dani: good morning, this is "bloomberg daybreak: europe." i am dani burger in london.

china bans micron semiconductors amid a technology clash with washington. biden says ties with beijing are set to improve. president biden has -- and speaker mccarthy do to discuss the debt ceiling in washington today as talks to avoid a default resume. a pause signaled -- a pause in the hiking may be appropriate, signaled by jay powell. ryanair come in in at 1.43 billion euros in the estimate was 1.38. we are trying to get a read on how the summer will be viewed the fuel bill will increase i more than one billion euros. summer demand is robust and

affairs are trending. is ultracheap lower fares over? modest year on year profit increased in fiscal year 2024. they see the revenue growth cover the higher fair bill, one billion euros. the flame the oh ointment -- the fly in the ointment is boeing delays. elsewhere it is a strong summer that is pushing their adjusted profit higher and expectations for the full year. we will break that down later. we will speak to the cfo of ryanair around 6:40 a.m. u.k. time. the real star of the show is away from the anchor desk today because it is the 2023 qatar economic forum, it begins tomorrow.

local leaders shining a light on key challenges and economic growth. let's get to manus cranny in doha. they let you out of dubai, congratulations. what is on the agenda? manus: we decided to give the airlines up there. i'm looking for a deal to naples. welcome to qatar, we are gearing up for the economic forum 2023 and i think this is an interesting moment. we've come off the g7 where the emerging markets were present uncomfortable. we are looking at south to south trade. we are looking at three major pools -- the capital pool, of course we have the qatar investment authority and the finance minister for the country, they will join us on day one. who is going to fill the pools of liquidity being withdrawn as the world deals with 5% interest rates from the united states of

america? political capital, on heat here politically. this is a very -- moment for the qatari's in terms of the energy, security, packed with europe -- what does it mean? it is about the capital pools, political pools, and of course oil and gas. we will have an on stage session with the energy minister of qatar as we go toward an opec-plus meeting. and then the beasts and lions of banking and finance here as we go perhaps to the edge on the debt ceiling. they will be on stage the next three days. a very good morning. give me a deal with ryanair, that's the only important thing you have to do in the next hour. good morning. dani: i will not commit to

anything because i am not confident in my ability to negotiate such things. i will give it a go. manus cranny in doha. the global narrative is a confused one, trying to deal with powell, the sideshow of the debt debate in the background. i like what bank of america wrote on friday, it would be so on brent for stocks to melt up into recession and stuck them all right in for the hard landing. the bears are getting bored. clients they say are bored with the bearish narrative. you get stocks that continue to trend higher. maybe ai fuels everything. in asia, the china session, more improved tones with biden, saying relations may be thawing. that is giving a lift to the hang seng and tech stocks. s&p 500 futures unchanged. the biggest s&p short since 2000 seven, that might lend itself to

some support. because asset is a move in the belly, buying bonds after cash cardio, and endorsing a pause. greenback rebounded on friday after the pboc vowed to curb speculation. the remedy -- renminbi is still moving higher. meanwhile the dollar itself higher. the u.s. looks at taking a different approach. let's get to some of our top stories. we have two big stories that markets are trying to get a grasp on. lucy will discuss it u.s.-china relations, we will also discuss the default and the debt ceiling with paul. china has delivered latest salvo in the semiconductor battle with the u.s., saying micron chips

failed a security review. let's get to lucille. what has beijing specifically said about these chips? lucille: beijing over the weekend said the risks posed security risk and this came after a month investigation into these imports. beijing is saying significant security risk to the infrastructure supply chain. not getting details but we know that memory chips are not usually considered a security risk. they typically haven't been a vector for hackers. we also saw a statement from the u.s. commerce department saying the conclusion had no basis in fact. we are expecting the war of words to continue between the two countries. dani: am i right that this seems

more like a geopolitical move than a technical review? lucille: that's right. i think that is how most analysts are reading this. we have chinese officials saying privately this is part of a broader trend toward retaliation voices in beijing. we are increasingly seeing actions from beijing that are more willing to inflict pain. national security concerns are trumping economic arguments. interestingly, it picked a product that can be easily swapped out. we know china can get the chips from rival manufacturers who have plants in china. dani: at the same time, president biden says he expects ties with china to improve shortly. how do we square that with the current picture of china going after micron chips? lucille: mixed messages.

