for the first time, i started crying. i could hear everything. call 1-800-miracle and schedule your free hearing evaluation today. it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. dani: good morning and welcome

to "bloomberg daybreak: europe call china growth worries hit asian stocks dampening the wall street rally propelled by banks and ai. markets will be price 25 basis point hike on the fed next week u.k. inflation day that today is expected to show a drop in headline rate but core cpi is unchanged. the ble will need to raise rates again. shares morgan stanley and bank of america jumped after better-than-expected second-quarter results. attention turns to goldman sachs and attention turns to asml. it is a beat for their second-quarter booking for the chipmaker coming in at 4.5 billion euros, the estimate was for just under 4 billion euros. third quarter net sales, these are the estimates. they are seeing it higher on the high-end. the estimate was 6.5 one million euros for the third quarter net sales. as the low end of their estimates.

the high end is 7 billion. the one disappointing thing is the gross margin for the third quarter. the forecast was 50% in the estimate was 51.3% perhaps costs are going to be an issue for them going forward, but at least for this quarter, they did have a better gross margin. the gross margin was 51.3% in the estimate was 56 -- 3.6%. overall, as i mentioned, the guidance is higher now and higher than estimates and they are saying that the sales growth towards 30%. that is the latest from asml. we will keep an eye on any commentary they might have during our call about china demand, especially for the deep ultraviolet chips. when it comes to the overall market, it is hard to beat down the disinflation narrative. it picks up momentum and we are continuing to see buying on the front end of the curve. that's narrative was challenged yesterday by american retail

sales data. the core group to come in hotter and there was a revision higher for the prior month. that is the selloff on the front end of the curve. that is abating this morning because we all want to see the disinflation narrative which is a fed blackout and there is no one to stop us from treating at the moment. equities gained yesterday propelled by earnings. you could see that without performance of the small-cap stocks. here is with the s&p 500 futures session looks like. you can see how it opened the u.s. open there. that is bank earnings propelling things higher. it got another boost things to microsoft news. asia, it is a different story when it comes to equities. it is not the same positive sentiments. let's check in on asian markets and get over to tanya chen. what are you saying? >> it is a very different story as you are saying. china and hong kong shares are sapping the risk sentiment of that strategy that we saw

overnight in the u.s. thanks to what you mentioned, bank earnings and the microsoft ai pricing. take a look at broader asia shares dared hong kong shares down over 1%. a lot of negativity around china right now especially around the property space. you see pessimism in the high euro -- high-yield dollars base. japan equities and ozzie equities doing quite well. going over to currencies, on the back foot today. the dollar-yen is down 0.3%. looking at the trade-weighted index especially where it is trading now, it is close to the lowest since january of 2021. that is interesting to note given the weighted basket is mean the dollar, euro and yen. -- men of dollar, euro, and yen. hold water was poured on the hopes of yield curve control meetings. has come very far from 1.45

without change or intervention. it will be interesting to see where the yen goes from here going into next week's inc. of japan meeting. dani: next week is going to be bananas if we have japan, the ecb and the fed. bloomberg's tania chen there and she will be back with us later. let's get to the top stories and a morning roundtable. joining us is lizzy burden and valerie tytel. lizzie, you would be hard-pressed to find a bigger story this week then bank earnings. lizzy: they keep rolling in. the year or -- of doldrums is over. bank of america is up four point 6% thanks to the surprise gains from the fixed income and equity traders. morgan stanley closing up 6.5% on this more optimistic outlook for the second half of the year. dani: investment making is back. everyone beating on that front. equities underwriting was so strong which is crazy eights in

a world where there is basically no ipo's. gorman was happy to celebrate this and speaking to sonali basak. let's take a listen. >> i do believe it has bottom. every co i have talked to has tilted to a more forward-looking posture. so, i think deals will start getting done. whether they happen on the back half of this year, i am not sure. it might be next year but it will be during next year when we see it if not this year. dani: looked, the idea of dealmaking coming back, i have heard one of this optimism from the private equity people i talk to but at the moment, it is just that. it is just optimism. we need to see it come through. valerie: all the big banks reporting so far had beat equity rising and all but city bank -- citibank have passed estimates project underwriting as well. bank of america has a surge in trading. up 18% year on year.

