>> good morning, this is bloomberg daybreak. the stories that set your agenda here. rebutting the rebuttal.

fragile sentiment stocks and futures lower as investors wait the punch and a mega week for central rate decisions. plus, you are fired. happy monday, heavy start of the week. the estimate had been for 2.136 one million euros. that load factor is coming in at 93%. a high figure. it seems that prices are on the rise.

they confirmed the full year outlook when it comes to tax and passengers. their customers for the quarter, 38.4 million, the estimate had been 38.6 million. it is notable that even though there are slightly -- there are slight misses, they are returning and coming back. the revenge tour is alive and strong. they said they would deliver record profits in the current financial year and we would expect that to grow into next year. we will be speaking to him on those results for the irish airline. stay with us for that. the other piece of breaking news we got over the last 10 minutes, it was phillips. that may recap some of those. we nearly double what the expectation was, i even for the fourth quarter. it came in at 651 million euros estimated. that is almost double the amount

of what had been expected. already in october, they announced the job count of around $4000. stay for that. we are getting some consolidation in american futures. we did have a report out from the panel that recommended to present being the long-term goal. banning the speculation of an exit.

the 10 year yields are in a range. paul dobson has more on that friday data from the u.s.. the short seller hindenburg says the response to the alleged fraud and stock manipulation ignores key allegations. many of the companies have continued to drop this morning. take us through that rebuttal that we got on sunday. what do you make of it? >> i find the tone white nationalist a. if anything, hindenburg worked

with the analyst. the nationalistic tone is not that helpful. they did not address the biggest attack. they commented they had no information out there. i think the strongest in the hindenburg research is for the insiders. those stocks have to be delisted. >> you have this short seller hindenburg. it was not the most well-known, taking on one of the world's richest men. what are the chances that the hindenburg shortselling campaign actually succeeds? >> on what i heard, hindenburg

is quiet legitimate and well respected. this is because of the association with made off, having said that, i think a lot of the asian conglomerates that have lost it -- have lofty valuations, you know all of them. john evergreen group. short-sellers have been complaining about them for years. nothing happened. i think they have a good shot. when the government comes to his defense, there is not that much to be happy about. >> this may pave the way for a rate. for us, and a breakdown on the data, we have paul. what a crazy week. let's stick to the fed for now.

you think powell will acknowledge that we are having slowing growth or inflation? will it continue to be that thing of look on the labor market is tight. we need to keep at this and keep going because inflation is sticky? >> i think the base case for investors is that powell will very much stick to the script and say it is not run yet. yes, inflation may be coming down but there is still a long way to go. when you look at what the fed is using, thinking about not just headline inflation but really thinking about the services inflation which is starting to prove more sticky and the fed knows it needs to bring that down as well in order to get those inflation expectations back to the 2% range over the long-term that it is aiming for. powell's tone should be pretty firm on more to do just because

he does not want the market to continue to pray cindy's interest rate cuts for the second half of this year. he wants the market to believe that the fed is determined to keep interest rates higher for longer in order to tap inflation. >> thank you very much, paul. helping us set up for a very easy you had. markets in mainland china have reopened after a prolonged slumber for the lunar new year holiday. now the benchmark equity gauge is set for more. i am looking at the china rebound. it is easing slightly. just a .5%. talk me through the rebound. >> i can't get over that introduction. i am flattered and amazed. could not get any sleep this weekend just thinking about how we were going to get into a bull

market today. to your point, lw is -- the level you are watching is 42-10. we gapped higher at the open. we had been shut for about a week on the mainland. since then, we started to push lower. that being said, whether we get there or not is really academic. the trend has really been higher. the mainland markets which have lagged in hong kong are simply playing catch up. when you look at the market today, it is only a mainland story. what is happening in hong kong is reflective of what you call caution ahead of what has been a very big week. if we do land above this level, we would take this one in taiwan. this entered a bull market at the close. lengthening this list of markets in the asian pacific that have entered a technical bull market. cracks yes. but it seems that china stocks

are not getting to that level with hong kong slumping. david and glass, thank you as always. let's take a look at some of the key things we will be watching out for this week. the ecb governing council member is due to speak at an event in harris. they will report earnings and we will also have the u.s. employment because index on that same day. then on wednesday we get the start of the central bank in anza. first up, it is the fed rate decision. officials are poised to slow the rate of hikes for a second straight meeting and then it is the ecb and the boe on thursday. if that is not enough for you, i will say it is a very good day for tech earnings. all of them reporting that same day. good luck getting up from your desk on thursday. on friday, it is u.s. unemployment. coming up, we will get back to the earnings story. all of this after the couple estimates but touts big profits

to come. plus another big earnings interview later on with roy jacobs after the company announced 6000 job cuts. this is bloomberg. ♪

