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bloomberg daybreak: europe. i am dani burger with the stories that set your agenda. global stocks drop as china reports the second slowest growth in decades even as most data tops estimates. coleman and ubs join a bullish bets on the reopening. this appointing dealmaking. morgan stanley and goldman sachs from goldman sachs -- biggest banks taking a hit from investment banking. it is day two at the world economic forum. we will have more blockbuster interviews that include cbs ceo and opec secretary-general. later today, doma are exclusive with german chancellor olaf scholz. davos gets underway for the second day. markets are quiet. the big risk event is a boj. that has the potential to shake things up. until that, let me take you to equities market because there are declines. some consolidation given the strong your today declines we had. china gdp out but that data is

backward looking. the markets not paying too much attention to it. lunar new year starts his weekend so perhaps some proffered -- profit taking of that. s&p had a holiday yesterday. european stocks in the cash session ended the highest since april a little bit softer this morning. we see some risk appetite to start this morning coming through was in bitcoin appeared we will see whether that is continuing as soon as the boards change. we are up just 1/10 of 1%. it is back above 21,000 there this is the 14th day of rallying for bitcoin. that is a longest winning streak since two any -- 2013. the yen not doing a whole lot this morning. boj tomorrow. if they don't tweak your -- yield curve liquidity be aware this market. nat gas, this is the close from yesterday.

this is why european equities have done so well. net gas now had a 2021 low or not just the mild weather but stockpiles are also growing. speaking of mild weather, it is very cold in london about negative two degrees. it is even colder in davos. last i checked it was -10 degrees and who was out there braving the weather? well it's my daybreak europe coanchor manus cranny. . i hope you are keeping warm. manus: there's no irony standing in a shop in dubai and buying a coat like this and people look at you. good to see you. this is the first time i've been here for the world economic forum and it has freshness and excitement. the russians are not here. complexion of who is here has clearly changed but the title of this w ef is the fragmented world. that is demonstrable and that you only have one g7 leader

here, olaf scholz. we will speak to him. do you speak more to domestic issues and crises in health, energy rather than perhaps a geopolitical or discussion here? 116 billionaires will be here that went to dinner last night. we will talk about the dollar-yen. a lady to my right was talking about what happens when yield curve control comes off. there bigger things here. that's where the big finance themes but in terms of the risks identified by the w ef, directly -- directly linked to climate. climate gets more mentions on the agenda than energy or geopolitics. i think those are the first hallmarks of the date so to speak. dani: certainly, some of the conversations around the economy the big themes have already happened. i know you spoke with the saudi economy minister yesterday. manus: did.

fran cut up the q ia. they are ready to buy in america and europe. they are more interested in soccer. have a look at your twitter because manchester united have a shot up on the promenade so if you want to sell your club or store in the heart of davos, every sovereign wealth fund in the world will walk past you. the q ia which spoke to fran about where they will allocate their assets. the markets are wrong. central banks will continue to rise but when it comes to societies there here in force. the economy minister said it's time to move away from short-term. i asked him what that meant for saudi arabia. >> we need to stop thinking in short-term. we need to think more long-term. what is good for saudi arabia and its economic transformation is good for the region in the world. the saudi growth story is a global one, and there's room for a lot of partners to partake in the shared future. manus: that is on the message of

return to multi-nationalism -- naturalism -- multilateralism. we can debate that another time. ms. berger. good morning from dallas. -- davos. dani: are you becoming a football correspondent? is that what this is? i've been looking at your twitter. manus: i'm not doing that. i'll see you later. dani: manus is going to run away before i apply -- assign him to something he doesn't want to do. he is at the world economic forum. he will have great interviews and davos. among our guest today we will be hearing from ralph hamers. he will be speaking to manus. also marcos junior the president of the philippines. thus the opec secretary-general hatham al ghais . let's get to the other top stories around the world. we will preview morgan's family and coleman sachs. let's talk your tomorrows boj

