dani: good morning and happy

friday. this is "bloomberg daybreak europe." i am dani in london. the nasdaq falls the most nearly five months as u.s. labor market strength triggers the end of the bond rally. shares in asia are mixed. the pans consumer inflation rises with options traders preparing for a policy surprised at next week's boj meeting. it is a setback for sunak. u.k. prime minister rishi sunak loses conservative seats in parliament dared will break down the results. i will break down the results for earnings hitting the tape. it is a beat for the second quarter coming in at just over 7 billion norwegian krone. the estimate was for 6.9 so that is a slight beat. revenue also beating coming in at 53.6 billion and estimate was for 48. the good news is they have increased their 2023 guidance on fx and inflation. they will be spending more.

good news for making poor projects but is that bad news if you are worried about cost? it is about the fx story and the inflation story, considering what is happening with the norwegian krone and the central bank in the risk of it getting left behind. second quarter adjusted net income coming in at 3 billion norwegian krone. the estimate was for 3.3 billion. overall, that seemed like a beat they are facing macro headwinds of fx and inflation. we will be speaking later this morning with norsk hydro's chief financial of around 9:30 a.m. london time. when it comes to the market over the past 24 hours has been we are, a super reared day. you can see it in the nasdaq futures. the nasdaq got smoked yesterday. they tech stocks are down. delete netflix earnings and ugly tesla earnings. i don't know if the earnings

were that bad to send it lower by that much. it feels like something else was going on. you have to wonder if there is capitulation from hedge funds here because tech did that. but the dow ended higher. it was a very odd day. they were big moves with the rates. 1:30 p.m. u.k. time jobless claims hit the tape lower-than-expected and kicked off an ugly session. you can see in the ramp-up where the release was but it continues. it feeds into something that maybe the trades are getting stopped out and it could be something more like a positioning selloff. that is what andrew brenner said. that is the markets in the u.s.. let's check in and see how asian markets are faring in get over to bloomberg's tania chen. how are things looking out there? >> asia stocks today are a bit of a mixed bag as you are saying. it has been an emotional roller coaster in asia looking at hong kong shares first, and in the week on a positive note.

we got a drip feed of measures helping the property sector, capital controls today at ourselves. there has been a positivity around the developers, dolly and wanda group looking at potentially a key unit of assets that will potentially help them pay off a dollar bond do in a few days. it has been a hard three-day streak in the high-yield market in china. outside of china, in taiwan, they are the biggest laggards in asia stocks today. tsmc cutting their annual outlook and putting arizona plans on hold, bleeding into the forex markets. if you look at the korean won, earlier it was over 1% and kospi was down. korea is seen as a proxy to taiwan given the shared relationship around the semiconductors. earlier they had data coming from experts earlier this month disappointing. it will be interesting to see how the ai boom fuels exports for south korean chips. i want to point out the yen

around the 140 handle. they had cpi inflation from last month hotter than it did but economists are saying that to put too much into that read because it is going in the direction that most of the market already expects. bank of japan governor is expected to keep monitoring easing stance next week and the yen, pboc officials coming out today to defend that currency at a meeting. they are also talking about opening up the china bond ensure market which takes me to this board of the ultra long yields of the chinese government bond notes, the 30 year to be exact. it is near the lowest since early 2000. this part of the curve tends to reflect the economic growth projections of china and so analysts expects that yields may go further down a policy announcements do not meet its petitions, later this month. dani: thank you so much. that is bloomberg tania chen giving us the latest on the asian markets. let's get to the top stories

this morning and it is time for the morning roundtable. joining us is valerie tytel of the bloomberg markets team. i mentioned it was a weird day for stocks. today will be equally as weird. we used to call it triple which impaired now we are just calling it options expiry. $2.4 trillion of options are set to expire plus we had the nasdaq rebalancing to take away magnificent seven weightings. with all that technically, it could be an odd and volatile date and equity market. valerie: we see perhaps volume spike and less liquid stocks given that affects today. -- given that op ex today. today is the last day for passive funds to rebalance their own portfolios. the thing about this is we have known about the rebalancing for almost three weeks and nasdaq announced on july 3. the thing that is still in question is what exactly the new weights will be. they will snap the market caps

