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>> good morning. this is bloomberg daybreak: europe. i'm dani burger in london with the stories that set your agenda. >> prices are still too high. we have a lot more work to do but things are getting better had it in the right direction. dani: traders to cement a half-point hike today by the fed. stocks gain even as jay powell could signal a higher peak. flight risk sam bankman-fried is denied bail in the bahamas as he fights extradition to the u.s. the new ftx ceo says many clients don't get their money back. apple will allow rival sources to comply with eu rules. we had that really strong rally initially on the soft cpi data.

a lot of that is given back and doesn't bode well for if any of that bear market rally can really come back and whether equities can rally in 2023. it all hinges on jay powell. will he give the doves some ammo. will the doves win out or will he err on the hawkish side. he still has a careful line to tread. of course not overdoing it because the soft cpi might give them some room at this moment. in 13 hours we have got a fit decision and less than 24 hours later we have the and boe. your s&p 500 future session is up .3%. futures almost 3%. only to end the day up less than 1%.

morgan stanley says we are still nowhere close to pricing in china reopening in this market. a lot of hesitation as covid cases continue to rise in china. yields also came in a lot more than initially. the initial drop was something like 20 basis points. euro-dollar hits a few months hi. 106 is where we are currently trading with that. all the beta currencies did better versus the dollar. it was soft no matter how you diced it. nymex crude is down at 75 barrels a dollar. and we had opec downgrade their

forecast. let's get to our reporters from around the world. the fed decision, all of the drama in ftx and we are going to talk opec and oil demand. the latest u.s. cpi reading showed that inflation is accelerating in the world's largest economy. let's get more on that with mark cranfield. does this cpi change things for the fed? >> i don't think it does. the bottom line is inflation is still running at 7% which is too high. joe biden says prices still need to come down and he was the one that put pressure on the fed earlier in the year by saying inflation was the problem to control. anyway jerome powell has been pretty consistent saying he

understands employment would need to rise. he's pushing towards a higher interest rate level and then holding it there probably through most of 2023. the template is probably something like we saw in the early part of this century. the fed raised two months -- the fed raised interest rates and didn't cut them until nine or 10 months later. the fed can be quite determined. they can hold rates at a high level. that's going to be a wake-up call for equities. it could be a pretty tough day for u.s. stock markets by the time the dust settles. dani: it's got to be a surprise for the bond market too. that's going to do some repricing, too.

>> if we are looking at another 250 point hike, you really can't have a two year yield at this level when you've got the short term rates at five. there needs to be some give and that probably means five year yields are too low in relation to where the fed funds are going and we will see some back up in the market over the next couple of days. it's going to be a bit of a headwind for the treasury market. dani: mark cranfield, the countdown begins until 13 hours before the rate decision. a judge in the bahamas has denied bail for sam bankman-fried. let's get more with joe and subject. -- joanna passenger. -- hearing from the new ftx ceo

that this was plain and simple embezzlement. we got the charges. walk us through them. what did we learn yesterday? >> we got the charges including wire fraud, conspiracy to commit securities fraud. we also got that it looks like sam bankman-fried may be contesting the extradition from comments he made before about trying to help out etc., people might have thought that he would go along with things it looks like he may contest that. we'll see how long it takes for the u.s. to get this done. and what role the bahamas may have in. but a lot of these charges to go with what people have been looking at in terms of the relationship between ftx and alameda and what may have been done with consumer funds. there is a lot of drama here and likely more to come.

dani: in terms of the overall crypto universe, it seems like we are not totally done worrying about contagion risk. finance is on the defense trying to reassure investors. >> definitely. ftx brought out the questions of if they can fail, who else could. and binance is far bigger. but there have been some concerns here and there because they have had a lot of outflows recently and so that became a focus in the past couple of days. the ceo has sought to reassure everyone and say this is fine. he told staff in a memo recently but it was going to be a bumpy ride. this could be a tough time overall in the crypto universe. binance is saying they can handle whatever is coming with the volatility in the crypto world right now. dani: thank you very much,

joanna. so much volatility whether it is in the space itself or just on the news flow. it is worth noting that in interviews since the collapse, bankman-fried has admitted major managerial missteps but of course that he never tried to commit fraud or break the law. opec slashed its oil demand outlook while urging vigilance and caution to its members. what is opec's new outlook? what is the justification for saying we are going to slice demand even further? >> their view really is that there is a slowdown in the economy that's already affecting demand for fuel. they are seeing that affect demand for the first quarter 2020 three. a month ago they were expecting a deficit. it justifies their decision just