>> welcome back to bloomberg to break. ryanair says it is confident it can sustain a profit run into next year and beyond, surge in travel demand is driving fares and the company operates more high-capacity aircraft. joining us is neil. thank you for having us. one of the big takeaways here is pricing. a 14% increase from the pandemic levels. what enables ryanair to do that at a time when we are just

talking about doing something that perhaps rivals cannot? >> we are in a very strong position. we had very strong crude numbers. high levels of resilience at the start of the summ good dividend from everybody else. we had a very strong christmas and new year. midterm breaks went well. there is a lot of pent up demand for travel at the moment. people are getting huge savings. we have a good -- a huge footprint all across europe. we offer very good value for our customers. it is a factor of all of that which has enabled this to grow in traffic. >> is there a level at which inflation gets so bad and the cost of living crisis gets so bad that that pulls back? one other kinds of risks are you looking at? >> we have the lowest cost of

any airline in europe. they direct fuel for the first nine months in the year. at -- at a time when all of our competitors costs are rising. we have fuel at very attractive levels. that gives us a good price and power. ryanair is still the lowest in the market. i think we will be seeing through the global financial crisis that people continue to travel. they don't stop. i think you will see more people traveling in europe this summer because the dollar is very expensive. it is at very strong levels. people will stay-at-home. i think you'll see a lot of u.s. tourists coming to europe this summer. there will be a lot of demand. i think the key message to everybody, yourself included is early. cracks and curious about that in terms of momentum continuing, how much of what you're saying is showing that prices will rise this summer versus a more steady flow of bookings?

>> there is a steady flow. we are already seeing good demand into the midterm breaks. easter in the summer, very robust. we probably had two or three of our strongest bookings ever in january as people are saying i want to get out, i want to get the holiday locked away for next summer. they are also very much -- they remember they got canceled out of there. they are saying i'm not going to take the risk. i'm going to fly with ryanair. book as early as you can. >> airports are still a bit of a mess. i had not been on a flight and while that had not been delayed. it is air traffic control strikes. >> i think you put your finger on the number there. you mentioned air traffic control. airports have improved significantly. they had a bad start. i think we all agree. things improved significantly.

they went relatively well through the midterms. air traffic unfortunately continues to lag behind. i don't think it will get there this summer. but we continue to push. i would expect the airports, we are talking to all of our airport partners. i would expect them to be adequately staffed. no issues from that front. >> that is still the point of tension. china is starting to reopen. of course, i know bone 737 deliveries have been a hot topic for you as far as delays there. have you seen any improvement now that china is back on the map? >> we have to give credit where credit is due. reduction has improved. we have seen more aircraft coming in. we are targeting 124 aircraft on

the game changers. they mothball short of that but they are getting better. with regards to china, i think what we will see their is more tourists heading into europe which drives the demand story. china is not a big customer of boeing. they are now focusing on the new c 919. brings a lot of positivity be it from the supply side customer bookings, given that, do you have any plans to invest in expanding capacity further? having new routes? increasing the frequency of routes? >> we have in order that we have -- our objective is to grow to 225 million passengers. this is about a 50% increase of recovered capacity. with the order books we have and

indeed with the extension of our fleet, that is 2028. we have more than enough capacity to hit our target. we are growing strongly all across europe. we are at a 40% market share. we have more opportunities there. equally, we are number one by a country mile. spain, a massive market. we have grown from 21% to 23%. the u.k. continues to grow. you will see more and more aircraft turning up the summer. >> where you think the most demand? >> all across europe. 3200 daily flights. there are very few places you can go where you want see ryanair or one of our airlines. >>, for that is all we have time for. they give for joining us on this

busy morning. >> coming out, as the conservative party chairman's sack from government, we will bring the latest on another turbulent few days. that is next. this is bloomberg. ♪

