view, something must turn up. the best thing we can do is lay a platform to try and deliver. that is arguably what they have done. they have a 2 billion pound war chest. if growth goes better, insurance rates go slightly lower, maybe they have a bit more to fight with.

tom: thank you very much for your insights. u.k. country director at global counsel. just checking on a line that hang seng tech index, 1/10 of a percent. raising the earlier gains as much as 4.4% in the session. bolstered by better-than-expected earnings out of alibaba. it essentially has erased all of those gains. regulatory fears may be back in focus for investors read those gains we saw earlier, all but wiped out when it comes to technology shares and the big names listed. it is the final day of comp 27, nations are still no closer to reaching a deal. let's get out to jennifer who is out the summit. where do negotiations stand at this point? jennifer: that is the big question here. right now, it is not looking like this, it will end as promising as it started.

we might not see any meaningful climate action. there is still a lot of outstanding issues that have not been addressed. notably, mitigation, adaptation, climate finance, and also loss and damage. this key issue we have been hearing about for the past two weeks, there are still diverging views on what exactly to do about loss and damage for developing countries. we did see it last night from the eu, a proposal to potentially step in and break the deadlock over loss and damage. frans timmermans emailed a proposal that in exchange for financial compensation for developing countries, developing countries would then be encouraged to phase down coal and other fossil fuels. it is unclear whether that is going to do enough to move these talks forward. there is only 24 hours, officially left in talks. there will have to be some sort of progress in order for people to feel that this c.o.p. is

really a c.o.p. about implantation. tom: the clock is ticking. what are the positive outcomes from c.o.p. at this point, if any? jennifer: we did see a lot of new climate and tech solutions, a lot of innovative solutions read there has been hundreds of exhibitions here of countries that are laying solutions that they are taking on themselves. we also, i think it is quite notable that we have seen more countries signing onto the global methane ledge, a pledge to reduce methane emissions. we saw 12 more countries join this pledge. china did not join, but they did, on thursday, propose their own draft proposal to phase down methane emissions. there is some positive there, but i think, if these issues that, these key issues, if they

don't get addressed, all of these other promising points, promising solutions that we have seen people taking on and announcing here are going to be a little bit dismissed because the key issue that countries want to see is some sort of finance facility and support for a lot of the climate breakdowns we have seen over the past few years. tom: we will see if they can get it over the line. thank you very much, jen. let's go to first word news. north korea has suspected intercontinental ballistic missile, a day after warning the u.s. over continued military drills with allies in the region. japanese prime minister says the missile probably landed inside the country's exclusive economic zone. the new ceo of ftx has laid out a list of allegations against the company's former leadership, slamming them for nonexistent oversight and misuse of client funds in a sworn declaration.

former under a liquidator, says he has never seen such a complete failure of corporate controls the he also says advisors have located only a fraction of the digital assets they hope to recover. nancy pelosi is stepping down as the democrats leader in the u.s. house of representatives. the decision comes after republicans secured a slim majority in the chamber in last week's midterm elections. 80 two-year-old pelosi has led house democrats for almost 20 years under four presidents, and was the first woman to serve as speaker. those were your first word news headlines. coming up, we speak to google's global head of government affairs and public policy. we are joined from the bangkok meeting. this is bloomberg. ♪

>> welcome back to "bloomberg daybreak: europe". the asia-pacific economic cooperation summit is underway, with chinese president xi jinping and kamala harris of the u.s. among leaders in bangkok areas joining us now is a stephen engle with a really important interview. steven: of course, on the first day of the global leader summit after the apex ceo summit, we have all the apac nation leaders, at least 14 of them. they are gathering for bilateral's. and, of course, the big news has always been about xi jinping versus kamala harris read the two are trying to pitch their various pitches to the southeast asian and asian leaders about their visions for engagement with asia. for more on that, i would love to bring in our guest, karan bhatia. you're the vice president in google, president of government

affairs. you are also the former deputy u.s. trade representative. you and i met back in 2005 in hong kong when the wto talks were going on. failed talks, i wanted to ask you about how trade talks uc going no, essentially, there are competing regional trade deals, whether it is tpp or rcep. and indo pacific economic framework. are these going to be all for naught if the real discussion will between the united and china supremacy? karan: i don't think so, i think these are important talks and real talks that are going on. we see in the digital space, digital economic partnership agreement talks. these are meaningful. we will have to see what comes out of them come about the issues that we are looking to address our 21st century economic issues having to do with things like technology and