at the close today and use that to rebalance the stocks. it is uncertain but the market has known about it for quite a while. i'm not sure what effect we will see. the nasdaq sunk over 2% yesterday and maybe that caused -- that was the effect of rebalancing already. dani: i look at this and wonder how much of it captured a moment in time of the zeitgeist being that the market is to concentrated and big tech stocks are too big. the nasdaq rebalancing fed into that versus actually having an impact? valerie: the s&p 493 may be . dani: we are tracking the reaction to jobless claims. i like how do -- julian emanuel put it as a strategic situation. the jobless lames coming in lower than expected and it is wiring what we think about the odds of a recession and what the

u.s. side. hyper sandler was the most bearish of all the sell side saying we are upgrading the price target for the end of the year. we expected 29% decline in we now see 20%. it is still bad but basically saying we have had to adjust. everyone has to adjust. valerie: and especially those who piled into recession trades a bit too early going long on the bond market and setting up a steepeners a bit too early and so washout in the bond market estate. perhaps it does change people's view on where the fed funds rate will end up at the end of the year. less likely to see cuts and the longer this labor market stays strong. we also saw the dollar really strengthen across the board. it hit a one-week high. a lot of that risk off move in equities driving that as well. we saw big moves in em currencies the risk off move with the dollar. yesterday maybe a slight game changer for those wanting to pile into recession trades.

maybe just not yet but we look towards the end of the summer where the seasonals that impacted the job market, companies that hire summer staff again go and lay them off. maybe september we will see the seasonals peak. that is a bloomberg economics call. dani: there was the philly fed survey. companies are still hoarding data. we were talking about the manufacturing sector being strong too. valerie: i want to note that morgan stanley's economist who runs the show there have hit a lot of things right so far this cycle. the action upgraded their gdp forecast, year and gdp forecast -- year end bp forecast for the u.s.. that comes because the public investment and spending from the inflation reduction act coming in more than expected. it hints at a possible rebound and may be stronger rebound in manufacturing. a lot of the ira spending is

going into the manufacturing industry in the u.s.. dani: and other top story we are tracking is japan cpi coming in hotter than expected at 3.3% exit food. it feeds into a narrative option that may lead to get a ycc tweak. the majority of it calmness not think -- economists do not think that will happen. the fact we don't expected to be think it will happen. valerie: they always leave us on our toes at the boj meetings. i look at what happened in the core inflation number and the poor number and core core number camry on consensus. we think it will fade a bit. the bond market maybe more so and less and options market. this means yield curve control is off the table for next friday. that could mean that the bond really will continue but i was wrong on that call yesterday

with the hot jobless claims. dani: biden is creating a debt limit team that has lael brainard and white house counsel and janet and merrick garland. the idea is avoid the standoff in the future. no clue how they will do that. what we talk about if we don't the debt ceiling limit debate? are you going to miss that? valerie: i don't think the markets will miss that. what a nightmare to deal with. the conclusions i draw immediately from that is does that mean there is more government spending on the way? government spending over the last year is up 15% year on year. a lot of that may be driving into this better than expected performing u.s. economy and may be more speculation that if they do fix this long-term issue about the debt ceiling, it opens the door up for governments to spend more money. dani: it goes right back to the inflation reduction act point. let's go through what we will be watching out for today. we will get more earnings data

including skanska and danske bank. any bank exposed to the nordic is fascinating right now given the concerns over real estate. we will get u.k. data that will hit the tape in less than an hour. inflation has been a problem for the u.k. but the consumer has been strong. they have been spending. jobs are also ok here. will they surprise to the upside even though the inflation data surprised to the downside this week? another thing to watch us in the u.k. is action from by election results. it was a bad night for prime minister rishi sunak. two of the bi-elections were won by labour party. one relief and this was a significant relief as the conservatives narrowly held onto boris johnson's former seat, on

