dani: morning, this is "bloomberg daybreak: europe". i'm dani burger in london, these are the stories that set your agenda. cpi anxiety, asia stocks truck wall street lower before today's u.s. inflation report. data that will feed into the fed's thinking on rates. there is little progress between president biden and congressional republicans after talks but they pledged to continue discussions to avert a u.s. people. sources say elite signaled it will quit china -- italy signaled it will quit china's belt and road pact.agricole saw strong results in their investment bank. they changed accounting measures, so the comparables aren't great. banking civ revenue coming in at 2 billion euros, a gain of 19% year-over-year. a record performance for the

investment bank for credit agricole. at the same time, there revenue coming in at a gain of 6.1 billion euros, that's a strong figure as well. we're looking at operating expenses, those did grow. by about 2%, 3.8 billion euros. the take away a strong investment bank, a recovery from primary credit markets and demand for hedging products, too. it is not just credit agricole, abn amro is breaking earnings. we are going to be speaking to the deputy cfo at credit agricole. then we get to abn amro, that profit a beat. 523 million euros is the first quarter profit, the estimate had been 372.3 million. that is about 200 million euros higher than was expected. their underlying costs, this is

different from credit agricole which saw costs rise, are 2.5% lower than in the first quarter, so they have been able to lower costs. loan loss provisions, they have reduced those by a whole lot more than what was expected. loan loss provisions just 14 million euros, the estimate would be over 100 million in terms of loan loss provisions. this is surprising given concerns about credit right now. but it sounds like a vote of confidence from abn amro that they are putting 14 million aside for bad credit. 10 minutes ago, we got toyota earnings, too. full year operating income came in in-line line, ¥3 trillion. global auto sales were 11.8 million units. they will be buying back shares

for 150 billion yen. supply and demand has improved for semiconductors. there asia profit ex-japan down 11% year-over-year. there is that question as to whether china will contribute to auto sales as much as was expected. european auto sales have struggled. china not stepping up when it comes to the world outside of china. one thing to keep in mind as toyota reports a fall in fourth-quarter asia sales. those are individual company news. elsewhere, for the entirety of the market, happy cpi day to you. will it be a flat 5%? that could really guide how we see the end to the session. asian stocks moving lower .5%, s&p 500 futures up .1%, after falling yesterday.

according to goldman, if cpi is below 5%, expect a rally of .5% for the s&p. if it comes in above 5.9%, we will see a drop of more than 2% for the s&p 500. you can see where the risk is, a fat left tail drop if we see it move higher. dollar unable to catch a bid. that weakness in the dollar will continue. pound getting closer to his one-your-ahead of a boe decision tomorrow. two-year yields above 4%. we have a lot to cover. let's get to reporters from around the world. we will talk about the debt ceiling impasse, what we can expect from that u.s. cpi reading later today. president biden and congressional republicans will hold further talks on raising debt limits, to avert a first ever u.s. default. derek joins us now for more.

i don't really think a deal was expected, right? the white house meeting finished with no deal. there seems to be a differing opinion from biden and mccarthy as to just how much progress was made. derek: i don't think they made a ton of progress, necessarily. they are talking, which is good, and you hear optimistic noises from both the president and the senate minority leader who said the u.s. has never defaulted and will not start now. you can hang your hat on that, that is totally fair. the problem is how you get to that point. kevin mccarthy, the republican house speaker, the key point person on this, made it really clear that they are not any closer than they were in any substantive way before. there going to talk again on friday. there will be staff-level talks from now to that point. things will move along a little bit. the thing i hear when i talk to

people in washington, left, right and center everybody is telling me they think there might have to be pain before progress. that's probably not what workers want to hear. -- markets want to hear. dani: what does pain look like in terms of where we go from here? derek: the famous example is the old tarp vote if you remember that a generation ago. i had hair back at that point. [laughter] you saw the bank rescue go down, and then the market fallout by 700 points. then they revolted and it went -- re-voted and it went through. lawmakers work really well in washington with a deadline. that he put the pressure on them to get something done. baby take a vote they wouldn't take otherwise. that is what you are talking about with pain to pressure.

