lizzy: good morning, this is "bloomberg daybreak: europe". i'm lizzy burden in london. global selloff. stocks slide across asia after private hiring in the u.s. comes in at twice estimates, roiling wall street as it drives up treasury yields. after yesterday's superhot adp report, today's payroll data will be critical for assessing the path of fed policy. samsung sees its worst decline in quarterly sales in more than a decade, fueling concern that the slump in memory chip demand has yet to end. happy friday, i bet you're glad you have made it here. it has been volatile in global markets over the past 34 hours to say the least. hot on the heels of those hawkish fed minutes, we had stronger-than-expected u.s. private hiring data. that has buttressed for taste for higher rates longer. that case was made again by

lorie logan, the dallas fed president, yesterday. markets pricing a quarter point fed hike this month. it sent the two-year rocketing to a 16-your high. the 10-year also topping 4%, that told european yields higher in sympathy. we have seen the s&p 500 closing down 0.8%. microsoft bucked the trend. it could join the $3 trillion market cap club thanks to ai, but the risk off sentiment has been continuing in asia. more on that with yousef gamal el-din in a moment. investors washing out for key decisions on china's stimulus today, as well as janet yellen visit to beijing. we have u.s. equity futures flat. treasury traders looking ahead to the u.s. jobs report later. it could take an enormous downside miss if the fed is

going to be derailed in its path after last month's hot print. let's get more from yusuf in how markets are reverberating in asia. yousef: lizzy, the shockwaves from the united states in terms of the repricing of government bonds is being felt in every corner of the globe. including this morning in australian government bond yields, which moved to levels we haven't seen in 10 years. the highest level since 2014. it is affecting corporate bonds across the board. this is a set of highlights with aussie 10-year yields that 4.25 five. your two-year is at 4.3. aussie bonds may extend the drop if futures breach october lows. i want to get to stockmarket action. because part of this is related to the yields repricing. the other part is related to earnings we got. we are broadly negative on the msci pacific asia index we are

down 0.6%. i want to highlight samsung. that's not down a little bit over 2%, the most on an intraday basis in two months. the chart that reflects operating profit that plunged 96% is accessible on your terminal. that is a 14-year low but it beat market expectations and stoked uncertainty over when this memory chip demand slump will end. we may see sharp recovery in the second half of the year as memory rise to lines are decelerating. and demand is expected to recover. one more note on dollar-yen, mr. yen is saying that could reach 160 on the ongoing widening differential between u.s. interest rates and what the bank of japan is doing. it's a big call, but in the past he has been proven right in many occasions. lizzy: thanks for that roundup

of what's happening in asian markets. turnout for our roundtable with derek wallbank and kristine aquino. we will start with a surprisingly strong u.s. jobs data. the flip side the inflationary threat. that sent the treasury two-year just short of 5%. the dallas fed president saying more hikes will be needed to cool inflation. >> i remain concerned about whether inflation will return to target in a sustainable and timely way. i think more restrictive monetary policy will be needed to achieve the fomc's goals of stable prices and max unemployment. lizzy: the official jobs numbers are out later today, is that anything that could not the fed off of its hiking path? christine: the u.s. jobs market is very robust, despite the fact that we have seen more than a years' worth of fed rate hikes

now. i will be looking out for the cost of labor, which we will be getting along with jobs numbers today. last month it was quite the goldilocks number because we saw jobs remaining robust, but the cost of labor moderating a little. that is the ideal scenario for the fed. if we see some surprise there, the fed could pause again and rethink its next steps but it is unlikely given how strong the numbers are. lizzy: with all that happening at home, it is the one week u.s. secretary janet is probably glad to be in china. she is set to meet with the chinese premier li qiang, and has met her former counterpart. reuters reported that china will find ant group $1.1 billion as soon as today. u.s. audit official start of a first-round -- fresh round of inspections on chinese-listed

