>> good morning, this is bloomberg daybreak: europe. these are the stories that set

your agenda. inflation fears of swirl, stocks and futures dropped as traders brace for u.s. cpi report that risks dashing hopes for a fed rate pivot. u.s. fighters down a fourth flying object, including three over north america in as many days. the chinese -- a chinese news outlets as authorities are getting ready to do the same. plus, the death toll in turkey and syria from last week's earthquakes approaches 35,000. a business group sees and $84 billion hit to the turkish economy. let's check the markets. msci asia-pacific on track at least in the session today if it ends where it is currently. on track for its worst session in a little over a month. the worst position in a little over a month. currently down, the benchmark down a little over 1%. futures also lower.

nasdaq came in down around 2% on the week. the s&p ended lower by a little over 1%. both of those major indexes in the u.s. falling and having the worst week since the start of the year. again, as investors readjust to expectations that may be the fed will hold higher for longer. and of course so much of that will be dependent on what happens with the cpi print that comes out tomorrow. the forecast for 6.2% year on year for that print. futures in europe range bound as we weigh up the prospects of that data coming out of the u.s.. put aside expectations or preparations, that's the call from our market expert who says it's all about cpi on the 14th and the adjustments by markets. the terminal right now pricing 5.2% july of this year. let's look at fx moves.

bloomberg up to tens of a percent. we have reports of the next governor for the boj on friday. we had some comments saying that the current settings at the boj are "appropriate." u.s. two-year at 4.52, 20 basis point higher in the two-year just last week alone. these markets are readjusting. 4.52 on the two-year, that is the touch point as we look to the cpi print tomorrow. brent at $85 a barrel come of that is moving lower. russia is saying it will cut output by 500,000 barrels per day from march. you way that with china demands and we have the opec and iea oil reports out later this week. let's get to our reporters from around the world and from the u.s. shooting down a third flying object in as many day to olaf scholz's social democrats

suffering the worst showing ever in berlin, and adani group cutting their revenue growth target. u.s. officials say another unidentified object has been shut down -- shot down over michigan after there was one over canada. on top of that china's mitte -- media have reported their own ufo close to a naval base. let's get the latest from rebecca. what more do we know? rebecca: can you believe that for this, the u.s. had never used its military to shoot down an object from its airspace? now it is a daily occurrence. we saw an object downed in alaska, northern canada and now on sunday in michigan. don't have a lot of details on the provenance or purpose of these objects. they look smaller, some of them, smaller and lower altitude than what the u.s. says was a chinese

surveillance balloon detected last week. as you say, chinese local media is reporting that china has identified an object flying over the waters near a port city. as you say, the location is important, it is near a very large naval base for the chinese military. it's worth noting that we don't yet have confirmation from authorities directly on this. we are expecting some briefing in the next couple of hours which will hopefully clarify the situation. tom: in china we are hoping to get some clarity from the ministry of foreign affairs in the next few hours. meanwhile, the response from lawmakers in the u.s. to this mystery, so much information is still lacking. rebecca: absolutely, and in some ways, the biden administration's radical transparency approach to these balloons, providing a lot

of information, both private and public briefings about the capacity of that first balloon that was spotted and so on, has set people up to expect intelligence and information. without details on these other balloons, you can imagine speculation, a lot of speculation on their purpose. the u.s. general for norad failing to rule out that could be linked to extraterrestrial activity too. we are very much in the dark. biden remains under pressure to take action, and you can see that in these six other chinese companies that have been added to the entity list following that investigation of the debris of that first downed balloon. tom: ok, rebecca in hong kong with the latest on these objects. we wait for more information hopefully from the chinese side and u.s. as well. chancellor olaf scholz party has suffered its worst ever result in berlin, losing out to the cdu

in the german capital. let's get to all of her in berlin. what can we learn from this -- oliver in berlin. what can we learn from this more broadly? oliver: this was a rerun of the 2021 campaign that took part during the marathon year in berlin, it caused problems with ballots and booths. the outcome is 10 points difference for what the cdu did from the first time, the second time they took 82%. beating the spd, which hasn't happened since 1999. the question is why. a lot of it came down to local issues. housing is a major issue. also new year's eve chaos as a perennial feature in berlin, fireworks in the streets. it got out of hand and the cdu capitalized on the narrative chaos. you have the incumbent spd mare that was a bit complacent in her