i don't think many about selected big trading beats to come this quarter but bank of america shook the boat and that narrative yesterday. dani: they have wall street and main street under lock at the moment. we will speak exactly about that with octavia morency coming up on the program shortly. he is the ceo of copy must. the other top story is microsoft. lizzy: there was announcement of a new corporate ai tool called copilots and it will cost $30 per user per month. dani: you thought the ai trade was over. it is not. take -- here is the fun facts. if you take the gains yesterday in microsoft and nvidia and made it into its own company in terms of market cap, it would be bigger than 90% of the s&p 500. valerie: i've heard people trying to call the s&p 500 the s&p 493 instead of trying to talk about the rest of the stocks outside of the ai bubble.

dani: i thought that was an office 365 joe. but that makes more sense. valerie: s&p 493 as the rest of the stocks outside the ai boom. dani: it rhymes and is perfect. the other top story we are tracking is central banks and the boj. lizzy: we had a second day of weakening for the unpaired covenant -- governor ueda is going to stick with monetary easing unless there is a shift on the price goal view. dani: they want to get about 2% but japanese inflation is higher than the u.s. right now. that feels unsustainably above 2%. valerie: still speculation about what the boj will do next week they are not going to tell us if they are aiming to do a ycc break. this has to be done in a surprise but the dovish comments from governor ueda are keeping the bond rally alive. it was sparked by the ecb, dovish comments in the most hawkish ecb member did not want

to talk about a hike after july. i don't see the bond rally ending. retail sales yesterday coming in stronger than the core component did not do much to dent the rally. we got u.k. cpi today and we will see if that extends on a soft print. dani: i love the bloomberg's group that the ecb see biggest issue is not inflation but words. they really don't want to broadcast what they are doing after this current meeting coming up. those are the top stories over the past 24 hours. the big story today is the u.k. june cpi which will hit in one hour and we will get goldman sachs earnings. that is going to be coming through before the bell. i wrote it down and i can't find it. we're going to get even more earnings. these i can confidently say. goldman sachs at 12:30 u.k. time. we will get earnings from netflix, tesla, and ibm.

those will be after the bell but let's be honest, we here at this roundtable care most about the u.k. api. lizzy: very good bias there. this print, we have had for beam upside inflation surprises in the u.k. and this will be crucial to whether the bank of england goes for a half point hike again at the august meeting. you have mentioned core inflation. that will be crucial and is expected to say about the same but if it rises the 50 basis point hike is on the table. valerie: today, i am most excited about whether this will extend the bond rally. if we get a soft and 50 basis point hike, this could light the bond rally on fire. the u.k. is one of the last developed countries do not turnaround core cpi we get a confirmation of that today, i think the bond market globally is going to take a big sigh of relief heard dani: the last four prince have come in hotter than

expected. maybe we have a handle on inflation expectation in the u.k.. probably not. lizzy and valerie thank you for joining the roundtable. that is lizzy burden and valerie tytel. you can get a roundup of the stories in today's addition of daybreak. channel survivors -- i just went to come back to asml because we are looking out for any commentary on china and american restrictions. the ceo and the earnings release that upcoming u.s. measures to close some loopholes and restrict tech exports to china measures will not have any major impact. this comes off the back of earnings where they have upgraded their view muffle your guidance with net sales growth around 30% saying the shape of the debt chip recovery growth is unclear in market segments are more cautious currently. we will go back to another set of earnings, the u.s. bank

earnings as wall street majors reports and we will discuss bank of america in their soaring profit and morgan stanley's wealth units topping estimates. we will discuss goldman before the bell next on bloomberg. ♪