company's including tencent. should this be a sign of comfort for u.s. investors? derek: i love the way you phrase that. things that look bad on the surface can sometimes be a return to normalcy, in the words of warren g. harding 100 years ago. that is what people are hoping for here. the u.s. and china have a lot of intractable disagreements. a lot of u.s. concerns about how china is operating in the world in their neighborhood. china views u.s. as trying to encumber its rise in some ways. they have butted heads. it is a fragile relationship. it seemed like it was on the mend after the bali g20 meeting, and then a balloon floats over the united states and it all goes to heck in a hand basket. here we are trying to get this back. some of these moves you have mentioned are along this line toward normalcy. that's one of the things i'm

looking for out of janet yellen's meetings with senior chinese officials today and this week. is signs that the u.s. and china -- they are not going to patch up everything -- but have they learned how to get along in an increasingly fractured environment? that's the key i'm watching for. lizzy: is it more of a necessity that janet yellen is in china. yousef brought is that chart on samsung. it reported its worst decline in quarterly revenue since at least 2009. sales down 22%. that comes back to weakening demand in the chips market, despite recent production cuts. it sent stocks lining in seoul yesterday. how significant is this? derek: it is significant. i'm watching for july 27th, which is when the whole company reports and will give a forward statement. they may at that point be able

to clear up if this is bottom, and we're recovering out of this, or not. that's what we're watching for at this point, is there more to go? or is this the bottom, and now we come up? again, using that word normalcy in terms of where our chips situation is overall. there has been that the glut situation. samsung is far from the only one. trying to shore up prices and making moves in that direction. let's see what they say at the end of july. if this is the bottom as csla said, and it is going up from here, then all fine. if there is more to go, that may weigh further. lizzy: let's bring you other things that are coming up today. in under an hour we will be watching german industrial

numbers for may to gauge the downside risk to gdp growth for the second quarter. manufacturing data came in stronger-than-expected yesterday. at 1:30 p.m. we get u.s. nonfarm payrolls, the u.s. jobs market has confounded expectations all year long. which has made the fed's job much harder not to mention the embarrassment caused to the economics profession. at 5:45 p.m. we have ecb president christine lagarde speaking in aix-en-provence, a.k.a. "french davos" in sintra last week she confirmed another quarter-point hike, the question is what data is she watching to decide what is next? german manufacturing data was from her than estimates yesterday and yet still heavy losses on the dax. what do you expect today? kristine: the data is the data. what we saw in markets yesterday is a completely different story. it is this narrative once again of markets realizing that

central banks the world over are just going to have to do more with inflation. we heard from christine lagarde in sintra last week, she confirmed there will be another quarter-point rate hike coming from the ecb. even if there is this kind of idea that more rate hikes will be making it difficult, economically speaking, for a lot of countries, it will have to be the way it is because of the way inflation is traveling. that is what captures the market reaction we saw yesterday. fears looking out six months beyond those rate hikes we're expecting down the pipeline from major central banks. what's that going to do to the economy? are we once again heading for a hard landing scenario? lizzy: kristine aquino our markets today managing editor and derek wallbank over in asia, thank you to you both. it's how i like to start my day. the other thing i like to start with is the daybreak newsletter, bringing you all the top stories on the terminal.

this morning they are starting with ubs revamping its wealth leadership in the middle east. next, the ceo of sweden's biggest bank insisting his industry is from enough to withstand turbulent property markets, even as funding costs and exposures rise. finally, that u.s. audit of chinese companies on the homepage for daybreak this morning. all that and more on the daybreak newsletter, which terminal subscribers can find at dayb . coming up, strong u.s. jobs data gives a gauge of global yields to a 50-your high. we discussed the bond market, the global economy and what it means for the fight against inflation. this is bloomberg. ♪

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lizzy: welcome back to "bloomberg daybreak: europe". we've got some lines crossing the terminal from provence, the ecb's president christine lagarde according to an interview says that ecb still has work to do to cut inflation. we will be monitoring her words all through the day speaking at aix-en-provence later. i want to take another look at yields topping 4% for the 10-year, the treasury, off the back of stronger-than-expected private hiring data.