the edge of london. any reaction to that will be interesting. valerie, going back to the u.k., retail data, does is move the needle for the boe after getting the cpi that is the end-all, be-all for the u.k. data? valerie: we have seen positive economic beads in the u.k.. we will see if that continues with retail sales today. it is a reflection of the u.k. consumer which is strong which points to where inflation is headed if the u.k. consumer is still holding up well and it bodes well for the core inflation number maybe to be sustained a bit longer into the year. also, we have a barbie movie being released today. dani: are you going to do the double showing? valerie: one movie is all i can take. i will watch barbie first. dani: you should see oppenheimer and then watch harvey to end on

a good note. -- barbie and on a good note. dani: you can get more top stories and everything you need to know to get your day going before you watch the double booking of barbie and oppenheimer. you can go to d a y be go on the terminal. coming up, resilient labor markets. there was an unexpected drop in jobless claims feeling a sell off in treasuries yesterday. we will discuss that in the japan data, u.k.. we have a lot to talk about with our bloomberg markets live team. this is bloomberg. ♪

dani: what a weird date in markets yesterday. treasuries got walloped. yields move higher in the 10 year some 10 basis points. it was burned -- it was spurred

by jobless claims. there was an unexpected drop. you're looking at the bloomberg surprise index. one of them does the u.s. economic surprises that has been surprising to the upside in the blue. at the other one is labor economic surprise data, the highest level in a decade. it is not just jobless claims. yesterday there was also a philly fed survey that showed companies are hoarding data. basically, that fueled a selloff in bonds and it may be positions being stomped out. let's discuss this with mark cranfield who joins us on the line. it was a pretty significant about-face treasuries yesterday. did we take the rally too far? mark: i think you've got to look at this will treasury move really as something in the context range trading. i don't think you are going to go very far particularly on the 10 year very far at all until

traders have a clear signal on where the fed is going in september. we know about the lie. it does not matter now. it is really all about what happens beyond their. in the meantime, you have pretty solid demand for tenure treasuries in a yield gets near 4% and maybe if you rally a bit too close to three .25 that is a stretch. -- 3.25 that is a stretch. we will drift around that range for a while until we get clearer signaling that the fed is happy inflation is on a sustained downward path and we get other data, which starts to suggest that the next move is going to be lower. of course, the fed wants to hold rates for some time, but eventually people will be confident that when the change comes, it will be for a rate cut even if that is quite a way off. initial claims data yesterday is the beginning of the summer. you expect people to be hiring. our colleague simon says if you look to the data at the state

level, it is not so good. it is beginning to show a breakdown in the employment situation. it will take a while to come through what it is not as hot as the numbers would suggest yesterday. dani: then, it did seem to feed into the equity market selloff. i should be very specific here. it was not an equity market selloff. it was a tech sell off the dow ended higher. netflix and tesla got walloped. does that go beyond the fundamental earnings with something having to do positioning considering what duration did the treasury market? mark: you've got a few factors at play there. obviously, the fact that tesla drop 10% is a big one. you've got them talking about the nasdaq 100 been related -- re-weighted which causes turning. you have the options expiring and a whole bunch of things coming together and if you had a decent run up already, it is not

a big decision for people to say shift to the sidelines a bit here. that means it's in the near term you have to sell stocks. it does not you buy them. it will go out fast and at the tech earnings story is good we will get back on an upward trend. in the short term, it is not surprising they sold off a bit. dani: mark, thank goodness that "barbie", "oppenheimer" debuted this week and not next week because next week will be crazy. you will not be able to go to the theaters at all. it is the boj and other central bank rate decisions too. we had japan inflation data today. does this look more like something we are going to get a ycc tweak, the mission impossible because will you eta -- governor ueda. mark: he has a big day next week. if you look at the market, it does not seem to take his word. mr. ueda been very

