>> this is bloomberg daybreak:

europe. i am tom in london with manus cranny. manus: mixed economic picture. chinese consumers yield the fastest growth in a year but softness including industrial production ways on sentiment in the asian stock trade. outflows flood results. state street plunges the most in three years after customers withdrawal $26 billion in the first quarter. meanwhile, credit suisse sees science pole $4.4 billion since the ubs deal. plus, apple is said to open its first retail stores in india. the ceo of a tim cook, looks to usher in a new era of sales and manufacturing. tom, good morning. tom: good morning. earnings season underway. we have new lines from ericsson coming with a beat in terms of sales and adjusted earnings for the first quarter. adjusted earnings in the first quarter coming in at 4 billion, just over 4 billion swiss,

swedish krona. it is a decent beat in terms of the first quarter adjusted earnings for ericsson in terms of sales. that was a beat coming in at 62.6 billion swedish krona versus the estimates of 16 billion on the margin front we know that ubs and others glad the margin improvement as key for this business. 39.8% in the first quarter coming in line with the estimates. ericsson saying it plans to cut costs at a run rate by around 11 billion swedish krona. those are the lines crossing from ericsson, a b in terms of the earnings picture for that telecoms equivalent maker in the first order. manus: let's pick that up in terms of the actual earnings because if you think what is happening in the u.s. -- i was looking at bank of america, 90% of those who have reported in the u.s. have beaten earnings, 73% have beaten on sales.

i grant you we are not the whole way through the earnings season. yes there is outflow from banks but that earnings demolition derby that was supposed to happen has not happened yet and goldman says flows remain weak but 4.5% growth in china can't get you a bullish impact. that rings alarm bells for me. tom: as the consumer, as the retail component that came through strongly. you're right there is concern around industrial production and fixed asset investment in china. the top line is positive. the target of 5% by the government around 5% in terms of growth seems to be on track. there are still areas of concern around the world's second-largest economy. let's check in on markets on the back of that. we are looking at not a great deal of sentiment uplift on the back of the data coming through for the mainland. csi getting point 8%. across asia benchmark, the msci

asia pacific down point 1%. the consumer is strong in china and back by other components around the data makes concern for investors. futures in the u.s. pointing .1% off the gains of yesterday. euro futures upside of .1%. manus: the property investment is the drag on the underbelly of the data. cross assets this is will it got. we had the additional commentary from bargain about the labor market still being hot and that worked the bond market along with the manufacturing data. we will hear more about that from delhi. -- valerie in a moment. we are at the tipping point to determine what happens next. you are looking at nymex crude rallying this morning by .8%. we dropped by 2% yesterday. russia is still exporting 3 million barrels a day last week. there is an outflow from etf's but still a bit of nervousness

in the oil market. i popped in iron ore as a reaction from the chinese data. underlying investment not as robust as we want. iron ore is up. there is that little bit of light in the china data. it is just not as effervescent and glowing as we would have wanted. tom: let's go to our reporters from around the world with more context. david chiu is in hong kong for the latest economic data. we will check in on the bond market with valerie tytel and charlie wells will give us the banking news from both sides of the atlantic. manus: let's pick up on the data from the chinese economy. growing at the fastest pace in a year. let's get more with david chiu who joins us and he covers china for bloomberg economics. david, do i set aside the consumer numbers and worry more about the property and fixed

asset investment? david: yes, definitely. that is what we read on the headline numbers which the market expectations -- it exceeded the market expectations. retail sales and the consumption side of that led to the growth in the whole picture. consumption was stronger than the drag from the investment. that is what we got from the data. tom: that is a mixed picture on the chinese eco-data with the growth and expansion in terms of retail sales which is a positive. let's get to the next steps in the fed. christopher walls favors more rate hikes to combat persistently high prices while traders are looking to the u.s. central bank or any signs of -- signs of a pause. let's bring in valerie tytel. what did richmond fed president thomas barkin have to add to this debate?