decisions. starting off with china, we had data today but goldman sachs says a full reopening of china this year could drive a 20% increase in chinese stocks. that data we saw had the economy growing at the slowest pace, second slowest pace since 1970's there let's bring in bloomberg's china editor jill. this data from last year before we had a reopening from china but it was better than expected. jill: that's right. if you take the data at face value you could say that economists were really not expecting much out of december and so even though things were a bit weaker, the fourth quarter weaker than third-quarter, you still saw it retails slumped a little bit. you saw industrial output take up a little bit. it is better than what we are all thinking. especially when you contrast that with some of the high-frequency data that we got

out of december earlier, subway usage looking at traffic congestion and that kind of thing, this doesn't quite make sense. it does feel a little bit puzzling, but at this point it does seem also like analysts are completely moving on and saying, maybe even if the economy is slowing it wasn't as bad as we initially thought. now we are focused on what is happening in the first quarter of 2023. his travel going to take up? is china open again? are people going to spend money? that is the direction people are headed now. dani: certainly if you listen to ubs and goldman, that direction is a strong one. that was jill disis. he is in hong kong. go to the tliv blog on your terminal for the latest information. u.s. earnings season continues with goldman sachs and morgan stanley posting for the wall street open today. let's get more with the birds charlie wells. we have more of the investment bank giants there and less of

the main street. what are you looking for, charlie? charlie: the focus with goldman is on strategic direction. we are coming back on some superlatives for goldman. one of the biggest reorg's ever announcing some the largest trenches of layoffs ever happening just a few days ago. investors want to say is is a main street bank? they have a huge push into consumer lending that they have retrenched from horses more a big play for investment bankers? we know we will see some themes here for morgan stanley that that deal has been really hit. revenue from those sectors could be down 50% analysts are expecting for both of these banks. it's are going dani: -- is are going to be a big divergence? goldman is restructuring but i wonder if there will be a big divergence from the other u.s. major banks that have already reported? charlie: charlie: you think about goldman and morgan stanley

they will feel a lot like the students in class was glad someone was called on before them. the big thing is that ms. from jp morgan on investment down 60%. citigroup is also in the ballpark. the bar there on investment banking revenue is lower. dani: charlie, thank you so much. coming in hot with the metaphors. charlie wells there will keep an eye on earnings throughout the week. let's turn to japan where growing speculation of the bank of japan will change its yield curve control policy again is hitting the nation's credit market, borrowing costs are rising, and yen on sales are falling. our global economics and policy editor kathleen hays joins us now for more. kathleen, so great to have you on daybreak europe here. your live from japan. this seems to be a divide from what economist are saying that the boj will not bend the yield curve control and markets continue to test the boundaries. why is there this divergence? whites are no agreement here?

kathleen: well, first of -- dani: why is are no agreement here? kathleen: he surprise the world when he decided to double the yield curve banned from .25 on either side of the zero 2.25. he said it was just a tweet to preserve bond market functioning. all the bond market volatility and other side said this is clearly the first step towards normalization. that's why they think potentially the first reason they think there could be a nether tweet tomorrow but also because the bond selling a been so strong. several days of if not record sales, like they were on friday and monday going into this, something that is creating volatility and the boj has to address. that's why they would go to .75 or even 1.0.

markets are figuring that this is what is going to potentially push governor kuroda and the team to move in that direction again. we have seen the swaps market, the overnight interest rate yen based swaps rising in a way that suggest traders are willing to put this trade on where they are betting on this move to 1.0 on the band your you can see here even loose money for a while. they are so sure whether governor kuroda waits for tomorrow, this is where it's heading. i think the other thing we want to look at is the yen because the yen has continued to strengthen. it has been around 128 give or take a yen or two. one trader i was talking to yesterday bought fixed income actually wealth manager was saying he is not interested in the swaps right now, but definitely just sitting back and buying some yen because this is where the boj is heading. it is very important i think in terms of how quickly things

move, whether they settle down, it's corroded does or does not widen it, and if he steps back -- if corroded -- if governor kuroda does or does not whiten or steps back. traders are seeing that they did force governor kuroda to take his first tweet which everyone thought he would write out the rest of his five year term. in total, it's 10 years now. at the same time, maybe he wants to just pave the way for the next governor to move things ahead without disrupting markets at the very beginning. very important meeting. potentially market moving a matter what the boj does. dani: or maybe, as city says, corroded takes a hit -- governor kuroda takes the hit. he is maybe trying again give the soon to be incoming predecessor a clean slate. kathleen hays in tokyo. let's see what we would be watching out for today.

