dani: good morning. this is "bloomberg daybreak: europe". i'm dani burger in london. manus cranny is in dubai. these are the stories etc. agenda. >> we will need to do further rate increases, and we think we will need to hold policy at a restrictive level for some time. manus: jerome powell reiterates the need for hikes. stock split higher as the fed chair holds off on criticizing loosening fcom. president biden says the u.s. will pay its bills on time, and calls on congress to raise its debt ceiling in his state of the union address. credit suisse will pay some junior and mid-level bankers bonuses in installments, as part of an overhaul of operations. its earnings season, take it

away, dani. dani: abn amro out with a buyback, 500 million euros, this is the amount we were expecting but it is positive that they are doing it at all. this is the big thing, banks have been struggling with costs, operating expenses were lower than expected, 1.3 billion euros, the estimate had been 1.4 billion, operating in, beat, profit beating is a big thing considering costs are a big concern for the banks. profit at 354 million euros, the estimate had only been 55. also, declaring a dividend of 67 euros. we will be in conversation with abn amro and just about 30 minutes time. manus: we will get the cfo in the seat. socgen delivers in terms of fic and net income, fic is our

obsession, we know commodities are beating with the market was looking for. that is up 5.6%. yesterday bnp paribas was up 40%, so they have trounced their parisian neighbors and wiped out wall street. the europeans versus les a mericanos. equities are softer, down 12%, but the buyback was disappointing. the issue is they took a monster hit last year getting out of russia. that cost them over 3 billion euros and not their ability to deliver a 50% payout ratio, and may be disappointing when socgen opens. and a blowout buyback from bnp paribas that we delivered yesterday. dani, good morning, the question is this, have equity markets go

ne clothiers, and our bond tracers facing a to missing moment -- facing a damscene moment? dani: there was some point yesterday where powell said equities and bonds were singing the same tune, but the euphoria in equities continues and it seems we are willing to continue to look at powell with dovish-tinted lenses? manus: do you want to know what i really do in the afternoon? i read through 20 pages of theses, take a look at this, it is about a soft landing, apparently the fed has only done it once in 40 years. this is the vice chair of the fed, soft landings on the holy grail of monetary policy, but conventional wisdom holds they are so difficult because of long, variable lags. may be that is the very essence of why powell was not more

demonstrative in keeping the optionality of 50 bips in february. dani: we can't forget canada, the governor saying it takes 18 months for policy to take hold. so every time we listen to powell, he is worried about the same thing, and that is what equity markets are doing. let me get you your data check. asia equities are up .5%. the big thing is adani, a change of pace from the prior few weeks, a second day of gains. we have heard from oaktree and other sources starting to bid up those adani bonds, so perhaps a ray of sunshine, or is it another bonded equity disconnect? s&p is softer but chalk up another win for cathie wood, it continues to be tech that outperforms. nasdaq futures up nearly .2%

after a big 2% rally after powell yesterday. manus: the evangelization of cathie wood. cross assets, the dollar rolled down. the fact that powell was not more aggressive his what these markets are leaning into. crude was up 4% yesterday, a third of a percent this morning, inventories drawn down at the oil market heard a less aggressive fed, so to the equity markets, there goes your short end of the yield curve. citi are saying get ready for 6% rates in the united states of america. the dollar drifted lower, and the euro pro trend had been on a winning streak, we have just reasserted that this morning, it just did not get the hawkish fed is expected, and a couple of houses calling for a full of grace for the euro but energy prices will underpin that strength. dani: let's get to our reporters from around the world.

valerie tytel will help us go through those powell lines. then we will turn to biden's state of the union with jennifer. and finally, we have a whole host of great scoops on credit suisse, we will tech about that with stefania. manus: let's talk about this fed and what is priced in the labor market, it remains strong. it was his first speech, and in his first speech since the latest set of fomc into jobs data, jerome powell told bloomberg, inflation may slow significantly this year but the road will be bumpy. >> this process is likely to take quite a bit of time. it's not we don't think going to be smooth, it's probably going to be bumpy. so we think we will need to do further rate increases. and we will need to hold policy at a restrictive level for a period of time. manus: let's get to valerie tytel, she's with us on this fed watch.