valerie: another fed speaker who is not keen to talk about a pause in the upcoming may meeting. he read. last night he wants to see more evidence that inflation is setting back there target and he said comments that he is very reassured what he is sitting in the banking sector likely at helping his opinion on the fed meeting to raise rates further. we get more data on the banking sector as this week unfold when we get more earnings from the u.s. regional banks. and we get the fed's beige book which should have anecdotal data of how banking activity has held up in the month of march. manus: in terms of the takeaways from the manufacturing data, the headline is perhaps bearish for bonds, but the price is paid. it should have help the bid. wyatt the different? valerie: bond yields leapt higher yesterday after the state. the headline number that

you were talking about was a massive beat expected to come in and -18 and printed at positive 10.8. it is in expansion for the first time in four months. the prices paid. it fell and indicates cost inflation is moderating in the state of new york. lastly, new orders jumped by a record to a one year high. this positive economic data is listing bond yields as it brings more and more speculation that the fed is going to do more to hike rates. we are now pricing in a full 25 basis point hike at there may meeting and the odds of a hike in june are creeping up further. manus: ok, valerie, let's keep an eye on what happens next in the bonds. we will hear from stephen majors. valerie tytel with the latest manufacturing data. state street stock plunged the most in three years after the custody bank reported clients

retreated from investment product in the outflows are not done yet. charlie wells is with us for more. the flow show was brutal at state street and at schwab. this would endure especially if rates get to 5%. this is just an educated and much more savvy retail investor. we have choices and power. charlie: that is exactly right and so in-line line with the ceo of state street and what he said yesterday, customers have alternatives. when you look at the numbers customers withdrew $26 billion from state street investment products. the estimate had been inflows of $8 billion and a year ago customers added $51 billion to state street. that really surprised investors yesterday and made that stock the worst performer in the s&p 500. it was also bad news for schwab, which also reported earnings yesterday. their deposit base compared to a

year ago was down 30%. schwab's stock has been under a lot of pressure over the course of the spanking drama. their share went up a little bit because that 30% drop was very much in line with patients, but it's the same story. depositors right now are in a very flighty mood. tom: you talked about the choice we got a reminder with apple in goldman offering 4.15 percent to customers in terms of savings products in the u.s.. what is the shakeout in terms of winners and losers over the deposit like? charlie: that was a long anticipated move and that percentage is high but there are a lot of other products that retail investors and clients are turning to even the likes of series long -- one savings bonds over the past few years which has seen inflows of billions of dollars. even more specifically, money market funds, treasury bills, and of course any bank that can

provide a sense of safe harbor. we saw last week with megabanks reporting they saw significant inflows. i am thinking of jp morgan for instance. it is a mix of yields and safety. manus: credit suisse, we are beginning to get a little bit more about the flow post the ubs deal which is still too close but it looks like 4.4 billion popped out the door from credit suisse. don't quite know where that went to. can it have a material impact on the forward earnings for ubs or the acquisition? charlie: this really is the flow show. one analyst said that number sounds like a lot over 4 billion but that's about 2.5% of assets under management. when you think about how long this deal is going to take, it will be months before it's finalized and it could take potentially years before it is completed before it is executed. this shows the risks to this

deal and how much time that can take and how much can happen and flow out in that period of time. tom: bloomberg's charlie wells on the flow show. in terms of what is happening on the data out of the u.k., u.k. jobs data out a little under one hour. bloomberg expects unemployment rate will hold at 3.7%, the number expected three months to february. at 10:00 a.m. u.k. time the german survey will likely show investor expectations remain positive for a fourth month. manus: we skip across at 1:30 lunchtime in the u.k. canadian cpi due to hit the tape. inflation likely slow down. also at that time u.s. housing data, the start and building. finally, goldman sachs, bank of america will hit the take the first quarter earnings and let's see what the investment bank and the trading size does at

goldman. netflix also posting their results after the u.s. market closes. tom: i up, more on the markets as a barking says he needs to see more evidence that u.s. inflation is easing back to target. that is next. this is bloomberg. ♪