campaign. this is a big symbol at least for the cdu. it might not change the governing coalition but it is a some over the cdu saying they can claw some votes back. another thing to note in terms of trying to take it more broadly, turnout was substantially lower. it was a bit of an odd election but i think it shows that if there are crocks to exploit, that can be done and there is still some appetite for the cdu. tom: ok ,oliver on the ground in berlin. that warning shot fired across the bow. adani group stocks declined after the conglomerate was set to cut its revenue in half after a brutal short seller tag. what can we take away in terms of the lowering of these expensive and aggressive expansion plans, the spending on capex as well being reduced by this conglomerate? pr: there are two contexts we

have to establish peer adani was always the center stage, criticized for rapid diversification. the other thing is allegations, their access to capital has been limited and it is tough to raise more debt. they have to restore confidence in this context, they've decided -- capex. they are now limiting their growth to 15% to tony percent and taking the view of all units, including the listed units. what we are learning is they will be able to have a final figure for all the listed entities. tom: ok, pr, the latest on

adani, adjusting their expensive and aggressive growth plans in light of that short seller report. coming up, u.s. stocks and futures dropped as traders brace for tuesday's cpi report. we will dig in to the market consequences. that is next. plus, markets scribble to determine the priorities of the reported incoming boj governor. we will have more on that later in the show. this is bloomberg. ♪

tom: welcome back. jerome powell mentioned disinflation 15 times in his q&a last week but warned the process still has a ways to go before rate cuts could be considered. markets will be watching the cpi print tomorrow for any hints this disinflation process has shifted into the all-important service sector. joining me now is my guest from arc capital. good morning and thank you for joining us. is this the week when the data will finally cull this equity market rally? >> i think that's one of the elements we are looking at. in order to gauge where the fed

policy may be in coming quarters. i'm not sure that the fed is looking at the numbers by loan, i think they're looking more at job numbers and cpi in combination to guide them over the next few quarters. tom: we are looking now at markets pricing in a terminal rate of 5.2% by july. to what extent are the equity markets starting to adjust to that reality? some of the options traders positioning for potentially 6%. what does that level of terminal rate mean for these equity markets, what kind of adjustment would we be looking at? saed: i think what we are looking at in the medium-term or at least the next quarter is effectively with the impact of the fed hikes into markets in terms of equity markets, we are seeing gradually recalibration in terms of what the market positioning is in equities.

i think we are looking from our side, correction over the next few weeks. to take us down to the lower 3000 in the s&p at least. i think the real wildcard is if we don't have a slow down in the recession at least we see the fed hiking continually over the next few quarters, at least the incentive for the fed to be hawkish is still there, there is no incentive for them to be less hawkish. at some point the market discounting fed hikes in 2023 will come off the table as we look toward 2024 and that could have a negative impact on markets. tom: that's quite the call on the correction for the s&p, currently at 4090 and looking at potentially 3000, that is a significant correction. is there anything in the data that would change that? could tomorrow's data change that view if it comes in significantly softer than expected or are there other elements at play they get you to 3000? saed: you have two elements you

have the fed cycle, the fed is going to be hawkish, pal was very clear in terms of what his policy is. it isn't about hiking at -- hiking to 5.5 or 5.25, it's what the impacts will be. on the other side, the china reopened will be inflationary because of the demand cycle. you have two elements in play, and at the same time, when you have job layoffs, it is somewhat supportive on the service side, the inflationary pressure is supporting some manufacturing but it is a lot of balls in the air. i think the fed has to look primarily at employment numbers as their primary driver. the fed is looking at 1% or higher unemployment. until the fed sees those numbers change in the next few months, it will be multiple of prince,

we are looking toward a more hawkish position in the fed and ultimately a more dovish side on the market correction at least. tom: on the earnings fund, more than half of the earnings coming through across europe, and you're seeing gains of about 2% eps you're on year for european companies that have reported so far, minus 3% in the u.s.. is there resilience in european equities? saed: i think you have a different cycle. the fed was way faster in terms of off the block fighting inflation than the europeans. over the next two or three months as the ecb puts out their benchmark rates, that will feed the markets. earnings in europe, it's only a function of time. we see the repricing of the curve. what you do have in the u.s. and don't have in europe is effectively a much stronger economy relative to the rate cycle.

