dani: this is "bloomberg daybreak: europe". i'm dani burger in london, with manus cranny back in dubai.

these are the stories that set your agenda. manus: asia stocks follow wall street higher after yesterday's u.s. inflation print, fueling optimism that the fed will downshift to smaller rate hikes. chinese exports fall for the third straight month as slumping global trade weighs on economic prospects. president biden's handling of classified documents erodes into political crisis, with a special counsel appointed to investigate. good morning, i can speak again, there is nobody safe from dubai through to london. to move from 50 basis points to 25 bips on cpi, is it to admit to the market, and maybe lose credibility when they need to hold firm? dani: i would say it is notable

that parker is talking about put five basis points, considering he doesn't speak a ton, unlike other fed speakers. but we still have the likes of bullard saying the market is too optimistic about inflation getting back to 2%. they are not ready to concede yet. manus: he's obviously had a cup of tea with michael burry in terms of the inflation shock that will bump us all on the head. stephen roach says we are underpricing once the fed hikes, we will have to hold there for a heck of a long time. how are your equities? dani: not the greatest start to the morning. s&p 500 futures, those are down .2%. they rallied yesterday but this is the interesting thing, despite cpi which many folks said confirmed the downtrend of inflation, stocks barely rose yesterday. it was the smallest reaction to a cpi print in a year.

perhaps that macro force has lost some potency, perhaps everything is priced in. nasdaq faring a bit worse, down .4%. china continues to climb, morgan stanley wealth clients are very bullish. china had over $20 billion of inflows from foreign funds come in china after that october low. i want to mention fast retailing, the japanese owner of uniqlo, they missed on earnings. china covid hurt them, as did headwinds from stronger yen. manus: somebody needs to give a call, because they are not on the slowdown. give uniqlo a call, because i need a couple turtlenecks. the bond market tanked yesterday, it gorged really at the short end of the curve in

terms of that drop in the status quo of cpi. the court services number, that is where the market got obsessed. three-year part of the curve down 25 basis points. it certainly beat the estimates. yen, will it achieve yield curve control? japanese are selling foreign assets, that is fueling the rally in yen. with that cpi print in the usa, are the bulls and bolded in the euro? to 1.10, it is all about the inflation frenzy. dani: and let's get to our reporters to get through that. we're going to talk about u.s. inflation cooling, china's exports slumping, and could apple's tim cook take a pay cut? it is a busy day. manus: and it is that print from

the cpi, does it pave the way for a downshift in the hiking cycle? some of the voices that are pushing for the fed to keep its foot to the title, let's get to our chief rates correspondent, garfield reynolds, are you a buyer of bullard, for a buyer of the swaps market? come on garfield, roll the dice. garfield:, the swaps market continues to test the envelope, you could even say a tests the fed's patient. the fed has got to be very patient about sticking to its plan, taking the fed rate above 5% and holding it there. those three little words rafael bostic said, a very long time. the market is saying, your life, we don't think you'll get about 5%, you will get back down to where you are now and possibly even lower.

there is a big battle going on. that is why we saw a little bit of volatility. and although 2-year yield 1010 year yields each dropped by more than 12 basis points at one stage yesterday, they ended back up a little bit. about 10 basis points on the 10, and nine on the 2. they are retracing today because of the bank of japan and the jgb market. but one of the really fascinating parts about what has happened post-cpi in bonds is the short to long yield curves, 2's, 10's, have stayed deeply inverted. the long end is still performing well, which says recession is more on the bond market's mind then the idea that we're going to get some sort of soft landing because the fed is going to be able to smoothly fine-tune its

policy because it has timed inflation. dani: i've got to tell you, given the disconnect between markets and the fed, it is patient's to aspire to your, design of a fed official -- the zen of a fed official who refuses to cave in. bloomberg's garfield reynolds. we are all about the drama on daybreak europe. chinese exports fell nearly 10% in dollar terms last december. that drop was less than expected, but the government warned foreign trade will still face pressure in 2023. for more on this, let's get to our china economy editor, what did the numbers tell us? how do we look at the state of the economy now? jill: it is not good news. exports were extremely critical for china's growth over the last couple years during the pandemic.

