>> good morning, this is "bloomberg daybreak: europe". i'm tom mackenzie in london. these are the stories that set your agenda. asian stocks track wall street higher before today's cpi report from the u.s. treasuries slip for a second day. sources say president biden will name lael brainard as his top economic advisor, as he prepares for a likely reelection campaign. plus, japan's prime minister nominates kazuo ueda to lead the boj, after governor kuroda's 10 years at the helm. we are waiting for earnings news from norsk hydro. we have a number of companies reporting the latest results. through the day we will be speaking to the ceo of that

company, or at least one of the senior executives in the next couple hours. there we go, norsk hydro, full year dividend share of 5.65 corona. -- krone. that is amiss in terms of dividend per share full-year for norsk hydro. we will speak to one of the senior executives, the cfo, on those coming earnings at 9:30 a.m. london time. let's check in on these markets and see how things are positioning ahead of that crucial cpi print. the forecasts are around 6.2% year on year for the january number for cpi. the focus on services, with the importance of the wage data as well, and how that factors in. we had that new york fed survey out yesterday giving a little

optimism to equity markets in terms of inflation expectations easing. and expectations around wage increases coming off sharply, giving a boost to equities towards the end of the trading day, the s&p and nasdaq ending higher. in asia, gains of .7%, snapping two days of losses on the asian benchmark. we want to focus on the yen, and the expectation that there will be a policy shift if not imminently, then at some point after the handover on april 8, now that ueda has been nominated by kishida. 131 on japanese yen, gaining .4%. euro-dollar reflecting broader weakness at least on the session today. the two-year 4.50, lower at just one basis point. a rally in terms of yields of

around 23 basis points. keeping an eye on oil, the u.s. may release further oil from strategic reserves, potentially 26 million barrels. nymex wti down around 1% on the back of that. russia will be cutting around 500,000 barrels a day from march. let's get to our sources from around the world. enda curran will preview the cpi print. and we will discuss the domination -- the nomination to lead the boj. and we will discuss a possible cooling in the flareup of u.s.-china tensions. traders will be eagerly watching u.s. inflation data today. for signs that disinflation is possibly just beginning. cpi is expected to accelerate 0.5%, while slowing year on year

to 6.2%. for more, enda, what will economists be looking out for later today? >> today's numbers will come in hot. a gain of 0.5%. some of that will be reflecting higher energy costs. but this time the data set is being measured in a different way, there is a different weihting. that will see prices for used cars and shelter costs tick upwards. that is why you see an increase in the headline rate. we had blockbuster book job numbers for january, and this with another tick up in inflation, and with bloomberg jobs data, it will set fire to the idea that interest rates have to go higher, borrowing costs will be pushed up and the fed is far from done.

the great inflation scare of 2022 has not reached the end. that is the biggest take away from the data overnight. >> the great inflation scare of 2022 has not completely gone away. 6.2% year on year is the estimate. biden meanwhile taking lael brainard as his economic advisor. what do we know about this decision? >> it is potentially a key move, taking a key official out of the fed at a very sensitive time for monetary policy. but it's probably not going to be much of a game changer. she is seen as being broadly on the same side as president biden. it is unlikely she would be replaced by someone who would go to war with the fed either. it is good news. i'm not sure if it will change the fed story in the near term.

>> enda curran with a preview of the cpi print, and then use that -- the news that lael brainard will be economic advisor. japan has nominated kazuo ueda to take over as the next boj governor. what happens next now that ueda has been formally nominated? >> the japanese prime minister kishida submitting that official nomination to parliament today just hours earlier. this is the first step in a weeks long process to replace kuroda, who has been at the top of the boj the past 10 years. now that nominations are official, we can look to february 24, that's the next big day we want to pay attention to because that is one parliamentary hearings begin. kazuo ueda will get drilled on his policy stands, and be asked

about the exit strategy for the current monetary policy as well. it is all part of the vetting process when it comes to getting the new governor in. then if all goes as planned, the deputies will start on march 20, ahead of the boj governor starting april 9. we have a few steps ahead of us. several weeks until the new governor actually takes his seat. since news broke about the surprise nomination of ueda, we have noticed how much people are trying to get extra information about him, and how he will govern as head of the boj. he has a book from 2005 titled fighting zero interest rates in japanese, it is selling at a high level if interest