there are two potential escape valves i need to mention. one of them, biden is dismissing the idea of minting a platinum coin, fine. but there are smoke signals that exist the idea of the constitutional provision that says u.s. federal debt can't be questioned, is starting to pick up steam. we are already seeing court challenges early on to say, hey, actually you can't stop paying federal workers. things like that. if you get close to this ex-per iod of time, there is not really a rulebook. the pressure goes up and up. but then, i don't know. we haven't been there before. so there is a lot of uncertainty to come, that's why i say when that pressure increases, what does that mean in terms of legislative pressure that might contribute to results here?

dani: i won't tell you what i was doing in 2008 during that tarp bill vote. derek, thank you so much. it feels like as always an 11th hour decision. elsewhere in the u.s., we will get cpi data due out today. april's print is expected to show inflation remaining the ever constant foreign in the fed's side. jill, what are we expected today? jill: as you said, it's probably a case where price pressures aren't going away and this continues to be a problem for the fed. general expectations are for a 0.4% month on month increase in april, that would be a slight acceleration. the year on year figure likely a 5% increase. if you look at core inflation

gauges, excluding volatile food and energy costs, those are also under pressure. we saw in march that the core gauge was higher than the headline gauge. economists expect that to also be the case this month in april, seeing a 5.5% increase. what that all spells out is we just came off of the fed saying two days ago, for at least signaling, that maybe we were done with rate hikes for the time being. maybe suggesting there could be a positive in the future. this is a data point that could signal that no matter what happens in terms of strategy going forward, ultimately, there is still pressure on prices that will continue to be a point of concern. dani: that is such a good point, jill. yesterday, a survey of small businesses talked about how they wanted to keep hiring but are having a hard time. that sounds like wage inflation.

after today, are we going to talk about another we acceleration in that hikes? -- re-acceleration in that hikes? >> the fed has been making the point that there are many different data points they look at heading into meetings. before the next meeting in june, i believe it is the first day of the fomc meeting that we will have another cpi print to look at. that made play into some expert -- may play into some expectations there. we have to see what june jobs data looks like at the beginning of the month. last week, we saw hotter than expected jobs figures. that was also challenging the calculus here. ultimately, markets were seeing more cooling fan economists were estimating right now for inflation. but we have quite a few weeks until that next fed decision. that all might play into how exactly they are considering things going forward.

it is important to remember no matter what, powell made the case last week that they want to preserve room to adjust rates as much as possible. at least, that is factoring into their decision-making, so we will have to see with additional data what that looks like in june. dani: thank you for that wonderful setup, bloomberg's jill disis. let's get set up for your trading day. some key things we are watching out for, at 12:00 p.m. u.k. time we will have the latest data on u.s. mortgage applications. that will be follow by the big one, 1:30 p.m. is when you can expect that price report. april will probably offer little risk -- little respite. the poland decision is on deck, we expect the bank to keep the rate unchanged at 6.75%. at three p.m. u.k. time, the ecb's centeno will speak on the

financial stability report in lisbon. first, we will be joined by m&g 's multi-asset cio, she will talk about the latest cpi print, and whether u.s. stocks are fairly priced at this point. this is bloomberg. ♪

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>> i will be particularly focused on assessing the evolution of credit. that affects the outlook for growth, employment and inflation. we will get a lot of data between now and our june meeting. dani: that was the new york fed president john williams. a billionaire investor says he thinks the u.s. economy is teetering on the edge of recession. heber makes a hard landing. he is not the only one. amid concerns, sell side strategists are increasingly calling for stock market declines. morgan stanley, goldman sachs and bank of america all see the s&p 500 ending the year at 4000 or below. it is currently just above 4100. joining us is fabiana fedeli, cio of equities and multi-asset at m&g.

are you also expecting declines for the rest of the year? or are we pretty fairly priced at this point? fabiana: the overall equity market if you look at it globally, valuations call for a mild recession. but there is a lot of difference below the surface. you look at the u.s. market, which is still priced above many other markets. if you look at equity premia in the u.s., they are half of what they are in many other markets, including europe. that perception of quality for the u.s. market is starting to falter with the debt ceiling discussion and what is happening with u.s. regional banks. if you consider also the slowdown from an economic standpoint, you can probably find better opportunities elsewhere. dani: elsewhere being where?