tom: welcome back. the fed thomas parkin says he needs more evidence that inflation is easing back to the 2% target manus: that could embolden hsbc's global head of fixed income stephen major who says he does not see us getting back to 4% on the 10 year. let's take a listen. >> i think somewhere between here and three and 3.25 is a

good entry-level. if someone says 3.65 you want to go in at 3.64, but i think it's very difficult to imagine us and back to 4% on the 10 year. manus: anita gupta is the head of equity strategy at emirates nbd bank, but of course it is a broad church of investment of asset classes. good morning. would you be a buyer of bonds at 3.65-3.17? is stephen major right? anita: good morning, manus. our view is that we will's still be with the safer bonds and treasuries and investment-grade debt. definitely would be a buyer of both treasuries and investment-grade debt. it has been about great volatility and it has been about currency volatility. that is not going away, so it's very difficult to predict and say exactly where the 10 is

going to be short-term, but the peak is definitely over for that. manus: ok. tom: the peak is over for that. good morning and thank you for joining us. the focus then on what happens if and when the fed causes with the debate around mate locked in at 25 basis points. valerie tytel explaining that may be june as well. if and when you get the pause is that the all clear for equity markets? anita: i don't think that the pause is going to be the all clear. our view is 25 basis point hike, and then the pause. however, what is going to happen mixed with the fed in terms of are they going to be any further hikes? i think it's on the table at this point. are they going to cut? let's watch the data. with inflation as you rightly said, is not going back to 2% in a hurry, that's for sure.

we don't think there are going to be any cuts in the near term unless there is some event. thanks at this point looked to be not in a place after all the noise we had in march. a looks like things are under control. the big banks have had stellar earnings, a flight of deposits to them. regional banks are still seeing deposits running out. that is one big factor which could affect equity markets we see them range bound. we are not in a doomsday mode. manus: good, but do you think there is flight? look at state street last night down 9%, $26 billion was expected. i'm sorry, 26 billion dollars flew out we were looking for inflows of $8 billion. do you think this continue? is this a thematic for the rest of the year in financials, in the banks, in the banks, and the asset managers?

are we not done yet on the flow show? anita: i don't think we are done yet on the flow show. as a depositor, i would keep my money where i feel it is safe and i get the higher interest rate. recently, apple announcing in connection with goldman sachs as simple as on your iphone you can put a deposit at 4.25%. you have all these competing and what depositors perceive as secure ways of keeping their money safe. the big banks have seen big inflows of -- jp morgan $50 billion, citi about $30 billion. you are seeing outflows for regional banks and that will not stop. it's definitely an outflow. tom: those outflows likely to continue. on your regional preferences, the call around em and the china components within that, chinese equities flat essentially since

january. is the reopening play around china done as you way out the data that comes from that economy? anita: i don't think the reopening play is done. i think that is on a pause because we saw china rally from october to january and then we sought completely give back its gains. however, looking at the economic data and gdp growth, retail growth, the consumption story is very, very strong. i think you're going to see the rally. china market has met this -- domestic indices, hong kong index, china tech openings in the u.s.. there are many ways of looking at what is performing, and i think hong kong and u.s. are behind what the domestic indices performance. manus: while the notes we had in a conversation with jp morgan, the tech rally, tech is up only percent. s&p up 8%. people are worrying about the

breath. client of h says the tech rally looks stretched. you want to be long quality, but does that time for you in terms of allocation into tech? are you deeply selective in tech? tim is arriving in india today, $6 billion worth of sales. how is selective in tech are you? anita: we are super selective and it is completely about profit. a very high bar. no more speculated that. it does not matter how strong the story is. there is plenty of tech out there that is profitable and growing. of course, ai has a big role to play and some of that profitability, whether google alphabet microsoft. who is going to win the race in ai? is it about cloud -- it is about cloud, data, electric vehicles. electric vehicle sales are doubling. there is a lot of tech involved in that.