indicating how interested people are in his policy views. >> i love that detail, i knew best seller -- a new best seller in japan. bloomberg has learned to u.s. secretary of state antony blinken is considering sitting down with his chinese counterpart. he called off his trip last week after washington identified an alleged chinese spy balloon hovering over u.s. airspace. joining us is our government reporter rebecca choong wilkins. what is the latest on this potential meeting? >> blinken and china's top diplomat will both be heading to munich february 17-19 for the security conference. sources have told us blinken may be planning his meeting with his counterpart. it will be their first time meeting since this furor over what the u.s. deems to be a

chinese surveillance balloon flying over u.s. airspace. beijing, it is worth remembering, did work hard to create a very constructive backdrop to that blinken visit to beijing, which of course, was halted by the balloon incident. beijing by and large has somewhat sought to reset ties with the world as it has reopens. and to try and put guardrails on the relationship. we're waiting to see today. hopefully, we will get confirmation in the next hour whether or not the counterpart would be open to such a meeting. >> upon the balloons, did we learn anything new at the white house press briefing? how far are they in collecting material and analyzing it? >> we are receiving more information about precisely the

source and capabilities of that surveillance balloon. we know already that six firms were added to the u.s. entity list, so more export controls to six chinese firms. the focus particularly is on these three other objects that were shot down. two in the u.s., one in canada. and whether they have any surveillance origins. it looks like perhaps not. they were flying at a much lower altitude and were smaller than the original chinese balloon. but biden is under pressure now to deliver more intel. that is part of the obligations of having been so transparent about this from the outset. >> that pressure to fill the information gap. bloomberg rebecca choong wilkins in hong kong on the latest when it comes to the balloon mysteries and the pressure on

the biden administration. a line crossing in terms of the earnings picture in germany, tatian group -- thyssenkrupp sticking to guidance despite pressure on metal prices. sales were under the estimates, but earnings before interest and tax decently above estimates, 254 million euros, the estimate had been 176 million. a beat for adjusted earnings in the fourth quarter for this german industrial company. continuing to hold its forecast for the current fiscal year. let's take a look at the key things markets are watching out for today. at 7:00 a.m. u.k. time, u.k. jobless claims and down employment -- and unemployment data. at 1:30 p.m. u.k. time, u.s. cpi, 6.2% forecast for january.

at 2:30 p.m., the richmond fed president will be speaking on bloomberg tv. and the dallas fed president take part in a moderated discussion at 4:00 p.m. u.k. time. they are tonight, new york fed president john williams gives a keynote speech at an event hosted by the new york bankers association. coming up, all eyes will be on the u.s. inflation print out later today. we will get analysis, market reaction, how investors are positioning plus, kazuo ueda gets the nod to lead to the bank of japan. what is it mean for policymaking? we will get insights later in the show. this is bloomberg. ♪ i know the markets have gone up and down, but you're right on track to reach your goals. my ameriprise advisor helps me feel confident about my financial future. he knows me and my goals. it's not the first uncertain environment he's helped me navigate.

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>> we are still far from achieving price stability. i expect it will be necessary to further tighten monetary policy to bring inflation down toward our goal. doing so will likely lead to subdued growth in economic activity, and some softening in labor market conditions. tom: that was fed governor michelle bowman with her thoughts on inflation and the knock on impact for rates.

the market is expecting 6.2% for u.s. cpi data, with a 0.5% increase month on month, but bloomberg thinks the read will be hotter than that. joining us for analysis is will hobbs, cio for barclays wealth management. what number would you need to see in terms of cpi to turn you from underweight equities to overweight? william: it's going to take more than one data point. one of the problems at the moment is there is gigantic weight being put on every data point, and we have the potential for a valentine's day massacre. the reality is, we are looking at a three to six month story, and it is about what happens when you raise two-year real interest rates in the u.s. 500 basis points in the space of months, rather than years, what is the economic price?