>> it is not a given that you have a recession. with unemployment where it is, and inflation coming down under 4%, decent economic growth, stable markets, the banking system and balance sheets are strong and consumer balance sheets are ok, that is a pretty good backdrop. some industry sectors have his the are hurting more than others but you see it in the earnings this quarter. the earnings are not really bad. they're not great but not disappointing. >> what keeps you up at night? anything can derail the progress

and the economy, what would that be? >> the bill macro issue if you step back from it is the china-u.s. relationship. gdp of those who countries is 40% of the global -- global gdp. they are very dependent on china and china is dependent on the rest of the world for trade. that is the tipping point. there is an existential one which is u.s. defaulting on debt which is not happen. it is insane we should be having those discussions but that cut through the charade again. what really matters is u.s.-china geopolitical relationships for global trade and economic expansion. you have seen secretary blinken and secretary ellen -- secretary janet yellen going there. after all the years of doing this i do not worry a lot at night. stuff happens and you deal with that and have a strategy which is designed to. the company forward for a decade or more and except inevitable

disappointments along the way or things that go wrong and that is part of being in a leadership job. sonali: speaking of the next 10 years, there is the potential to infect businesses which is the basel three endgame. the regulations in the united states and across the globe are targeting fee-based businesses as well as trading businesses. how do you expect those rules to eventually impact the returns on those businesses? james: firstly, i will try not to get to weedy but the rule has not been opposed yet. -- proposed yet. we are finally at the end because we call it the basel three endgame so we are not going to get four and five. europe has not caught up in complied with the own rules. the u.s. has had a system parallel to basel and all the banks have come through this cycle very well. based upon vice chair's speech

monday are going ahead with a holistic look at basel numeral propose it in a couple weeks. i from -- i expected to be challenging for the banking system at first blush, but if you read the speech by the vice chair and various other commentary, it is clear they want input and they need it. there are things that were proposed under the european system that i just don't think are appropriate for the u.s. system like, as you said, changing the way they measure operating risk and risk-weighted assets based on the fee businesses you have. that is completely intellectually counterintuitive to what you want in fee-based businesses which is stability. i don't see why the u.s. financial system should be dictated by the european regulators, and i don't see that is where it will end up. there will be a lot of discussion and my guess is that none of this get fomented before the end of 2026. several years to adjust. dani: morgan stanley ceo james

gorman, a man that apparently sleeps very well at night. those shares rallied 5% after reporting earnings. let's bring in octavio marenzi, ceo of opimas. gorman does not worry at night. the market does not seem worried. should it be? octavio: i am delighted to hear that he sleeps well at nights. that is absolutely fantastic. looking at the results that they had that came up for this quarter, they were very much in line with expectations. trade was not terribly well. banking up a bit more activity in terms of ipo's on the equity side but nothing overwhelming. a strong performance for wealth management which was in line with expectations. we saw a big pop in terms of the morgan stanley share price based on his positive comments about deal flow coming back and more acquisitions and ipo's and tech underwriting. we will see more investment banking activity. that is all forecast and his

views of the future for later this year and next year. do not see it in the numbers yet. there has not been a big uptick ipo's or m&a. it is all forecasted and i hope he is right. dani: i think everyone hopes he is right. if you take the macro environment where inflation is still an unknown and what central banks do, the impact of volatility on the equity market, are you confident that what he says will come to fruition in terms of ipo and deal activity coming back? octavio: the ceo's of big u.s. banks don't always get it right so they are not 100% infallible in terms of their forecast. i remind you that jamie dimon a ago was talking about the economic hurricane coming and it will destroy the economy and beware. that does not seem to have happened at all. i think gorman and his future

predictions about investment banking taking off might be overly optimistic. i don't see much evidence so far but he has more insight. his bankers have some insight on deal flow but he is making a long term forecast and there is not that much of a pipeline of a leadtime in terms of investment making activity. that you can say it in a years time will pick up. does not take that long to do these deals. i'm not sure what he is basing that on. i think is sentiment and what he has heard from his investment bankers. i don't think there is real activity there. i hope he is right but i don't see any indication that things are moving in that direction just yet. dani: have a story for you on the hurricane thing. jamie dimon was speaking in january and said i should never have used the word hurricane. he also realizes the error of his ways. one thing that did look strong was bank of america in terms of their trading numbers.