conservative and thoughtful in the way he speaks to everybody and that's giving anything away at all. if you look at the pricing of dollar-yen options they are suggesting something is going to happen next week. if you look at the way that jgb's are underperforming, they are not convinced he will not change anything. if i have to put my neck on the line, i will say he will tweak it but the yield curve at the five-year point because as probably where he can get away with without causing too much market actuation yet and gives the signal he is trying to move in that direction which is that the country can absorb a slightly tighter policy. it today, the japanese government raise the inflation outlook to 2.6% above the threshold. he has been talking about a 2% threshold needed for him to change his mind and the boj. he is moving in that direction as well, plus we expect bank of

japan to raise its own forecast on inflation for the years ahead. everything is falling into place. it is just a question of is it next week or september? i will put my money on next week. dani: yeah, i am totally there with you, mark. it is japan, the boj. they surprised these markets and do not hint when they do ycc. the majority people do not think it will happen and i think that means it will happen. we will talk about it with you then and see what happens. enjoy your weekend. mark cranfield there. maybe think about ueda going to see "barbie" and the movie theaters. we are going to talk about earnings. like stone hits a milestone that no other private equity firm has reached. the president and coo jonathan gray spoke to us about the outlook for the deals markets. we will have that for you next. this is bloomberg. ♪

>> this year, you had a lot of concern about their inflation was going and a lot of concern about how far the fed would go. you had the banking crisis in march, and naturally, you see a slowdown in deal activity. i think the good news is the tone has improved as we have worked through this quarter. the deal market feels like it is unfreezing a bit. if you look at our credit area, our direct lending, our pipeline is up more than double the end where it was 90 days ago. so, we are seeing more activity there. more activity in our tactical opportunities area where we help companies and investors by providing flexible capital. our secondary's business is seeing more activity. so, i think as people feel better about the overall

picture, a little more certainty, i think we will see deal volume pick up as we move forward. >> are the financing markets open enough for you to do something big? at what time will we see blackstone doing multibillion-dollar deals, perhaps deals along with partners again at that scale? jonathan: we've done a few large deals this year appear to be announced at the end of last year emerson's plan technology is not -- technology business for $49. we did a multibillion-dollar transaction. we are looking at a number of things scale. obviously, the financing markets make it a little bit trickier and you've got to be creative and trying to pull transactions together. so, this takes some time, but the good news is as you point out, we've got to hundred billion dollars of dry powder and that allows us to move when opportunities arise. i think we will see more of

those opportunities over the next year. it is hard to put our finger on exactly when it will happen, but i feel across our platform there will be interesting things, and scale is a real advantage for us. sonali: let's talk about the macro environment because earlier you talked about uncertainty being the color of dealmaking. is that uncertainty clearing, particularly as it comes to inflation? jonathan: yeah, i think the good news on inflation is it is trending down. the fed is really winning this war and not ready to declared victory but what we see in our portfolio companies is input costs coming down to less and to percent. we see wages which were running higher than 7% made last year growing at less than 5%, forward indicators in hiring and vacancies are also positive. so, the labor market starting to soften. it is still pretty strong but i think that is going to be helpful as the fed looks forward. what do i think happened?

i think they are going to raise rates it sounds like one more time and then hold for a longer period of time to try to slow the economy. we expect they will be successful in doing that. dani: the man that now overseas $1 trillion, blackstone president and coo jonathan gray speaking to brooks sonali basak. the private equity fund to reach that milestone but will they be able to spend it? coming up, a setback for rishi sunak. u.k. governing party loses two of the receipt of four grab in parliamentary elections. we will discuss that next ondany

friday, welcome back to "bloomberg daybreak: europe." i'm dani burger in london. the nasdaq falls the most in nearly five months as the u.s. labor market strength triggers the end of the bond market rallied. shares in asia are mixed. japan's consumer inflation rises with an option for traders preparing for a policy surprise at next week's boj meeting. it is a setback for rishi sunak, he loses two seats in parliament. we will break down the results shortly. dansk of bank earnings coming in at 18.5 billion, the full year net forecast, 18.5 billion to 25 .5 billion. it is their low-end, so if anything, this is a positive surprise, saying the analysts estimate is higher than expected. they have not change their cost