it top 4%, nearing the highest level since march. that reverberated across asia this morning. australia's 10-year yield at its highest since 2014. i want to dig deeper into all of these moves now with our guest altaf kassam, head of emea investment strategy and research at state street global advisors. thank you for being here. your latest reading of the latest jobs data and fed minutes, how much higher can fitbits be and how much longer? altaf: we think that rates will stay higher for a lot longer. a lot longer than the market is comfortable with, and we're not really pricing in any rate decreases and probably not in the first half of next year. the question is more should rates go higher? and we don't think they should, even though the signaling is very strong for a rate hike in july and september. we don't think the economy can sustain that. you think growth will keep

slowing and credit conditions will keep deteriorating. there is not a strong need for the fed to keep raising rates given the signaling and the moves in inflation we think unfortunately they have nailed themselves to the mast already. lizzy: will growth keep slowing to the point of recession? altaf: that is unfortunately increasingly likely. there is a view that we could escape, there could be a soft landing or no landing. again, if the fed keeps raising rates the chances of recession increase markedly, and that will come probably in the second half of next year. lizzy: you talk about whether central banks should be raising rates. let's talk about the bank of england, jp morgan sees rates maybe going as high as 7% in the u.k., what about that? altaf: unfortunately the bank of england is in the toughest spot of any central bank. they have a tight labor market because of specific issues, for

example, brexit. they have inflation which is higher and core inflation picking up a lot more than other regions around the world. the bank of england i do think is in a different place to the fed and the ecb, and is probably more justified in having to increase rates to get that inflation problem under control given how tight the labor market is. but we don't think it is a similar position for the fed in particular, and the ecb being somewhere in the middle. lizzy: despite gilt yields surpassing the heights of the truss era, you have seen a strong cable rate, does that show the u.k. can come out of all of this intact? altaf: it can definitely weathered the storm better than nine months ago. what happened nine months ago was very unusual. it was like an emerging market economy. yields went up as the currency weekend. now we have yields going up and the currency strengthening which makes more sense. there is less lack of confidence in the u.k., but there is an

issue around inflation that needs to be tackled. that's why rates are going up, and the pound is strengthening as well. lizzy: bloomberg understands that chancellor jeremy hunt will reverse the ban on research for clients at his mansion house speech on monday. how much would that boost the attractiveness of the city of london? altaf: it would be something of a boost. unfortunately, a lot of the damage was done post the brexit referendum, that has seen a steady drip away from the city of london. but it is by no means the death knell. there is still a lot of attractiveness in the u.k. and london in particular. lizzy: the newest member of the bank of england's monetary policy committee has warned that one of the factors in inflation's persistence could be the contribution of ai to growth . how much does that were you in a global context? altaf: what you need for economies to thrive?

what has been missing for the last decade is productivity. we think ai could be a big boost to productivity. for us it is less of a word, but there needs to be a big shift in how economies and employers deploy ai and technology. that is still yet to happen. people are trying to work out how to actually use it in its most productive way. when we get that nailed down, it could be a huge productivity boost and add to gdp. lizzy: earlier in the week, we were talking about the china growth story. if it slows further, how much of a risk does that present to european equities? altaf: it is a risk. we saw german manufacturing numbers yesterday, so china is important, especially for big export driven economies like germany. so there is a risk. markets got it wrong, we think that china rebound post-covid zero policies will be more domestically focused and consumer oriented.

less about exports. china will be less of a lever to global growth than it has in the past. china will remain important. massive in emerging markets. but less of a push on global growth than in the past. lizzy: the most important question of the day, are you one threads? altaf: i haven't tried threads. lizzy: are you going to give ago? altaf: -- i'm not a huge user of social media, i'm just an old man. lizzy: thank you for being with me this morning. that's altaf kassam, head of investment strategy and research at state street global advisors. i want to bring a breaking news line crossing the terminal. alibaba jumping in hong kong after the report on ant group's fine, china will find ant group at least $1.1 billion as soon as friday according to reuters. not a problem in the words of oman's transport minister.

we asked about crude oil being below $80 a barrel. more from our exclusive interview next. this is bloomberg. ♪