when we think of bank of america, we are maybe not looking for the trading, market segment to be as strong as other banks. does that tell you perhaps a shift in the business mix or just trading overall going to be stronger this quarter wall street? octavio: all, i don't think trading was that much stronger at morgan stanley so that was not a strong point. i don't think that goldman sachs that will be the case either. those two large investment banks have a bigger exposure to that activity and they did not do well. if you look at trading volume and fixed income, has come down so that was reflected in the numbers. i think that is going to be reflected with the numbers for goldman sachs. bank of america is an outlier but jp morgan defined as well. there will be fluctuations from one bank to another in terms of trade and activity -- trading activity and what bets they took. there will be variation from

bank to bank. even overall and a quarter you will see some banks go up and that is what think america was. it is not the largest bank so there is not really a bellwether for the market in morgan stanley and workman -- goldman sachs are better indicators overall. dani: bank of america has been underperforming this year and there is a valuation gap opening up given the numbers we have seen so far. should the gap start to close? octavio: i think it should and bank of america's results were very solid. i think the overall surprise with this banking sector is how well their net interest margins have held up in the amount of money they are making on bread and butter lending business. i thought we would start to see deposits shifting out the banks looking for higher returns and basically 0% checking account. jp morgan and bank of america have been able to hold onto

deposits that are not just bearing which is helping the bottom line particularly in an environment they can lend out at higher rates. that is the real story overall on the banking sector, the very strong performance on the lending side and interest margins exploding and going through the roof. dani: we are running out of time. i want to before we let you go get your take on goldman sachs. expectations are low. are your expectations also low? octavio: my expectations are low and goldman sachs has gone through a pretty rough year. they have earnings results that are not impressive. i fear there will be a continuation of that and we will see a turnaround i think next year or something like that. i don't expect to see fireworks coming out from them this time around. it is close to the morgan stanley results however morgan stanley had a good quarter and wealth management which is not a big business unit for goldman sachs.

without the positive factor which is wealth management, overall it will be muted for goldman sachs i think today. dani: thank you for joining us this morning. octavio marenzi, ceo of opimas. we will break down volvo trucks numbers that are just out, a second-quarter beat in a more normalized demand situation. we will have those for you next on bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." heading into the break i mentioned volvo truck numbers and is a beat. 21.7 billion swedish krona in the estimate was for 18 billion. the volvo earnings also lay out the ceo saying that they are gradually entering a more normalized demand tuition.

let me read you what the ceo said. thanks to a strong commercial focus, we have been successful in improving margins while maintaining cost inflation and increased disturbances in the supply chain. corporate speak navigating the headwinds. they are saying there are signs construction equipment demand is weaker in some markets. there is economic weakness we see playing through. volvo trucks would be more exposed to this. i'm not sure if the video we are looking at is the truck factory or a car factory. we will get volvo cars tomorrow. we are also seeing a full year china heavy-duty trucks coming in at 650,000 units they are raising guidance for european truck demand tiered that is surprising if you are concerned about european economic growth. i want to remind us of the asml earnings because we have been getting commentary coming through from the ceo in the transcript of his video message

saying that potential additional regulations from the u.s. export controls is speculation. he goes on to say what we understand, it will not have a major impact on what we said before. any u.s. regulatory changes are not going to impact their outlook. a full year forecast, they did indeed raise. they see higher sales for the entirety of the year and they are seeing shift in demand they say of the ultraviolet chips business due to skills issues. a little bit of labor issues they are too. coming up, we will dig further into these earnings from our reporter. to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming back. with golo, i've not only kept off the weight but i'm happier, i'm healthier, and i have a new lease on life. golo is the only thing that will let you lose weight

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dani: good morning and welcome

back to bloomberg "daybreak: europe." i'm dani burger in london with the stories you are waking up to. asian stocks dampening the wall street rally, pricing in a 25 basis point hike from the fed next week. u.k. inflation data is expected to show the drop in headline rate, with bets the bank of england will need to raise rates again. and outlook for chip demand picking up. this overall market when it comes to the bar market, we really want it to rally, that is the bias to buy. the latest fbi see data shows foreshadowing in the bond market. it was crimped yesterday by retail sales data. the control group still came in hot. you can see at the end of the day yesterday we did see the rally turn into a selloff at the rally continues today.