tom: when you are looking at the u.s. dollar and expectations around a more hawkish fed, the dollar bloc on the front foot this morning, the dollar index up to tens of a percent, it wasn't that it was consensus amongst our guests that the death call on the u.s. dollar rally was prominent. were they getting ahead of themselves? has the dollar got further to run? saed: one of the wildcard you have to look at is the front end of the curve. going into 2023, the assumption was the curve has to come back down as we effectively expect rate cuts in 2023 at some point, to fort worth -- q3 or q4. we are parked effectively between potential soft landing and gingerly not a landing at all in 2023. -- and potentially not a landing

at all in 2023. the front end has taken the brunt and we could see things at the front that is good for the dollar in the short term. the front in is overpriced where it should be. we want to the front end to move back to four and a half, for three quarters. tom: that was gonna be my follow-up. you are at 4.52 now, you think there's more upside for the two year yield up to potentially where? 4.75? saed: 4.75 is our base case. we could see a squeeze out if the fed reaches their potential, to more hikes, if they are still hawkish. and if the employment number stays strong, we could see the fed overshoot their expected target. in 2022, the market consensus was not in line with 5% in terms

of the fed. we are looking will the fed go 6% in 2023. if inflation and employment numbers stay strong and there's no reason why it should impute -- should not. tom: let's move to the boj. last year, japanese institutional investors dropping about $180 billion of foreign debt and they still have $2 trillion worth of foreign debt. what is your level of concern about financial ruptures if indeed yield curve control is abandoned or gradually moved away from in terms of the fund flows back to japan? saed: i think that is a wildcard. you have the exit of kuroda and the new bank of japan governor potentially in the next few weeks. i think the real risk is we see a sudden shift in policy, unlikely in the first part of the new governorship. i think if we see a massive shift in terms of policy, this is an academic coming in, an unknown commodity, we could see

substantial change in equity markets, especially given the qe policy in japan the past few years. that could be considerable shift in terms of outflows out of japan. i think in the short term, it is unlikely we will see a significant shift in boj policy as we basically assess global policy. i think japan is still lagging substantially. that is still an early call to make. tom: before we let you go, i want to bring back your call around the correction, around and 20% correction for the s&p. where do you take shelter and how are you hedging? saed: i think the main play for us at the same time is we stay long dollars, we are looking to maintain long positions. we are looking to selectively be in high-yield at this point in time because we don't see a slowdown coming as soon as possible.

those are things we could look at in the short term. tom: fantastic analysis, think you for joining us. coming up, an exclusive interview with the nasdaq ceo and chair from the saudi capital market forum. she touches on everything from rates to ipo's. stay tuned for that. that's next. this is bloomberg. ♪

tom: welcome back. the nasdaq chair and ceo says hi inflation -- she sees hi inflation persisting. she sat down with us in riyadh. adena: i think we've seen the worst, we seen interest rates on a steady decline, but i think

there could persistence in a way that i think we have to start to be ready for. i've been talking a lot about the fact that we went through a 14 year experiment of free money. if you think about the 50 years prior to that, we've always had an environment where money costs money. there is a cost of capital. i think that inflation will come down but i think it will stay persistent for a period of time, probably longer than we originally anticipated when they started bringing interest rates up. yousef: what does that do to the injuries that come up? as of last week, people are saying maybe 6%, north of 6%. adena: i personally are optimistic we will find a balance point in the five percentage range, that's my personal view. one person's view. i also think we will end up staying there for longer. there has been this prevailing

view we will get to a peak rate and start to bring interest rates down. i am not of the view that will happen quickly. i think it will hopefully settle out a little north of 5%, in that range, but we may end up having to live in that world for a period of time. because there are some elements of inflation that are structural and not just transitory. i think that's an area the fed is really starting to study. the energy transition is a long-term inflationary trend. there is an enormous amount of money that has to be put into the economy to manage that transition. i think the second is the supply chain resiliency efforts underway in terms of recognizing the need to have multiple sources of supply around the world. that is an inflationary trend. i think also the amount of government spending that has happened certainly in the u.s. and europe, not only to get us out of covid but also to manage

infrastructure and things like that. there's a lot of money yet to come out, payments were made but there is still on he filtering into the system. i think all of those things will create a more persistent level of inflation we all have to live with and adjust to. yousef: a lot of the uncertainty, not just around interest rates but also geopolitics, that is arguably a headwind for ipo's. it hasn't helped ipo's in 20, it has an eye -- it hasn't helped ipo's in 2023. you think we will get a place in late 2023 were you can say some of these uncertainties have been resolved so more people do what you would like to see them do, which is list? adena: first of all, we heard that in saudi there is a vibrant capital market, ipo market in 2022, that kind of bucked the trend. in terms of the u.s. and europe,