a few months ago to reduce their output by 2 million barrels a day which surprised markets and caused a few folks including president joe biden to criticize the move. we are in a situation where the situation appears to be much more balanced and that means their decision to reduce their output is the right one in their eyes and going forward it's going to be hot topic as to whether that demand supply situation will remain and whether or not they are going to have to do more to intervene, which they said they would in order to keep the market balanced. dani: one thing that is a bit of a head scratcher for me is that we have headline after headline every morning about china's rapid reversal of covid policies whether it be the actual policies, trying to get more folks to get the vaccine of course is the latest one. why is that not showing up in either opec's outlook or even

oil markets themselves? >> you are right. if we had seen headlines of china rapidly reducing covid with fireman's -- requirements, you would expect to see a much higher jump in oil prices because the world's biggest oil importer wouldn't be importing more oil. one thing is purely that no one is 100% sure whether this reversal will stay in place. we are seeing a huge jump in cases across parts of china and beijing is having a surge in covid cases. there is a fear that in the short term that will crimp demand. people will stay home. the government could reverse their policy again. our fear is that hospitals will be overwhelmed. the short term picture isn't as bullish. if china reverses these policies, 2023 will have more

demand from that country and you could see an increase in prices later down the road. dani: may be the end point is clear, but a bumpy road to get there. thank you. let's take a look at some of the things we are watching out for today. we will have the latest u.k. cpi data ahead of the boe rate decision on thursday. we already had data showing that wages are coming in very strong, inflation still impacting this country. the u.s. senate hearing into the collapse of ftx's do to get underway. 7:00 p.m. u.k. time, it's the big one. the fed's rate decision. jerome powell is scheduled to hold a news conference shortly after that announcement. will he tweak his language to be more dovish after that cpi print. frank alderson is going to be

speaking on a finance and biodiversity event in montreal. fed doves got a boost as u.s. explosion -- as u.s. inflation slows more than expected. more on that ftx fallout. sam bankman-fried denied bail into the bahamas ahead of a likely extradition battle. this is bloomberg. ♪

>> no doubt, you look at the headline numbers, better discolorations in a number of items. >> everything the fed has been doing as difficult as that has been for the markets, the inflation data shows us it is going in the right direction. >> it's not just the magnitude of the moves, it's also the speed. >> investors didn't think inflation was going to come down and now it's coming down even faster. >> it is not the end. this is not the time to get complacent. there is a lot more to do. dani: some of the bloomberg tv guests reflecting and reacting to that cooler than expected u.s. cpi reading.

joining us is jane foley. thanks for joining the program this morning. we had stocks give up a lot of the initial gain they had after that cpi, but the dollar losses were able to stick around. we were just talking during the commercial break and you were saying this is basically the big move we are going to get. why do you think powell and co. won't be packing as much of a punch in today's decision? >> now it's priced in. we had a huge dollar move. when we go into the fed meeting with the dollar having already sold off quite significantly, that changes the perspective a little bit. it's moving lower and that's a huge relief. core cpi is still three times bigger than the fed would like it to be and that suggests the fed is still going to hike more.

it's probably still good a couple of 25 basis point moves in its pocket. what the market really wants to see our two things. a, where is the peak level going to be in the other thing is will powell push back against the loosening and financial conditions we have seen. he didn't really push. the fact that he didn't really gave the market free reign for the dollar to fall on the back of that. will he take the same tone and ignore that or will he say we've moved quite a lot recently, perhaps it's time for me to be a little bit more hawkish, a little bit more cautious given that there is still work to do. dani: it certainly feels like a market that is bracing for that potential possibility. not getting the doves the free

reign or rallies. if they still have work to do, if inflation is still coming in three times above their target, has the dollar dropped gone too far? have we been trading too much anticipation of fed pulling back on the reins? >> a lot of dollar bears will be a little bit anxious going into this meeting. i think it's fair to say it probably will be a bit choppy. certainly if we get a hawkish take from powell this evening, we could see the dollar gaining a little bit of ground. we are still in the view that the dollar is peaking. i think choppy is fair enough. there is a little bit of scope for the dollar to move back because we have come a long way and the other reason to expect