that narrative not exactly that inflation is here to stay. in equity land it goes from the macro to the micro. the banks are outperforming but one analyst saying morgan stanley was basically in line. the rally is based off expectations and they are just that at this moment. let's be honest, the track record of some wall street brokers has not been great, a la jamie dimon. futures basically holding on this morning but the two stories that really shook things up, one is microsoft, the ai rally continuing with some force. a story out from bloomberg that they've set the price tag for their new ai products at $30 per user per month. that is higher than what they expected. let's go over to tonya, we need

to get her back on. how are the asian markets looking? >> exactly what you were just saying, china is being the party pooper today. asian shares are probably lower but led by hong kong shares and taiwan shares down as well. csi 300 down today. we're seeing a lot of pessimism coming from the dollar bond high-yield space and the property sector, all eyes will be turning to the public bar later this month, everyone hoping for some stimulus to help with the chinese economy, but no one expects the quickfix to the recovery. the dollar is a bit firmer today, down .3%. the trade-weighted basket, the basket there trading against 24

major trading partners, dollar, euro, yen. the pboc has been pushing back a little bit at the currency's depreciation but none of these fixes have been as outsized as what we saw late last year. that could be a sign that maybe there's a bit more tolerance around the yuan appreciating. again on the second day of declines here, bank of japan governor poured water over the hopes around the tweet to the yield curve control saying they will keep a more monetary easing stance until there some sort of shift toward inflation targets. that will be interesting to see where the yen trades going into next week's think of japan meeting. dani: tania, our director putting on screen was just preparing you for the surprise of the boj earnings. do you feel prepared now? >> i'm always on my toes.

dani: a quick breaking line on nordic banks, it will be acquiring the personal customer business. saying the sale won't change their financial guidance and won't have material impact on future earnings. we don't have the price tag on this quite yet. this will be structured as a transfer of asset liabilities. from the nordic banks to wall street banks, let's talk about the earnings, it's been a tale of two lenders. bank of america's profits soared after is trading business topped estimates. revenue rose to 2.8 billion dollars, sending the shares rallying the most in two months. on the other hand there was a slowdown in trading and dealmaking at morgan stanley and put a 13% dent in profit.

that was based on the ceo telling bloomberg that the slump has bottomed and the worst is over. so there you get that nearly 6.5% rally in morgan stanley. we were just talking to octavio marin see about these results and he was basically like, depending on exactly where they have put into investments and change things, when it came to bank of america and morgan stanley, which of those divergences stood out to you yesterday? >> i would say overall the results can be considered -- there was a lot of gloom and down talking from the banks and analysts and everybody was expecting -- we saw it in the numbers, the trading slot and

the overall business slump. also the pressure coming from the interest rate side, but overall is not as bad as feared. we had some bright spots as well. dani: i'm going to jump in, i think we have a few issues with your line, but thank you so much for joining us. we will see if we can fix that up. and look out for goldman sachs earnings around 12:30 p.m. u.k. time, before the bell in the u.s. now let's pivot to the latest from europe's most valuable technology company. it has reported a surge in orders this morning, shrugging off the weak demand in the chip sector. april, what we're takeaways from these results? >> good morning. compared to the previous quarter

it has beat analyst expectations. the company said in its earnings report this morning that customers across different market segments are currently more cautious due to uncertainties and the shape of the chip recovery slope is still unclear. however the company did raise its financial forecast for the year saying it now expects sales growth toward 30% compared to the previous year. it is interesting to note that it plans to slow hiring due to the weakness it sees in the chip sector and to the massive recruitment drive it carried out last year. dani: did the company provide any update about potential impact from what we are hearing from the u.s. about export controls for chip? >> april: they are set to face tighter restrictions from the u.s. on exports of some of its chipmaking machines to china. it comes on top of regulation previously announced by the dutch government in june.