barriers to trade that are new and different from the ones that existed before. we are following closely, we are optimistic that some of these things will come to fruition. steven: how encouraged are you by the town that was set between joe biden and xi jinping? karan: from everything that we read, there was constructive discussions not happen. god is good. there are significant global issues that are going to require the united states and china to work together. climate change being one important to us and to many other parts of the world and the business community. encouraged, hopeful, that we will see more areas of collaboration. steven: what is dominating your time in this part of the world as far as government affairs for google? we all know about the saga and china, but most of your services are not available and have not been. i understand, more recently, you actually closed down google translate and china.

are you seeing a similar way as in other parts of asia that we saw in china, maybe not draconian, but hong kong is talking about a fake news law, there are some rumblings on the regulatory front. karan: we are releasing two things. on the one hand, there is incredible appetite for technology and interest in being out that cutting edge of innovation. we are seeing that, i am hearing that from the leaders i am engaging with here. that is a really positive development. and google continues to invest in solutions, technology solutions, for the region. on the other hand, we are seeing a growth of what i would call fragmentation in the regulatory environment. we are seeing different rules of the road being applied in the technology space. in the last three years alone, 1300 different moguls adopted in the apac region, governing how the internet operates, to how e-commerce works and so forth.

there are challenges in terms of creating harmonized systems. from the private sector perspective, that is tough. we are going to have to reinvent products for each one. steven: i imagine india is a big headache for you? i know a bunch of different public affairs heads of different check companies have left in the last year. what is the biggest challenge? karan: india is an example of one of the markets that is really wrestling with how to regulate technology. we have had and continue to have good conversations with the government there, as we have with many of the other governments in the region that are thinking about this set of issues. from our vantage point, regulation is -- of this space, is to be expected. we do want to make sure regulation is under formed with an understanding of what it may

be. needs to be informed by real understanding of how these products are being constructed and what the impact is. steven: did the midterm elections in the united states change anything? what is google doing to prepare for maybe an onslaught? we have been actively engaged with congress karan: we have been actively invaded -- there are some big issues in the technology space that we want to see the u.s. government address. privacy is a good example. this is a space that the u.s. has lacked a comprehensive privacy law now for years. we need to have a single, unified law, one that will allow certainty, people will understand what their roles and responsibilities are. privacy is a hugely important issue for us, it would be great if there was a comprehensive law adopted.

misinformation is another topic that gets a lot of attention. steven: inc. so much for your time. that is it for now from the apac leader summit. tom: fantastic, thank you very much indeed. coming up, ecb policy makers are considering a slowdown of interest rate hikes. we will go live to frankfurt next. this is bloomberg. ♪

tom skate welcome back. key figures are gathering in frankfurt for the european banking congress. ecb president is set to give the keynote speech later this morning. for more on this, let's go to the ground in frankfurt. a growing debate in the market over the rate trajectory for the ecb going in to december. what do we know? for december is

around the corner, that means two things. christmas, but also for some, the last monetary policy decision of the year for the european central bank read as you say, there is no question, in terms of the fact that the european central bank will hike in december, that is pretty well calibrated. there is a real debate going into this meeting around the magnitude of it. will it be 50 basis points or 75 basis points? as we reported this week on bloomberg, there is growing momentum behind the 50 basis points. for a number of reasons. a deterioration on the macro picture for the european economy, do you really need to hike aggressively, going potentially and to a recession? the fact that the european central bank already has increased rates by 200 basis points. there is always a lag between the policy and the implications

that it has on the real economy, perhaps cooling down inflation. then, the politics of the governing council. this is where it gets interesting. if you are a hawkish member of the european central bank and you want to get various, maybe you have to hand in something, that is a smaller hike. there are a lot of questions, but luckily we will hear from christie today. we will bring you that press conference and that keynote live on bloomberg tv. tom: and great to have you on the ground, thank you. at a point where the euro-dollar is 1.0 three. expectations of maybe 50 basis points in december. up next, bloomberg markets europe. stay with us. this is bloomberg. ♪

♪