some choppiness is we still have the ecb this week. there is still a lot of news to come out between now and the end of the week. choppy is probably a fair enough description for the market this week. dani: i do have to wonder, the euro trade, the sterling trade, some ballots happened where it was more idiosyncratic -- i do wonder if the story turns on the other side of the break her becomes more important -- of the pair becomes more important. in europe it is still 10% year-over-year. i wonder if the ecb takes over as the most hawkish g10 central bank. >> it may certainly appear to be the case this week. we know there's a couple of doves on the committee that they may vote for a much smaller interest rate hike or even less than that. it probably will appear that the

ecb could be the most hawkish this week. got to understand that there's differences in the inflation in europe. in the u.s. there was excess demand. we look at what's making up the inflation in europe, there is excess demand but it is still to do with supply-side issues. that is different, we have got the u.k. probably already in recession, germany already facing recession. but there is different makeup of inflation. even so they are all facing really tight labor markets, they're all wanting to get down this spiral and it appeared the ecb this week is the most hawkish of the three. dani: a lot of headwinds. perhaps the euro have already avoided the worst of it. we are finally in below freezing temperatures or at least some

days we are. their concerns about 2023. how are you viewing the euro into 2023? >> china has got to play into the uncertainty. you have been talking about the demand for oil. if china reopens in the spring or summer, and we know there's a lot of if's" because of the search in covid cases, there will be a huge demand for energy. that puts a spanner in the works for europe because europe will be trying to replenish its fuel demands. where is that gas going to come from? if china reopens, there will be a lot more competition for lng and europe could see higher prices for gas and that could really put a damper on the mood in europe. it could mean the outlook for growth is a lot slower and that could dampen the euro again as

we look into the middle of next year in the end of next year. i don't think this is going to be a very easy ride over the next 12 months. dani: got back about 106. does it get back below parity? >> we cannot rule that out. we have to bear in mind that the ecb will be doing q2. dani: thank you for joining us this morning ahead of a very busy 24 hours, jane foley, head of affect strategy. apple is going to allow rival app stores on its iphones and ipads. we will bring you the scoop next. this is bloomberg. ♪ proven quality sleep. only from sleep number.

dani: bloomberg has learned that apple is preparing to allow

alternative app stores on iphones and ipads in the coming months, a historic pivot in response to any eu law that will be taking effect in 2024. shares of dating services and gaming apps jumping as much as 10%. joining us to help us go through the story is our technology editor in japan. how game changing is this? >> it's a pretty big deal in the sense that it's a reversal of apple's dear long-held policy that they have had for years where they just wouldn't allow people to download apps onto their iphones or ipads unless it was through its own app store. that's been a hugely accretive business through their commissions on apps and in app purchases.

this is what apple has been maintaining for years, it's one way they made sure that content remains broadly safe. this makes it a little harder to do that. dani: i wanted to get into that. in terms of the impact on apple in the entirety of the tech ecosystem. a lot of news has been made of this idea that apple by tweaking its policies impacts tech players and profits. so what does this mean in that regard? >> it adds to apples costs. it means apple will have to mandate certain new security requirements, our reporters tell us apple is now contemplating ways to verify apps that are side loaded. this experimental phase always comes with additional costs.

by perhaps mandating the verification process, apple could be able to take back and recover some of the fees that it loses. right now it takes about 15%, 30% cut. for the ecosystem when you are chipping away at apples gate keeping powers, it does lower barriers to entry for the entire app ecosystem. dani: it is certainly why we see some of these absent rallying this morning. thank you so much. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts.

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dani: good morning, this is "bloomberg daybreak europe." >> inflation is coming down in america. prices are still too high. we have work to do, but things are headed the right direction. dani: following yesterday's soft cpi print, traders cement a half-point hike by the fed. stocks gain even as jay powell could signal a higher peak. flight risk. sam bankman-fried is denied bail in the bahamas as he fights extradition to the u.s.. binance downplays impacts after outflows. plus apple will allow rival app stores on its iphones and ipads to comply with new eu rules. gaming shares rise. it was a huge relief for the doves, and initially for those who were hoping the bear market rally could continue, but by the end of the day the u.s., what was a 2% to 3% rally simmered

out. it was less than 1% despite a soft cpi data. soft really regardless of how you split it. we were talking with jane foley who said the potential is sterile -- is still there that the fed needs to guide higher. perhaps jay powell will not shoot down the side take you can let financial conditions soften, but there is work to be done with inflation still three times what the fed needs to see at its target. what are we seeing this morning? it is another morning where perhaps you want to sit on your hands. 12 and a half hours away to be precise from the fed decision, you are looking at stocks gaining in the u.s. futures session about a third of 1%. the msci asia pacific up. morgan stanley says we are not pricing in the full effect of a china reopening. the same might hold true for oil prices. let me show you that because we are about $75 a barrel on wti. it is down this morning but it did gain 3% for two consecutive