the potential regulation from the americans is still unclear and potentially speculative. previous comments, it does not expect the relationship have material effect on the financial outlook for this year or in the longer term. investors are really watching the space very closely -- closely to see if there will be further updates on the potential impact. dani: as you are saying, this is just speculation now. april roach in amsterdam. the latest on geopolitics, and russian forces have reportedly struck ukrainian ports this one day after moscow pulled the plug on the grain export agreement with kyiv. ukraine said its forces shot

down russian drones and cruise missiles targeting the port. moscow called it retribution for an attack that damaged a crucial ridge to the crimean peninsula. it was not possible to verify the conflicting claims made by both countries. meanwhile it was warned that ukraine was a sticking point during a recent meeting with latin america. so yes, it has been a topic of conversation, and the e.u.'s foreign policy chief took aim at russian president vladimir putin. >> putin is using hunger as a weapon. under the pressure of the international community, he had to accept this deal, and now he goes back again on this decision which creates a lot of problems.

i'm talking about life and death for many people around the world. dani: we also had one of the top brokers, marsh, saying they would be suspending the ukraine rain insurance, adding to headaches. elsewhere, alberto fernandez says sharp devaluation of the country's currency would be very damaging. he gave an exclusive interview from the sidelines of this week's summit between eu leaders and leaders of caribbean and latin american countries. >> we believe in abrupt evaluation because we corrected already the value of the currency. sudden devaluation would be very damaging for the economy. the lack of $20 billion has brought alas -- loss of balance in the foreign reserves of argentina. we are working on how to

overcome or tolerate this problem. the argentinian situation has changed not because of the policy, the argentina policy was wrong, but because we face a climate catastrophe. any agreement would include clause saying the program could be reviewed for circumstances foreign to the argentinian policy, and a second paragraph specifically talks about the effects of the climate crisis. so we are operating within the program because it has to be reviewed. when i asked for the clause, i did not do it thinking of the drought, but thinking we could have a return of the pandemic, and that could condition us. last year we surpassed all the objectives we fixed with the fund. if we didn't have this problem, we would've continue to meet the program. >> so you agree that it is fair that the fund provides the additional money. you do not want to devalue the currency. >> in abrupt evaluation would be

a problem for argentina. this year the argentinians have to vote. >> what do you expect in terms of the election, and when you look at the past, what is the legacy you want to leave? >> i believe i have been a president who has been very open. absolutely democratic and very careful about the institutions. i've worked very honestly and managed to place argentina on the world stage, and i've managed to make the economy grow the last two years. it grew 16% and that has generated employment. we have one of the lowest rates of unemployment in the history of argentina. >> you don't fear hyperinflation? >> no, definitely not. there's no symptoms economically that make us think about that. >> you think voters will respond? >> i believe that when the voter has to think about how these last four years have been, they will realize we had to face the debt we inherited, that we had

to face the pandemic, the war of the last years, and despite all that, argentina grew and generated work and is developing again and has reinserted itself in the world. i think the voter will be able to see all of that, yes, very soon. the campaign will start soon. dani: argentina's president talking to maria in brussels. coming up, u.k. june cpi data is set to land in about 15 minutes. we will look at what to expect and what it means for the boe and the british economy. that is next. this is bloomberg. ♪

dani: we now beginning the big

data release, u.k. cpi in stover 10 minutes time. the headline inflation rate is forecast to drop but economists think cpi when it comes to the core reading may not have budged. the boe makes its rate decision early next month private wrestling with that sticky inflation. let's bring in our u.k. correspondent. it is kind of a scary picture of the headline inflation coming down or potentially picking up. are expecting something similar today? >> if we get another surprise that's going to be headed for the bank of england. economist expect you will get a .25% hike in august. what they expect is for inflation to fall from a .7% in may to 8.2% in june. as you mention, core inflation is really going to be important here. it is expected to stay on hold. they are also looking at services inflation because it's more a gauge of domestically

generated inflation. a .5 hike for august is very much on the table. dani: the debate around the globe as to how much central-bank hikes have actually impacted this economy, whether she is base effects we are seeing are something different. how do we interpret that when it comes to the u.k. and middle east impact? >> research saying the peak impact of the higher mortgage payments is not going to come until 2027 because you have such a higher proportion people on fixed-rate mortgages then historically. according to bloomberg research, people are benefiting more from higher savings rates and they are suffering from higher mortgage costs right now. the change to the strength of monetary transmission is the real uncertainty for the monetary policy committee. so we have the latest insolvencies data for june, up 27% year on year.