there you go. the issue is whether he wasn't hawkish enough, didn't keep his optionality alive for 50 basis points in february, what is your take? >> it showed as yet again this is not the hawkish powell we saw last summer at jackson hole we were all appearing is going to come back. equities like that, ending on a good footing. but the first question is on the jobs report saying, would you have done something differently if you atone about friday's data? he said now, we are comfortable about the guidance we gave, and we are likely to see softness in the cycle that is coming. but he noted that the disinflation process will be bumpy. it could take time. but he expects the labor market to soften. but the key statement the market hung onto, he said at the very end, if the strong labor market data persists, the peak rate may be higher. he was asked about his biggest worry of inflation, and brought up the core component, core services ex-housing is his word,

if it is stickier than we expect. but notice that goods disinflation has already begun. he expects to see housing services disinflation at the second half. other than exhaustion is shock, the shock will be the core services ex-housing component if it is too sticky. dani: if his talk was so nuanced, it is almost choose your own adventure for this market whether to take it hawkish or dovish. alireza tell on the latest from jay powell. joe biden found do not let the country default on its debt during his state of the union address. he urged republicans to find common ground. >> nearly 25% of the entire national debt that took over 200 years to accumulate was added by just one administration alone, the last one. they are the facts, check it out. check it out. how did congress respond to that

debt? they did the right thing, they lifted the debt ceiling three times without preconditions or crisis. they paid american bills to prevent an economic disaster. so tonight, i'm asking congress to follow suit. dani: jennifer joins us now. check the facts, check it out, that from biting, a little off script, what were the takeaways? >> that was indicative of the president's speech the whole night. it was a lot about unity and bipartisanship but a lot about economic issues that are important like medicare, tax cuts and going against big corporations. but he spent a great deal of time talking about the debt ceiling and what his predecessor did, and what he and his administration seeks to prevent, which evoked a lot of reaction from his opposition in the white house. many times getting heckled. but really saying he is committed to addressing some of these things as well.

he talked a little about china, saying competition is important, but incidents like we saw the other day in montana with the chinese spy balloon will be addressed. so the president really spent a lot of his one hour and 12 minute speech talking about his achievements, what he is hoping for the future. but really showing that he has in his mind had a lot of successes for the american people and is hoping to continue that going forward. manus: good to have you with us this morning. there is a lot of talks about tax, tax and corporate buybacks, how to shape boots -- shake the boots of the oil companies and billionaire minimum tax proposal, playing to the audience for 2024. it is the latest twist in credit suisse, in terms of compensation, we learned they are to pay their junior and mid-level banker bonuses in

installments. for more, let's get to our senior finance editor stefania bianchi. what are we hearing, yesterday it was conversations delayed, now it is like buying a secondhand car to get your bonus in installments. >> look, are they going to be happy with this? they are getting something, it is just spread over quite a long period of time is what we're hearing. so from april, july will be the next one, then october. they will receive them about 40 days after the first of those months. is it enough to stop the outflow we have been seeing of bankers from credit suisse, that is something to keep an eye on. dani: also in credit suisse, a great scoop from the bloomberg team, when you think about credit suisse and risk, the assumption had been they were beefing up risk controls, but bloomberg has learned they are dialing back some of it in asia on the private banking side. why? >> as you say, these risk

controls were introduced at the end of last year. what we're hearing now is already they are doing some sort of u-turn. executives won't need to approve third-party transactions. and other measures are being dialed back. again, it is to and fro that we're seeing, it is all over the place at credit suisse, they really are in a state of flux. this will all add to the pressure, and the sentiment to these bankers who are going to say they feel in an uncertain place now, is this enough to keep them in the house. there has been an outflow of money into bankers, but whether this is enough to stem that, we'll have to wait and see. dani: certainly, stefania there. you might need to rethink your long stated goal of getting

reincarnated as a junior banker, considering a lot of the bonus talk, not just at credit suisse but other banks. manus: here is the issue. a bonus is a bonus. a lot of people forget what a bonus is. it is remuneration on top of your job. so, it is something in addition. but what you do is you stock up very much an aggressive group of people who will take the first job when it comes along. when that final payout comes along, i can bet you bottom dollar because i have been there, they will take the first job that comes along with a higher payout, however, from past experience, i have made mistakes. not bloomberg. [laughter] dani: as an american who still has to do taxes, let us not forget is tax season, and bonuses are often used toupee of the fees, so perhaps another reason to be unhappy and out -- about getting paid in

installment. we have a conversation with lars kramer, cfo at abn amro bank at 6:30 a.m. u.k. time, then the pandora ceo, we will speak to him at 6:45 a.m. and the next hours, the ceos of maersk and equinor, and we will have akzonobel's chief executive shortly after that. manus: a feast of c suites. a higher interest rate, chair powell flags up on the road for the u.s. economy, we discuss the volatility on bloomberg. ♪