if you think about what is it that makes investors confident in underwriting a new issuance. they have to get to know a company in a short period of time. they have limited information, they don't have any history with the company and they have to be able to protect the future performance of the company. there are macro factors that determine the future performance of a company. the cost of capital is one of them. as well as the inflationary environment is another. the labor environment is a third. i think all of those things will become more known in the next three to four months. ♪

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tom: this is "bloomberg daybreak: europe." i am tom mackenzie in london.

inflation fears swirl, stocks and futures drop as traders brace for tuesday's u.s. cpi report, which risks dashing hopes for a fed rate pivot. the yen weekends. u.s. fighters down a fourth flying object, including three over north america in as many days, while a chinese news outlet says authorities are getting ready to do the same. plus, the death toll in turkiye and syria approaches 35,000. a business group sees and $84 billion hit to the turkish economy. let's check in on these markets. a major week as we square up to a cpi print out of the u.s. that could be definitive in terms of killing off speculation around a fed pivot, at least for now. that's the potential expectations. we are watching the front end of the yield curve on the back and in the lead up to that, our previous guest sees that moving

to 4.75. so much of that will depend on what happens with inflation and services that are central. across the asia benchmark, losses of 8/10 of a percent. the msci headed for its lowest close in more than a month. futures unchanged in europe. nasdaq futures pointing lower by 3/10 of a percent. the nasdaq ended the week down 2.1% stateside, s&p down, closing the week a little under 1%. the worst week for both of those indexes this year. as investors readjusted to the prospects of a more hawkish federal reserve. the bloomberg dollar index getting to tens of percent, the dollar is big. 132 on yen. reversing the gains we saw on friday around the reported announcement of the next bank of japan governor. that nomination will become official on tuesday. the u.s. two-year, 4.5 two,

after a 20 basis point move higher last week. $85 on brent, a loss of 9/10 of a percent. the opec report and iea reports will be out later this week to better inform us as to the demand structure for oil. the economist set to be the next bank of japan governor is set for a rough ride. our global economics and policy editor kathleen hays explains. kathleen: no matter who is finally selected either prime minister, the big question for the next boj chief will be maintaining extraordinary monetary stimulus or taking the first steps toward policy normalization. once seen as a top contender for one of the deputy governor slots, says examining the impact of kuroda on the markets is already on the table. >> the bank is considering how to support the economy and gradually morph toward normalization in a way that does

not cause major turmoil in the bond markets while watching the economic and financial situation carefully. kathleen: the next governor of the bank of japan is taking over at a time when deflation has turned into inflation. when the boj now owns more than half of japan's government bond market and is struggling to keep it functioning smoothly. what will it take to get the job of transition done? >> inflation is up, we think growth will be up, our view is yield curve control will be dismantled in the second quarter and japanese yields should be higher. kathleen: others say the next governor should widen the bands for bond yields but for the foreseeable future, the ycc model is here to stay. >> the yield cap control will be around 1.75 to 2% rather than the .5% we have right now. but the operating model of the yield cap control being in place, the bank of japan committing in its budget to a

very strong war chest to buy government bonds, i think that operating model will not change. kathleen: will and new governor make the kind of changes investors are pushing for as the prime minister pushes for a review of the boj decade-long commitment to achieving 2% inflation? it is an issue that will certainly be at the top of their list. kathleen hays, bloomberg, tokyo. tom: our global economics and policy editor kathleen hays on the challenges awaiting the next big of japan governor. joining us is a strategist from asymmetric advisors. thank you for joining us. what is your assessment of the likelihood of yield curve control being abandoned this year or is it more of a case, as we heard, of gradually adjusting the bands higher in the next six to 12 months? >> i think it will be tweaked to begin with. it won't be abandoned, but i

think the outlook is fairly clear. inflation is rising above all the estimates bank of japan have had in quarter after quarter. we are getting wage inflation coming through, healthful food prices are still rising, 4000 items, another few thousand items next month and the following month. we've got electric power companies that are going to raise prices up to 45% in some regions across the nation. we have an inflation problem that needs to be addressed, needed to be addressed last year but it has been kind of ignored as a transitory issue, which obviously other bank governors have long abandoned. so far, boj has been sticking with that narrative. tom: with japan, we have to look