>> $80 is not a problem for oman going forward. the past two to three years have witnessed a lot of improvements in decision-making in other sectors. also positioning the country for diversification when it comes to logistics, mining. the developments recently when it comes to green hydrogen in the country. recently, the last promise was a signature for $6.7 billion worth

of investment in green hydroge. 20 billion plus dollars when it comes to reading hydrogen. the growth of logistics have rebounded by 19%. 5% of logistics this year when it comes to the contribution to the economy. much higher than what we have seen in the past. the improvements in terms of mining is also noticeable. tom: let's unpack some of that. on green hydrogen i know your targets are ambitious. how much progress have you made in attracting investment into oman? >> there was a commitment announced by the country when it comes to green hydrogen. oman bring down emissions globally. oman announced its target, by 2050. all of them led by the ministry of energy and mining when it

comes to attracting foreign direct investment. roughly $20 billion worth of deals has been signed. this is because of the nature of the country. a large part of the country enjoys high intensity of sun and wind at the same time. thus there is a lot of signatures when it comes to production of green hydrogen, but also the use of green hydrogen in terms of producing green meadows, etc. -- green metals, etc. this year alone more than $10 billion. lizzy: was oman's transport minister speaking to tom mackenzie. let me bring you up to speed on oil markets. oil headed for a strongest weekly gain in three months. off the back of supply tightening announcements from opec+ leaders saudi and russia. a total of a million and a half barrels a day lost. u.s. crude stockpiles falling for a third week, taking

holdings for their lowest level since late january. against that backdrop you have tighter monetary policy and china's lackluster recovery, so crude still 10% lower this year. still ahead we speak to ukraine's finance minister about everything from government funding to the imf and hopes for the upcoming nato summit. that conversation is at 8:30 a.m. london time. also today, and over the weekend, we're at the aix-en-provence conference, and he won't want to miss our interviews. we will speak to the french minister for europe later today and over the weekend. we will talk to sanofi's ceo, and an exclusive interview with the ecb governing council member. we have european nonfarm payrolls data later today,. that's next. this is bloomberg. ♪

lizzy: good morning, this is "bloomberg daybreak: europe". i'm lizzy burden in london, these are the stories you are waking up to. stocks slide across asia after private hiring data in the u.s. comes in over twice estimates. roiling wall street as it drives up treasury yields. after yesterday's superhot adp report, today's payroll data will be critical for assessing the path for fed policy. plus, samsung sees its worst declining quarterly sales in more than a decade, fueling concern the slump in memory chip demand has yet to end. happy friday, i bet you are glad you have made here because it has been volatile in global. off the back of hawkish fed minutes, we had surprisingly strong private hiring data out of the u.s. that reinforces the case for higher fed rates for longer, which dallas fed president lorie logan made again yesterday. markets fully pricing a

quarter-point fed hike this month. a growing chance of another before the end of the year. as a result, treasury yields of sorts the two-year touching a 16-your high. that pulled european yields higher as well, you had the s&p closing down 0.8%. the risk off sentiment continued in asia. investors watching for decisions on china stimulus, as well as janet yellen's visit to beijing. meetings already underway this morning. we have s&p futures on the board for you, not looking like the rosy picture today ahead of the u.s. jobs report later. for the reverberations into asian markets, let's get to bloomberg's yousef gamal el-din. yousef: it is equities and bonds because the fixed income dislocations are being felt all over asia and around the world. in australian government bond yields we're seeing levels we

haven't seen in about 10 years, since 2014, that raises a bigger question as to what will happen with any bond bulls on a day like today. they are basically putting up their hats and saying get me out of here. the aussie 10-year is that 4.255. the other thing i want to zoom in on is the stock side of the equation. this is a improved trading session after lows for the msci asia pacific index. one of the center points of the debate is around semiconductors and chips and memory demand, specifically samsung, down about 2.1% after announcing operating profit that plunged 96% to a 14-year low. you would think this is a big mess, but it actually beat expectations. the chart tells the story in terms of operating profit. it also tells a story of potentially more investors coming on board and seeing the worst over in terms of the