>> welcome back to bloomberg to break through. i am danny burger in london. let's get to your top stories with the first word news. chris good morning. china says it is to resume issuing visas to japanese nationals, ending some of the retaliatory measures it took against covid related curbs on his own travelers. meanwhile, china's domestic plane trips almost doubled from a year earlier during the week of the lunar new year. trips jumped 80% as beijing pivots away from covid zero. >> is says it may penalize the families of palestinian attackers by revoking identity cards and residency if they support violence. it comes after a palestinian man shot and killed seven civilians on friday. that followed a deadly israeli

raid. the rising violence making january 1 of the bloodiest months in years and it comes just ahead of a visit by the u.s. secretary of state, antony blinken this week. >> bloomberg has learned that top investment bankers in asia are seeing their pay packets cut in half this year. sources tell us that on average, managing directors say morgan stanley and bank of america are seen compensation drop by between 40 and 50%. the news comes as a slump in dealmaking pushes the industry to look for ways that people live on spiraling costs. the ftx co-founder has denied trying to influence a witness in the government's fraud case against him. his legal team has accused u.s. attorneys of portraying him in the worst possible light. federal prosecutors have asked for additional bail conditions on banking free. they say he reached out to an ftx employee in an attempt to

sway their testimony. global news, 24 hours a day, on air and on boomer quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is limburg. >> thank you so much. that is simone foxman. the u.k. prime minister has -- they said an independent review showed serious breaches. it has been three months into the government. in another blow, what sort of blowback is -- are they facing on this? >> you are absolutely right. nearly 100 days of them doing the top job. we saw they had to fire the chairman of the party. this is really a difficult

position because when we saw him come onto the steps of number 10, he promised a different government. a way that we had seen under boris johnson when we saw that party gate scandal and lots of other affairs happen. however, yesterday we found out they had broken the ministerial code. it still took the prime minister it days to fire him and now they have serious ammunition, saying that he is a weak leader and he cannot get a grip of the party. as we know, they have had to pay over 5 million pounds in taxes and that is for a sale of shares in the company that he does own called youth of which is a company here in the u.k.. i wonder if they do show that labor is well ahead of the conservatives when we look at the polls. >> we are looking at a quote where they call it a serious

breach of the ministerial code. this is in his letter letting him go. you put it so rightly, the fact that they are becoming for a disadvantage in the polls. labor already has such massive support. what is next for the ruling party? >> things will be a little bit difficult. we know that they will be on an offensive over the nhs as he does pledge more when it comes to helping the beleaguered, real national health services. we also know we have been plagued by strikes. we will see more of them this week. things could get more difficult for veggies who neck. that is because his debbie prime minister is also facing an ethics inquiry into bullying allegations in the government. those are going to come to light in the next couple of weeks. but they are remaining absolutely resilient and he is moving forward.

we must also remember, it is this ongoing cost of living crisis. on thursday, a lot of economists and analysts are expecting the boe to hide -- hike interest rates by another half a point. things are going to become a little bit more difficult moving into the future. as i said, 24 hours is a long day in politics. >> it sure is. dipping us up-to-date on a busy 24 hours. coming up, phillips

qwest good morning, this is bloomberg daybreak europe. i am danny berger in london and these are the stories that set your agenda. rebutting the rebuttal.

this route hits $66 billion as hindenburg says the 400 13 page response to allegations failed to answer most questions. fragile sentiment stocks and futures lower as investors way that punch, china's reopening and a central bank rate decision. plus, the false prophet talks as medical equipment maker announces 6000 new job cuts amid costs. you can speak with the ceo shortly. they have agreed to cut their stake in nissan to 15%. this is down from 43%. the idea is that the capital will be the same on both accounts. nissan is holding her own 15%. this equalizes things. nissan will also be investing in

the fear according to the company. the lines but will continue to exist and they will tell trustees to sell nissan shares when reasonable. going from 43% to 15%. that sale will happen when it is reasonable. 28.4% will go into a french trust. this is nissan confirming that report, the transaction will be subject to approval of the board. let's get a quick check of your markets. we are not seeing too much movement on treasuries. essentially range bound. we are expecting some potential

waves to come. the yen is strengthening versus the dollar at about .3%. thank you to those that expectations. back to the earnings story, phillips saw a sizable beat in fourth-quarter profit with comparable sales coming in at over 3% compared with a negative expectation. we are joined by roy jacobs. thank you for joining us this morning. strong numbers when it comes to resumption of profitability. we have to talk about restructuring. where will the job cuts be concentrated?