7:00 a.m. u.k. time jobless claims and on the appointment data. 10:00 a.m. germany's survey highly anticipated. economic growth expectations will be there. we were talking to charlie wells about goldman and morgan stanley reporting earnings today. look for a restructuring announcement within goldman's earnings. finally, fed speak 8:00 p.m. u.k. time. john williams will be speaking at an event hosted by the bank. coming up on this program, decision date for the boj tomorrow. how do you position for it? we will discuss that next. this is bloomberg. ♪

dani: it may be almost a day away but it is all this market can care about and pay attention to. it's the boj decision tomorrow. will there be a change on white? reporter valerie tate tell is here with the chart. valerie, what has cello -- changed since last months policy might give us clues for tomorrow? >> bond market functioning has deteriorated since last boj meeting which is here in the redline. you can see the bond market conditions have deteriorated meaning the line has moved higher. why am i putting this out? because governor kuroda's key reason why he claimed he was whitening ycc bands to begin with was to improve market functioning. we have seen market conditions worsening. does that pose a question that maybe he could step further with bolder action in tomorrow's

meeting? dani: valerie, great chart. valerie tytel there. joining us now is stephen. bond market function has gotten worse since last month as valerie just pointed out. what does that mean for the bank of japan? do they have to widen the trading band again or completely abandon white cc echo -- ycc? >> that is 43 billion in euro equivalent to that's untenable over a prolonged. of time. this increases the chances that we will see some type of policy change whether it is a widening of the band or whether it is a complete disband of the ycc control altogether. we have to look at what is really happening here. we look at how to -- how the market has been evolving since the initial widening of the band. there still dysfunction in the

bond markets. if you look at the 10 year point in the jgb curve. it's in dire need of damage control. it would suggest the bank of japan is complete lead to satisfied with what is going on in market functioning right now. dani: speaking of which, bernstein has said that if they don't change ycc and if liquidity conditions get worse from here, they recommend avoiding jgb's altogether. it's not worth being in this market was such a dearth of liquidity. you agree with that? stephen: yeah really. this is the problem. i think the bank of japan realizes situation. that's what we are on the verge of an imminent move. i won't decide what happens over the inefficient short-term run of the markets for the writing is on the wall. over the long term efficient, the market is showing there's not enough it's -- inflation in

japan to warrant moving off the curve. if you look at what is happening in the future, we got wage negotiations happening in the spring. by all accounts, wages will rise maybe three or 4% in japan. if they want to get preemptive on this regard and would be surprised if we see a move higher on the band. i wouldn't be surprised if they just do away with ycc completely. japan's yields become completely unhinged and they're going to rise a weather balloon attracting u.s. dollar flows i have been sitting offshore for the last year or so. dani: to that point, and i think it's a really good point, this endeavor of whitening the band has been so expensive for them given the amount of bond buying they have had to do. can i interpret that basically as an argument that it does not make sense for them to do increment to moves. not only can they afford it but the only move is just to abandon it altogether? stephen: i like that idea

because get the one and done a get it over with. i think they need to get some efficiency back in the market. the only way to do that is to take the pain right off the bat. we saw how the rba did it in the market really did not melt down. i think we have to look at things a little more objectively here because we have a pretty big clear out in u.s. treasuries that have already happened. there's a lot of u.s. dollars sitting on the sidelines right now. i am worried about what happens over in europe because there has not been a lot of gb bonds by japan. this is where disruption could happen. we had to keep our eye not just on japan's markets but also on the functioning of the european markets also if that does become individuality. dani: and you'd top me through that? what using the reaction would be for european sovereigns, treasuries? what with the spillover effect look like? stephen: as i said, the u.s. will be rather moot because i believe looking at the data here japan institutional investors