days. and we are looking at a euro-dollar back above 1.06. jane foley says parity is not out of the question as europe continues to struggle with an energy crisis. the 10 year yield about two basis points. i want to bring you new lines on inditex, the parent of zara. nine-month ebit coming in. trying to find comparables, i don't quite have it yet. it does look like they're nine-month sales rose 20% at a constant currency. i only have those initial headlines for you, but the number for there nine-month ebit coming in at 4.2 billion euros. analysts were very positive about these earnings. inditex is well-positioned amid this downturn. more the fast fashion cheaper. i have some comparables i can bring you. that 4.1 8 billion nine-month ebit is a beat.

their net income is also a slight beat. 3.1 billion, the estimate was 3.1 billion, so these are strong numbers coming from inditex in the middle of a very difficult climate. cost-of-living, people are pulling back on spending, but the question is perhaps they are moving towards the downshift. they are moving towards the cheaper option. is bifurcation of the market where the luxury does well and the bottom end of it does well as well. there you go, inditex, nine-month net income beating. let's get back to the u.s. story. the latest cpi reading shows inflation is decelerating in the world's largest economy. now attention shifts to the fed rate decision. let's get more with bloomberg mliv's mark cranfield. this is the second time we have had a cpi coming in lower than had been expected. another downshift. how does it affect the fed's thinking? mark: not a great deal.

even though we have a better number, 7% is too high on the inflation numbers. the fed was expecting it to start to come down anyway. they would have factored that in. they have also said they want to get inflation numbers back towards the old range of 2%. it is going to take a long time. we are probably going to hear jerome powell remind people today they are determined to do that. he obviously has the backing of the president as well. we have heard president biden say prices are still too high in the united states. so the pressure is on the fed to do their job. that means 50 basis points today, at least one more of the same kind when they have -- when they have a meeting on the first day of february next year. they will hold around 5% for quite a long period and that will certainly work to dampen expectations in the u.s.. could see some rising unemployment. jerome powell has warned people he is prepared to see pain in

the u.s. economy. it does not look as though he is deviating from that course. it could be a wake-up call tonight when people see what jerome powell has to say. dani: we have been fighting all this year to have the corollary for what this market is. is it 1970's inflation? what is it? how are you thinking about that story into 2023? do we have historical context we can apply in the year ahead? mark: interestingly it could be one for the internet bubble burst. if you look back to 2000, the nest egg burst in the first quarter of the year, stocks started sliding. and yet the fed at that time was still fairly focused on inflation. they raised interest rates two months after the nasdaq started to fall. they took the rates up to 6.5% handheld the rates right through the year and only cut interest rates at the beginning of 2001. by then equities were much lower and the economy was starting to

slow. we were fully into the internet burst. that could be a template for what we expect next year. even though the fed sees weakness in the economy, they are quite happy to keep interest rates at a high level and to keep tightening until they are really convinced inflation is coming down. dani: you might need to have a word with some of these money markets pricing in cuts next year, but the language does seem hike, hold, keep it there. bloomberg mliv's mark cranfield. joining us now is lena komileva at g plus economics. it is unlikely the fomc is going to want to start popping champagne and declaring victory over inflation. this is just one report. but does the cpi report below expectations -- does that at least give the doves more breathing room and a stronger voice at the fed? lena: well, financial conditions

have changed significantly since the fed raised interest rates by 75 basis points in the context of the ecb and the bank of england raising 75 basis points. that appears to be cognitive dissonance between what markets are pricing in and what the fed has been doing and saying. of course inflation has likely peaked, not just in the u.s., but elsewhere. that tells you something about what is driving inflation -- disinflation at the moment. structural factors. what the fed is concerned about his domestic cyclical inflation drivers. on the markets front, as inflation rates fall, so will be -- so will decline the pace of central bank tightening. but this dissonance between the markets on the immediate outlook for inflation and growth prints will come into conflict today against the fed focus on medium-term inflation. that is the policy horizon the fed -- and how high will policy