i think the general trajectory is that china is willing to use these retaliatory actions, the unreliable entity list after holding off for several years and these things will happen, on the other hand, there are people trying to stabilize relations and we see that in u.s.-china talks. in washington and beijing. perhaps they will think about removing sanctions on the chinese defense minister. that would be something that moves the needle on bilateral relations which at best have been at a stalemate and at worst spiraling downwards. dani: ok, thank you very much for the update. not least for the moment we are seeing markets reacting positive to it, hong kong tech stocks up. when it comes to the u.s. debt ceiling, president biden says his call with house speaker

kevin mccarthy sunday went well as he heads back from the g7 summit in japan. this sets the stage for new talks with the leaders, who are due to meet later today. at the same time, treasury secretary janet yellen says the u.s. is unlikely to reach mid-june in still be able to pay its bills but let's go over to paul dobson. we are used to an environment where at the 11th hour a deal is reached. how do markets price this and if we assume the game of chicken will finally end? where are the risks showing up? paul: good morning. first and foremost, the risk is showing up in the treasury bill curve with the market pricing in that risk of nonpayment sometime around the first couple of weeks of june. the rest of the markets still looking pretty complacent overall. measures of volatility are not high relative to recent months.

we saw the u.s. equity gauges hitting nine months high last week. yes, there was a little decline on friday where the negotiations walked out of the talks but not the blind panic you would expect. just managed to show more possibility -- positivity at the start of this week as well. at the moment, we are kind of not ultimately pricing in that much in global macro markets. if we are still in the same position 24 hours on and there's not been that much progress, that's when we might start to see markets react that much more. you might think june is still a long way off and we are ok, but it will take maybe eight days to get through. u.s. lawmakers to get the thing passed that will allow more spending for that to happen. the clock is ticking. the markets are kind of starting to pay more attention and i

think if we don't see some more concrete measures amount, probably while asia is asleep overnight. in your day and into the u.s. session, people might get more worried in terms of market pricing. dani: the risk isn't only that they don't get it done, it's that they don't get it done soon enough and the market reacts. if there is a resolution, is there a lot that needs to be unwound? does the market take that in stride and push the next catalyst higher? paul: it's interesting to know how the market would respond. it seems they want to take it positively. you were talking about the net short positioning for u.s. equities and i can tell you the market is looking for negative news and if it doesn't get it, the bias is for it to push faster into higher territory.

what's interesting and also playing on people's minds is the liquidity question. the u.s. will need to issue a bunch more bills to get the cash up again. people are interested in watching that and thinking will that sop up excess liquidity in the system? will it be more of a risk negative in the market than we are thinking about? something to watch out for. it seems like the market espys for output movement at the moment but -- market is a biased for output movement at the moment. dani: paul, thank you. paul dobson. let's get you set up for the trading day. 1:30 p.m. u.k. time, james bullard will be speaking on the u.s. economy. tomorrow, a host of flash pmi's from across the world, including u.s., u.k. in europe. wednesday, minutes from the fomc

march meeting, and u.k. cpi data. thursday, the turkish central bank will deliver its latest policy decision just three days before the country's presidential election runoff vote. on friday, more u.s. data. we will get the fed's favorite measure of inflation, pce, and durable goods. later, we will speak to the ryanair cfo, at 6:40 u.k. time off the back of a strong summer expectation. this is bloomberg. ♪

dani: let's get a look on china

currency because the yuan rebounded friday after the pboc vowed to curb speculation, but concerns about the economy from the weak data coming in means there is still weakness in the renminbi. it is still sitting at seven above the dollar. let's get to our guest. how significant is it that we are over seven? >> it is psychologically significant, a landmark. i think the significant thing is that the chinese authorities allow that to happen. if it did not want to go through seven, it wouldn't have done. when they allow the currency to weaken, it sends a signal. it is important because the yuan correlates with so many other currencies so closely. we look at it as a chinese story but it tell you something about the dollars continued momentum as we price rate cuts and as perhaps some of the bullish bets

on other currencies get a little squeezed. i view it that way, it tells you the dollar has got some momentum behind it at the moment and it tells you chinese authorities are not trying to stop this happening very hard, otherwise it wouldn't be. to the domestic story, i think it is temporary. the goods sector has been weekend and -- weakened in china. the service sector i think will be stronger. i would be surprised if it stops before it has gone a fair bit further. dani: what is a fair bit further? kit: 730 by the end of the year, something like that. dani: if the goods sector is moving forward, services will be strong, because for many of the data in china is a narrative shift. you are seeing is not a