fabiana: we like europe. asia. we stayed very selective at the equities level. countries like japan give you opportunities. companies that are improving operating leverage. also, u.k. is giving you a lot of interesting opportunities that are priced extremely inexpensively, particularly when you look at the u.s. market as a comparison. dani: that is interesting because i am here in the u.k. we are from politicians all the time the desire to make the u.k. more attractive for companies to list. but the truth remains that there seems to be the sort of discount to u.k. stocks, be it political or otherwise, is that fair? does that account for some of the undervaluation, the inability of u.k. equities to keep up with their european and american counterparts? fabiana: having a wide and deep

market is always something that both investors and companies seek. right now, the relative valuations between the u.s. and other markets, including the u.k., are probably discounted far more than that. dani: when it comes to the u.s. equity market, there has been this discussion. that if the bond market is currently pricing in cuts, why doesn't the american equity market reflect that? because presumably this economy needs to get pretty bad if we are going to cut. let's say that plays out, but there is a deep recession, a hard landing like druckenmiller says. fabiana: that would not be good for equities. markets are pricing a mild recession. the truth is, it is difficult to understand what kind of recession we're going to have, or what the timing is going to

be. big, or slowing down. but it is not really falling off a cliff. you have better-than-expected data points. on the earnings side and on the job site. from that point of view, we don't know what kind of recession we will get. if we were to get a deep recession, that stan refers to, that would not be a good image or a good environment for equities. clearly, fixed income markets would be better poised. dani: they have that yield, which is certainly more attractive. i do wonder, if you start to position that way now -- if you say look, something has got to give. it either has to be what we are pricing in for fed cuts for the equity market, you want to start setting yourself up for that, when you make that trade? fabiana: it is difficult to

predict at the moment. we recently wrote a piece telling clients if you can't predict, you need to prepare. prepare means diversified both in fixed income and equities, be very selective and use volatility to your advantage whenever the baby gets thrown out with the bathwater. think back to the beginning of the year, many were telling us to go all in to fixed income. the truth is that wouldn't have been the best trade. you just have to trade carefully and diversify. high-quality is still the name of the game and be extremely selective. some companies do well in this environment, and some companies are not. clearly, fixed income is a good place to have part of your portfolio, because as you say, yields are high. dani: you also write in your notes that this is not a market for broad strokes investing. last year, it was all about the

macro, correlations were so high between individual stocks. between asset classes, although bond-stock correlation diverged, but at least historically. are we over with the macro trade of trading how cpi comes in today, for example? fabiana: it is difficult to predict what will happen with the market. we know the direction of travel. we know we are having slow down, but how deep is the recession, when is it going to come? it is too difficult to predict. right now we don't know how much credit tightening we're having from the u.s. banking situation. that's when we say, this is a moment to move your portfolio based on macro decisions. it's more a portfolio you have to look at from a stock by stock basis, if you are speaking about equities. and stay in the areas where you

feel there is strong pricing power. strong quality. think about innovation, ai, infrastructure, and the whole low carbon ecosystem. those are areas where capex will go in whether we have recession or not. dani: what i'm hearing is perhaps some of the excessive macro hedge funds last year maybe won't last. we have to leave it there. fabiana fedeli, cio of equities and multi-asset at m&g. president biden at house speaker mccarthy made little progress on averting a first-ever u.s. default. what can we expect ahead of their meeting at the end of the week? this is bloomberg. ♪ er rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star.

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dani: let's get your first word news. with that is adrian wong in hong kong.

adrian: a new york jury found donald trump for sexually assaulting writer e. jean carroll. the court ordered the former president to pay $5 million in damages after the acute that she accused -- after she accused him of raping her in the 1990's. he called the verdict a political hit job. pakistani opposition leader imran khan will appear at a anti-craft tribunal, after his dramatic arrest spark classes across the country. he was taken into custody in a case involving a land deal. four were killed and 20 people injured in fighting. tony blair has told bloomberg, the west shouldn't attempt to decouple from china. he says it is important to remain engaged with the world's second-largest economy. >> china is by reason of his

civilization, its population, its technology and economy. it's going to be a big world power. the question is how we live with that in a changing geopolitical 21st century. you have got to be strong enough to deal with whatever comes out of china. what you should stay engaged with china. i don't agree with decoupling. i don't agree with the notion that you treat china like the soviet union, because it isn't. adrian: global news powered by more than 2700 journalists and analysts in more than 120 countries. i'm adrian wong, this is bloomberg. dani: t-bill yields have been spiking dramatically over fears of a debt ceiling breach. the market overall has been pretty calm about it. perhaps we are used to this game of chicken. but over 5% yields went to the great financial crisis highs.