it is about connectivity. let's focus on the profitable companies as you rightly said 75% of the s&p from romans has been driven -- performance has been driven by tech. manus: you were listening from the top of the show? anita: yes. tom: thank you very much indeed. the flow show is set to continue. the views there from anita gupta , head of equity strategy at emirates nbd bank. apple opens its first store in india today. live shots they from mumbai. the iphone maker that's on a fast-growing market. we will be live in and from mumbai with the latest. tim cook will be there for the opening. that is the live shot from for this big moment for apple in the country of india and the expectation around further demand. this is a bloomberg. ♪

tom: let's get the first word news with adrian wong in hong kong. adrian: bloomberg has learned that blackrock is set to begin selling failed bank securities of kicking off with mortgage-backed securities later today. this as the u.s. federal deposit operation looks to offload $114 billion of assets picked up from failed lenders like signature bank and spu. the paramilitary group baffling the army for control of sudan has rolled out a cease-fire as diplomats struggled to hold fighting in the north african nation. clashes continued throughout the day on monday when most of the intense violence around the international airport and army headquarters. client pulled $4.4 billion from

credit suisse's european and u.s. bonds after the ubs to take over. the data from morningstar only includes funds that report daily numbers and does not cover all credit leases asset and judgment. the outflows underscore the challenge to combined faces to retain client after the government back take over. global news powered by more than 2700 journalists and analysts in over 120 countries. i am adrian wong and this is bloomberg. manus: thank you very much. we were just showing you some live shots of tim cook who are we -- who we are waiting to arrive at the apple store in mumbai. this is a monumental moment is an it, tom, in terms of the arrival of tim cook. this is about the future of apple and $6 billion worth of sales. the future, it is about the future of the consumer who hold for percent of the market at the moment in india. tom: it's the sales component

absolutely getting to $6 billion as you pointed out but also the manufacturing play as well for apple as a look possibly to manufacture about 35% of their iphones in the next couple of years. let's cross over to mumbai. the store is one of two locations apple plans to open in india this week while the country provides just a fraction of the global revenue for apple the market significance is growing with the company expanding manufacturing footprint. bloomberg's editor is outside at store in mumbai. tell us about the store and tim cook visit. how important is it for apple and india? >> i'm going to start with a warning. if you see me duck out of sight that means tim cook has. and we want to try and get the live shot of him welcoming the first few customers to the very first apple store here in india in mumbai in the central business district.

this is full of office buildings in the countries leading the road from here as are many other bank headquarters. the story has all the other features that the apple store has worldwide about 100 staff, carbon neutral, fully solar powered. a customary visit by tim cook at the opening. the next one in delhi will open a few days from now. you brought up the significance of this. [cheers] as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers.

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you get 500 strands free. call right now. (upbeat music) manus: it is daybreak europe, i am here with tom.

tom: china's consumers feel the fastest growth in a year. softness in areas including industrial production way on asia stocks. outflows flood results, state street plunges the most in three years after customers withdraw $26 billion in the first quarter. credit suisse clients 4.4 billion dollars since the ubs deal. plus, apple is set to open its first retail stores in india. that as tim cook looks to usher in a new era of sales and manufacturing. manus: with that in mind, tim cook is arriving at the apple store in mumbai. let's just hone in, we have our cameraman there. let's take a look and listen in. he is arriving there. tom: really important for the

sales for apple, but also on the manufacturing side as well. there you can see tim cook behind those phones of course. reporters -- there he is, he is there, that is the moment they have been waiting for, outside that mumbai store. manus: this is about, what can actual -- apple actually grow too? revenue in india grew by 50% from $4 billion per year, according to the sources that we talked to. if you can grow your market share, if you cannot double your market share, just think of what you can supplant out of china. these are really amazing images, tim cook at the front door of the store in hubei. we will return to that story in the morning, our partner on the ground. great work by the cameraman, we are there.

let's have a look at the rest of the asset classes across the market. still concerned about a superhot labor market. yields rose by 10 basis points over the past couple of sessions at the short end of the curve. crude is up, money flowing out of the etf in the crude market, nearly $200 million there for the major etf's last week. arnold bounces back on the growth. if there is a little bit of concern, it is around the fixed asset investment in the property investment perhaps being not on the knob. up by 31% as inventory stockpiles are at a five month low. tom: it remains pretty soggy in china. work to be done on that front. the consumer is back with a bang. you heard it from anita group to saying she sees further upside. they have really flatlined since january. there is going to be more gains for those shares.