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stages of disinflation. it's not going to be smooth. it's probably going to be bumpy. this process will take quite a bit of time. my guess is not just this year, but next year to get down close to 2%. we will need to do further rate increases, keep rates at a restrictive level, the base case is it will take some time and we will have to do more rate increases then look around and see if we have done enough. manus: for charge alarm powell -- jerome powell with david rubenstein in his first interview since that fomc decision last wednesday. we are obsessed with the word disinflation, that is the only thing anybody heard yesterday. 15 times last week. dani: was it 15? we will need a disinflationary jar and put a coin every time someone says it. joining us now is jim cielinski,

global head of fixed income at janus henderson investors. are you going to make us rich? disinflation, yes or no? jim: the disconnect between what we hear from powell and what markets are saying is the fact that inflation has already slowed. that inflection point is in the market. you're on your highly misleading. if you look at the last three months, on core or non-core, you are looking at 3%, 2.5% inflation numbers already. it will take until year end see that in the year on year numbers, powell is focused on that because he doesn't want to let up too soon. but if you look at current inflation trends, you are already there, that is why market see the end even though powell is quite consistent in saying we have more to do. manus: jim, very good morning, so if it is immaculate disinflation, is it a soft landing? we were looking at this paper from alan blinder at the top of

the show, they have only achieved it once. long and variable lags between monetary decisions and their effects on the economy, is that what powell is banking on? a long and variable lag? jim: i think the soft landing is elusive. from the starting point we had this time in the post endemic environment -- post-pandemic environment where growth had soared and is rolling over, to engineer a soft landing will take a bit of luck and skill. arcus, when they see inflation rollover, they tend to rally when there is a pause. and the key question is, is the landing a hard one or a soft one? if it is soft, i think markets keep rallying.

and it quickly rolls over. but once you see the slow down, as you are in the soft landing, it is difficult for markets not to change the landing and not look towards that hard landing risk. there is a chance. the chance has certainly gone up, as they have talked about letting off the brakes, so i think markets are ripe to rally, that is what they have done traditionally. whether they hang onto this is highly questionable. dani: i'm going to rip up the script. the other big fixed income story is perhaps another bond and equity disk con -- dis connect, it's a donnie. oaktree is stepping up the bonds. are you interested at all? jim: we think the bonds look attractive. it is the first time in several years you can see diversifying benefits. manus: i mean adani bonds

specifically, the indian conglomerate. jim: so adani bonds, it's not a company we follow closely. it's clearly tied up in the fraud allegation. when you look at what is backing the bonds, it looks like there is a point at which you would step in. whenever you get this kind of allegation though, it is really hard to dig below the surface. i'm afraid i'm not an expert on adani bonds. dani: and allegations which adani has vehemently refused. manus jump in. manus: i'm going to give you a softball. she tried to get you in the corner. don't worry, we will not put you on the hook for some adani bonds. let's progress the story because i got people from citi saying 6% could be on the table from the fed. i don't know about you, but 6% in rates, or 5.5%, could deliver

a pretty brutal reality check the housing market. that was also part of the conversation on the stage yesterday. where do these bond markets go to? are you a buyer of these yields with compression in the near-term as the hard landing, or less soft landing is more manifest? jim: we are a buyer of bonds. what you have is the soft landing and additional tightening priced in, therefore i see protection in bonds at these levels. so, on balance, bonds look attractive. as the slowdown emerges, you will see rates fall as we see inflation continue to rollover, rates will fall. the 6% number, to me on fed funds, is not really achievable. as i said, inflation has already turned the corner. when you look at some of the leading indicators of the economy, you will see those turned the corner even more.

to think that the fed, particularly now that they are moving in 25 basis point are meant -- point increments, to get to 6% requires upside surprises the rest of the year on things like employment and i just don't see that. manus: thanks so much for being with dani and i. that is jim cielinski, global head of fixed income at janus henderson investors, buyer of bonds. turkey declares a three-month state of emergency in the areas struck by two massive earthquakes. the death toll in the country and neighboring syria nears 8000. we bring you the latest. ♪

manus: let's get straight to istanbul. simin demokan is standing by as the country declares a state of emergency.

simin, what are the latest rescue efforts? >> that's right, it's day three of the rescue efforts here in turkey. after a 7.7 magnitude earthquake hit the turkish-syrian border on monday, the total death toll from turkey and syria is coming in above 8000. in turkey alone, we're hearing that almost 6000 people have lost their lives. more than 31,000 have been injured. 10 cities were struck here in turkey. and 11,000 buildings have been destroyed. we've got international rescue teams on the scene. turkey is also deploying thousands of soldiers to the area. international humanitarian aid is also coming in from countries like egypt and the uae. the government is overwhelmed by the damage done from this earthquake. and the agent needed to assist