the probability of an outright default on treasury debt, according to janus henderson, is less than 1%. yes, there could be consequences for markets they say, but it would be likely not as long of a lasting impact. it would feed quickly as a fix is found. as we get to that extent, perhaps something else works it way out. in the meantime, we are also seeing a spike in cvs, but that is a particularly illiquid market. we will be speaking about all of this with sushil wadhwani, cio

dani: this is bloomberg "daybreak: europe". i'm dani burger in london with the stories that set your agenda. see guy anxiety -- cpi anxiety. asia stocks track wall street lower before today's u.s. inflation report, maybe that will feed into fed thinking on rates. little progress between president biden and congressional republicans after talks. but they pledged to continue discussions to avert u.s. default. plus, sources say italy signal it will quit china's belt and road investment packed by year end amid escalating geopolitical tensions. yes, we might be obsessed with the debt ceiling story in the headlines. it is giving some t-bills. but the market squarely focused on u.s. cpi data coming up later today. but getting a ton of movement ahead of that. there have been indications that perhaps wage inflation is pernicious.

nfib survey showing yesterday about labor quality with the top concern for small businesses. are they going to have to pay up more? so asia stocks declined .5%, s&p 500 futures little changed. goldman sachs says expect decline of 2% for u.s. stocks if cpi comes in above 5.9%. sterling was up, it is now down, it was hovering around a high for the year. dollar struggling to catch a bit of amid american economic concerns. two-year yields just above 4%. on that debt ceiling story, president biden and congressional republicans have made little tangible progress as they begin talks to him for -- to avert potential u.s. default. both sides pledged further negotiations after meeting for an hour at the white house on tuesday. >> everybody reiterated the

positions they were at. i debate see any new movement. the president said the staff will get together. the staff will get together. we will get together with principles on friday. >> we asked speaker mccarthy, will he take default off the table? he refused. >> united states is not going to default, it never has and never will. dani: i am joined by the chief investment officer at pgim wadhwani, he is a number of u.k. chancellor jeremy hunt's economic advisory council and a former member of the bank of england's npc. less time we talked, it was around the banking crisis, now it feels like perhaps we are gearing up for another prices that has nothing to do with the financial world. it is entirely the making of politicians. do you have a sense of frustration? of politicians sort of using the

market in this sort of way. and igniting concern, when the disagreement doesn't necessarily need to be happening. >> good morning, in terms of these debt limit negotiations, if you look back historically. most of them ultimately passed without incident. the conspicuous exception obviously was 2011, where if got this last minute half-baked meeting. you then got the s&p downgrading u.s. debt. you then got significant market effects. i guess the risk this time has to be that you will need significant market turbulence to get these folks to agree. as you showed a couple of minutes ago, these people are still very far apart. dani: we have seen it this

country, the markets forcing the hand of the politicians. but sushil, what do you make of politicians reliant on markets to force them to go to constituents and say we tried everything, we had to do this. sushil: in this country, it was a case where the politicians you allude to didn't believe the markets would react in that way. they had a very different worldview from the view embodied in markets. they thought their package would do good things. the markets disagreed and forced upon them a change in policy. now there are shades of this in the u.s. as well, where the views espoused by some politicians are very, very different from the conventional views in markets. dani: is there a risk, because

we are used to this happening, and eventually reaching a deal and the 11th hour, that the market doesn't react because it assumes a deal will be reached? and that increases the risk we will default? sushil: it is certainly the case that i encounter quite a lot of investors with longer-term horizons. who believe that any market reaction -- any downdraft in equities -- will be bought very quickly. therefore, there is no need for them to do anything. to me, this is reminiscent of 2011. in 2011, there were a lot of people who believed that, too. and then they were suddenly shocked. the key ingredient back then was the downgrade of u.s. debt. that time around, only one

agency downgraded the u.s. it remains possible that other agencies might downgraded this time. dani, you are right that by getting very close to the wire, you may suddenly trigger very significant market turbulence. dani: you mentioned this idea of long-term investors continuing to buy the equity market. how frustrating is this market when you look at equities holding up. but you look at all of the rate cuts priced in, despite economic data which for the most part suggests there is durable growth in the american economy. sushil: the best way to interpret the rate cuts that are priced in, is they are pricing in some sort of event with maybe a 20-30% chance. which then requires the fed to move very aggressively, by cutting 200 or 300 basis points,