outlet, 25 billion to 25.5 billion danish krone. i do not have the comparable unfortunately. total income is amiss, the estimate was for 12.9 and it comes in at 12.2 billion. interest income in line with estimates. the good news for dansk bank is the full year net assumption. estimate is there low-end for it. the impairments are 1.5 billion lower than estimates, 2.3 billion. overall, a strong showing from dansk bank, where the work -- were concerns about exposure to nordic growth and real estate. that is the earnings picture. let's go to the american earnings picture. yesterday was so bizarre in stocks and treasuries. this is the picture for nasdaq,

futures some dramatic yesterday. you could say we head bad netflix earnings and test the earnings that fell off 10% in the case of tesla. did they really justify this market action? perhaps it was positions stopped out, especially if you consider the dow ended higher yesterday. specifically week steepener trades were caught out. look at the 10-year yield, higher by 10 basis points yesterday. there has been commentary that jobless claims is what fueled the selloff. andy brenner sent me a note saying, if you think that is the reason, good luck with that. this is about recessionary positioning getting stopped out with strong jobs data. that fueled a selloff. the bond market rally we have been seen, can it be sustained?

let's go to the asian markets and see how things are faring there. let's get to our fx and rates reporter. this week has been strange, what has your eye today? >> it is bouncing around quite a bit. i will start with the bad news. taiwan shares, taiwan stocks were a laggard today. tsmc cutting its annual outlook and putting its arizona plans on hold. this bleeds into the semiconductor demand and the forex market in korea. the korean won weakening in the session. export numbers in the first half of the month were disappointing. a lot of eyes looking at the ai and how it will drive experts on south korean ships. the yen is on a back foot today trading around 1.40 handle today

. a lot of economists are saying not to read too much of it. the bank of japan governor maintaining a monetary easing stance into the policy meeting next week. the positive news, it has been an emotional roller coaster with a drip feed of various measures to support the property sector, capital controls and boosting car sales. in the high-yield property developer space, a bit of a reprieve today after a strong three day selloff in the high-yield market. this has to do with the key unit looking at disposing of assets which may help pay off the dollar bond coming do in a few days. -- coming due in a few days. dani: were you going to leave me with china? >> that is exactly what i was

going to say, if you look at the chinese government bond yields, especially the 30 year ultra long, those yields are at the lowest since the early 2000's. they reflect the pessimism and growth expectations around china. analysts say yields have further to fall if policy announcements do not meet expectations later this month. dani: thank you very much for the update. she mentioned chipmakers and the reaction in the korean stock market to tsmc. i want to show the big names in terms of semiconductors, when tsmc reported yesterday and cut their outlook, most markets were closed. tsmc declining in today's trade about 3.3%. samsung, tokyo electron, not far

behind, falling even more by 5.5%. also bad news for the cloud space and software space in europe. sap shares tumbled in new york after second quarter sales in the cloud unit missed estimates. the german company's largest rose from 20% earlier is slightly less than expected. for the full year, sap bumped up its operating profit outlook but that cloud sales miss estimate clouded the profit outlook bump. let's talk the u.k. and rishi sunak, the conservative party has suffered a major setback, losing two of three seats up for grabs. joining us now is our u.k. correspondent, lizzy burden. lizzy: it is a major little upset for rishi sunak. of the three seats, that is the most geographically closest to his own seat.