narrative shift, just the opening story delayed? kit: i think as ever, which is the whole pandemic, the story is complicated. so yes, because of when the reopening happened, how long china was locked down, it was difficult to get the goods sector being the driver. it was much easier for chinese people to visit their relatives in the country, to go out in the evening and get out of their apartments, than it was for them to jump on a plane and go to singapore or qatar. there hasn't been a surge in travel or buying. the real estate market is a separate but weak story. i think there are a bunch of those kinds of issues floating around. you also see from the u.s. aside this boom and imports last year that has slowed down somewhat. there is less of a pool. i think we will find china is

not booming but the reopening story is playing out to different music. dani: to the point of the u.s. story, which is so dominant, kashkari over the weekend talking to the wall street journal and endorsing the pause narrative. we heard from powell on friday. quickly take a listen to what he had to say. >> while the financial stability tools help to calm conditions and the banking sector, there are tighter credit conditions and are likely to weigh on hiring and inflation. the extent of that is highly uncertain. dani: you have powell quite literally reading from the script, but it is a devilish script nonetheless. what do we do? we price in a pause or is a pause away of seeing we will

stop, it is the end of the rate hiking cycle? kit: i think it is the end of the rate hiking cycle, but it is not definite. one thing will be we will continue to be told that they are pausing for now, and we will continue to look at what the economy is doing and we will say it's not accelerating, inflation is coming off. if you are pausing, the window of opportunity for raising rates again only comes back if inflation numbers are very sticky down the track. i think in the meantime, you get this gentle pushing back against the rate cuts the market is pricing in. what we've been doing the past two weeks is slowly pricing out what three rate cuts priced in between now and the end of the year. i think that's what the fed would like, for those to vanish away while they do nothing and wait and see what happens. they have no real idea better than us in terms of how much

credit conditions have tightened, and how long they will tighten four. sentiment play such a part of that. dani: to your point, nothing is ever a clear narrative. thank you for helping us to do our best to figure it out. enjoy the rest of your week. coming up, the race to replace the morgan stanley ceo. there are three key contenders emerging. we will bring you the state of play next. this is bloomberg. ♪

dani: james gorman's plan to step down as the morgan stanley ceo in the next 12 months that's up a battle -- sets up a battle for the top job at the bank.

su: this is a trio of top execs at a top wall street bank. who emerges as the one to succeed the ceo? who has expressed confidence about his succession plan but did not announce names when seeing would step down. the key contenders are ted pick, in trading and dealmaking, and credited with fixed income trading. dan simcoe it's, with expense on both sides of the firm. and andy saperstein, who manages wealthy for the -- manages for the wealthy. he is seen as -- james gorman is seen as transforming the bank after it nearly collapsed when he took over in 2010. he plans to step down as ceo

within 12 months. he was previously at merrill lynch. in his statement on friday, he said it is the board and my expectations that the transition will occur at some point in the next 12 months. that the current expectation he said in the absence of a major change in the external environment. that references there could be volatility ahead that hastens a change. the real face-off is between saperstein, who a lot of analysts say the wealth unit was a driver of growth at morgan stanley, and pick, although pick has had one public misstep. his group was caught wrongfooted in 2021 when arkegos collapsed. dani: su keenan on the three men who could possibly replace james

gorman when he steps down in about 12 months time. let's get to our other top stories with the first word news in hong kong. adrian? adrian: the greek prime minister has pummeled the opposition in the national election over the weekend. moving a step closer to another four year term. the prime minister's center-right new democracy gained about 21% of the vote. he will likely -- rather than assembling a coalition. china has delivered the latest salvo in the escalating chip war with the u.s., saying micron products failed to pass a security review. beijing has warned manufacturers of pm for structure from dying from the firm. the u.s. commerce apartment says

-- department says the ruling has no basis in fact. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am adrian wong. this is bloomberg. dani: thank you. coming up, we get the key takeaways from the g7 meeting in japan. biden on his way back to the u.s., saying relations with china are set to improve we will get more on that. the micron story as well, china facing more restrictions, saying after a technical review. all that next. this is bloomberg. ♪

dani: good morning, happy monday. this is "bloomberg daybreak: europe.