the benchmark across the domestic shares in china. seeing a little bit of a turnaround in sentiment, they are gaining 0.2 percent. when it comes to the picture in hong kong, flogging that the hsi is down 0.6%. across the benchmark in asia, you are flat, wearing up the comments from thomas barclay just wearing up the fact that 25 basis points is almost a done deal, may. is june in play now? the earnings front as well, we had erickson coming through this morning, slightly more mixed picture when it comes to the u.s. and state street. in terms of the futures, u.s. is a range at this point. futures in europe pointing to upside of 0.2%. manus: consumer spending in china, that is the thing that helped the economy grow the fastest pace in a year. the data for march provided several regions -- reasons for

caution. output rose from a year ago, but it was weaker than the market anticipated. joining us is hsbc's chief asia economist, frederic neumann. reasons to be cheerful and reasons to be suspicious. classic reopening trade, the consumer eats and spends, my just hoping fixed asset improvement comes? frederic: is the classic reopening, we saw very strong services numbers already starting in february, restaurant, hospitality, is that revenge spending? the numbers showed today a lot of that spending is frontloaded by the consumer. the big question is, how durable is that recovery? and on the housing construction site, it hasn't been as strong as expected. what we see is a lot of completion of housing, but very few new housing projects being put on.

we need new housing projects to sustain the recovery. that means that the policy-setting will remain towards support. we want to have a durable recovery and not strong out of the gate and then running out of breath by the end of the second quarter. tom: you then tie the housing market to the consumer. that is essential, and the confidence for chinese consumers to go out there and spend on a sustainable basis. and it comes to the property sector, we have seen those measures put in place to curb price rises. is there more specifically when it comes to real estate that you expect to come through the pipes? frederic: he still expect marginal easing coming through, particularly on the consumer demand side or home purchase demand side. we saw a few first-tier cities further reducing some of these purchase restrictions.

we expect second or third tier cities to do that as well. it will not be a national strategy, it will be a strategy that is defined by local governments trying to do everything to get their own housing market stabilized. that should help with demand. the big question is, is that enough to encourage developers to put on new projects, financial institutions to lend to new projects? what we are seeing here is a project completion cycle in china, but not necessarily the beginning of another bull market in terms of housing construction over the next years. manus: so then, what is going to drive the target of 5%? frederic: i percent is not a terribly ambitious target. last year, we had growth around 3%. just to get to 5%, even it could be consumer spending, it could be a bit more infrastructure.

5% is achievable for this year. going in to 2024, the question is, how sustainable will be that recovery? can we see another 5% plus next year? it is 2024 that we are more concerned about in terms of durability. this year, 5% is a lobar to hit, knowing the base effects and consumer spending. tom: how much confidence can we put in the export engine of china? do we need to be making a clear call in terms of recession risk on the u.s. and europe? before we can get clarity about export? frederic: don't bet on exports here. the march numbers were very strong. it is not going to be sustainable. we are going to see weaker demand of the u.s., weaker demand of europe. that will ultimately filter through into other emerging markets as well. the march numbers show very strong growth. you are not going to be able to

sustain growth in southeast asia, other parts of the emerging market, if the u.s. or europe are slowing. exports will not be a driver for china. china's policy makers need to look at domestic demand and not just consumer spending, but also infrastructure investment and housing. it is all about maintaining policy accommodation. manus: have just been covering tim cook's arrival in india. as you look at the biggest threats to the unambitious target of 5%, the taiwan conflict with united states, but perhaps more malevolent is the on shoring story. how big a risk is that? frederic: it is a risk, but i wouldn't overstate that. it is clearly investment moving to southeast asia, investment moving even to india and isis like mexico and back to the u.s.