qwest good morning. we had an encouraging q4 where we saw us -- saw a strengthening of the sales. that is a trend we want to continue into 2023. it was still a very difficult year for phillips. i am revealing the plan today to bring phyllis back where it belongs. we will be moving in a to the businesses. it is a sizable and impactful measure.

we are starting to lean out functions. they are close to customer patients. it will be hitting the workforce globally but also particularly in areas where we are searching for more. >> got it. job cuts, one of those ways is

to pull that efficiency and the cost-cutting lever. are you looking into selling off anything in the name of efficiency? >> i think we have gone through a sizable restructuring of our portfolio. we put all of -- we put a lot of effort into that. the focus of my plan is focusing on execution to get the maximum value of the portfolio that we have. >> you mention some of the supply chain issues were easing. to what degree did they reach a more normal type of environment? how much longer do you think it will take to get to normal? >> you see the impact immediately. we can convert to orders. we are not yet at a stage where

this is a very reliable and predictable supply chain for us. it has to do with the market, it is still volatile as you can see. china is still roaring. although we hope it improves, it is not stable yet. but you have to be prepared to move with agility in the supply chain but also we need to improve our supply chain and therefore we are also taking action to supply -- change the supply chain set up. in there, we are working closely with suppliers to get contracts to look at jewel sourcing and take geopolitics into play so we can regionalized more of our supply chain. >> were in the supply chain would you like to regionalized? >> we are looking at our big markets. if you loose in the markets we serve, you have the big market in europe and a big market in asia. whilst we had a supply chain

that was really built on a global supply chain, it is clear the markets are closing more. or you need to produce more locally. we go local for local in china but we are also making sure we have more regionalization in europe and america. >> the other headache with supply chains is the sleep apnea litigation fallout. american clients currently preparing for a legal case. how much do you expect to spend on litigation? >> this is a very important priority for us. the first priority -- we made promising progress there. we said we would get to 90% reduction by the end of 2022 and we did. we really want to finish that this year. they are indeed litigation cases

happening as we speak. they are actually in the early stage. still early to say how they will play out for us. we will do the utmost to see how we can go through those in the best possible way for all of us. we also showed encouraging test results here. that is something we will take part in. we will make sure to ensure safety for patients in 2023. >> i have seen analysts call some of this regulatory fallout a black box. i appreciate that you say it is too early to give any figures. when might you have that update? this is something that they are trying to get a handle on. >> he has i appreciate that. we also need to do it intelligently. i hope in the second half of 2023, we will get more clarity around this so that we can provide more detail.

where we have that data, we will immediately come forward with the estimations we have. we also don't want to speculate and put wild guesses out there. that is not in the interest of anyone. we will stay very close to this. we will make sure that we put all the efforts to get the best resolution we can. >> i am afraid we are going to have to leave things there. roy jacobs, the phillips ceo joining us. let's get to the bloomberg business/. simone? qwest toyota has kept its crown as the world's top-selling carmaker. widening its lead over volkswagen. despite -- despite supply chain disruptions, toyota group sales were mostly flat at 10.5 million units for 2022. volkswagen's output fell 7% last year to 8.3 million units, the lowest level of deliveries in 11 years.

as says the chip export curbs on china should not have a material effect on his earnings this year. the company is expecting sales of 6.6 to $7.1 billion this quarter. the u.s. and its allies are restricting exports to some advanced chipmaking machinery to china. u.s. regulators are investigating elon musk possible role in shaping tesla's self-driving car claims. the review is said to be part of ongoing sec scrutiny. officials are weighing whether musk made inappropriate statements about the technology which has been a focus for tesla. rio tinto group has lost a highly radioactive capsule somewhere along the highway in western australia. the local government are attempting to find the eight millimeter long widget which is

a component used to measure the density of iron ore. the risk to the general community is low. exposure to the substance could cause radiation burns or radiation sickness. that is your bloomberg business/. that radioactive headline makes me a little nervous. >> we already have enough to worry about in the world. we don't need to throw radioactivity into the equation. simone foxman, always keeping it real. think you very much. let's get an update on one of the biggest stories of the morning. hindenburg says the group response on his report on alleged fraud is stock manipulation. they called the report maliciously mischievous and bogus. the lengthy rebuttal has failed to reassure investors with the stock route widening to 66 billion dollars at one point earlier today. for some of them, a slight bounce back.