-- the aid needed to assist the 30 million people living in the region. dani: thank you very much, that's bloomberg's simin demokan in istanbul. we will continue to monitor the humanitarian crisis, as well as the economic toll, various countries saying they will step in and lend support. coming up on the program, it is a beat for abn amro bank, the dutch lender announces a 500 million euros share buyback. we will speak to the cfo next, as we also look at the dutch selling off some of the shares. they will sell shares to abn amro. that's next. hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician.

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manus: this is "bloomberg daybreak: europe". i'm manus cranny in dubai with dani burger in london hq. >> we will need to do further rate increases, and we will need to hold policy at a restrictive level for a period of time. dani: jerome powell reiterates the need for hikes, and stocks bushfire as the fed chair holds off criticizing loosening financial conditions. president biden vows the u.s. will pay its bills on time as he called on congress to raise the debt ceiling in his state of the union address. credit suisse will pay junior and mid-level banker bonuses and installments as part of its overhaul of operations. i've got to tell you, i can't stop thinking about the 6% terminal rate call from citi. our last guest from janus henderson is buying bonds, but should 6% be true?

this market has a lot of repricing it needs to do. manus: we were chatting in the break with our guest and talked about the bond market. didn't have a damascene moment in terms of realizing higher for longer in terms of the soft ceiling, but he said disinflation, he said it 15 times last week, disinflation and soft landing. dani: and he also said rates are likely to go higher if the labor market stay strong. that's not something you'd associate with a 2% rally in nasdaq. we've talked about it before. is it the equities that are in lala land, just dreaming along of a very dovish jay powell? manus: immaculate disinflation is my favorite line. oil pumped up 4%, that was some say in reaction to a softer landing. we are up another quarter of a percent on nymex.

2's bumped higher yesterday but giving some back. and the dollar rolled down, but the euro-dollar has been on a tear. but it ran into a speedbump yesterday and that -- in that it was not hawkish enough, causing the dollar to roll down. and a number of houses saying you may see the role euro -- you may see the euro fall from grace back to the 1.05 level. dani: perhaps weaker dollar allows rallies in equities. we are seeing some asia and europe catch up. we are looking at a softer start to the futures session in the u.s. but even so, tech is still outperforming. it is the by everything rally, - - buy everything rally. the best-performing stop yesterday in the essence 500 -- s performing stock yesterday in the s&p 500 was zoom. it is the very growthy names

that are outperforming. manus: let's get the first word news, to doha, and simone foxman. simone: president biden has vowed to not allow the u.s. to default on its debt, with the demand for congress to raise the debt ceiling. in his state of the union speech, he focused heavily on economic themes, with the call for higher taxes on billionaires and tax buybacks, as well as new consumer protections and antitrust efforts. france has adopted a lot to accelerate the development of renewable energy, though critics say it will slow onshore wind and solar projects. parliament passed the measure to reduce france's dependence on fossil fuels. unions meanwhile held the third national day of strikes against raising the retirement age. the government says about 750,000 took part, down from more than 1.2 5 million last

time. the pentagon says china refused a call from the united states to discuss a suspected spy balloon which was shot down over the weekend. a defense department spokesman says talks with china's defense minister were being sawed. the u.s. says the balloon was carrying out surveillance, will china maintains it was a weather monitoring device that blew off course. 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. i'm simone foxman, and this is bloomberg. manus: thank you very much. abn amro has reported profit for the fourth quarter that beat analyst estimates. the dutch bank has amassed a -- announced a 500 million euros share buyback program. let's see how the market takes it. got the cfo lars kramer on the phone.