at it through the prism of that more than decade-long this has that ended into what extent is that a victory for abenomics? amir: japan is part of global world trade. it is no different than any other country as a major producer of goods and importer of goods. the fact that inflation has come to japan is hardly a surprise. obviously japan's economic structure is such that prices are at a slower pace than you would get in america or perhaps europe. there is an understanding amongst suppliers that provide some buffer. you're looking at japanese companies from bottom up and you can clearly see prices are being

passed on. we will see price increases coming through. obviously the base effect from april that a lot of people are hoping on, is given the mobile rates will be going back on the year on year basis, the base effect will come down and inflation will be lower. that also includes the government subsidies as well. tom: and this is exactly why you think they are indeed going to have to adjust yield curve control. what does that mean for global investors, readjusting to fund flows back to japan? $180 billion of foreign debt already sold last year, you would expect that to accelerate with the prospects of a yield curve control adjustment. how do you invest around that? amir: we are looking at it mainly from a japan perspective.

from that perspective, i think we will get institutional investors really jumping on higher rates. once they come through, as ycc is tweaked to 1% or 1.5 percent, perhaps the band will be wider even more. i think we are already seeing signs of patriot and and money from the japanese, away from treasuries, mainly because the hedging cost is so high. this could continue as rates in japan go up. tom: how much of a cap does that put on rates in japan? that son flow back into the japanese market -- fund flow back into the japanese market? amir: that's a good question. if you allow the market to really start trading freely and stop intervening in the market,

for the market itself to find the right level for longer-term rates, where those levels will be is the key question. i think it is safe to assume given the current rates of inflation, which is still very high at 4.3%, certainly in tokyo, you would assume, even if you assume prices will come off, longer-term rates should be around 2%. or at least i think that's where institutional investors will be interested in investing in jgb 's. let's hope so because the other alternative is fairly bleak, we will see a blowout in yields and that would create a dislocation in global markets. tom: and across the japanese equity space, which sectors are most exposed to the upside? is it an obvious call on for example japanese financials and

that kind of environment? amir: yeah, because one of the things that abenomics never took into account is if you crush lending markets of banks, banks will not lend. you can bring interest rates down to whatever you want but if banks are not going to lend to banks that -- lend to riskier customers that need the loans, then you are somewhat restricted in a sense. you could even argue these low rates created their own kind of deflationary pressure, which is odd but interesting. i think providing the financials with better lending margins goes a long way in helping them and also helping the corporations that perhaps need the money and could not get their hands on it. because banks just did not see the risks being worthwhile given the lending margin.

tom: do you have strong conviction around the end? it is down lower today, trading at 1.32. what is the implication in terms of manufacturers, just linkages between the yen and the manufacturing base of japan and exporters? amir: we have been fairly bullish on the end since november. we were very bearish and in november we detected of massive signal chains -- change or the minister of finance had an intervention. people started anticipating the move from boj that has yet to fully come about. i think the yen will strengthen, i think they could test that by summer. it's very undervalued. if you consider the yen was 1:50 in october. you look at it from that perspective, 130-120 is not a

huge move. it's very bad moods -- bad for earnings. it's been flattened by the moves of the last two quarters. that has been reversed. the yen this quarter with a very different profile in terms of earnings, mainly coming from the fact that you don't have that exchange buffer you had last quarter in the quarter before. that will be very interesting. tom: ok. amir, really smart analysis. from asymmetric advisors. the yen down -- or should i say strengthening to 120 by the summer, the implications that japan's exporters and the need for whoever takes over as the next bank of japan governor to wake up to the realities as he frames it of the inflation push in japan.