weakness in demand for memory chips globally. that is the viewpoint of clsa. a quick note on dollar-yen, mr. yen the vice finance minister from 97-99 is out with a big call, he says 160 for dollar-yen because of increased divergence between rates in the u.s. and a bank of japan that insists on yield curve control. lizzy: what's going on with alibaba? in hong kong it is up nearly 5%. yousef: a dramatic repricing after a reuters report that suggests regulatory scrutiny around ant group is coming to an end with a $1.1 billion fine. this was a big cloud that weighed heavily on the china story. if we do get clarity later in the day, if all of this is proven to be correct and factual, this could unleash a new level of confidence way

beyond the ant group and alibaba and china tech. and at a time when there is a lot of pressure on the chinese government to come out with more stimulus measures. this is the intraday play on alibaba. we're off the highest but currently just north of $85 a share. this is a big development. lizzy: thank you to bloomberg's yousef gamal el-din for that roundup of what's happening in asia markets. we will be waiting with bated breath for the u.s. nonfarm payrolls data out later on today. that's after the private jobs report yesterday sent global yields climbing, to the highest since 2008. it has also boosted bets for another fed hike. for more, we're joined by paul dobson, our executive editor for asian markets. paul, is this just a u.s. phenomenon now? paul: fairly not. the epicenter for the latest news has been in the u.s. but actually pricing for rate

hikes around the world is probably more aggressive than other countries. the reaction was more extreme in european markets and it was in the u.s. yesterday despite the fact that it was adp jobs data that was the trigger for at all. there is that sense of anxiety about inflation and getting it back under control that is not limited to u.s. markets. we're seeing it in global measures of bond returns this year. back to basically zero, in terms of returns, year, when everybody was piling into bonds and making a lot of money and having a good time. lizzy: for how high can yields get? paul: one of our market stories is how long is a piece of string? there is a couple of things to bear in mind. the u.s. rate path that is being priced in is still not terribly aggressive. you were saying one more hike for certain and maybe another

one by the end of the year. we have seen that higher for longer trade come in where people have removed bets on cuts coming through this year or the start of next year. if the fed continues to raise interest rates, that should push up short maturity bond yields further. on the flipside of that, previously when we got to 4% on the 10-year treasury we have seen longer-term investors coming in and the likes of pension funds thinking this is a great time to lock in long-term yield for our portfolios. so that might mean the market has more at that back end of the yield curve. lizzy: put into context for us how scary is it actually? we were talking to altaf kassam about recession risks. paul: it doesn't seem like markets are terrified. the s&p has been having an amazing time of late, a couple of days has not said it back.

if you look at credit spreads, they are not pricing hard recession. there is plenty of resilience, and that is kind of the problem in a way, that people really are seeing recession coming or something that will get inflation back under control. that's what the fed and the rest of policymakers want to achieve. lizzy: we wait with bated breath. thank you to paul dobson, our executive editor for asian markets. u.s. treasury secretary janet yellen has met with two old guards of china's economic policy today, as she begins two days of talks to stabilize ties between the world's two superpowers. yellen's informal talks with the former vice president and the pboc governor were "substantive." she will take part in a bilateral meeting with the chinese premier later today. samsung has reported its worst decline in quarterly revenue since at least 2009.

shares slid 2% in seoul with investors uncertain when a year-long electronics demand slump will end. meanwhile of korean tech giant's 22% decline in sales was larger than expected. the 96% drop in operating profit was less bad than forecast. twitter is threatening legal action against meta against his new app threads designed as a direct rival. it is the most serious threat to elon musk's struggling social media site. it is pitched by facebook as a friendly alternative and has seen more than 30 million users sign up. the leaders of sweden and turkey will meet ahead of the nato summit in vilnius on monday. nato secretary jens stoltenberg is trying to make progress on sweden's exception to the defense alliance after inconclusive talks yesterday.