what we're seeing is that impact from that big drop off in global demand. obviously, in china, you've got the added problem of the swift abandonment of covid zero. factories have seen operations and snarled, that is weighing on exports. as of now, we will see further drop off in demand this year, and economists are thinking exports could even turn negative for 2023, so it is really not great news there. manus: and if we switch gears a little bit, the chinese government is set to take stakes in alibaba and tencent. i don't know whether that is an emboldening piece of news, or something that frightens me that this group becomes even more entrenched on the shareholder roster. enlighten me. >> it is a little bit of a mystery. the overall trend for the

regulatory environment in china seems to be that the tech crackdown is rolling back. we've seen beijing skirt back campaigns like on the gambling addiction. maybe it is the case that beijing just wants to preserve a little bit of an option to take further control of they want to. but i guess you could also be good news for companies like alibaba and tencent, maybe that little additional control gives them -- maybe makes it easier to get a greenlight for projects they want to do. it is a mystery though, we will have to see how it unfolds. manus: suddenly they've realized they might need a little tech in that economy after all to spread some of the common prosperity. our china economy editor, jill d isis, see you in a little while. apple is cutting ceo tim cook's

compensation 40%, wife? anders is our bloomberg wealth reporter, tenney is taking a pay cut, 40 is a whopping jump, but we have to compare it to stock performance. how will they incentivize him tuesday? good morning. >> tim cook already is quite wealthy. he has for a long time enjoyed the large share price growth. hey 10's do not be a massive factor for ceo's of his caliber, it has more to do with managing the relationship with investors. in making sure. last year investors wanted to make sure the board was responding to them. dani: bloomberg's anders mellin giving us the details on the cut

to tim cook's pay package. j.p. morgan and wells fargo are among the u.s. banks that are posting earnings today. joining us to discuss is bloomberg's charlie wells. set this up for us. last year, a bonanza for banks, given the markets and interest income, what happens in this reporting season? >> thanks in this moment have really rarely been cheaper. they are coming off their worst year since 2011. looking at q4 earnings, it is not looking like that story will change significantly. thanks face a lot of pressure. there is that recessionary threat and issues with deal flow. the estimate is investment banking revenue will be down 51%. it's not all bad news though. it is not like the american consumer is not in decent shape,

balances are still about pre-pandemic levels, net interest income is going to boost of these are exhibit, but what we should focus on later today is how these ceo's will try to spend some of this mixed evidence. manus: i think everybody's going to be very focused on what jamie dimon's got to say about the economy. i am impressed by my own multitasking skills. when you were chatting to dani, i did the gp on jp morgan, that is up 37% from its nadir in october. and i did bank of america, up 17%. the recovery is in the price. the moon landing soft landing is in the jp morgan price, and the moon-like soft landing is in the bank of america price, are these priced to perfection? >> the hope is they are priced accurately.

we'd sort of been hearing chatter about this deal flow issue, that has been such a tax on banks share prices. but what we're hearing is in the months ahead companies realize we are reaching a new normal with this interest rate environment, and small companies realize they have to come to the mandate table. -- m&a table. perhaps these are better price than we feel. manus: we will requalify. jp morgan is 32% below its high in 2021. let's see where these numbers are at. let's thanks charlie wells. coming up with dani and i, a downshift in fed and the hiking path looks possible. we will discuss the impact on

that cooler cpi print. will the fed blink? this is bloomberg. ♪

>> i expect we're going to raise rates a few more times this year. the what might be the days of us raising 75 basis points at a time are surely past. in my view, hikes of 25 basis points will be appropriate going forward. dani: federal reserve bank of philadelphia president harker calling for a rate hike downshift next month. we're joined by alexander morris , chief investment officer at f/m acceleration. thanks for staying up late in d.c., among all the fed speak,

one of the things we hear is officials trying to hold the line. that is, inflation isn't conquered yet, bullard says there is too much optimism. why isn't the fed caving in? what do they risk if they do? alexander: good morning. happy to stay up and talk the fed, particularly in d.c., but that is not far away. the fed has no real incentive to blink as it were and back off rate hikes, simply because it would be seen as losing credibility. and when it had to start instituting is historically fast rate hikes, the question was when where they hit the reverse button? now the answer is they won't, they can't. they certainly won't until basie wages cool. this has been less an assault on the metrics that it has been getting to the root of the problem which was unprecedented growth in wages, as well as jobs.