are divest of u.s. treasuries. i think the risk here is definitely on edb's and we could see a fairly decent selloff there. i think this is what is in my view holding markets hostage a little bit in the global sense right now, especially bond markets. they seem to be rather what do we do? this is a real reason here. we have to be careful of not under interpreting what may not happen. we have to hedge on the risk side of things of what eventually is going to happen with the longer-term markets and they become more efficient air that is basically through the yen. we have a sizable amount of dollars sitting offshore from japanese institutional investors. that money is going to reshore. whether a reshore's this week or next month, it is going to reshore once these jgb yields eventually rise. i think this is the direction of travel that we will see for the markets, stronger yen. dani: only a little bit of time left but i want to ask you about one thing before i let you go. that is the overall more bullish

set up to this year, given that gas has fallen so much, the in europe since 2021, giving the impulse of china's reopening. do you follow that rally? do you want to buy on that rally also or do you wait and hold back, considering the swing factor of a pushback from hawkish central banks? stephen: i think it's a good momentum. i think you also have to look at how the economy could possibly overheat through two channels, the commodity and the financial channel in the sense that financial conditions are so loose right now or looser than they were when the fed started hiking. i think you are be careful when you get to the specific points in the fed curve. this is what we are pulling back a bit. looking at markets right now, they are also pulling back a bit right now also. dani: to the commodities point, jeff curry sang a bullish concoction is brewing. his words, not mine. i can never put together such an elegant phrase for commodities.

that's thanks to low inflows and the commodity environment. thank you stephen innes, spi , asset management. coming up, ryan cohen back in the headlines but activism directed towards alibaba this time. that is next. this is bloomberg. ♪

dani: berg has learned that meme stock investor brian cohen who was responsible for the gamestop rally has bought a stake in alibaba and is pushing the chinese tech giant more shares. joining us now is bloomberg

technology analysts -- analysts. ryan cohen has become synonymous with the wall street bets world and was active in gamestop we had that huge rally. what does all this mean if he is now engaging in alibaba? >> right. i think if you actually look at it, this is going to be a very interesting year for alibaba in 2023 even that was like there are many different voices within looking towards a company and how he actually manages these voices and still makes the best of their strategic business environments to actually do a turnaround in their growth. that will be the key to actually watch out for this year. dani: in less than a minute here, will alibaba larger share buybacks on cohen? catherine: taking a step back what we have seen over the last two years as the company has been enlarging its share buyback

program. of course given that the share together with the rest of the chinese tech companies, they have actually gone to much higher in value over the last few months itself. the impact of in the large share repurchase program on the returns to shareholders would actually be incrementally smaller. let's look to actually see whether they will come out with more effective way of actually returning more to shareholders over the next 12 months. dani: it will definitely be interesting to watch. catherine lim from bloomberg intelligence. coming up, a bullish concoction for commodities.

dani: good morning, this is "bloomberg daybreak: europe."

beat but no bounds. trouble stocks -- global stocks drop. goldman and ubs joint bullish bets on china's reopening. morgan stanley and goldman sachs round out earnings from wall street biggest banks with both seen taking a hit from investment banking. plus, day two of the world economic forum. we will have more blockbuster interviews. later today, don't miss our exclusive with german chancellor olaf scholz. will it be the end of ycc, or an adjustment of ycc? we were just talking to a guest about the untenable nature of continuing slow increments of widening the band. it is costing the bank of japan a lot. that has captured the attention of markets but elsewhere we are seeing consolidation of risk, a

pretty healthy rally to start this year taking a breather. in asia, we are headed toward the lunar new year, maybe take a little profit. we had some china data that beat estimates. that might be helping stop the total extent of profit-taking we might have otherwise seen a from asian equities. s&p 500 futures declining three tents of 1%, off yesterday for mlk day. euro stoxx off 2/10 of a percent. one of the things that has been helping the rally is natural gas, it dropped to the lowest since 2021. can that last? bitcoin is pretty flat, and the yen trading weaker ahead of the boj tomorrow. i want to continue with this story and the commodities story as a whole. goldman sachs's jeff curry sees