i am dani burger in london. china bans micron semiconductors, escalating the tech clash with washington. asia stocks rise after biden says ties with beijing are set to improve president biden and house speaker mccarthy do to discuss the debt ceiling in washington today as talks to avert u.s. default resume. plus, fed officials, including chair powell signal opossum hiking cycle might be appropriate next month while christine lagarde says the ecb fight to tackle inflation is and over. when it comes to the china story, kit was walking us through how important the u.s. narrative is there. the end of the u.s. rate hiking cycle is driving the yuan, and chinese stocks and weaker data. the fuel for a rally has been biden saying relations between the countries are going to improve from here. china tech stocks up one another percent.

s&p seeks -- sinks lower. michael hartnett says his clients are board of the bears. what you do when you're bored? perhaps you just by ai stocks, which they say is in a bubble. when it comes to other asset classes, a move in the belly, neel kashkari speaking to wall street journal saying perhaps a pause is correct as we assess the fallout in terms of the banking crisis. a tighter credit cycle. the euro is moving higher, we had christine lagarde saying they are not done yet and they will keep hiking. that varies widely with what we've heard from the u.s.. the renminbi up above seven dollars. the 2023 qatar economic form begins tomorrow good global leaders discussing -- tomorrow. global leaders discussing some of the world's most pressing challenges, and discussing them with manus cranny in doha.

i was thinking of you this weekend because i was seeing man city dominate. i know you are not that much of a football fan, but we are seeing this dominate. manus: we are coalescing until half -- welcome to doha. you are right, who will buy the u.k. football club? we have the really heavy hitters in terms of the owners of capital in the hall and how the money is deployed across the world. not just the qataris. others are here, political elite from around the region, and indeed asia and europe. trade will be a big part of the conversation as well. yes, we deal on a daily basis between china and the u.s. but we need to talk about the global south. to that end, on this roster,

you've got the qatar investment authority ceo joining us, along with mbs, on a stage with an official from qatar. it is about reaffirming relationships in the region. steve mnuchin will take to the stage to talk about the debt ceiling. a very interesting set up of guests have to talk about global capital, political capital and the debt ceiling. dani: hopefully there is a resolution because of these markets start to go more nervy if we are not getting close to any sort of resolution, it will probably take over a lot of your panels in terms of what is on people's minds. manus: i think it is going to dominate. ubs research and they say in an

extreme event, not the base case, you could see a drop of 20% or 30%. in the equity market a technical default for a couple of days. but it is the principal, global economics's fulcrum is america stands by its debts. i think when it comes to technology, the tiktok ceo, it will be interesting to hear what he has to say. bill winters and schwarzman in terms of capital and what the real risk of a global economic slowdown might look like and what we can expect. powell talks about a tightening of credit. the bankers of the world and owners of capital concerned about a credit risk going forward. these are the bankers that will turn up you got the winters, you got steve schwarzman and the tiktok ceo joining the team. good morning. dani: good morning.

i had to talk about the bank of america flow show all on my own. you were here -- were not here to discuss it, i was heartbroken. manus: there is a mini bubble in the flow show. dani: a mini bubble. manus cranny in doha. we will hear from him all week. when it comes to geopolitics, the group of seven annual summit in japan has ended, with comments from president biden seeing he expects u.s.-china relations to improve shortly. this came just before china announced a ban on micron chips. joining us with more is mark champion. how can biden say these optimistic comments at a time when china just made this move on micron? mark: it's interesting for that reason. first of all, you have had a number of sub summit meetings,

jake sullivan recently in vienna. they were trying to get the on the balloon incident. you had biden right after micron, instead of saying, indicating we will escalate or getting angry because this was in essence retaliation, he moved on and said will try to get past silly balloon incident, as he called it and in a sense, he is optimistic because he said it. dani: i think you need a trade mark on yonder the balloon. elsewhere in the g7, allies trying to win over brazil, indonesia, india, sort of as opposition to russia, to win over their position on russia's invasion. any clear progress? marc: no, nobody change position or indicated they would change position, but zelenskyy essentially ambushed them with the help of the g7.

it is important to get in the room with these leaders. they have taken a position where they have prioritized relationships with russia, their economic interests on grain, etc., over ukraine. they have essentially avoided talking to him. by just getting in the room in diplomatic terms, that is the kind of progress. dani: anything else standout? marc: really that you don't expect hard outcomes, i think it went as well as it could have. despite ambushed twice, once by zelenskyy and then also by the debt ceiling talks, where biden, he had to cancel various meetings and he was clearly distracted. even so, on the key issues,

china, which is probably the most important take away, and on ukraine, i think they kind of probably went home thinking it went pretty well. dani: thank you for joining us. marc champion. coming up, we will speak to the ryanair cfo on the back of their earnings be this morning. that is next. this is bloomberg. ♪

dani: let's get your bloomberg business flash with adrian wong. adrian: two companies planning to merge to create one of the world's largest legal firms with $3.4 billion in revenue.