rates need to rise to reach levels that are restrictive enough? particularly for labor markets. but also sustainable enough to bring demand supply congestions -- conditions into a new structural balance. dani: to that point, help us cure that cognitive dissonance. what is the level markets should be pricing in as the terminal rate? they are around 4.75% at the moment. lena: it is likely to be higher than what the markets currently are pricing and what the fed is pricing. the extraordinary thing is fed conditions -- fed economic forecasts rather have seen unprecedented revisions in the past year. they still remain optimistic. the fed expects a soft landing from the u.s. economy and a return of inflation toward the medium-term. history shows the fed has always overestimated volatility of inflation but also the fed has always forecasted a soft landing

ahead of each major recession. if you look at the markets, look at the bond markets. the bond markets expect the fed to reach the inflation target with plenty of room to spare. there is a cut price in for next year. that is extraordinary when you look at equity markets that have yet to price in an earnings recession, i.e. a softening in u.s. labor markets and corporate prices. dani: can i lay out a scenario for you? especially backed up by this idea that we have yet another cpi report that comes in softer, yet we have not seen those cracks in the labor markets, in unemployment. is it possible we are seeing inflation come in without an employment cracking? does this not lend itself to more evidence that actually, a soft landing is possible?

lena: this is a very important point of course. we are seeing a transition in inflation away from altitude toward duration. the focus is no longer how high inflation is going to be, but how persistent. inflation is declining, and on account of three forces. base effects beginning to kick in, energy prices, and business supplies getting undimmed following -- unjammed following pandemic lockdowns. a period of disinflation comes ahead -- instead we are seeing a transition in inflation drivers toward the beverage curve. that is the relationship between wages, not just in the u.s.. that is on account of severe structural labor shortages and skill shortages. what this means is labor markets are going to be less sensitive

to slowing growth into 2023. it will probably take more than a recession, certainly more than the earnings projections to equity markets for that relationship between vacancies and wages to appear rebalanced. at the moment we are not really in a wage growth spiral in the u.s. or elsewhere. it is clear wages are rising at a pace that is no longer consistent. that will concern the fed and central banks even as we head into a likely recession in 2023. dani: i'm aware we have spent the past five minutes talking about the u.s. but it is not the only game in town. after today we are going to have the swiss national bank, the boe, the ecb. when you look at the calendar ahead for the rest of the week, is there any rate decision that gives you pause, that has an underpriced chance of injecting volatility into this market? lena: i think the volatility is

very much a given. if there was any hope that 2022 was going to bring normality into markets, normalization, we are nowhere near that elsewhere or anywhere in the world. the big unknowns, one of them is that while we have seen an energy crisis, we are nowhere near the end of the war in ukraine and that means volatility is going to be here to stay. that will introduce some noise into long-term inflation expectations and central-bank inflation modeling. the other thing of course is that fiscal policy has yet to come into play in sync with monetary policy. the energy price cap in europe will add some 2% to gdp through the end of 2023. fiscal tightening in the u.k.

has yet to take place. it will take place before 2025. unless we see meaningful consolidation in that structural new normal post-covid, there are very large public sector liabilities, high inflation, and the start of deglobalization. a new global energy reality. but we are nowhere near the world of normalization markets have been pricing. whatever 2023 brings, it is likely to do with the last three years have. dani: 2023, still not the year for normalization. thank you for joining us this morning. lena komileva, chief economist at g plus economics. let's get to the first word news with adrian wong's and hong kong -- adrian wong in hong kong.

>> china has given up counting covid cases with the dropping of mandatory testing. numbers no longer rip like reality. the national health commission says only symptomatic cases will be reported. a key meeting setting economic goals for the coming year is set to be postponed. sources tell bloomberg the u.s. is poised to send patriot air and missile defense batteries to ukraine. ukraine has urgently sought the system produced by raytheon and lockheed martin to counter a barrage of russian missiles have targeted its energy infrastructure. ukraine's prime minister says the country's gdp will fall by between 3% and 9% next year if russia continues strikes on its energy infrastructure. >> on june 1 of this year, the

cost of all damages was $350 billion. now, the vice president of world bank estimates damages and all losses in the amount of about $700 billion. >> opec has reduced estimates for the amount of crude the group will need to pump in the coming months. it now expects its 13 members will need to provide an average of just under $29 million -- 29 million barrels per day in the first-quarter of next year, only slightly more than was pumped in november following a slump in crude prices last week on concerns over week consumption. elon musk has been displaced as the world's richest person by bernard arno who owns almost 50% of lvmh. according to the bloomberg billionaires index, musk has seen his fortunes tumble by more