a bullish concoction for global commodities this year. he says there is a lack of supply in every market except nat gas. let's bring in our energy reporter. i want to start with natural gas because it is remarkable to see, already when it was very low, fall another 14% yesterday in futures. what is behind all of that? stephen: that's a huge selloff and it indicates how the market is digesting what we are seeing, a warm start to winter. it is cold right now but you will be a shorter cold blast. at the same time, inventories are full, well above the five-year average. what that means overall is you will be leaving this winter lively -- likely with higher inventory so next winter might the less severe. you will start with higher inventories because about. stockpiling over the summer will be as aggressive as last year when prices hit a record high. at the same time, chinese demand

for lng is still quite weak. they are entering the lunar new year holiday and demand is not there and chinese buyers are selling their supply to europe because the prices there are better. you have a constant flow of lng going into europe, helping replace some of the russian pipeline gas that has been lost. dani: doesn't matter that we are seeing a cold snap happen in europe? as you are pointing out, the stockpiles are already high enough that perhaps some of the risk is mitigated? stephen: there are a few things to think about when you see this cold snap start. what is the actual consumption? europe has done a fantastic job at reducing consumption. part of that is because of milder weather but also industries and households are saving more than before. the government is urging them to do it and they are doing it. even if it gets colder, will we see an uptick in demand?

how much does it drain inventories and how long is the cold snap sustained? if it is a week or few days, no problem. if it is a month or month and a half, if we are still cold in april, we have a problem. that has happened in the past. it depends on the length and honestly how well europe can continue producing demand. dani: obviously no one wants it to be cold until april both for the local economy and for our mental health. i want to ask you about this call from jeff curry who says there will be a bullish concoction for global commodities. how consensus is this view considering we saw some of the kind of commodity super cycle talk peter out last year? stephen: this is definitely one of the more bullish comments to come out of wall street that there is a consensus that maybe in the recession, with the fed going back on their interest rate hikes, maybe there will be

more demand for commodities, for oil, for aluminum, for copper, iron or, all of the above with china reopening. industries in europe can come back and start producing and consume commodities. looking forward, the main thing goldman looks at is we don't have enough supply, there has been an un-investment in the supply production. because of that, when demand bounces back, you will have a really tight market and that's what they are saying is part of the bullish concoction. not everyone agrees with that. when you look at oil, some are looking at how maybe the oil market might be better balanced, but it is true for a number of years there has been a lack in investment in key commodities and that could help the bullish narrative over not just this year but years into the future. dani: what about metals, specifically when it comes to the impact from china?

i know goldman had thoughts there as well. stephen: they mentioned aluminum and aluminum is one that is worth looking at. when you look at the stockpiles for aluminum, they have come down quite rapidly. with china bouncing back, you could see the consumption, the buying of aluminum rise and it could lead to prices increasing. we are at a multi-month high for prices on aluminum and if europe was to bounce back with cheaper natural gas, you could see buying there as well and that could add to this sort of bullish sentiment in the aluminum market and you could see prices rise higher. not just aluminum but across the board with copper and nickel to a degree. these are all part of what goldman talked about and it is something the market will be watching closely. dani: stephen, thank you. that's our senior energy reporter. let's get to some of our other

top stories with the first word news and simone foxman. simone: the world economic forum's annual meeting is underway in davos, with corporate executives and economists warning a global recession is likely this year. a survey of business leaders late last year found 73% thought global growth would declined over the coming year. the highest proportion since it began pulling in 2011. china's economy grew at the second slowest pace since the 1970's last year. fourth quarter data were better than economists expected. gdp growth slowed to 3% in 2022 as the country doubled down on is now abandoned covid zero policy. growth slumped from 8.4% the previous year. u.s. treasury secretary janet yellen will hold her first face-to-face meeting with the chinese vice premier in zürich

on wednesday. beijing says the talks are aimed at strengthening economic and policy coordination. the announcement follows the november meeting between presidents biden and xi at the g20. 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. this is bloomberg. dani? dani: thank you. simone foxman in delhi. coming up, live again at davos with the head of one of the world's largest notable foundations. don't miss our interview, that is next. and later we will hear from the german chancellor, who will speak with our editor-in-chief in an exclusive conversation. stay with us for that. this is bloomberg. ♪