half a billion euro share buyback program, is this a start? can we expect a much more significant series of buybacks to come? good morning. jim: is this the start? the good thing, it is the second one already for us. so, we are basically following through on what we are trying to do which is create a predictable path in terms of returning capital to our shareholders. is this the start of more to come? ultimately, we are continually in discussions with regulators and constantly assessing where we are in terms of market conditions. we are operating in quite a tough macroeconomic condition, we've got the war in ukraine. let's focus on getting this one out of the way, printing the ticket of 500 million, and we take it from there. dani: a significant profit beat,

what levers are you pulling to lower costs? are you reducing remuneration and bonuses? lars: we have many levers we are pulling. as you can see, probably over the last two quarters, and especially on a full year basis we have reduced our external headcount by about 2000 people. from that perspective, this is very much on the back of a continuation of working on automation programs, changing our service models. in terms of bonuses, this is something where we have been in any way a quite restrictive bonus environment in the netherlands. ultimately, the performance in the year warrants rewards to

continue. manus: lars, let's talk about exposures for the bank. we had blanchflower talking about the risk of implosion in the u.k. housing market, that is indio syncretic -- idiosyncratic. if rates go to 3.5%, what will that cause in terms of potential impact on housing exposure for you? lars: for sure, the mortgage exposure of avn is one of our biggest -- abn is one of our biggest exposures, but the dutch market has always been resilient and reliable from a mortgage perspective. we have been fortunate in the sense that there has been quite a bit of government support in terms of energy, price caps, we

also saw that same support during covid times. at the moment, what we see from our households is disposable incomes holding up. we're also seeing families going in with a relatively high cash position and savings. ultimately, looking back to the previous financial crisis, there was real pressure on mortgages back then. but we've changed the composition of our mortgage book quite significantly -- dani: so lars, to take a step back, you see this mythical soft landing? are we not going to have recession in the netherlands and the rest of europe? lars: we are certainly expecting at least a one or two quarter recession in the netherlands. for the full year 2023 we expect small growth.

for europe overall, we are expecting a recession lasting the whole year, but at the moment it is looking like a mild recession. you can see that also in terms of our loan loss numbers for q4, where we have actually made our microeconomic scenarios benign relative to previous quarters, so the expectation is something softer. manus: and conjoined with all of that is where you see the ecb getting to in terms of rates. what do your models predict? and is there anything in your mind that could cause them to have to pause, lars? lars: in terms of models, we are looking at at least another couple step ups of 25 bips to

3%, but our expectation is there will be a pause to see how the situation involves in the ukraine, and whether we have anything more stressful coming through in terms of the energy crisis and the impact on the economy. dani: lars, thank you for joining us this morning, and we know you are on your goodbye tour, you will be heading to first abu dhabi on may 1. thanks for going us this morning, the abn amro bank cfo lars kramer. we will continue the banking conversation. later this morning, speaking to the chairman of the ecb supervisory board. that will be about 10:30 a.m. london time. stay with us for that. but first, coming up, we will speak to the ceo of the danish jewelry maker pandora. people buying charm bracelets for this holiday season? it will be their fourth quarter

earnings results, and they announced a buyback. manus: i am waiting for your charm to be delivered to me. it's in the post. you are looking at a live shot of the press conference of the rpi. -- of the rbi. we are hearing inflation has shown signs of moderation, the worst is behind us, but there are concerns around core inflation. we cannot take our eyes off inflation, so sayeth the central bank governor. this is bloomberg. ♪

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dani: pandora earnings are in, fourth quarter ebit before significant items coming in ahead of estimates. the danish jewelry maker announced a new 2.4 billion danish krone share buyback. joining us now is the ceo alexander lacik. good results, a buyback to come alongside it, the 2.4 billion, what happens after that? alex: we have said we are planning to go up to 5 billion, but it depends on how the macro develops but that is the plan. so, all in all, the distribution

is intended to give almost 11% of market cap today, so it's really good for our shareholders. manus: we will see how the market takes it but as you say, a good day. if i said to you, is it mission accomplished, job done, the worst is utterly behind pandora, how do you respond to that? alex: the turnaround in my mind was completed already some time ago. of course, we've now had quite a bit of turbulence in the macro so maybe it is not as evident from the outset, but we have moved on. we are executing on something we call phoenix which is a growth strategy, so we have elements in their which has put the path forward for us. we are now not so much in turnaround but more thinking about the future and growth of the company. dani: this is what happens when you talk about macro.

the alarm bells go off in my head, because this is all we eat and breathe every single day. the macro was difficult last year, buybacks will happen further pending on macro, what is the biggest risk in the wider macro world going forward? alex: let's put it like this, the jewelry as a category is a discretionary purchase. it is obvious to all of us that there is less discretionary money to go around one inflation is high, mortgage rates are high, interest rates, inflation is hitting many parts of everybody's pockets. so, that is the biggest topic out there. anybody that is in a discretionary category will have to sweat it much harder than in the past. from that standpoint, pandora is reasonably well positioned. the fact that we offer affordable jewelry slash gifts, so we are very well positioned to weather the storm that we may