let's get the first word news from hong kong. adrian: germany's spd has crashed to its worst ever election result in berlin, feeling to win their for the first time since 1999. support for the party of chancellor olaf scholz slumped from 21 to 18% behind the conservative cdu. nationally, the party has been trailing in the polls since the middle of last year. goldman sachs ceo david solomon is reported to have said he should have acted sooner to cut jobs. he told private meeting that layoffs would have been less drastic had he reacted when signs of a slowdown began to emerge in the second quarter of last year. goldman is slashing 6.5% of its headcount, one of its largest rounds of job reductions ever. bloomberg has learned that adani's conglomerate plans to

hold off on new capital expenditure and have to their output. -- there cash output. this as a look -- group looks to rebuild investor confidence. and opec's top official urging countries to invest much more in oil to meet the world's future energy needs. the secretary-general of opec says climate policies need to be more balanced and fair and also policymakers need to look at the big picture. 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. tom: thank you. coming up, we will bring you the latest on the latest unitary in an economic impact of the massive earthquakes that hit turkiye and syria a week ago. we will leave you with live images from turkiye near the epicenter.

this is bloomberg. ♪

tom: welcome back. let's get the latest from turkiye. legal activists have accused the government of destroying evidence while quickly demolishing estate office that stored concrete samples and files related to collapsed buildings. the government denied the allegations. nearly 35,000 people are now confirmed dead after the earthquakes a week ago. joining us is our correspondence. what is the latest on the ground? >> more than 35,000 people confirmed dead on the turkish side and syrians i.

30,000 of the people are from turkey with up to 80,000 people reportedly entered. and of course thousands still missing. even though it is far and few between, we are still getting some people rescued from under the rubble. dozens of rescue teams from international countries came to help with relief aid, one by one, they seem to be going home. of course it is exactly a week since those double earthquakes hit turkey. tom: the humanitarian cost of the quake is extremely high. what do you think the economic cost is likely to be for turkey at this point? >> it is an immense humanitarian disaster. in terms of the economic hit, we have yet to get the numbers, but this calculated cost of what it will likely be on the fiscal side, they based it on similar

sized quake from 2011, a 7.2 hit , they scaled that with the relative magnitude of the current hit and the economic size of the surrounding area, immediately surrounding area. that has led to about 2.6% of gdp in terms of public spending that might be required on the immediate short-term expenses. if we add the longer-term perspective on top of that with the rebuilding, it could go as high as 5.5%. the two cities immediately adjacent to the epicenter, the hits were on different faultlines and that increases the impacted area to 10 provinces. we also expect the government to announce a treasury backed

credit program for the 10 provinces that should add to our estimates. as i said, from the infrastructure that was destroyed to the terrain and the buildings, a lot of factors will determine what the final number might be. tom: ok, it is a conservative estimate at this point what significant nonetheless. tie that economic impact into the broader pressures on this government and the criticism that has emerged of president erdogan. >> as the death toll rises, so does criticism toward the turkish government. survivors and opposition parties are saying the government was ill-equipped and too slow in responding, especially on the first day. missing a critical window of saving more people. there are also huge complaints about shoddy construction.

that has led to more deaths. more than 100 contractors are said to be under investigation after this earthquake and three have actually been arrested. on paper, some experts say that turkiye meets construction earthquake engineering standards but in reality, these are rarely enforced. with elections potentially months away, this could hurt president erdogan's popularity. tom: ok. thank you both for the latest on that continuing disaster in turkiye and syria as well. coming up, david solomon is said to have told goldman sachs earners he regrets not cutting jobs sooner at the bank. we bring you the details. this is bloomberg. ♪

>> when we look at the growth potential in india, which is going to be the third-largest market in the world, the combination of our 15 years of experience and the future growth potential of india made us decisive for the investments in six products in india. tom: that was the nissan ceo speaking to bloomberg about plans to expand in india alongside renault. this comes after they readjusted their alliance significantly, development after 24 years. they were in london and they really stressed the new alliance and would allow them to invest heavily in new markets.

they were very bullish about the prospects of being able to expand in india. question marks remain about the market and the ability to sell higher into vehicles in the indian market. but certainly that was front and center as they look to this reformed alliance. now to the banking sector, goldman sachs ceo said he should have acted sooner to cut jobs. this is according to the financial times. the bank has plans to eliminate over 3000 positions in one of its largest ever rounds of job reductions. several european banks are reporting this week. standard chartered on their stay. first abu dhabi big reiterated it is not planning a bid for the em focused lender. those plans may be warmed up

again, but they denied that. nonetheless, significant to watch the earnings on the back of that news. you've got sand and air -- santander as well. looking at a string of earnings from these european tanks to flesh out what we seen from u.s. counterparts. coming up, an exclusive interview with the portable -- cortical central bank governor. stay with us. this is bloomberg. ♪

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>> good morning and welcome to bloomberg markets europe. our managing editor