dani: it is day two of davos and the days decision-makers and market movers are back in the swiss alps, the first winter gathering since the pandemic disruptions. also in the wintry alpine setting is prancing lacqua, she is there with the head of one of the world's largest terrible foundations. francine: joining us now is the chief executive of the bill and melinda gates foundation. thank you for joining us. covid anti-lockdown's have taken a hit on a quality around the world. where are we now? is education and poverty getting better or worse? >> we are probably in the most

challenging period in large parts of the world than we have seen in well over two decades. the first part of the 21st century, people didn't notice as much but we had amazing progress. we had literally hundreds of millions of people across africa, asia, let america pulled out of poverty. we saw preventions and child mortality and kids in school. covid in addition to the direct impact on health and economic impact as set that back. we've seen reversals. francine: actual reversals, it's not just progress not at the same pace. mark: we saw halving of deaths from hiv-aids and malaria and that his back up. francine: also the -- mark: you have a common challenge where these are countries that never had the physical power that the u.s. or

europe or others did for the big spending they did for covid. they exhausted the resources they had already and they are facing debt crises because of higher interest rates, they are seeing cuts in international aid. we are seeing big gaps in need and that's why the gates foundation today, we are announcing the largest budget ever any philanthropy where we commit .3 oh yen dollars this year to try and tackle some of these issues. francine: surely the leader of any country would want to take care of its most vulnerable. why is that not happening? mark: i think partly there are so many, people talking about the poly crisis. there are a range of issues. some of it is international support you traditionally have from wealthy countries to help, whether it is through the world bank and other institutions like that, whether it is through direct support in areas like global health, it's just very difficult to prioritize at a

time when there are so many domestic issues, and then you have the war in ukraine and the energy crisis. francine: is this redistribution? how would you do it and is it up to governments or private institutions? mark: it's up to everybody. governments have to take a primary role because they are accountable to the needs of their citizens and there is global accountability. having a wealthy and more prosperous world lifts all boats. it helps build trade infrastructure, it is a purely self-interested set of investments. it's also about many of the countries in the global south actually able to devote and focus resources, and many of them are having to divert resources they can't spend on health. francine: this is also metrics in america that are worse. mark: absolutely, the biggest area we work on in the united states is education, and the last two years of covid we've seen the biggest setbacks in education and learning loss than

we have seen in many decades. we have seen math scores for kids in school, particularly students of color that tend to be the most vulnerable in need. also announced a major set of new investments they are strengthen digital curricula. francine: you are meeting with chief executives and leaders. are they listening, do they worry about it? even if it is slow, is there something being put together in the next two to three years? mark: to date, there is a lot of listening and sympathy but not a lot of action at a level that is needed. part of my message today in all of my panels and meetings with the private sector leaders, the public sector leaders, is saying we have to do a both and. yes, it's critical to focus on the climate transition and energy but at the same time you need to focus on climate adaptation, which is the support to small farmers around the

world, whether it is in africa or pakistan, most affected by climate change right now and least contribute to it. we again are making a major new set of investments there. the announced $1.4 billion in investments for that but that is not being brought in and supported by others. francine: because they are distracted with other issues or they have a lot of political divisions. mark: absolutely. everyone says of course we agreed the global community said at the cop discussions, we support this but the resources and innovation did not follow. but there are great models. we are investing in a range of them where you can get new drought and flood resilient crops, you can find new investments in general financial tools to empower women across the world. they are solid: concrete investments -- solid, concrete investments. francine: we have the who, they

are meant to prevent or look at variables or the next virus and taking care of us. what more can we do to get ahead of the next one? mark: we could and should be doing more. after the crisis we've been through, which killed millions of people and caused trillions of dollars in economic damage, it really would take around $10 million per year globally from every country in the world to help support the world health organization, have a global emergency corps to track the spread of diseases so we can identify them as soon as possible, help research and develop it so we can get the next vaccines up and running and out at scale within 100 days of a pandemic. that would cost $10 billion a year and at the moment the world has contributed an $.6 billion once. it is not remotely enough. francine: mark, thank you for the spirited conversation. chief executive officer of the bill and melinda gates foundation. plenty more through the day. back to you. dani: fantastic conversation.