that is embarrassing in itself. he lost southwest of england, that one was expected to go to the liberal democrats that it overturns a huge majority, embarrassing. you have a double punch but he has been spared a total whitewash because the tories hung onto oxbridge, which is boris johnson's seat in northwest london. it might have been more to do with the karim missions particular to that constituency but overall it is a seismic, he can say his party is not just doing well in surveys and opinion polls but in actual votes. that will give him wind in his sales as we had to the general election. which we now know will be in november 2024 because that is on the prime minister expects the u.k. economy will be on a

stronger footing. dani: we will get u.k. retail sales data, what are the expectations? lizzy: economist expect them to stay under pressure. the confidence survey shows that fell for the first time in six months. another softening in the economy for the months ahead as this pain starts to set in. the question is, will u.k. have a recession this year? we have the softer than expected inflation data for june earlier in the week, that was a boon for rishi sunak despite the election results that we have got. that means maybe he can meet his target of halving inflation. economist expect more hikes from the bank of england this year. bloomberg economics expects recession is inescapable in the u.k. dani: that data hits in about 20 minutes. let's stick with elections but turned to spain.

voters are going to the polls to pick a new prime minister sunday. the current p.m., pedro sanchez, is seeking reelection but faces opposition from the country's conservative people's party. let's go to madrid. what are the current prime minister's chances? >> sanchez's chances, based on what we have seen in the last polls, which we have a blackout since tuesday, so the last one was monday, they indicated his chances are extremely slim. the conservatives are campaigning on the back of a strong victory in may in local and regional elections, which was sweeping and surprising as far as the defeat went for the socialist. and the conservatives are teaming up in most regions and units abilities with the far right, and that is the big expectation for july 24, that is

what we will see here as well. sanchez has been doing a lot of interviews, he has cut back on rallies but is speaking to journalists something he did not do before or had not done in years, to reach out to voters who have turned their back on him or never voted for him. so far there is no indication that this strategy is working for him. dani: what exactly is on the ballot? what are the issues that are currently facing the spanish public? >> the main issue during this campaign has been the focus on culture and identity politics, that has been the big thing, the big contention point. sanchez tried to put the economy, which has done pretty well at the center of the debate, but he has not succeeded. this is where the far right set the agenda because they bring

these issues to the table, they bring their criticism to what has happened in recent years with trans rights, women's rights and equality. there is an issue in spain, the political debate around violence against women. they are critical of the policies surrounding these topics. that has been the main theme around the selection. we saw the example of one city where the coalition between the conservative party and the far right banned a play by virginia woolf because they considered it to be lesbian, and that was unacceptable in their view for a play sponsored by a government. another town banned buzz light year because there was a kiss between two people of the same sex. those topics are at the center of the campaign. dani: thank you very much for

that look ahead, setting up this weekend's election. let's look at what else we will be watching out for in the next 24 hours, 11:30 u.k. time we will get the latest rate decision from the bank of russia. economists surveyed by bloomberg expect a 50 basis point hike. amex will report earnings for the second quarter, and the expectation is to make a return to earnings growth after two consecutive quarters of decline. any data we can glean about the american consumer will be interesting. this is all they want to talk about today, the two big releases, "barbie" and "oppenheimer." it gets the u.k. release. i want to talk about the movie, however there is a company angle to this, cinemas are hoping or a boost to revenues. i will stand by it, if you see a

double booking, you have to see "oppenheimer" first. back to the actual bloomberg stories, could there be a potential settlement between the ftc and microsoft activision? we will discuss the status of one of the biggest gaming deals, next. this is bloomberg. ♪

dani: it is friday, time for our weekly deal segment, and we will start with the biggest tech tabor of the moment. -- biggest tech takeover of the moment. a $69 billion acquisition of the game developer activision, that opens the door for potential settlement talks. let's bring in our deals reporter. some are considering this a win

for microsoft activision. is this a go ahead for the deal? >> hello, yes, definitely, it is a win for the company and what could be the largest ever gaining deal in history. it is definitely a win because it will allow companies to talk to commissioners and find ways to settle and unfold a deal to could be completed. it is a major win. it allows more time for the companies to figure out a plan that will appease regulators. this deal has been under watch in the u.s. and the u.k. by antitrust regulators. such a large deal that it drew a lot of antitrust scrutiny since it got announced. now this seems to be a way forward. they are not there yet but

encouraging signs that will potentially get this across the line. dani: not unrelated but former treasury secretary later summers was speaking yesterday saying, new rules announced or propositions by the biden administration on m&a would seem almost like a war on business. that is strong language. what was he talking about? >> that is strong language but it is something we have been hearing from dealmakers for a good part of the last 12-18 months. antitrust rules have become bigger, and it is something that companies need to take into account when they come to the table to negotiate deals.