we spoke to ministers of finland and sweden. >> we have reiterated that we live in a world following russia's aggression that is very unstable. not least in the part of the world where leaving of -- we live. namely the northern part. sweden not being present in later will do exactly the opposite. lizzy: let's get to maria tadeo at the nato hq yesterday. good morning, sweden still hoping to get approval next week, how likely does it look? maria: yesterday the nato secretary-general repeating the nordic security will not be complete until sweden joins. he really defended the country, saying they have done everything they could. they have made changes to the constitution. they have made new legislation and arms-control. yesterday we had that conviction

to an individual connected to the pkk, which is fundamental for president erdogan, and yet it is still not enough for the turkish president. in terms of where we go from here, the dates have really changed. it is materially impossible for the turkish parliament to give this ratification before monday. instead what we're expecting is a bilateral meeting between the swedish prime minister and president erdogan, and the nato secretary-general. by the end of the vilnius summit on wednesday, president erdogan will say we agree, we go on and rectify. it is up to sweden to make document deposits in the united states, and the flag could be up at nato headquarters by the end of the month. that is the optimistic case. a lot could go wrong. we still see that the turks continue to play very hardball tactics. lizzy: what else will be

dominating discussions in lithuania next week? maria: the other big point is ukraine. again, the country made it clear and continues to make it clear that the cornerstone of their foreign policy is to join both nato and the european union. when it comes to this meeting next week in vilnius, they have made it clear they want to see a sentence that says ukraine will join nato when the war is over. will there be consensus? at this point it is not clear. there is another question that follows, that is what do you do in between? let's say yes, ukraine joins nato, but what do you do from now until that point. there is a whole debate about security guarantees that could be provided to the country on the interim. this is a crucial summit for ukraine, and we will be debating later on in the show i will speak to ukraine's finance minister. again, the idea is are the expectations for the summit that the country is betting so much on?

lizzy: thank you to our europe correspondent. i look forward to all of that coverage. coming up, we speak to u kraine's finance minister about government funding and the imf. plus, their hopes for the upcoming nato summit at 8:30 a.m. london time. a group of banks led by j.p. morgan and goldman sachs are lining up $9.4 billion of debt for a worldpay by a. more on that another deals next. this is bloomberg. ♪

lizzy: ["bloomberg daybreak: europe". jp morgan and goldman sachs are leading a group of banks backing a purchase of worldpay. they are lining up $9.4 billion of debt in what would be the largest buyout financing in over

a year. gtcr will acquire a 55% stake. the deal would value the company at over 18 billion dollars. bloomberg learned that the owner of sandal maker birkenstock is weighing an ipo that could be valued at more than $6 billion. the lvmh-backed firm is said to be working with advisors such as goldman sachs on a potential u.s. listing. i want to talk more about both of those deals because even though we have news from worldpay and birkenstock, more broadly it has been a slow year with the backdrop of high inflation and rapidly rising interest rates. many companies are looking at portfolios and trying to simple fiber structure, raise capital, -- simplify their structure, raise capital and reduce debt. manuel, great to have you with me on a friday to talk about the

deals of the week. let's talk about what could potentially be the biggest buyout financing since twitter last year, worldpay. >> definitely, lizzy, thank you for having me on the show. a very slow year for m&a and ipo's in europe. we have been busy the last couple of weeks, particularly some of the deals you mentioned are really exciting. also big in size. now it is we're seeing small deals being announced. financing is a big issue. we're seeing deals like the finance one worldpay involving private equity firms which have been very quiet the last several months. it is quite encouraging. big deals like this one are getting across the line. payments has seen a lot of consolidation. a lot of industrial players getting together.

also, a lot of private equity firms have been eyeing assets from this space. this is one to watch as it moves forward, and let's see how it moves along as it gets to completion. but definitely a space to watch. and then ipos, it's been dry across the globe, in the u.s., europe and in asia as well we're seeing signs of improvement with some companies filing for ipos. this one by birkenstock would be a big one. definitely a good brand which also helps. it will be interesting if we seek more of these companies. just a few days ago we were talking to some investment bankers. they were saying we need 10 to 15 good deals in the market to open up a bit of a window which has been pretty shut for the last several months.