not just the three rate cuts that are priced in. one always has to recognize the limitations of one's knowledge. and the possibility of there being some unknown hitherto accident in the banking sector which requires the fed to move aggressively. or negotiations go so badly, that you moved to fiscal tightening, which requires the fed to cut rates. we shouldn't discount of these possibilities. also, recession can come very quickly. think of it as suddenly you are in recession, and the fed then does respond. i want completely -- quote completely dismiss market pricing at this point if you

think about it as being by model. that is the most likely scenario where the fed doesn't cut, then this tale risk scenario where the fed has to cut a lot. dani: a by model market when it comes to the debt ceiling. have you had to rethink your trading strategies, they're in nature, -- they are quant in nature -- have you had to rethink in this bimodal environment? sushil: one has to refine models over time. economics is not physics. it is important to show that one is responding to new information and structural changes. for example, in 2020, we meaningfully revamped our models

in light of various things going on. vaccines became relevant. money supply growth was at very high levels. so, we tailored our models. in this current environment, we are very aware that the latter stages of a tightening cycle are quite treacherous. and for that reason, we keep portfolio risk at lower levels than normal. but we have always known that. dani: we have a lot more to discuss. we will just take a break for now. that is sushil wadhwani, cio of pgim wadhwani. let's get the bloomberg business flash with adrian in hong kong. adrian: elon musk says twitter has not signed a deal of any kind whatsoever with tucker carlson. the former fox news post is starting a new show on the social network. he was fired by fox last month

after a lawsuit over insults to colleagues and guests. boeing is optimistic it will soon restart exports on its 737 max jets to china. air travel is surging, and beijing needs more planes now but it has ended pandemic measures. the u.s. chipmaker announced an order of as many as 300 of its largest 737 max. shares of airbnb drop sharply, after it gave a cautious revenue forecast. the vacation home rental company says revenue could grow 12-16% in the quarter, its slowest pace of growth on record. the number of nights booked is lower than a year ago, when there was a surge in post-covid demand. that's your bloomberg business flash. dani: adrian, thank you so much.

we will return to our conversation with the former bank of england mpc manager. we will discuss the boe rate decision tomorrow and much more. this is bloomberg. ♪

>> i don't think we should accept that we need to be worse off. on the other hand, when people are looking at the figures and saying living standards are falling for a significant number of people. and the cost of living is really tough. there is no point criticizing them for saying it. the point is to do something about it. you can divide this clearly into two separate groups of measures. there are short-term things we need to do, including fixing the brexit problems. making sure we reform our planning loss urgently.

making sure we deal with the labor market shortages. and then there are some longer-term structural things that might be all around how you utilize technology. how you harness the forthcoming and existing technology revolution to make change. so you have a short-term and long-term, but both of them need a set of decisions, and a plan. dani: former prime minister tony blair speaking with bloomberg from the jp morgan ceo forum in london. still with us is sushil wadhwani , cio of pgim wadhwani, and a member of jeremy hunt's advisory council. on a headline basis, 10.1% inflation rate in the u.k., essentials like energy bills and groceries have risen even higher. how concerned are you about the ability to bring inflation back down in the u.k.? sushil: i'm not hugely worried

about the outlook for inflation for the balance of 2023. because i think the arithmetic is going to become rather friendly. because remember, commodity prices went up a great deal last year, in march and april. and those very large increases are going to drop out. and some of them are going to actually be significant falls. for that reason, the arithmetic is now going to turn benign. you will see headline inflation fall meaningfully for the balance of this year. in terms of what we see in monthly figures, you get a little noise, but the trend is going to be firmly downwards. i think the only uncertainty is where the headline comes down, to 5%, or 4%, or even 3%.