even in spite of what seems to be limited recession, jobs growth remains robust and the numbers are not coming down as quickly as they would like. manus: that's maybe what makes the possibility of this moon-like landing that one or two people have referred to this soft landing, that may happen this year. despite what the world bank tells us. it declines harder and longer than we tend to recall we have no memory at all. the atlanta numbers are tumbling. how quickly will the narrative shift to real rate cuts from the fed? because the atlanta fed is the silver line data, according to larry summers. alexander: the pace we saw over the last two prints is probably

right for another couple prints. simply because we cut pretty high, and we're going to need to keep bringing this down. end of the wage numbers are still high. as a result, the fed is still going to hike. whether it is 50 or 25, we will find out. chair powell has been clear, wanted to half seems a fair number. bullard may be stronger and harder than perhaps some of his colleagues which seems to be his usual role on the committee's. but because of that, we're going to see this inflation number continue to be pushed hard. and the fed will keep pushing into it. so we got a little while to go. i don't know that we will bottom below 2% and overshoot. the fed is aware although they want to regain credibility, they don't want to do so at the expense of complete damage to the economy. dani: if the market is going out on its own and say the fed will

not blink, but we know the direction of inflation, has that story played out? i ask that because we saw stocks yesterday have their smallest reaction to an inflation data point in a year. is all of already baked in to the equity prices? alexander: i think most of it is baked in. but the real news looking at the equity market reaction was perhaps better than many have expected. this number was bang on the screws for what consensus was, and it is a long time since consensus has predicted a cpi print. it is always a story of much hotter or cooler than expected, this is cooler but the equity market seemed confused to do with a number they expected. it had not given back everything here today. so, i'm pretty happy to say that although it was not a massive

response, the markets didn't take a reverse course when they got numbers they expected. let's not forget, it's been a long time since we have had a level of consistency amongst prints both in the direction they were going, as well as the news coming into that print of what we would get. manus: this year is going to evolve, and the consensus is 5%, at index level. when you look at the carnage among amazon, alphabet and tesla, they are expected to surge by 50% over the next 12 months. what do i risk by owning the index versus active management? 2023, is it going to be better to be active and pick individual names, rather than be index exposed? alexander: it's a bit biased for me to say this, we run an active management shop, and have worked

in active management along time. but if you look at the set up this is the opportunity for active managers to shine. volatility generally works in their favor. the sea change, in the memo that was rightly red, where rates are going down to give beta it brought exposure and gains. so the goodwill start to differentiate themselves. regardless of some of the other views, those tech names are so beat up. simple supply and demand will push them up by folks wanting to be exposed to equities. dani: usually i am stuck to the whole -- skeptical of the phrase a stock picker's market. but i do want to ask you about the credit space. there seems to be disagreement among wall street, what credit spreads do. we have had a lot of inflows coming into credit etf's, but

you have deutsche bank making spreads will blowout, because of recession they will get about 230, bank of america says they will stay where they are. what say you, alex? alexander: we are probably at the right level of spreads. although recession is potentially on the horizon, if not technically baked in to some extent, the credit market is well-positioned. this will be the year of the bond. it might also correspond with the great stock pickers' market as well. but there is some great credit out there, there is an entire world of active management in the bond space that has been waiting for this opportunity, and it will shine by finding the right high-quality credits that have gone underexposed and unfound by many. manus: there is the secret sauce, you said the equity traders were confused on what to do in the year of the bond, those mighty, meet-eating bond

traders. alexander morris, cio at f/m acceleration, staying up late and keeping it real. we will talk more about equities on that inflation print and get to how markets are positioning, moving forward. this is bloomberg. ♪

dani: this is daybreak here, i'm simone foxman with your first word news. sam bankman-fried has used a blog post to deny stealing from his now bankrupt crypto exchange. the ftx founder offered one of his most detailed descriptions yet of the company's collapse as he prepares to fight fraud charges, blaming crushing markets and an attack from a rifle exchange. the 30-year-old says he regrets

being slow to respond to public misperceptions. the u.s. attorney general has appointed a special counsel to oversee the investigation into the handling of documents by president biden before he entered the white house. the move comes after classified papers were found in at least two locations biden used before he became president. biden says the documents were locked securely in a garage. the chinese government is set to take so-called golden shares in units of tech giants alibaba and tencent. beijing bought 1% of a alibaba digital media subsidiary last month. the share structure could grant government officials influence over the industry, including the power to nominate directors. global news, 24 hours a day, on air, and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. dani: simone foxman in doha.

we will talk about wall street. do you think dimon will see hurricane clouds on the horizon? manus: larry summers expects a tumultuous year, the v, we ain't going back to secular stagnation, except something different. i am waiting for a buyer's strike at the treasury market. dani: i can't wait to hear whether it is tumultuous, or whatever it is. coming up, $40 it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimited. only $30 a line per month. that means you could save hundreds a year over t-mobile, at&t and verizon. the fastest mobile service and major savings? can't argue with the facts. no wonder xfinity mobile is one of the fastest growing mobile services,