and europe. on the whole, we still see very strong foreign investment into china. china is a domestically driven economy. the big drag on their growth will be where than a mastic story plays out. that shoring is a marginal drag, but it will not be something that knocks china off course. a lot of the investment that goes into southeast asia and other places is really lower in manufacturing that china doesn't really need. china is still gaining market share with vehicles and making inroads into japan's market share, germany's market share, when it comes to mobile automotive exports. tom: just briefly on china, how sustainable will that be for asia? frederic: the ballast, but not exactly enough of an engine to drive us forward if we have a recession in the u.s., a recession in europe, 5.5 percent

growth, five point 8% growth in china is helpful, but is not going to necessarily propel us forward in terms of economic growth. if you think about korea and taiwan, highly exposed economy to the global electronic cycle. these will not be solved by china's recovery. we need the rest of the economy to fire up as well. so yes, a ballast, but not in itself enough to drive growth. manus: frederic neumann, thank you very much. coming up, the ev battle ramps up at the shanghai auto show. fred just talking there about the strength of china's auto experts. as they vie for a bigger slice of the world's largest car market. this is bloomberg. ♪

manus: were sadie's bands has unveiled the my back each u.s. suv. the first battery model rate the car can drive 600 kilometers on a single charge and will be priced at $200,000. the ceo spoke to bloomberg exclusively at the shanghai auto show. >> my back brand, even if it is the most exclusive sign of our portfolio for a customer that is looking for something very special this is a brand that has been growing quite rapidly in the last few years. especially the chinese market tests have picked up on this. we are selling more than 100,000 here in china alone. i think this is going to be a very good addition. i don't know exactly what volume will be, but it will be in the thousands.

>> i have to ask you about the ev competition. certainly, we have seen at domestic brands have really come up on top in terms of non-chinese, i think it is a tesla that has made waves and a foothold in the mainland did where does mercedes stand, and what do you think about this model will appear to chinese consumers? ! we more than doubled our ev sales in china last year. we are looking at significant growth this year of ev's in china and around the world. we want to double our sales worldwide this year. china is a very competitive market, most of the dynamics have been in the volume segment, lower segments where mercedes is not represented. you can now see in the premium and luxury segments, it is starting to take off as well. we are launching a whole host of models to make sure we participate in the growth. david: am i correct to assume

that you, at your price point in this market, you are not feeling the pressure of the price wars going on in different segments? >> and an intense competition going on in the segment below 300,000. the price competition is very intensive at the moment. i think it would be wrong to say that it doesn't have any effect on the rest of the market, but so far, we have archly been able to resist that. manus: ceo of mercedes-benz they're speaking to yvonne and david. joining us from the auto show in shanghai, where the ceo of mercedes was talking to us as well. what are the key themes and talking points at the show? it is always a massive event. dan: the big theme here this

week has been electrification. companies like mercedes who just spoke, volkswagen has been announcing new chart ev's, sedans and suvs. chinese companies like byd are unveiling new models. i was at an event this morning where byd's upscale brand brought out this sleek new electric roadster that i can only describe as a purple batmobile. they gave some details about an suv that can go 1000 kilometers on a single charge. these are the cars that are really exciting people here, bringing in the batteries, bringing in the ev's, and this electrified fleet. manus: and then of course, we have the impact of the u.s. inflation reduction act and the impact that is having on automakers. what is coming through, what are they saying, how is it impacting the display?

dan: really glad you asked. it is one of the interesting things so far. we are just in the beginning, but so far, it has been kind of deafening and its silence. we haven't really heard much about it at all. these companies, both chinese and global companies are instead talking about the vibrancy of the chinese ev market my the technical prowess of the chinese manufacturers and factories here. it just kind of goes to show, even with the ira, how much room the u.s. has to catch chinese manufacturers when it comes to ev's. tom: you have your finger on the pulse, we have a gdp data out, coming in stronger than expected. a lot of that is going on things like jewelry, autos were quite far down the list in terms of the lift. it is your assessment of how much demand will come through for the auto industry? dan: it is going to be tough.