definitely signs of improvement. but we're just getting started in the second half of the year. lizzy: thank you for that round up not just of the week's deals. life in plastic might be fantastic for mattel, the u.s. toymaker's bet on a feminist barbie movie could pay off. in her 64 years, the dollar has gone from icon to embarrassment. with the blockbuster film coming out the summer, they are trying to prove that barbie isn't hopelessly out of date. joining me for more on today's big take is sarah rappaport from bloomberg pursuits you also got the memo to wear pink today. >> happy barbiecore friday. lizzy: what does the film mean for mattel? >> it is the first live action adaptation. they have the big guns, margot

robbie and ryan gosling, ken, everyone's favorite. barbie is the crown in their jewel. the biggest bit of ip that they have. in doing this film and licensing it is they are making a bet of creating marvel universe. this is the first step in their big bet on toy films really. lizzy: this is what it means for mattel, what about the broader film industry? >> it has been a tough summer. indiana jones, have you seen it? lizzy: i did go riding in jordan at the set at petra. >> i thought it was a lot of fun. they spent more than $300 million, disney, and they have not recouped it back it. they pull he made $80 million over the july 4 weekend. it has been a tough year for disney. it has been a tough summer for basically everyone.

one are brothers' -- warner bros. the flash underperformed. so barbie has to perform in oppenheimer as well. 19% of people who are going to see oppenheimer will probably see barbie the same day. a fundable future. lizzy: i will do my best to prop up the film industry. sara, thanks for joining us. plenty more to come, this is bloomberg. ♪

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lizzy: welcome back to "bloomberg daybreak: europe". joining me now is tom mackenzie with the lookahead at what's coming up onto his show. let's start off with that dylan visit to china. tom: investors are very focused on this meeting.

the u.s. secretary on the ground in china meeting with the former vice premier, and li qiang the current premier, and meeting with members of the u.s. business and lead to to have footprint on the ground in china. one of my sources who is linked to these talks send me photos of the set up of the table. i can tell you there will be some big u.s. industrial players and big u.s. wall street banks in terms of their heads on the ground meeting with the china secretary. no doubt they will be pushing their concerns and what they want to see to improve the business environment. in terms of investors, they are looking for any concrete sign that the treasury secretary has made consequential moves in terms of improving relations. we look ahead to that end we will get the details on that story. lizzy: you spent so long in china and are soaked well sourced there. let's talk about the announcement coming up on monday

for the chancellor jeremy hunt. tom: this is significant for trading businesses in the u.k. the chancellor is expected to announce changes to mifid ii rules that have forced the unbundling of research from trading expenses. we're expecting that alone smit on monday -- that announcement on monday. there was a review into this, and it is seen as a measure to boost competitiveness in london. we're also expecting from the chancellor details about pledges from the insurance industry to invest potentially billions of dollars in things like technology. two big announcements that will be squared up on monday. we will get the preview of that. lizzy: i was speaking to altaf kassam from state street earlier, he said the mifid move is a step in the right direction but it is hard to undo the damage to london post-brexit. tom: it is granular and maybe

they are just moving the dial but clearly this is a chancellor and prime minister looking to find any wins they can to boost the competitiveness of capital markets in the u.k. give the challenge posed by other centers like paris for example. lizzy: and given the sensuality of it to the u.k. growth story. tom: our europe correspondent is bringing us an interview with the finance minister of ukraine. the conversation will focus on reconstruction of that country. but also, that perennial problem which is how they are tackling corruption. it is an issue for the country and its donors as well. you will get an update in terms of what it ukraine expect to get out of the summit. that will be a really interesting interview with the finance minister. lizzy: thank you to tom mackenzie. he will be joined by anna edwards and mark cudmore for the markets today program coming up

next. over the weekend, we will be covering aix-en-provence, the conference a.k.a. french davos. you won't want to miss key interviews. rules to the french minister for europe today, and the sanofi ceo, and an ex elusive sit down with mario centeno the ecb governing council member. all of that to come. up next, "markets today." this is bloomberg. ♪

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