we are talking about a significant fall. dani: put the old hatchback on of the mpc, what does that mean for the boe's trajectory, it has to say the commodity picture well fall away? sushil: picky uncertainty is around wage inflation. -- wage inflation is uncomfortably high. remember, that feeds into services inflation. if you look at the bank of england's decision-maker panel survey, you have got wage and price inflation three years out rather higher than target. so the key is we need to see those expectations begin to fall. because clearly, we don't want

this past headline inflation to become entrenched in expectations. that explains why the bank of england has been tightening meaningfully. we are now again at a very tricky point in the interest rate tightening cycle. because we clearly also wish to avoid over tightening. the consensus expects a 25 rate hike this week. that seems about right. but i think from here on, tread carefully. dani: before we go, i want to return to the u.s. market conversation. we were talking during the break, and we started out saying this could be a lot more like 2011 when it comes to the debt limit. just a return to that, is the market being complacent? sushil: there is a significant

risk it has been complacent. it is underestimating the extent of divisions within congress, within the republican party, between the republican party and the president. it is very reminiscent of 2011, in fact, it might even be worse. it is important that people don't assume they will get a benign outcome like '13 or '15. this thing could really go to the wire and could require meaningful market weakness to bang heads together. dani: less than a minute here. why is it worse this time? sushil: i think the extent of polarization in u.s. politics. and the desire on the part of the parties to blame the other side. what this all builds up to is a meaningful risk, that we get

unexpected u.s. fiscal tightening, at a time when as you were saying earlier -- at a time when the risks of u.s. recession are rising, and the risks of hard landing are rising -- the last thing you need is unexpected fiscal tightening. dani: sushil, really wonderful to have you on the program. sushil wadhwani, cio of pgim wadhwani. tensions continue to rise between the eu and china. italy is pulling out of a key investment pack with china. we will discuss that next. this is bloomberg. ♪

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>> i guess the backdrop of a troubled economy, turks will either extend erdogan's rule

into a third decade, or offer his challenger a chance to steer turkey towards a reset. the country is in the midst of a cost-of-living crisis, and many blame his unorthodox policies. inflation pete at 85% last year. the turkish lira cratered by more than some be 5% against the dollar since the last election. many foreign investors have left. six opposition parties are bending behind a career civil servant who promises to bring a fresh start to the economy. most of his career, his party has failed to win at the polls, but in 2019 he unseated incumbent mayors in large cities including the capital and kara and istanbul. president or to one meanwhile will look to the hardliners once again, for he is viewed as a strong leader the country needs

to guide them out of hard times. computing platforms could not be more different. the voters will decide on may 14. dani: yousef gamal el-din reporting on what is at stake in turkey's presidential vote. italy signaled to the u.s. that it will pull out of china's controversial belt and road initiative before the end of the year. the country signed up to the infrastructure packed in 2019, the only g7 nation to do so. for more, let's get to maria tadeo. what is italy's thinking in this? maria: you talk about the changing geopolitics, while here is one. as you say, italy told allies, mainly the united states, that it will not renew the silk and developed road, therefore it could leave before 2024. the implications are many.

before you go into the reasons why italy will leave, you have to look at why i joined in the first place. go back to 2019. the prime minister at the time said this would be a good deal economically for the country. that this would be good for exports for luxury and so on. but a lot of things have changed . talk about the tensions and geopolitics, the war in ukraine, but also this idea that in europe, trade and politics do not make a big combination. the fact that italy was the only g7 country added pressure to leave, because the argument was this was different to the rest of g7 allies, who would say democracy and values will make it difficult to do business like this with china. the other thing is, this to many was not a surprise, because mario draghi already started this process. he was more assertive on china and blocked a number of deals.

it is giorgia meloni funnily enough, who will potentially leave the silk bell. they are losing their only g7 country. this is embarrassing. it is also about the politics. remember china does a lot of diplomacy through the silk and developed road. dani: what does it mean for the silicon bloc, for the implications were not just china, but the euro zone? maria: this is a fascinating story, but for the italian government, it will not be easy to leave. they have told the united states based on bloomberg reporting, that they have this idea of not renewing, but they also have to save face for china. they obviously have an interest in maintaining good ties with the chinese this is a huge market for all the luxury that goes into the country.

however once again we see there is a fundamental re-think in terms of ties with china. the eu will say it is a partner in some areas, but it is also a systemic rival. it doesn't mean you are anti-china, but you have to scrutinize deals like this in more detail. also, what will germany do? huge manufacturer, this is a huge story. the german finance minister was supposed to go to china, that trip is no longer happening. dani: from an industrial figures look pretty weak this way. low rates maria tadeo. don't miss our exclusive interview. we will talk with the credit agricole deputy cfo, at 7:30 a.m. london time. this is bloomberg. ♪ baby, i hear one every night. every night. okay. i'll work on that. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. only at sleep number.

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anna: good morning.