the combination will have almost 4000 lawyers. the company will operate across 29 countries and offer u.s. law, english law and local law capabilities. spacex has launched a four person clue toward the international space station. the falcon 9 rockets lifted off from florida sunday evening carrying four private astronauts, including the first woman from saudi arabia to travel to space. the mission was operated by axion space. it is one of four want to spacex is handling for the company. a committee appointed by india's top court says it doesn't see regulatory failure or price manipulation in the rise and fall of the adani group stocks. the initial fundies come as a relief for the empire, which has lost over $100 billion the hindenburg controversy. shares rallied on friday after the report was made public. that is your bloomberg business flash. dani: thank you.

adrian wong there. ryanair says and expects strong demand in the peak summer season to drive a 10% increase in passenger numbers. the low cost carrier reported estimates -- reported profit that beat estimates. thank you for joining us. what is driving the strength? where should i be going that everyone else is going? neil: everywhere is great. we have over 3000 dearly -- daily flights at the moment. half a million people have been moved around. every flight is nearly full at this point. you have to book early or you will miss out. dani: where is the demand coming from? neil: sun destinations are very strong, especially the u.k., dublin, central and eastern europe.

domestic italy is strong this year. across the network we've seen huge demand, it has been robust, people very keen to get out and get some sun. dani: they are willing to pay higher fares to do that. there have long been the idea that by this point, surely the pent demand story is over. are you surprised the consumer has been so resilient and is willing to pay more for those tickets? neil: not particularly. we are coming off a very low base and our average fare is significantly lower than everybody else. capacity in europe is still not back to pre-covid levels. you're looking at 95% of pre-covid levels. i think it will be a year before we get back to pre-covid capacity. airlines have gone out of business or shrunk as more consolidation goes on. the oem's, aircraft

manufacturers behind in delivering aircraft. leasing company short of capacity. i think we will see this continue for some time. meanwhile, customers like yourself and everybody else very keen to keep traveling. dani: when we finally see the end of that demand source? neil: i don't think it will run out. if anything i think people have decided after being locked up a few years, travel is a key priority. the ability to work from home or from a broad has opened up the opportunity for people to be out even more. dani: this is a wide macro change, a complete regime shift in how people view travel? neil: if you go back to the global financial crisis, it was very clear at that point in time that your mortgage was your number one priority but after that, what do you sacrifice? the question is into the winter, to people to give you the interest rates are rising, the cost of living higher, and maybe

fares come down. we don't know. but we think long-term and this is why went to washington, d.c. a few weeks ago and put in an order for aircraft, we are confident the market will remain strong and the ability is there for ryanair. the lowest cost of any airline in europe by some distance and we have the stronger balance sheet. thanks of that, we were more than happy to place an order for 300 aircraft which will see us grow 30% of the european market by 2034. dani: what are your expectations for the winter? you said it might come down, but is that your basecase? neil: we don't know, that's why despite year on year, we are still cautiously optimistic we can deliver 185 million passengers, a 10% increase on last year. that will grow profit modestly. dani: one about ancillary

revenue? people will buy tickets, but maybe they don't take the priority boarding, maybe they don't buy food on the flight will some of that come in? neil: no, we've gone to a 19-year-old passenger before covid to a 23-year-old passenger on average now. more people are paying to put a bag on aircraft, paying to choose where they sit, and onboard spend has come back strongly in the u.k., people are benefiting from duty-free. dani: i feel it is so american of me to demand the freshest food. neil: our ham and cheese panini are really good, i recommend them. dani: i have to try it out next time. neil: a nice cup of coffee to go with it. dani: ham and cheese with a cup of coffee, i will try it.