we are still in the no man's land between the price being paid by the market and the economic price. the cpi gives us a peek at where interest rates will be. that gives us a guess where stocks will go, but i would be careful about putting too much weight on data points that will struggle to barrett. d tom: you have a preference for bonds. we hear from j.p. morgan saying don't be in equities, move into bonds. the equity markets are underpricing risks. bonds have repriced more accurately, do you agree? william: if you look at our tactical book, we are trying to put together a high probability package of positions. with regards to your long-duration position, it feels like in the context of that likely significant downturn

coming for the u.s. and global economy, that duration could do quite well in the six-month view. we were on the wrong side of that for the second half of last year, but that still feels like a trade worth going for the moment given what we're seeing in markets and what we are still likely to see from central bankers. more scenarios outperform. tom: has corporate credit overdone itself? william: the problem we've got with the way incoming data is telling the story is, you can pretty much pick your story, and tell the story you want. that is attractive for tactical allocators because there is plenty to go for. but it also means there is significant uncertainty. you are seeing that in markets and it is a weird bounce back if you look at the types of stocks, and the credit stance, put that

against what the bond market has done and it is difficult to tell a unified story. tom: is there a tactical equities trade at this point? william: i would be careful of that. it's to the downside, given where we have gone. there is stories to be told about the technicals this year. realized equity ebitda was quite low among mutual funds and hedge funds in the u.s. coming into the year, so you are coming from that positioning story. as the data has been better-than-expected, let's face it. a warmer winter. a really much better move to herd immunity in china then we could have hoped for. there are positives that were not baked into year ahead forecasts at the beginning of the year. however you have that huge incoming burden from the real interest rate surge shock of last. tom: and that ties into earnings revisions which have been revised lower, how much more

work on that front? william: quite a bit if you look at the possible economic scenarios ahead. you are starting to see margin compression that we've been looking for some time. not to say earnings was a disaster, but you are seeing that story suggests there is more downside. if indeed, our base case for the macroeconomy is right. tom: where are you finding margin resilience? william: there are areas in some of the usual's. a lot of the pressure is coming from your wage costs, and so on. those areas that can be labor light have found more resilience. and there are always structural trends for return on equity. but it is difficult to avoid the incoming tide, like you say, in terms of real interest rates and what that does to the economy

and margins. revenues are now growing slower than costs across most sectors and that is worrying. tom: talking of tides, the repatriation funds that could accelerate to japan with this new boj governor, how are you adjusting to that reality and preparing as an investor? william: we have taken the other side of the dollar-yen story. we've been for some time starting last year, we felt that the valuation looked too cheap relative to the likely scenarios ahead. he started to see before christmas that story play out. now people are passing everywhere that ueda san has said in the past. again, our feeling is that japanese macro story makes it quite difficult to avoid a scenario where yen starts to

retrace some of that weakness. tom: will hobbs, cio of barclays wealth management. smart takes on these markets. sparks fly in electric car trade. we hear from the ceo of northbolt on why the swedish maker would benefit from building in the u.s. more from our exclusive interview, next. this is bloomberg. ♪ inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness it's easy to make your home an a check out angi.com today. angi... and done.

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tom: welcome back. sweden's northvolt is considering postponing as planned factory in germany, potentially turning to north america instead. the battery maker will move to the u.s. if europe does not bolster subsidies in response to

be biting inflation reduction act. we spoke exclusively to the company's ceo. >> we have done a calculation that if we would start tomorrow building a factory, fully built out in north america, to be ready by 2026. between 2026 and 2030, we would be looking at somewhere between seven to 8 billion dollars in these credits. and of course, that's a very large amount of funds. >> is this setting the u.s. up to be an ev superpower? >> it is clearly driving the investments now in a very rapid pace. we're seeing both that on the

customer side, that there is a strong momentum change where the expectation either on the demand side. whether on trucks, buses or vehicles is moving very rapidly upwards in north america. and it's because of this. then you are seeing the supply chains. you are seeing the cell makers, but also the component makers of electrode separators, all the different parts, also moving their efforts into north america. and unfortunately, there is a risk that these investments are a little bit taking momentum out of europe. which is a concern of ours. tom: are you getting any sense

that the u.s. is taking steps to make the inflation reduction act slightly more friendly to european countries to address those concerns? >> i don't have the latest on this. what we have seen is kind of an attitude that this is about regaining, just as you said, technology supremacy to take a lead. and it's more about a technology race against china than it is a race between u.s. and europe. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming.