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manus: we are here with the

stories that set your agenda. dani: cpi tailwinds, asian stocks follow wall street higher after optimism is fueled. decaying demand, chinese exports fault for the first-rate month as global trade weighs on economic prospects. plus, president biden's handling of classified documents erupts into a political crisis. according to our last guest, it is the year of the bonds, the year for the stock ticker. 2023 sounds like it is the year for recovery after last years absolute turmoil in markets. manus: it is whether we can deliver the same performance since the gse in 2008. where we are this morning, we have digested cpi, we are looking at what is going on in the japan market and if bonds are back monday want to buy the short edge or duration?

yesterday, it dropped by three basis points. a little bit of reprieve this morning as the 25 basis point hike. would the fed stepped back from that size and scale of hikes? that is what all of the market is debating. you have this acceleration in the drop of the dollar, the rise in the yen as the market test yield curve control of 50 basis points and beyond. will they dig control? with a softer cpi, does that mean really a lower dollars? the market has a width, it wants to test 110 in the euro-dollar. dani: citigroup thinks the boj will completely and yield curve control next week. that certainly is not the consensus. can you imagine the market reaction should that come to fruition? in equity land, still not too exciting, perhaps till just digesting, some consolidation in u.s. stocks and nasdaq futures. china continues to shine, up 1%.

morgan stanley is saying that their wealth clients are really bullish on the china story. also have a lot of inflows from global funds. also want to leave you with fast retailing. here you go for basics. they are struggling not just with a pickup and covid cases, but also it goes back to what you are just talking about, stronger yen that is impacting them, giving them macro headwinds. manus: we will talk about that in just a moment. several of the big u.s. banks will post earnings today. how many of them will stick with the billions of dollars of risky debt from m&a deals? that they have underwritten in the cheap money era. it is a big call, it is today's big take. we have lisa lee joining us. swollen on the balance sheets

with these kinds of debts, what kind of problem is it? lisa: banks have about 40 billion in total of these kind of debts. it depends on which banks. some banks have been relatively unscathed, many others have a lot of exposure to this debt. it is making it difficult, not only are they going to take losses because they can no longer sell them at the price that they underwrote them, but it is making it harder for them to do new deals. it is really hampering m&a's, and this activity, leveraged finance, is about one third of in basement banking revenues. dani: was talking to a private equity manager who said he had a deal he loved but he just couldn't do it because he couldn't get financing. it seems to be affecting dealmaking everywhere. speaking of that, one story that has caught a lot of folks attention is this acquisition of

frank by j.p. morgan. they ended up suing frank saying they misled them. frank sent they are trying to chip deal. does it speak to a bigger story of j.p. morgan's acquisitions and spending? lisa: that is the big issue. the acquisition itself is 100 and $75 million. it questions, what is the acquisition strategy, how is the due diligence? because a jamie dimon and jp morgan have been on a big spree in expanding their tech. this is a biggie sort of question now. they are imagining that it was 4 million customers, but there was actually 300,000. so, why didn't they figure this out before? they will definitely be questioned about this. manus: that is what due diligence is supposed to be about. whether it is in crypto or

anything else. just a thought. thank you very much, lisa. hop on your bloomberg terminal and look it up. so, banking is the name and banking as the game. rob murphy is the managing director at edison, investment research read is going to take us through what we can expect. it is a big day for jp morgan. it has got to be all about the guidance. i like what you said, that we are going to be surprised by these reports today. and we will be surprised on the consumer and commercial. so, talk me through what level of surprise i can see or expect today. rob: the basic trends in the market are pretty positive for the banks. loan growth overall is running right now about 9%, it is decelerating somewhat. deposit growth has already peaked as the fed is tightening policy.

interest margins are still going up. that gives the banks a huge amount of resilience. on top of that, we are seeing a good cost control along, you have seen big announcements from goldman. dani: it is about cost cuts cutting to jobs, do they need to go further? like what lisa was talking about , in j.p. morgan's tech venture acquisitions. do they need to put the stock to that? rob: i think they are consuming -- building consumer tech businesses because that is the way of the future. the cost cuts will really come on the investment banking side. we just had a couple of very strong years post-covid. global m&a is now down 50% q4 versus last year. activity is going to slow. the banks have to adjust. there is pressure across the economy. restaurant services inflation, as we saw yesterday. at is actually an interesting point.