when we get to the really strong summer season, what do you expect pain points to be? neil: one of the pain points this year so far has been french air traffic controllers. we've had if you seven days of strike activity. we would hope that would start the pullback when we are into the peak summer period. we have to invest heavily in crude resilience. we have the highest ever crewing ratio. we doubled the size of our operation center to make sure that on the days where there are strikes, we've got enough operation resilience built in so you will be laid by french air traffic controllers but you will get to where you are going. dani: is it just france? neil: it's the prime one. airports, getting to them has improved. the airports have worked very hard to improve things. we would be hopeful you won't see the issues we encountered in

early june of last year in airports across europe. french air traffic controllers and others are still behind and i think that will prove to be an issue throughout the summer. we've collected a million signatures that we will hand over to the eu. if you look at greece, they have legislation in place that says all flights have to be protected. that's the big issue. it's not flight landing in and out of france, it's flights over france that are being impacted. that's why we agree that while they have the right to strike, they should not be disrupting traffic not landing on their territory. dani: in this new world where we prioritize fun and going on holiday, do we see an end to the era of super ultracheap fares? i know to some extent you will be discounted, that is your model, but is the lowest of the low over? neil: i don't think you will see too many 99 euros fares.

but you might see others. the max aircraft with more seats might put downward pressure on fares. what i can tell you is ryanair will always have the lowest fear of any airline out there because we have the lowest cost by some significant difference. it lowers the price point to fly. the days of the 999's or possibly behind us. dani: great to catch up with you, i wish we had more time. neil sore hand, the ryanair cfo. coming up, we talk u.k. politics. rishi sunak returns from the g7. we will get the latest challenges next. this is bloomberg. ♪

dani: let's take a look at some of the key things markets are watching out for this week. 1:30 p.m. u.k. time, james bullard speaks on the u.s. a quantity -- u.s. economy, after a lot of fed speak endorsing upon tomorrow, a host of flash pmi's from around the world. when say, minutes from the fomc march meeting. we will also get u.k. cpi data. thursday, the turkish central bank delivered to the latest policy decision three days before the country's presidential election runoff vote. on friday, more u.s. data. pce and durable goods. u.k. data in there, a lot to watch out for this week the u.k. prime minister just returning from the g7 summit in japan. he is facing a cabinet scandal and conservative party

finger-pointing. joining us is our u.k. correspondent. what is rishi sunak facing? lizzy: remember, he wanted to refocus the conversation, talk about the better relationship with the eu, resetting relations with china, how britain is helping ukraine, but instead he's having to talk about the home secretary who the sunday times reports has a speeding fine, which is she asked her civil servants to deal with. that is possibly a breach of ministerial code. rishi sunak says he hasn't spoken to her yet and is not yet considering sacking her. when she was in the trust cabinet, she was fired because she shared sensitive information via email. so the opposition party is accusing rishi sunak as being weak because he reappointed her in the first place, he hasn't sacked her, and he has not

immediately launched an ethics probe. dani: is not necessarily just the spine, also immigration is an issue. lizzy: exactly. she made a speech last week to conservatives saying she was critical of the government's migration policy. this was seen as a thinly veiled leadership bid. we will get new numbers this week a month they are expected to show that migration in 2022 to the u.k. was a record. it's difficult politically for the conservatives because it's been a long-standing promise of theirs to cut migration to the u.k. and indeed it was a big prize of brexit supposedly that written control its borders. what we've actually seen is the numbers from the eu may have all in but we have arrivals from non-eu, students coming back post-pandemic and refugees from hong kong and ukraine. it is very difficult for sunak when you have businesses saying we are desperate for visas to fill these vacancies in sectors

where brits do not want to do the jobs -- truck driving, fruit picking. at the same time it is difficult because you can see why he would not to banish the home secretary to the back bench. dani: we will get a lot of u.k. data this week but before that kicked off we got overnight the right home prices. what did they show us? lizzy: that is the property portal. it seemed to suggest that confidence is coming back to the u.k. property market. people are being enticed back because you've got signals the u.k. economy is resilient and mortgage rates are stabilizing. it seems we are a long way from the aftermath of the this trust many budget when mortgage rates hit a 14 year high. this despite the warnings you would see a double-digit correction in u.k. property prices. despite the fact that markets

still see bank of england interest rates continuing to rise. dani: ok, thank you very much. along with expectations of continued rising u.k. interest rates, we heard from christine lagarde, who said there is more ground to cover to tame inflation. on the flipside, neel kashkari endorsing the pause. he has an appearance on friday. a stronger euro this morning, up about 6/10 of a percent versus the dollar. that is it for daybreak. europe markets is next. this is bloomberg. ♪

anna: good morning, welcome to "bloomberg markets: europe." anna edwards, live in london.