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tom: good morning, this is "bloomberg daybreak: europe". i'm tom mackenzie in london. these are the stories that set your agenda. asian stocks track wall street higher before today's crucial u.s. cpi report. treasury yields sink for a second day. sources say president biden will name fed vice chair lael brainard as his top economic advisor as he prepares for a likely reelection campaign. the japanese prime minister nominates kazuo ueda to lead the boj, paving the way for a shift towards hawkish policy, the yen gains. let's start in asia where that benchmark msci asia pacific is gaining today after upside in wall street yesterday. up .6%. in japan, the nikkei is gaining, as is the kospi. under pressure, chinese shares

listed in hong kong. futures pointing modestly higher . nasdaq futures up .1%. after gain of a little over 1% on both s&p and nasdaq yesterday with wage expectations coming in lower and giving upside for u.s. equities towards the close. let's see how things are playing across the currency space. japanese yen strengthening, .4%, close to 132 on the news that ueda has been picked by kishida to leave the bank of japan. that process should see him take office april 8. euro-dollar gaining .1%. the two-year move lower one basis point. wti lower .8%, news the biden administration will release more reserves of oil stateside. fed chair jay powell mentioned

disinflation 15 times in his q&a last week. but there is still a way to growth, he warned, before rate cuts could be considered. markets await the cpi print today for any hints that this inflation process has shifted in the services sector. any surprises could see a repricing of the fed's rate spat. let's bring in markets reporter valerie tytel. where could the surprises be? >> we will be laser focused on month on month prints. both headline and core cpi month on month are the ones to watch. bloomberg economics thanks these prints could come in hot driven by three reasons, the increase in energy prices, slowing momentum of goods disinflation, and robust gains in services inflation. cpi days last year were one of the most volatile we had. in september, the s&p was up 5%

after the soft print, so buckle in for surprises. powell has attracted our attention over and over again to the core services ex-hous ing.bloomberg has done some tickers so you can pull it up when it prints today. the white line in the box is the month on month print. you can see how it has accelerated slightly. pull this chart up on the print comes, and see where the month on month goes to. core services ex housing makes up 56% of the core print. this is the one i will have my eyes on today. tom: valerie tytel breaking it down bit of philippe, thank you. . joining us is omair sharif, of inflation insights, topline, what are you expecting today? omair: we're not too far from

the consensus reading of .4 on the core, and .5 on the headline. the risks are skewed to be upside for the reasons valerie mentioned in terms of less core goods. -- core goods disinflation. but the one i am watching for most closely is medical outside of the insurance index. prices hospitals and doctors received from the public sectors , or exam will, medicare, but also private care. anecdotal evidence suggests we could see huge increases in this number. if that is the case, you are talking a 0.5% core reading versus .4%. tom: that is one of the potential upside risks, costs around medical care. you break that down in your notes to us. we will zero in on that when that inflation print comes out.

your take on wage expectations that bolstered the markets yesterday. new york fed wage expectations, that seems a bright spot? omair: in general when you talk about inflation expectations, we saw the run-up last year in short-term metrics, the one-year, for example. but the five-year has stayed relatively stable. now you have not only wages decelerating in terms of the realized number. but expectations for wage growth as well coming down. that is music to the fed's ears. but expectations have generally been well behaved. it is really about realized data and where it comes in relative to where the fed has anticipated. tom: draw us closer to the linkages between wage expectations and core cpi that is so central. omair: i'll be honest, i'm not a

huge believer in wages leading the inflation story. i know that has been the theme from the fed for a while. for example, what drove core inflation last year? we talk about services inflation. if you look at the bulk of that services inflation, and occurred in the spring and early summer of last year. if you break down what was intruding to that move, it was one major component, transportation. specifically, airfare shot up 60% in spring. if you look at airlines in that time, wages ranked fourth in increase in operating increases. fuel costs were first, maintenance, marketing and budgeting was third, and wages were fourth on their list. it's not that wages is not a story, but they fall behind the costs that really drove

inflation over the past year. so, i'm less concerned about that wage linkage and more concerned about overall cost structure of business which has increased. tom: pull it forward in terms of transport costs, that component, is it adjusting lower? and tie in what is happening with car prices, particularly used-car prices, which are edging up again. omair: the expectation has decelerated sharply. a lot of the inflatation before the revisions on friday, a lot of that was led by transportation service, like airfare. the deceleration was from the reversal in airfares. as you know, the revisions bumped up that fourth-quarter number in core. it looks like the picture for used cars is that they are firming into the spring. those prices turn fast.