let's get more with sanjay in mumbai. i am sure you have read every single one of those pages. for those who have not, what were some of the key features of this rebuttal? quick there were a lot of allegations and accusations. they are saying that most of the questions were posed by hindenburg research in the public domain. they said out of 20 questions, these turned out to be baseless allegations. there is no evidence and they are saying the hindenburg does not understand indian laws. this is an against indian story. they are saying that they don't

understand the related property disclosures. all of them had been cleared by indian code. in the morning, hindenburg research try to put the growth of nationalism to questions asked by them. >> doesn't seem to have worked at all? quick they say in a way you can do that. there is a sort of nationalist element to it. is there a possibility of stopping some of the sell off? quick they have already lost $66 billion worth of market cap in this decision. we are also seeing a very weak response on the issue. one more day is left.

markets evolving and markets trading now. they will be very keenly watching. they make clarifications toward this one. it is a developing story, stay tuned. >> in the meantime, the wealth of him himself has taken a hit. he has lost nearly $28 billion year to date. that has to hurt. bloomers reported in mumbai, thank you, son died. he is still worth $92 billion. so no small sum. coming up, falling consumer demand for gadgets is threatening the membership sector. we will look ahead to earnings from samsung this week next. this is bloomberg. ♪

>> welcome back to bloomberg daybreak in europe. let's talk chips and global demand has slumped with $160 billion industry suffering one of its worst drought ever, threatening to wipe out earnings. the key memory chip maker post results tomorrow. joining us now to get into it is the deputy bureau chief, debbie wu covers all things chips. this report from your team, the second most red thing on the terminal. it is clear the chipmakers have a lot of the tension now. i wonder if chipmakers should be more worried about consumer demand slowing or some of the supply snags that continue.

>> what we are seeing our memory chipmakers are predicted to building losses this year. we have also seen inventories more than triple to a record level. that means the market has supplies up to a whole month. we will have a better idea of what samsung talks about, the outlook to provide some guidance for the whole memory chip industry tomorrow. all eyes will be on earnings for tomorrow. >> can you get into that a bit more in terms of what we are expecting? >> samsung's competitors including micron have slashed spending for this year. they have also said they are going to reduce output but we

don't know if we have a good picture from samsung yet about whether or not it will join its peers in trying to control the output in the hope to affect this price plunge in memory chips. i think we will have a better idea tomorrow. the major chip equipment research -- this is the major customers have indicated that spending equipment has come down quiet significantly. they had white lackluster results last week. >> what about china reopening? could that have any impact on the memory chip demand bouncing back? >> i think a lot of people are

putting hope on china's reopening that could help boost them in various things including gadgets. i think we still need to wait and see. we'll have to see whether the chips industry will see a significant rebound. >> debbie wu in taipei, setting us up for samsung earnings. coming up, it is a big week for central banks. it is the fed meeting that will take center stage. don't forget the boe both have decisions on the agenda. this is bloomberg. ♪

>> i expect we will raise rates

a few more times this year. >> ymca policy, there is still more work to do. >> heights of 25 basis points will be appropriate going forward. >> i expect it to continue tightening policy pass this week. >> the fed is going to have to maintain rates at high enough levels. >> this policy is going to need to remain sufficient for some time. >> at some point this year, i expect the policy rate will be restrictive enough that we will hold rates in place to let monetary policy do its work. >> fed officials there ahead of the central bank possibly decision this week.

we will have the u.s. employment cost index and then on wednesday, it is the big decision. a mere 24 hours later, it is a giant day for tech earnings. the awful back, amazon. on friday, it does not relent. it is u.s. unemployment and nonfarm payrolls. we will have another piece of data, it is coming from germany. it is the quarterly gdp data. here is why the economic powerhouse may still bear some scarring. >> europe will probably survive the winter without blackouts.

>> most developed economies have become services driven. they don't actually make anything anymore. it is called europe's engine for her vision. the industry sucks up the power consumption. less than 20% in france. they can whether big storms but a large portion of german production -- for these mom-and-pop manufacturers, the threat can be existential. particularly in class, still and chemicals. the companies may be small but together, they are big business. the government is doing what it can, breaking all records.

europe's biggest exporter needs to develop a new model so they don't rely on cheap russian gas. bloomberg news, berlin. >> we will get that data of german gdp. that is it for me on this monday morning. this is bloomberg. ♪

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