what are the antitrust hurdles to her particular deal, particularly those industrywide that will shape the industry in a particular country or globally , even more so. something that has become a key topic for discussion when it comes to deals. we have been hearing about this for quite some time, and larry summers' words were explicit, he was vocal about it that it has been ongoing for quite some time. we will see how it plays out. there was always give-and-take, and the way for companies to move forward is to find a way to appease regulators to get the deals over the finish line. dani: we had a lot of private equity news when it comes to size. the big are getting bigger. cvc had a record fun raise,

blackstone had their earnings where they hit $1 trillion. what do you make of this, the sheer amount of money behind these buyout funds? >> definitely there is a lot of dry powder. it is interesting because everybody is talking about how challenging it is for private equity to strike deals. this environment of increasing interest rates. they are finding it more difficult to deploy that capital, yet you see cvc, already one of the largest global private equity houses, raising a record for a new fund. that is quite shocking. particularly in an environment where we have seen other peers either delaying or cutting the potential target for new funds. definitely there is a lot of cash out there to be deployed.

dani: we will see if they can deploy it. thank you for joining us. i will dig more into the microsoft activision deal, and speaking later with the ceo of the u.k. competition and markets authority. join me for that conversation 10:40 a.m., london time. this is bloomberg. ♪

dani: let's turn to south africa were the central bank paused for the first time after 10 straight hikes. that is after inflation cooled in june. let's get out to our africa correspondent in johannesburg. is south africa out of the woods now? >> not necessarily.

the pause from the central bank on thursday was a surprise for many people because there was this expectation the central bank would hike 25 basis points. we heard from the governor is at this point in time it is apposite, not a full reversal -- it is a pause, not a full reversal or a stop. it does not mean this economy is out of the woods. he said although he is seeing signs of economic conditions slightly improving, there are external factors that could potentially worsen the conditions here. namely, if you think about locally, the power outages that have been affecting businesses, but there are also these ideas of weather conditions affecting food production down the road. also a lot of global, external, economic conditions worsening the situation here. what we heard from the governor

is, yes, this is a pause, but inflation is at 8.25%, a 14 year high, so there is a lot to pay attention to. it is a wait and see situation at this point in time, and we are seeing similar sentiment across the continent. a lot of what this continent is experiencing is imported. we have to see how the next few months play out. dani: you mentioned the business picture. i wonder how consumer brands at the moment are dealing with the inflationary regime in south africa. >> south africa and across the continent, consumers are feeling the pinch. although we are seeing inflation come down and easing globally, there are a lot of external factors affecting the economic conditions for a lot of

consumers here. earlier this week we had the ceo of a well-known champagne brand under lvmh telling me how he feels like prices have gone up too much, and maybe it is time for his company and others to bring them down. >> my personal intuition is one we look at the signals not only in africa but the rest of the world, there has been a lot, and may be some point we have to posit a little bit -- we have to pause a little bit. many companies have to think about a way to collectively work on making inflation slower in the future. i feel responsible in a way, and i believe we will be more reasonable, less ambitious in

the next price increase in the future. >> we are seeing that sentiment echoed in south africa. we saw a lot of canyons feeling the pinch -- a lot of kenyans feeling the pinch taking to the streets because of the cost of living. it is still an issue here on the continent. dani: thank you. stay with us. an exclusive interview coming up with sarah cardell at 10:40 london time. up next, "markets today." this is bloomberg. ♪

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of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. anna: this is "bloomberg mark