january was a rough month because the end of subsidies towards the end of last year. i was just in beijing last weekend and the weather was beautiful. i sought literally three times more people out on the streets waiting in line for restaurants than i had at all this year. i think the chinese economy is still ramping up and gearing up in his rebound. i think there is still a chance that we see a lot of strength, maybe not so much in the property sectors, but certainly in the consumer sectors. manus: go spend that pretty him, go help the chinese economy, go spend the bloomberg dollar. at the auto show in shanghai. let's get a business flash to hong kong with adrian. adrian: united shares have plunged on a reported family may not sell of after all. according to espn they are increasingly confident of

securing outside investment to allow them to retain ownership of the football club. after a volatile five months since the american family started extruding strategic alternatives including a possible sale. executives at schwab say they could stand executive turmoil. they beat estimates despite customers continuing to add money to the firm's investment products, schwab caused the stock buybacks citing regulatory uncertainty. brookfield coporation funds have default it on a 161 million dollar mortgage for a dozen office buildings mostly around washington dc. brookfield is the latest landlord to default as borrowing costs serve -- surge. according to greene street, those trends have seen office values plunged by about 25% in the past year. that is your bloomberg business flash. tom: thank you very much. we will look ahead to the u.k. unemployment data out this

morning. as the debate continues as to whether the b.o.e. is now done raising rates. that is next. this is bloomberg. ♪

manus: welcome back to "bloomberg daybreak europe." let's turn to the u.k. now where u.k. data is being watched through a debate of whether the b.o.e. is finally done raising rates. what is expected from the jobs data? lizzie: expecting mixed signals. expecting to see the labor market hasn't weekend as much as the bank of england may have liked. this is what other indicators are suggesting. it weighs into how future wage setting behavior will be. at the same time, economists do expect to see a little bit of

slowdown in these numbers. they are going to feed into the bank of england decision as you say. markets and economist are split on whether it is time for the bank of england to pause the rate hikes. from another perspective, it will be interesting to see homely days were lost to strikes. we already saw that they were weighing on the services sector. it is not just the economic consequences, there are health consequences, too. we have seen the latest junior doctor strikes meant that 195,000 appointments were canceled. that means, politically, rishi sunak may not meet his target of cutting u.s. waiting lists. that isn't a good look when you have local elections around the corner and a general election next year you did manus: you caught up with the economic secretary for the u.k. at the treasury, andrew

griffith, what did he have to say? lizzie: we talked about the crisis at the cbi, we talked about the future of u.k. fintech. you can listen to the full episode on the u.k. apologist podcast. politics podcast. after the sale of silicon valley bank to hsbc for a pound, the question the u.k. is who pays when banks go down? the bank of england and treasury are considering raising the ceiling for deposits that are guaranteed in the u.k.. at the moment, it is 85,000 pounds. in the u.s., 250,000 pounds. the other thing they are considering is speeding up access to insured deposits, which could mean that banks have to find a way to fund the compensation pool upfront like they do in the eu and the u.s.. that would mean more work for banks, it could reduce lending, slow economic growth, make the u.k. less competitive post-brexit.

for griffith, he said it is really about striking a balance between the ability for firms to grow and consumers to have confidence in the system without putting unimpeded regulations on the site or. -- sector. >> it is right for us to constantly look at whether you have the right threshold on these. what was important is that when we saw things like svb u.k., we were able to step in, act decisively, deliver a really good outcome. i have been hearing that from a lot of founders and entrepreneurs, how pleased they were. the u.k. was able to be agile in securing that for them. manus: lizzie, great work. let's set up the agenda for you for the rest of the day. that they have it completely wrong, hopelessly wrong was the

phrase he used. we will have the german ce w. investor expectations, remaining positive for the fourth month as the threat of an energy crunch recedes and supply-chain constraints ease. tom: 1:30 p.m., we are expecting canadian cpi and data on u.s. housing and building permits. goldman sachs and bank of america release first earnings, really important to round out the banking story, and finally, netflix posting results after the u.s. markets closed. manus: this is bloomberg. ♪ our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

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anna: good morning, welcome to "bloomberg markets: europe". joins us from singapore to take