a lot of the market is quite cautious on how far the fed will go. j.p. morgan and citigroup have set on recent because they are expecting rates to be a little bit higher for longer. that is very positive for the banks. 100 basis points for bank of america, is about 4 billion of net interest income. that is 12% profit. quite a big number. manus: it certainly is. the other big difference here is the buyback percentage. if you look at europe, you have ups with a high dividend and an ongoing buyback. talk me through the scale of buyback and dividend that i can get in the american sector. rob: the buybacks are a steady feature on u.s. banks. you have a couple of interesting ones. bank of america has been pretty steady. the group is causing, they did a lot of restructuring, selling of

a foreign consumer businesses. they are on pause. wells fargo has done about 6 billion or so in the last nine months. they are also having some regular to of charges, we will see may be this quarter. jp morgan is the interesting one. they have to rebuild the capital levels under the new capital requirements. they are expecting to get to about a 13% ratio by q1. that was 12% in the previous quarters. it goes from 12 to 13 in two quarters. that will give them a question they need. i think we need to be asking about when they're looking to get the buyback going again. they generate a lot of cash. dani: talk to me about what we are likely to see in terms of the health of the consumers. especially for the consumer facing banks like bank of america. rob: people are nervous about the economy as rates rise. you are seeing very little major

credit deterioration at the moment. if you look at the overall system, dealing with these are pretty much at an all-time low. they will go up, we are going to get some normalization. i would just say, there is a lot of resilience in the banks. they are building reserves. if you look at profit before losses, losses pick up 10 times, and they still break even. that is the kind of resilience the banks have read again, i think on the credit side, we are not going to see a major impact on this quarter. manus: one of the stories that obviously has begun the year, was goldman's. the shocker. we were talking about one number , it was just over 3000 jobs to go. do you think as the year progresses, we will see scalable, sizable job cuts to

this industry, specifically on the iv? some of the job cuts have been quite widespread in the guidance they have given us. how is that going to land this year? rob: i think that is likely to continue. it does depend on the macro environment. if we suddenly see inflation coming in much better and the fed is actually going to start to ease back, then we could be off to the races. the banks tend to move along with the environment that they see. right now, seeing such high levels of activity, there is probably more to come. dani: thank you very much, we really appreciate you coming in. more pressure on the u.s. president, a probe widens into the classified documents found in biden's garage. that is next. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe". president biden is facing greater political pressure after more classified white house documents were found at his private residence. let's get over to bruce einhorn for more. it evokes memories of not too long ago, president trump being found with hundreds of classified documents. are the situations similar? could there be a political impact as a result? bruce: there is similarity in that they involve classified documents. that were not supposed to be there. in this case, there are documents that were found at president biden's private residence in his garage.

this follows the finding of documents at his former office at the university of pennsylvania. the attorney general has appointed a special counsel who was a former top official in the trump administration's department of justice who then went on to the a u.s. attorney in maryland. he will be looking into this. there are some important questions that we just don't know the answer to. for instance, why are we only finding out about this now when the initial documents were discovered in november? how many documents where they? what level of classification? that said, there are also some important differences between this case and the case involving former president trump. from what we know so far, it seems that we are talking about a relatively small number of documents found in the two biden locations as opposed to hundreds of documents in mar-a-lago. another really important difference is the level of

cooperation. from what we know so far, the biden administration has been very cooperative when they discovered that these documents were there. they turned them over. that is in contrast to what former president trump was accused of doing, which was resisting and not willing to cooperate, saying these documents belong to him, there was no need for him to turn them over read that is an important difference. the investigation is now going to be underway by this special counsel. that is someone within the justice department, but is not directly controlled by the regular structure, not part of the regular structure. that does give him a fair amount of independence to proceed with the investigation. so it could go in various directions read when you are in the white house, you don't like the idea of having a special counsel look into, it does lead

to certain risks for the president because there is now a lot of uncertainty going forward about where this all will go. manus: not work certainly made a lot of hate yesterday. thank you very much, bruce. coming up, the boj that is set for a big shift in the yield curve control policy, when will they shift? right here on bloomberg. ♪

manus: with forward-looking real rates positive across the curve, and therefore our feet unequivocally on the brakes, it just makes sense to steer more deliberately as we work to bring inflation down. dani: weighing in on the fed