still have ahead of us, who knows. manus: give us insight. it is light relief to talk to somebody who produces something that is real. where are the cracks? how strong is america, your biggest market, 30% of sales, are there any fissures in america? alex: back a few years ago, we said our new strategy was to double the size of our u.s., or north american business i should say. we are well on track to do that. it is relatively obvious that in 2021, stimulus checks gave the whole market a shift upwards. given that, we expected 2022 would be a rather difficult year in the u.s., or i expected it to normalize. it has normalized, and when the full year is said and done, we only declined three point organic growth in the u.s. we feel very good about that,

versus 2019, the base year, our u.s. business up 40%, so actually the u.s. business is in really good shape. dani: you already announced some stores you will open. previously, it was about 150 stores at the top end, would you go further given the strength you are seeing? alex: in our arsenal we have volume growth, organic growth, but we are open to continuing to expand our network. we are in the mass-market and distribution is incredibly important for us. we did a big analysis sometime back and we found that our 600 additional locations we are planning to put in place over the next few years. we will probably go towards the upper end of that spectrum. when we have tough times, also it's a potential positive in that some more locations are now open, where in the past maybe the economy was stronger, didn't

have an opportunity for us. we are in a financially very strong position, so we will take those opportunities. manus: so brixon motor is all -- bricks and mortar is alive and well at pandora, but going to tough times, where will you spend your money? is it instagram, where is your most single important social medium that you communicate -- not necessarily with me -- the bracelets are nice, dani has bought me one, but where do you spend the money making sure she knows which one i want? alex: we talk about having a funnel. each part of the funnel plays a different role in your path to purchase. but the single biggest one for us is to keep investing in the upper end of the fund. typically, tv commercials is very important because it raises

the awareness of the brand. then as you go down the funnel, of course, you will have social, direct email, sms, and so forth. manus: tv is still number one? alex: yes. manus: music to my ears. dani: manus asks me to buy him a new thing every show. i am running out of money. while we talk about spending patterns, a lot of luxury companies have benefited from the china reopening story, it is only 4% of your sales, given the reopening, would you expand more into the region? alex: i think what we have had going on in china on the one hand is the covid impact, which has hit everybody. the second, we also had a brand story which wasn't necessarily the best starting point. as the covid aspect removes, we are still left with fixing our

brand. so the starting point is at a lower point for us versus many others out there, but we are still very committed to making a good run in china. it will take a little time, that's just how that market works. manus: okay, alexander, feel free to send dani tips on the bracelets, the ones with a little bit of indentation, they are very nice. great to have you with us, wish you well, keep the buybacks coming, the ceo of pandora, alexander lacik our guest this morning. coming up, moody's sees only limited risks on the bank exposure to adani group. the hedge funds scoop up their bonds, the latest on the indian conglomerate turmoil on bloomberg. ♪ inside, outside, big or small, angi helps you find the right so for whatever you need done.

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dani: the reserve bank of india is holding a press conference, we are looking at live pictures now. the central bank hiked rates 25 basis points to 6.5%. if you want to watch this, it is on your terminal. we also have an excellent blog running. at the moment they are taking questions. there was a question on adani, how do you like this as an answer? he said, we have issued a press release last friday, they have nothing more to add. brief and si -- and succinct. manus: they will not get dragged into that. hedge funds are skipping up distressed debt, specifically related to gautam adani's business empire. it comes as the conglomerate seeks to shore up confidence in the wake of a scathing short

seller report which adani is robustly pushing back against. paul dobson is with us now, they released a press release saying they didn't have much to say, did they just want to stay out of the fray? >> what the r.b.i.'s wants to convey is two things, one it has no problems or concerns about the banking sector's exposure. we have heard similar from ratings companies as well talking about that. it's not so pronounced that it will cause contagion is what the r.b.i.'s wants to convey. and they want to say as little about it is possible. it's seen as something beyond the round of the central bank at this point, more in the hands of regulators or other people to worry about, so i tightlipped response. dani: some people are skipping up - scooping pu debt, what is the calculus? >> some funds have been picking

up the bonds at low prices. they fell into distressed territory. even if it is a short-term play, there is potential good money to be made. if it is long-term, betting against hindenburg which was behind the short seller report and distorting the bonds specifically, if you have a contrary view this is the way to play it perhaps. manus: oaktree has big pockets and deep ambitions, let's see where that bond market -- whether the bond market continues to rally on the adani side. buybacks of the world unite, i'd say. three in a row for us. we will have more conversations through the morning. we have the akzonobel ceo, equinor and maersk. ♪

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