the higher rate and the economic slowing economy are already taking their toll. one broker saying it has not been as bleak since the 1990's recession. dani: one analyst saying be patient, the squeeze is coming. thank you so much for joining us. off the back of that inflation data, don't miss lizzie's interview later in the 7:00 a.m. hour with the u.k. chief secretary to the treasury, john glenn. more inflation data, but this time a key emerging, out of south africa. that's ahead of a rate decision from in central bank. let's get to jennifer, our africa correspondent in johannesburg. what are expecting out of the south african cpi numbers? >> we are paying attention to

south africa because as you mention, it is very important for this continent. we anticipate this could be the first time we see the cpi number return to the central banks target between 3% and 6%. that is significant for a few different reasons. namely because last month, we did see inflation easing, so this month if we do actually see it continue to go down, that could be a sign that inflation is actually easing. but we know that inflation is different here than it is around the world. it is really based on the supply side factors. electricity is still going up, and inflation expectations are still increasing. tomorrow when we get the central-bank decision about the interest rate, we will be paying attention to what the governor has to say about it, especially considering the forecast and all the other headwinds this economy is facing. analysts on the whole or

anticipating about a 25 basis point hike tomorrow, but some people say hike is not needed because we've seen the rent strengthen and households are already dealing with a lot of financial strain. tomorrow with the interest rate decision and with the governor has to say going forward about this economy. dani: i've said this before this week and i was said again, it is so cruel we have of the central bank decisions and it's the middle of the summer. there is too much going on. jennifer is in the cold and working away, our africa correspondent in johannesburg. plenty more ahead. this is bloomberg. ♪

dani: the greek prime minister

says he plans to legalize gay marriage and what would be the most significant of a series of pro-lgbtq reforms put in place by the prime minister. he sat down with our francine lacqua in his first interview since being reelected last month. >> homosexual people could not even give blood before he came into power. we will continue to implement our strategies, it is a long-term project but it's interesting that all these initiatives have been launched by a center-right government and not by the government that belongs to the left. we are truly progressive inner government. >> what about same-sex marriage?

>> it is a work in progress. we have civil union already. at some point the strategy will come to be. dani: that will air tonight in the u.s. and it's 6:30 p.m. london time on thursday. a recap now of this morning's earnings. i should say first, later on bloomberg tv we will speak with republican presidential candidate chris christie on balance of power tonight at 10:00 p.m. u.k. time. we will break down the u.k.'s june cpi numbers and we will be joined by the u.k.'s chief secretary to the treasury, john glen. asml was interesting, it was pretty strong earnings.

they have upgraded their full-year forecast. their orders have been rising, they've been able to shrug off some of the weak demand, some of the bigger macro impacts to them. bloomberg intelligence has they could see sales rise 30%, despite some of the greater uncertainties, they see third-quarter bookings improving and the backlog remaining higher than consensus estimates. the other piece of information from the earnings which was fascinating, the ceo in the transcript of his video message around the earnings saying that any u.s. changes to chips, two barring chips being sent to china, at this moment, he called it speculation. he says this doesn't change anything materially to our forecast. so at least publicly unbothered by the politics, the changes coming from the u.s.

i also mention volvo, that was a strong beat. the estimate was for 18 billion swedish krona. they said they see a more normalized demand situation. however they are saying there are signs that construction equipment demand is weaker in some markets. if you want to try to monitor this economy, volvo trucks might be a good way to do that because truck demand is obviously linked with economics. they are still holding onto that pricing power, 15%, and the estimate was for 13.5%. that is it for "daybreak: europe." ♪

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