rate hike debate slowdown. inflation prints have been a step in the right direction, particularly the progress in the last three months. let's look at that. we have valerie tytel here with that. valerie: when we isolate just the last three months, the progress is significant. i originally laughed at these charts that went around on twitter late last year. it seemed like just a mask work as an excuse to call it peak inflation. here in yellow is what has caused the most attention, this is services inflation excluding shelter. if you look at the month on month rent, it has dropped rapidly in the last six months. why are we excluding shelter? shelter is a component that the fed has told us is a lagging indicator. most expect the shelter component to drop off in the next few month, and to drop off rapidly. most of the heat in yesterday's cpi print came from the shelter component. if we stripped that out and just

look at services excluding shelter, here in white, this is core goods. it looks like the fed has made a lot of progress read the fed only started hiking rates last march. that has given nine months of lag in order to implement the hikes in to trying to force inflation down. it is justified may be, to look about what has happened and look at how that progress has been long-term. when you look at these charts, it is a great case to say the fed could pause in february. that could possibly be the last hike at four and a half percent. manus: many will debate whether that is the risk. do they lose credibility there? do they get a soft landing? the bond market, the short end of the market, reacted quite verily yesterday. the market is in direct conflict

with the fed. how does this narrative build? valerie: let's take a look at what has been priced in for february. we are only pricing 27 basis points read it has been dropping a bit since we got the last data out from the u.s.. look at what is priced in for march. only 19 basis points. that is a nonzero probability. we do get a fed that pauses in february and doesn't hike in march. you have to look at -- another thing that barkan said, as inflation falls, the fed funds rate on real terms looks more and more restrictive. on real terms, as inflation falls, it becomes more punitive. so, why hold rates at 5% if inflation is dropping? especially because we know that these indicators are lagging. cpi lags, so does the payroll data read that lags the real

economy. why would you want to hold rate into increasingly restrictive territory? if we also know that there is a lag to which the fed hikes read across into the real economy. the market is really believing this narrative. we only have to look at the dollar, what it has done since the payroll print, fallen nearly two half percent. this takes the fall on the dollar since last year's high to over 10%. manus: but if you read the goldman-s note -- the dollar has peaked but the downside looks constrained. i do find the odd bit of paper that complement's what you say. well put, great contacts. i know you are deeply in love with your core services chart. i was reading it from my sickbed every day. thank you very much. before the cpi and after the cpi there.

to japan, the benchmark at 10 year government bond yield has been breached. new ceiling. despite an unscheduled debt buying. traders are positioning for a change in year curve control policies. -- yield curve control policies. simon is ready to study the cart. building up the positions, is it monster long flow into yen? is it really a tidal wave of long jgb? simon: not yet. i think what you have seen is that people are betting, there is a probability of policy change next week. they will be a little bit cautious. simply because this review doesn't necessarily mean that the review will be negative. in fact, i actually think that when they do release the review,

if it comes next week, they will actually say, yes, there have been side effects, that is why we changed policy in december, things are going ok, otherwise. so don't expect as to change policy again for the foreseeable future. dani: as manus was saying, there are plenty of people who take the opposite side of that, citibank comes to mind. where is the disconnect? simon: while i disagree, i think i have a very good point. since even announcing the review has put yield curve control on the pressure, it reduces its credibility, it makes it harder to sustain. i think in addition, they might want to leave the slate clean for the next until bank government. and finally, if you look at the data, the data and japan has been relatively strong, you saw

the tokyo core cpi number up at 4%, that tends to suggest the national numbers will also be similarly high. there is a lot of data support for what citibank is saying. i don't think it will come next week. manus: maybe kuroda still has that vice line grip. the whole complexion of the boj doesn't change, according to the account. they say the complexion of that boj does not shift until much later in the year. markets can push and push and push, will the bank of japan apps, you are wrong. goodness knows. what will the bank of japan do with the next meeting? just briefly. not that you could ever be wrong, nobody is wrong on this show ever. simon: my personal view is that

not necessarily next week, they would have to capitulate when there is announced and that new governor is hawkish. i think market speculation for policy change will become overwhelming. dani: thank you, simon. manus: that was a nice answer, he can come back. dani: you are allowed back, we will never call you wrong. that is it for manus and me at daybreak europe. enjoy the rest of your friday, and your weekend. this is bloomberg. ♪ welcome to ameriprise. i'm sam morrison. my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10

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anna: good morning, welcome to "bloomberg markets: europe"