wholesale prices increased 7-8 weeks ago, and retail prices are picking up quickly. used-car prices helped in terms of the disinflation story in q4, but unfortunately, tail end of q1 and early q2, they will become a problem again in terms of helping push forward inflation higher. for me, the next few months are about the upside risk to core inflation. and we have sort of gotten away from the disinflation story we had in q4 of last year. tom: what is your take, there was some hand wringing the last couple of days about the seasonal effects, and how that points to higher core inflation. omair: i was surprised to see core inflation higher on the back of seasonals, but having dug through the data, i am less

concerned. when you go from 3-4% annualized inflation, that is a big move up. but when you break down where that is coming from, it is not talking about broad-based economy-wide pressure on inflation, two thirds of that is coming from new and used cars. when you break it down, the way i see it, a lot of those seasonals were impacted really by the pandemic. there is a lot of technical details in terms of how they adjusted for seasonal. why the vehicle seasonals are so much more accommodative in q4 than previously. i don't want to bore everybody, but the bigger takeaway is that the seasonals were driven mostly by autos. there is a kernel of truth to the idea that core inflation was a bit firmer late in the year, but a lot of that reflects pandemic era pricing around

autos, and i would not get too bogged down in terms of what that means for inflation in 2023. tom: on the headline, in terms of the energy component, energy prices have been coming off, but there is the risk factor with russia and china and ukraine, goldman sachs saying you are likely to be well above $100 by the second half of the year, how much of a concern is that? omair: i don't think that concern has never gone away. we got quite a bit of relief in the back half of last year. when you think about the number tomorrow, not only will we end up with higher gasoline prices for january, but there is a risk of a pop in electricity as well. natural gas prices in the u.s. have declined in the last couple months. but there is a lag effect in terms of the impact of higher net gas prices on what you pay on your utility bill.

i have a feeling we will see big rate increases coming through in this number tomorrow just based on some of the work i have done looking at what utilities have done to increase rates across the u.s., california, new york. some of that will show up. a lot of that energy tailwind in the back half of last year, it will not stay the the next couple of months, and if the $100 a barrel oil is correct, heading into summer driving season, that will be another headline. -- headwind. it does not matter if the risks are to the upside. tom: omair, with a surgical take on the inflation picture. looking at the preview for the cpi print later today. omair sharif, inflation insights founder and president. thank you very much indeed. let's get the first word news.

>> bloomberg has learned that u.s. secretary of state antony blinken is considering sitting down with his chinese counterpart. the first meeting is the downing of a balloon over the united states. sources say the two would meet at the munich security conference later this week if both sides agree. the u.s. has recovered what i call significant debris from the remains of the balloon shut down off the coast of south carolina last week. new zealand has declared a national state of emergency as cyclone gabriel brings flooding, landslides and power outages. tens of thousands are without electricity, with many roads closed in northern regions. auckland airport says 45,000 travelers have been disrupted. president biden is poised to name federal reserve vice chair lael reynard as his top

economic advisor. she would replace outgoing economic council director brian deese, and would see her work alongside treasury secretary janet yellen as key players in economic policy. bloomberg has learned qatari investors are set to make an offer for manchester united. sources say the middle eastern country's sovereign wealth fund is helping the consortium with preparations for a bid. the future of the club has been the subject of speculation since its american owners were reported to be open to selling a stake. 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. dani: simone foxman in doha, thank you. cosmo ueda is tapped to be the

next boj governor. we will discuss what that means for the markets, and of course, for fund flows into japan. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. only smart bed in the world that actively cools, warms, and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

tom: as we've been reporting this morning, cosmo ueda has been formally nominated to take the helm at the bank of japan. the university professor and former boj board member will take over from current governor haruhiko kuroda when his term expires in april. for more, a spring in bloomberg's reporter outside the national diet building in tokyo. and we are also joined from to kyo.