than $100 billion since january. the tesla and spacex boss is now worth a mere $164 billion. that is your first word news. dani: thanks so much. just a mere 100 62 $4 billion? his wealth has tumbled a lot. i had our charts editor make this for us comparing his wealth to arnault's. a lot of this is about musk buying twitter, looking at financing more of it, more of it through his wealth, selling tesla. we have also had a fed that is taking and that has hurt these highflying shares like tesla. a lot of what is behind musk's net wealth is the fact that tesla shares have lost more than half of their value this year. that has got to hurt especially when so much of your net wealth is tied to shares of it. ftx co-founder sam bankman-fried is denied bail in the bahamas.

we will hear from the capitol hill hearing that has rocked the crypto world. this is bloomberg. ♪

>> the ftx group's collapse. >> the implosion of ftx. >> the controlling hands of a small group of grossly inexperienced, unsophisticated individuals. >> it appears to have all the hallmarks of enron and bernie made off blended together. >> this is the antithesis of anything that was permitted in regulated markets. >> failed to implement any of the controls necessary for a company invested in other peoples assets. >> the process is welcomed by the crypto industry.

>> i suspect there will be more people under the microscope. >> this is not sophisticated whatsoever. this is plain old embezzlement. dani: biting words. ftx ceo testifying in congress. you heard from bloomberg television guests weighing in on the collapse and the arrest of sam bankman-fried. a judge in the bahamas has denied bail for bankman-fried ahead of a likely extradition battle. let's bring in joanna awesome's are to bring us up to speed -- joanna ossinger. that line, this is not sophisticated, this is plain old embezzlement. where do we stand on these charges at this moment? pretty damming from the new ceo. >> exactly. and of course he seems to be trying to put distance between what happened in the past and what he might be able to do going forward, but we have civil

charges from the securities and the criminal charges, so this is the federal charges, they include wire fraud, conspiracy to commit securities fraud, several other counts for misappropriating billions of dollars in customers funds for personal use. there are a lot of things going on for sam bankman-fried on the legal front at this point. and of course he it has -- he has denied doing any of that but there are a lot of agencies that are looking at him right now. dani: yes. the sec, the cftc separately looking at him. it certainly is a lot. bloomberg's joanna ossinger. since the collapse, bankman-fried has admitted major managerial missteps. but he has said he never tried to commit fraud or break the law. coming up u.k. train strikes hit retailers. data shows a steep drop in the number of shoppers ahead of u.k. cpi due out shortly.

this is bloomberg. ♪

dani: let's focus here in the u.k., a fresh wave of train strikes has hit retailers harder than the omicron variant that threatened to ruin christmas last year according to research that shows a steep drop in the number of shoppers. it also comes ahead of u.k. cpi data that should hit in a few minutes. joining us now is bloomberg's lizzy burden. starting with the cpi print, we have the one from the u.s. that was softer -- it will remain to be seen whether that is the case in the u.k.. will it move the needle for the boe? >> we are expecting inflation to have passed its peak of 11.1% in october and to have dropped to 10.8% in november. if it is an upside surprise

perhaps it could tempt more hawkish members of the bank of england to vote for a more aggressive hike. i have to say, 50 basis points is what it is -- is what is looking likely. it would be following expectations for the fed and the ecb and there are dovish voices on the committee. extremely worried about recession risks, they do not want a bit hike -- a big hike when the economy needs support. dani: one of the risks of inflation getting entrenched is a wage price spiral. it seems especially important with unions on strike. are they likely to get their demands for double-digit pay increases? >> you are seeing a shift in the tone of negotiations at the moment. the postal union said it would take a below double-digit -- below inflation pay off or i should say. but royal mail would not discuss that offer further. it looks like strike's are going ahead on the 23rd and 24th of december, the crucial christmas

period. they are accusing the postal union of holding christmas to ransom, but on the port side, workers have accepted an 8.5% pay rise. dockworkers were some of the first to strike over the summer. at least it seems the unions are presenting themselves as more of willing to negotiate. dani: lizzy burden helping us keep track of that u.k. cpi number. that is due to hit in just a moment. it will kick off a very eventful 24 hours. we have the fed, the boe, the ecb, the swiss national bank, a lot to wrap your head around. stay with us on bloomberg tv. ♪ introducing the new sleep number climate360 smart bed. the only smart bed in the world that actively cools, warms and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

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