looking forward to the rest through the evening. speaking of great conversations happening at the world economic forum, francine also spoke to folks from south africa. the south african president canceled his trip to davos this year for emergency talks with the state power utility as the nation's rolling blackouts threaten to weigh on economic activity. the nation's finance minister spoke to francine at davos about the company's finance and how much debt the government can take on. >> we have to find ways of raising money. that is not in my view a measure. one of the key points is to focus on 8000 megawatt capacity, which unfortunately is to bring

that back. francine: how much of the debt will you assume? >> we said in october there are a lot of variables that influence how much we will take, and one was the pronouncement that wanted to know how much would be for as calm. we are working on the thinnest -- the figure. francine: two thirds? min. godongwana: i said two thirds then, but now we are waiting for an exact figure next month. francine: below two thirds? give me a price range? min. godongwana: no. francine: i don't want to get you in trouble. min. godongwana: one and two thirds and we begin to narrow the range.

i can't narrow it at the moment. francine: is it narrowed on the high end? [laughter] min. godongwana: next month. francine: after you announce, how quickly can you deal with it? min. godongwana: even those modalities will be part of that announcement. francine: can you tell me if it is brief or if we have to wait much longer? again, broadly, what kind of timeline? two months? min. godongwana: there are number of factors to take into account. the debt to gdp ratio. those are the factors we've got to take into account. dani: the south african finance minister speaking to france we lock off in davos. still from the world economic forum, we speak with the chairman of the state bank of india. we will also speak with the ubs

ceo. first, recovering from the turmoil in the u.k. bond markets. andrew bailey says the risk premium on u.k. as is pretty much gone. we will break down his comments. this is bloomberg. ♪ so, am i still on track to reach my goals? the plan we created can withstand uncertainty. lately everybody has opinions about the economy, but i count on personal financial advice. my ameriprise advisor understands the markets and me. she knows my goals and can help me reach them with confidence. the markets may fluctuate but you're still on track. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews.

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dani: the bank of england governor says the risk premium from u.k. assets is pretty much gone, but confidence remains fragile since the u.k.'s bond market turmoil last september. let's bring in lizzy. what did we learn yesterday? lizzy: the governor was testifying in parliament yesterday and you'll remember the moment after the many budget when investors were selling off gilt and sterling, and andrew bailey says the dullness premium

has set in and the risk premium is pretty much gone. >> i think it's going to take some time to convince everyone we are back to where we were before. not because i doubt the current government, but there is something of a hangover effect. lizzy: mortgage rates and markets have drifted down but you can feel the governor trying to elbow them down further. he also said, speaking of the emergency bond buying program, they have sold off more of those bonds and at a profit. it is being used to offset the loss from selling bonds from standard quantitative easing. he was talking about headwinds facing the u.k. economy. first of all, the reopening of china, the war in ukraine, and mastech lee a shortage of labor. dani: i was -- and domestically

a shortage of labor. dani: i was curious whether he was going to mention the more on equivalent. lizzy: the labor market has been cooling and this will feed into the bank of england's next decision in february. shortage of workers has been contributing to upward pressure on inflation. economists expect you will see the unemployment rate holding steady in three months to november and a little bit of wage growth in regular pay. if that is the case, our economists reckon you will see a 25 basis point hike from the boe in february. dani: what is the latest on the strikes? lizzy: basically teachers are joining in, another headache for rishi sunak. he's already got nurses, rail workers, civil servants planning to strike. behind the scenes it does seem

the government might be willing to compromise maybe on backdating pay but the union's essay there still isn't a hard offer on the table. dani: thank you very much. it is not a tuesday unless we talk strikes with lizzy. bloomberg markets is next. stay tuned, we have great interviews from davos as well as an exclusive interview with german chancellor olaf scholz. john micklethwait will bring us at that exclusive conversation live. stay with us for that. this is bloomberg. ♪

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anna: good morning and welcome to "bloomberg markets: europe." i am anna edwardsl