how has the nomination been received in japan? >> since the news broke about the surprise nomination of ueda on friday, we've just been noticing how much people are trying to learn more about him, and how he will govern as the next governor of the boj. his out-of-print book from 2005, it's titled "fighting zero interest rates" loosely translating, that's now selling for 20 times the original price, it is now $250 on a reseller which is like the ebay of japan. that indicates the high level of interest in learning more about his policy views. i want to add that local media went to meet his father. he called his son a brilliant mind, being level-headed and studious, even as a child, listening to radio programs in english. on friday, his father sent a congrats message to ueda.

he never replied, saying, if i fail, i will come home, jokingly , but perhaps a sign that he is still levelheaded to this day. tom: paul, let's bring you in at this point. it strengthened, the nikkei getting a little this morning. is it rational, as investors scramble for more information about ueda. >> well, i think the main market reaction took place on friday when the news kind of broke. you saw a sudden strengthening of the yen, as people had all been expecting that, via -- deputy governor who was the favorite amamiya would get the post. what does the new guy stand for, everyone assumed a hawkish pivot is in the works.

now we are back at 132 because people have realized that wait a minute, this isn't actually signaling a sudden pivot by the bank of japan. this guy is an academic, but he used to be on the board of the boj. he was very wary about raising interest rates when they emerged from the zero interest rate policy decades ago. so, he is likely to be cautious again. as an economist, he will want data before making any changes, but he is more of a neutral figure. so, he has got us in tested -- invested in this decade of stimulus under kuroda, so he is maybe better placed to change things over time. but maybe more time will be needed before change comes. tom: he has that neutrality, but as you say, has maintained links to boj. kurumi, what jumped out to you

about this nomination? >> much of the focus has been on the next governor, and the nomination, but we have not talked about the two incoming deputies. they are men, i need to point out. expectations have grown that the boj will get its first female deputy before today's nomination. we had a survey, and the majority of economists had named a former boj official as one of the frontrunners to become deputy governor. so, there was some hype about gender equality, for both the governor and deputies, that underscores the hurdles that women continue to face. but three men again set to lead the boj. that could weigh may be negatively on the nomination process as a potential wrinkle. the federal reserve is led by

janet yellen, and ecb by lagarde, but boj will keep lagging in gender diversity. tom: what will it mean for policy going forward? >> it means there will be a close eye on whether to keep this yield cap on 10-year government debt. that's the figure the market is betting against. that's a decision that ueda is to make. he needs to convince a lot of people that it makes sense to continue with stimulus, or to make change. tom: it all comes down to that yield curve control. excellent reporting. thank you both. coming up, in the wake of the ftx scandal, we look at what will it take to close crypto's doors to the country's banking system. this is bloomberg. ♪

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tom: a crackdown by the u.s. could see cryptocurrencies pushed back to the fringes of finance. major firms now face challenges in securing bank relationships. that's get this story with reporter joanna ossinger. in what way are they going about this new crackdown on crypto? >> tom, this is pretty multifaceted. it is everything from a fine on kraken for some of its staking programs, to limiting this binance stablecoin, and going after the issuer. it is a number of things they are doing to tamp down on what they see as potential areas where crypto could be problematic. try to stave off any sort of

financial crisis that might happen. but this is an industry that has grown up quickly, and is not used two regulation, so there is bristling at these moves. tom: why are regulators making these moves now? >> it has become such a big industry. we're in a crypto winter. it's been a year or so since we had the crisis. in 20, we had spectacular corrects is, -- spectacular collapses, three arrows and ftx, so they are seeing examples of what could happen and thinking, it could be even worse if something got out of hand. so it seemed there was enough momentum that this was a good time and they have enough examples where they can say we really need to do this to prevent bigger problems in the future. tom: joanna ossinger in

singapore, on this regulatory crackdown in the u.s. on the crypto space. checking on bitcoin right now, $21,000, the range the last be months. more earnings news. the french tire maker michelin remains cautious in the wake of inflated price pressures. we will bring you the exclusive interview with the cfo, 7:40 and london time. your markets now. european futures range bound ahead of this all-important cpi print out of the u.s. we're flat on u.s. futures. gains of .6% in asia. this is bloomberg. ♪

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anna: