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.

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does it set the tone for what we were hoping might be a little bit less hawkish boe eco that is not the case. euro stoxx 50 is down by 0.5%. the readthrough will be significant as we get u.s. futures because you are seeing a bit more defensive positioning overnight in asia session. that will speak to what we are going to see in the commodity market as well. if are talking about inflation and changing the thinking in europe and the u.s. as well, we will take you look at what the currency market is doing because that scenario is driving weakness the japanese yen. 147. 37 on the dollar-yen, stronger by 0.2% for the greenback. the euro is unchanged but choppy

so don't let the head night -- headline number for you. 1.07. interesting dynamic given we are talking about higher inflation for longer we will dive into that in a few moments. brent crude higher in getting closer to the $100 mark, trading at $92 a barrel, higher by 0.3%. let's get more insight on how asian markets have been faring. paul dobson now joins us live in war. thank you for joining us this morning. walk us through the market narrative on your side of the world. paul: good morning. one of the big headlines that we have been looking at today is country garden getting closer to completing the agreement the bondholders, the push payment is due this year three years into the future now. seven out of eight boxes have been checked and there is one more to go. we will get the verdict on that in the coming days.

that gives us some breathing room and space. we have not seen many other humans due until january other than coupons left for it to sort of make its way through. the chinese property developers are taking this as good news, up again today. paring gains with the broader asian market. it is wobbling a bit and there is pressure in tech openings coming through from the u.s. session. -- tech companies coming through from the u.s. session. the ecb speculation, suddenly everyone more worried that there could be a rate hike with intelligence about what the rest of the world's thinking vis-à-vis elation. it is putting the market on a risk off mood as we head towards the open european markets. kriti: interesting dynamic that europe is leading the market narrative around the world. traditionally that does not happen when you have news out of asia. bloomberg's paul dobson us -- paul dobson walking us through that. time for the morning roundtable.

we are joined by david stringer, eddie cantrell and valerie tytel. the biggest story of the morning one the biggest companies in the u.k. is bp which is less leaderless. bernard is out. who is in? david: as you say loonie offered his resignation in quite a shock i guess overnight in asia as the company acknowledged that it reviewed allegations last year about his conduct allegations around the nature of personal relationships with colleagues. at the time it found no issue or conduct breached any standards. more allegations have come to light in the process of further inquiries, both loony himself, and the company have acknowledged his previous disclosures were not as fulsome as it should have been. what transpired is not compliant

with the companies own interest. he left and it is a big question now as to who steps in and to what degree it will continue his strategy. kriti: speaking of that, we know that bernard loony typically was very vocal about making energy transition ahead of the u.s. oil major peers. david, what might the future of bp look like? david: it's an open question you are right, he was seen as the most vocal advocates of a faster transition away from fossil fuels. let's be honest, bp rattled that back recently. we have seen them try to walk a delicate balance between investing more in renewables but at the same time, asking shareholders to back them as they continued to put money into fossil fuels. it is a tricky balance to achieve. if that strategy continues, it will need someone to has a similar ability to articulate

well and present a compelling story to investors. other peers who have stuck more closely to traditional oil and gas businesses have performed better. that is going to certainly be on the mind of whoever is a long-term permanent replacement. kriti: the key word is long-term. bloomberg's david stringer walking us through that crucial story this morning and we thank you. one the biggest copies in the u.k. and now one the biggest companies in the world. we go to apple, a major iphone launch overnight. what will it do to apple right now? tim cook had a bit to say about that. >> since the very first iphone, we focused on giving our users a device that is incredible powerful, remarkably easy to use, and beautifully designed. every year, we have built on this foundation to create experiences that make a real difference in our users daily lives. today, we are pushing what users

love about iphone and further. kriti: tim cook, the ceo of apple there. it sounds great. he is really pushing forward this brand-new product that has some changes but perhaps not as many that people were expecting at a higher price point. what is the logic here? aggi: as you said, while there are changes, it may not have been enough to while investors at this current time because we are seeing a broader slump in the smartphone market and we have seen it for several quarters. it is a real concern for apple, a company who still gets a huge portion of the revenue, the largest portion, from the iphone and the iphone sales. it was interesting to see the things that did change in this product. in berlin, something i found interesting was it seems like they have jumped before they were pushed on the standardization of the u -- usb-c that the eu was pushing for. they have been looking for the

market as something that they have tried to launch with new products that they have maintained at a similar price point for their lower range products. but then when it comes to the higher end, the new product, they decided to push it $100 higher, which is really for their very committed consumers and people were looking at the iphone as essentially more of a luxury product than something for people who are using the lower end of the iphone markets. kriti: it feels pretty in character something we are seeing around the world. major corporations pushing price hikes to a consumer who still seems hungry to buy luxury products in europe, and the u.s. and arguably asia and the middle east as well. what is worth mentioning is you dizzy apple shares decline in the market trade in the u.s.. that does happen after their product launches but something we will keep an eye on with the broader story.

let's talk a bit about the arm ipo. has potential to be almost if not the biggest story when it comes to apple. talk to us about the pricing here. we are expecting to see it trading tomorrow on the nasdaq. were -- where will it price? aggi: essentially softbank is looking and bloomberg has been reporting that soft bank is looking at the $51 price or potentially one dollar more than that. they are quite ambitious about this ipo, but it is also incredibly important for the company in a broader tech sector. the ipo is apparently 10 times oversubscribed already, so there does seem to be a lot of appetite for it and there are lots of tech companies waiting in the wings it will be looking at this arm ipo and what happens here as to whether or not they have been there ready to make the leap in cells. it is going to be sin against --

the leap themselves. it will be sitting look at arm and sector and the sectors that group during the pandemic delicately and are trying to ready themselves to take that step this year or next. kriti: a dynamic is interesting in the broader tech space. the appetite to have exposure to tech companies which have been very resilient, not as strong anymore. it speaks to the valuation i got/when it came to the arm ipo. bloomberg's aggi cantrill, thank you. you would think that tech would get a broader bid if you think inflation is higher or make the argument that maybe they are the first to get hits. that will be a relevant conversation we talk about the u.s. inflation report today. we expect another increase in the headline number but perhaps the decline in the core number. valerie tytel is here on set. headline versus core, what should the fed pay attention to? valerie: while the mainstream media may be more ruptured on the pickup in the headline

number, for markets in the fed, it is all about the softening core number. the fed is likely to dismiss the pickup in the headline, much driven by the oil price surge because inflation expectations are very well anchored at the moment. we are very much focused on the core month by month print. we are going to get another 0.2% if the bloomberg consensus comes through today. that is a third month in a row that we get a 0.2% core month on month print. if you analyze that -- if you annualize that it puts us in line with the feds at 2% pc targets. the drop in core today will be led by a drop in car prices, also expect to drop in rental prices as well. i should note for the first time in a few months though, analysts are out there saying that risks to this core number are for an upside surprise. we could possibly get a 0.3 month-to-month increase.

that would be the first time in a few months we have seen that kind of pickup in the month-to-month print on core but it lets me of the market will be laser focused on the drop in core rather than the pickup in the headline. kriti: will watch that closely in a few hours and something bad -- bond insurances are dancing robert let's get to what we are expecting in europe on the day ahead. a lot of eco-data as well starting with u.k. industrial production. that will be interesting at 7:00 a.m. u.k. time at the end of the show talking about the manufacturing sector and how much pressure are we going to start seeing their to the upside or downside? we'll talk about that with the euro area as well. industrial production numbers coming out of the broader continent as well if you hours later at 10:00 a.m. u.k. time. as valerie said, the main event in terms of eco-data is going to be the u.s. cpi number, the oil price story and how does it translate to the largest oil consuming nation in the world?

1:30 p.m. u.k. time we will have full coverage on bloomberg television and radio. keep an eye on the arm price story. we will get the final pricing between 47-50 one dollars on an oversubscribed listing. that is reported expectation but anything can happen. the ipo market is not made a full recovery is jets. we will see if this is their moment to shine and get a full round up of those stories on today's edition of the debris terminal. subscribers can go to dayb. kicking off the main story which comes out the ecb and we will dive into that expert the readthrough into the markets including the oil story. i promise it is all connected as we see oil hits closer and closer to that $100 mark. later this hour we speak to the canyon prime cabinet secretary as the government prepares to defend a series of tax reforms in front of a judicial panel. this has broader macro implications. you do not want to miss this dispose of interview at 6:40

a.m. london time. -- this exclusive interview. this is bloomberg. ♪

kriti: welcome back. this is "daybreak: europe" i'm kriti gupta. let's talk about the story of the morning which centers on the ecb and reports that the ecb is going to keep their inflation target a little bit higher or

expectations of it higher about 3% going into the next couple of years. what does that mean for an ecb that was largely expected to maybe take a bit of a breather and may expected to pause? what does that due to to the rate hike bets seem to be on fire? take a look at the euro-dollar, 1.07 on that. is this a positive or negative for the currency? the market has not fully decided yet. bloomberg mliv strategist mark cranfield wings is now. mark, we will talk about procedure in a second because there's a lot of questions about whether or not this was a leaked comment reports but let's talk about the market reaction. it is a positive or negative? for the euro. mark: in terms of where the traders are pricing so far, it is clearly positive. the markets which are open, we do have the futures trading in asia and they have differently priced in for more chance of a rate hike this week.

the futures have fallen quite a bit report came out. the euro is tighter -- is higher as well. the traders are convinced this means something and unless there is big denial or pushback during the european day today, traders will take it as a given that this is really what it means and it will be hard for the ecb to look past those inflation forecasts and not -- and to go ahead with a 25 basis point hike. that is how traders are interpreting it. they are seeing it as a positive across the board for the euro. the forward-looking part in terms of the language that christine lagarde may use if the euro is going to get into any trouble, that is where it might come in. if, for example, christine lagarde thinks she's been pushed into a corner, she goes ahead with a hike but then uses relatively dovish language for the forward-looking part, the euro might spike up and come all the way back down again, as she

speaks during the press conference. there's a lot of possibilities here as to the way it plays out, but as of right now, people are taking it as a reason to say that yes, the hike is coming and it is not fully priced into the market which means a euro can improve. kriti: mark cranfield, bullish on the euro. let me pushback on that. the idea that if you are actually talking about recession led by germany right now, manufacturing numbers are expected to be weaker today in today's economic data, wouldn't a rate hike or excitations of it just mean way more pressure on the continent? is that perhaps why we are seeing right now choppy action in the euro and weakness in the euro? mark, your thoughts? mark: if you're talking to season people in the euro trading market, they would just say one thing to you. clock trichet. the european central bank has a history of doing one hike to many. just don't forget to thousand eight is just one example.

have a track record of going too far. this really is setting itself up for yet another example of where the ecb goes a bit too far in hiking and recession is right around the corner. they can be a bit dogmatic about looking at their data and saying we have to do something because our data set so. then ignoring them of the big risks which are within the european economy. when you have germany in it self needing help from lower rates, not higher rates it really is a huge risk and yet, there is every chance that is exactly what the ecb will do and then they will regret it if you month later, meaning they will probably have to cut rates early 2024 because they have once again onto far. kriti: mark, 15 seconds. is that iced in the fact that the ecb goes one too far? mark: no. i don't think it fully is. you could see the yield curve

germany that could go quite inverse because it. kriti: certainly something we will be finding out as we see more and more headlines. i imagine from ecb officials and those around the world. bloomberg's mliv strategist mark cranfield bringing us contacts. we go back to the u.s.. coming up, u.s. house speaker kevin mccarthy has launched an impeachment inquiry into president biden. does that affect the presidential election next year? we will bring you with the details. this is bloomberg. ♪

kriti: senate majority leader chuck schumer is planning a bipartisan trip to china, japan, and of korea. his visit would mark the latest by senior u.s. officials including congress secretary gina raimondo. in janet yellen the most hawkish

senators on china policy. we will watch that closely as more and more people try to mend the relationship between the u.s. and china. sticking with the d.c. story, u.s. speaker kevin mccarthy has launched impeachment inquiry into president joe biden. the investigation is inspected to focus on his son hunter biden's overseas affairs and whether the president has benefited from them. >> i am directing our house committee to open a formal impeachment inquiry into president joe biden. this logical next step will give our committees the full power to gather all the facts and answers for the american public. that's exactly what we want to know. kriti: now the white house earlier said the republicans own inquiries have found no evidence of wrongdoing. let's bring in a true expert, bloomberg bruce einhorn covering all dates. what do we know at this stage? does this accusation have legs?

bruce: well, it relates to as you pointed out earlier, alleged wrongdoing by the president son hunter biden. he has been under investigation for years. u.s. attorney for delaware who was held over from the trump administration brought charges against hunter biden and found no evidence about president biden. that indictment or that by the u.s. attorneys in delaware, there was a plea deal that hunter biden made and it fell apart. that case is going forward. in the meantime there been investigations about president son and present biden's potential involvement. it has not come up with any evidence, but the investigation is now leading to an be missed -- impeachment inquiry. one important thing to point out is that while speaker mccarthy

has said there is going to be this inquiry, there has not been an actual vote, which is important because the republicans have a very small majority in the house. it is quite possible that had he put this up to a vote, it would not pass because there are many republicans who are in districts that president biden win and this is not a vote they would want to have to take. the question i will be how far will this inquiry go and will there actually be a vote and if there is, will the republicans win it? that is unclear. kriti: something to cleat -- keep an eye on closely. bruce einhorn, we think you for joining the program. crucial election coverage and he will be all over it. the timing is crucial here especially when it comes to kevin mccarthy who is a very outspoken critic of the budget, of austerity to talk about how this will focus in terms of the d.c. spotlight ahead of what

could be another government shutdown in the u.s. before the end of the year. that is something we will watch closely. a quick check on the markets. futures on the back foot. stemming from the european trade right now. this is coming back down to the euro, the ecb and poor sentiment of asia. we will digested in the rest of the show. coming up on the program, we take a look at markets including country garden, once china's largest rp developer by sales winning a vote to extend repayment of yuan bonds. stick with us. this is bloomberg. ♪ ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life.

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>> good morning welcome to daybreak europe, let us get to the stories that set your

agenda. now lingering for longer the ecb reported to expect inflation to remain above 3% next year, traders lifting their rate hike bets even as the euro erases its laws against the dollar. key u.s. cpi data is due later today. bp ceo quitting over his failure to disclose past relationships with colleagues, the -- leaving the oil and gas giant leaderless. plus a half baked apple. the company's iphone 15 launch gets a lukewarm investor response sending shares lower. pretty natural i would say after any major product launch, still not encouraging a lot of positive sentiment. let's get to the markets because we are seeing action and futures specifically when it comes to the continent. a real downer when it comes to the euro down and ftse 100 not far behind it. down about 5/10 of 1% and that is really changing the narrative when it comes to u.s. futures. nasdaq 100 futures virtually unchanged right now, s&p futures

cooling to the downside down about a 10th of a percent and 30 minutes ago that was not the story. we saw some outperformance in the u.s. but really europe setting the tone for the global story. let's get to the asian story. paul dobson joining us to talk a little about how these asian markets are faring. it may be he can give us a little more insight on the yen story. the oil story -- what do we need to know? paul: we briefly touched on country garden with seems to have averted a crisis and got some rest by pushing back most of these payments that were due on you on debt. that has been taken as a positive for the market and property developers rising today. japan as you said, interesting as well. still that same story. people pricing in the possibility that the boj moves

sooner than it lives interest rates, it may be as january and then economists show they are also ringing forward their beds for a boj exit from some of its yield curve control and may be lift off from interest rates. so those two interesting and then crude oil is there in the background. -- we have u.s. cpi data coming up later which everyone is looking forward to, if the inflationary outlook starts to darken will that make central banks do more and is that going to put a downer on risk appetite. this is perfect with the ecb debate we have been hearing about recently. all of those things for global investors factor into that consideration as we approach the open. >> can we give a little bit of love to japan this morning, we are continuing to see this week this in the yen. i think this flows importantly with the oil story, to that $100

level, we are going to see her reaction to the cpi numbers and the commodity exposed currencies but i think a lot of people think that that japanese yen it weakness only makes those import -- import prices weaker. how exposed is japan to $100 oil. paul: i think it is a vicious circle in a way because as the price of crude oil rises japan needs to convert more yen into dollars to pay for the same amount of oil. so when we see those rises in hydrocarbon, particularly in gas, not just oil which japan depends on, and generators through the winter -- that has as we've seen in the past couple years put extra weight on the currency which as we know has already particularly weekend under pressure and that's part of the reason i think why investors and traders are starting to get a little more confident about the idea that the boj is going to need to send

more of a signal that interest rates can normalize in order to support the currency because the feeling is in the country now the weaker currency from here might help exporters but it is probably going to do more harm in terms of the inflationary picture then it will be doing good for the country. kriti: certainly something will be watching closely. those import prices certainly in focus for the boj, paul dobson all over the asian market story. we thank you for joining us. let's get you breaking earnings news, the spanish retail giant coming out with an earnings story. take a look at their eu 3.1 6 billion was the estimate when it comes to those a bit but for the entire first half the estimate was for 3.13 so kind of in line right now with what the expectation was. but we are really watching for his those sales numbers because they are hitting a very high bar. ubs saying inditex is a massive outperformer when it comes around the world so that something were going to be watching closely. we will bring you more headlines

as those numbers come out. let's go from one of the largest retail giant stone of the largest luxury makers in the world. that is going to be significant, especially when we talk about bp. we'll get to apple in a moment but bp being one of the largest companies in u.k. at the moment. were seeing some major shakeup, bernard looney leaving the company. it will get a little more insight right now. that's going to be significant when it comes to the broader strategy and who better to walk us through it than will kennedy. let's start with that story. how does this strain the strategy? >> this resignation was a surprise and it did not reflect any unhappiness with his business performance but clearly he has run afoul of some relationships he had with colleagues. importantly it turned out that he had misled the board and i think no ceo can continue once the board feels they have been misled and that is what happened

here. he has resigned with immediate effect. the cfo will take over in the interim but we don't know who will take over in the long term and until we do we don't know whether this means a change of strategy. kriti: does that actually have a reflection on how well bp has perhaps competed with some of its oil major partners in the u.s.? talk to us a little about bernard looney's tenure? >> it has been an interesting one. he took over and set a very radical change pledging to reach net zero by 2050, pledging to cut oral production quickly and invest in new energy businesses. there was a lot of investor doubt about that strategy. and a lot of investor said no, we just want you to continue making money from oil and gas and giving that to shareholders. it has been a big debate in the industry over the last few years, we have seen a similar debate at shall wear the new ceo has trimmed that strategy but

more recently i think people have been quite supportive of looney's performance. he did roll back some of those more aggressive targets a little bit. clearly the company made a lot of money after oil and gas prices spiked following the invasion of ukraine. and he seemed to be in a fairly good place and people seem to be ok with this strategy. it had been rocky, there were ups and downs but i don't think there was any sense his immediate future was in jeopardy. as i said this is a big surprise related to his personal behavior. kriti: talk to us about who takes over in the interim. what do we know what the interim ceo? >> bp tends to appoint it ceos internally and it's ceo is a company man, the current cfo. obviously the most senior executive after him in the company. we don't know if he is in a prime position to take over. he obviously will be a candidate. one thing to point out is that the board is held by a

successful oil and gas ceo, he had run a norwegian oil and gas company and bg which was then taken over by shell. he has not put himself forward so i do not think he will be a candidate. he would have been a strong candidate but i think that might've happened it now if it was going to. he is probably in a good position to look for candidates and given how quickly this is happened it is possible that the search might include external candidates. kriti: a succession battle it feels like on the horizon for bp at a time when they're talking about their strategy. will kennedy all over that story for as we thank you for your insight. of course let's go again to one of the biggest companies in the u.k. to one of the biggest companies in the world. last night apple launched its latest products, highlighting the introduction of a suite of iphones including new materials, camera periods and improved performance. ed ludlow was live on the scene.

edit: the big focus was on a price hike to the iphone 15 at promax, $100 more than its equivalent in the prior generation but it has doubled the storage. at 256 gb. the iphone 15 pro $999. what is common is confirmation of apple a 17 pro chip. its most powerful smartphone processor to date, higher performance, also boosted storage and it allows for ray tracing which is a technology important for higher spec games. mobile games, video games to be played on this generation of iphone handset. common with all of the handsets they announced collectively, we knew this was coming. it is not something apple did of its own elation, mandated by the european union with the deadline by 2024 to make the port usb compliant but it brings apple iphones in line with his other products and other brands out there in the smartphone market. a big emphasis on development in camera technology, the base

iphone 15 and 15 plus a really big jump from the prior generation. for the iphone 15 promax five x magnification or zoom which does represent a leap forward for photography on the iphone. we got the dynamic island that we thought was coming. the top sliver of the phone packed with more visual information. also new series nine watches and watch altar to from apple as the put a real emphasis on sustainability. a more sustainable use of products and materials, or recycled products as they work toward their net zero product. ed ludlow for bloomberg news in cupertino. kriti: one of the major tech stories they are we are watching but not the only one. let us take a look at the others in the tech universe. from big tech companies to another big tech company, alphabet's lawyers say companies choose google as the default search engine for their browsers and smart phones because it is the best. not because of a lack of competition.

the firm is making its case at the start of a high case antitrust trial that could result in the breakup of the tech giant. at the u.s. justice department claims google has used its market power and billions of dollars in exclusive deals with web browsers to illegally block rivals. and speaking of tech giants it is reported that arm will only expect top -- except the top end of its 47 to $51 range or more after reviewing investor commitments yesterday. according to reuters the british chip designer owned by softbank decided against publishing a revised price range they are already oversubscribed by more than 10 times and shares are expected to start trading tomorrow. speaking of ipo's birkenstock has filed for one. another sign that the attraction u.s. equity markets hold for european firms seeking a valuation uplift. the german footwear maker whose iconic sandals are worn by hippies and preppies alike will continue to be controlled by private equity firm l cattle 10.

let us take a look at some of the news we are following, this morning industrial production data for the u.k.. in the euro area on the docket. at 1:30 p.m. u.k. time it is u.s. cpi, core cpi has been muted in the last two readings bowstring hopes the federal contain recession that will be the market moving event of the day. as of just mansions were going to get that pricing from chipmaker arm, trading begins tomorrow. at the pricing still up in the air, 47 to $51 is the range. it tech leaders including elon musk and mark zuckerberg set to attend a forum on the future of ai. convened by senator chuck schumer. coming up, news overnight that the ecb sees eurozone inflation staying above 3% next year. it more on that and what it means for the ecb's rate path next, this is bloomberg. ♪

kriti: welcome back and good morning this is daybreak europe. reuters reporting that the ecb see zero era inflation staying above 3% in 2024. the overnight news moving both the euro and boone futures as the market ways with the ecb is going to do next. who better to get more contacts in our european correspondent. good morning. talk to us a little about what this means for the ecb. how much weight does this inflation forecasts have? >> i think we should note a number of things. this is a report that is coming from reuters overnight, they say the european central bank and their new projections that they will put out tomorrow in conjunction with the monetary policy decision, they still see inflation above 3% next year in

2024 hours crucial in terms of the transmission of the policy. they said they want to see this transmission kicking in to bring back inflation closer to 2% on a sustained basis but we should note with leaks coming from the european central bank or attributed to the -- the bank -- until they make it official. if they run with us to report it would signal that inflation is sticky at this point and therefore it could provide a platform to those in the governing council the belief they should still go for another hike in september. this feeds into the debate of a halt or hike. i should also point out that the report says a decision is still pending. we know deliberations are happening today and tomorrow. he could still go either way but nonetheless if you assume that inflation is sticky and remains above 3% next year, and that is a crucial you're going into this forecast, then you could argue it gives a leg up to those that believe another hike is still warranted. kriti: certainly something to

keep in mind for the monetary policy as well, geopolitics always play a role. european president ursula do to deliver her state of the union address today. anything market moving, significant from that? maria: i think more than market movement this is a very political speech. a course ahead of the european commission, the state of the union in the european parliament in strassburg, this is a big speech. this is the bank from the european parliament, it is officially now back from research. -- recess. they're starting to set out the political priorities of the commission, there are two things that matter from the speech. there will be many references to ukraine. there is a question about the ukraine joining the eu. the european commission is set to unveil in the fall whether they believe ukraine is ready or not for talks to the european union. there is a question around ursula herself because in

theory, and a say in theory, this should be her final state of the union as a head of the european commission. her term will be up next year. there is european elections in june but nonetheless there is widespread speculation in brussels that she wants a second term as the head of the commission. we see this geopolitical commission gaining ground in importance and wait in some of the key topics across the european union especially as a result of the war. it will be interesting to see whether or not she talks about her future. some say it is too early, let's remind ourselves the elections are in june 2024 but nonetheless this conversation -- every meeting i take the big question i get is who do you think will be commission president or will ursula be back for a term to. this is in the political zeitgeist of brussels already. kriti: the secession battle we have been talking about all morning in the corporate spear, -- sphere. looks like a secession battle in the political one as well.

speaking of politics, let's bring you some breaking headlines. we are getting reports coming from the russian news agency that the russian foreign minister and china will hold talks on september 18. we know this comes with the background of vladimir putin and kim jong-un the north korean leader, already in talks. they will be discussing economic cooperation and humanitarian aid. the geopolitics are incredibly significant here is russia basically shows the world we can still make alliances around the world and we don't necessarily need to be dealing with the sanctions that have been put on them by european countries in the u.s.. it will be bring you more headlines as we get them coming --, coming up the government prepares a series of tax reforms in front of a judicial panel. that exclusive interview next. this is bloomberg. . ♪

kriti: good morning this is daybreak europe thousands of people are dead and at least 10,000 more are missing in libya after a mediterranean storm last the shortest collapsing dams and triggering floods. health minister has described the situation is the very definition of a disaster. the egyptian president says his country which sits on libya's eastern border will provide assistance, and offer its military to help with search and rescue. it now sticking with the continent of africa kenya is proposing tax reforms to boost revenue collection to 25% of its gdp by 2030. but the president's fiscal strategy still has a few hurdles to pass it is unpopular domestically, but the government says tax hikes of the key to avoiding debt distress as the rising cost of living in a week and currency plagued the

country. we are joined now by kenya's prime cabinet secretary here on set. a pleasure to have you for this exclusive interview thank you for joining us. let's start with the growth prospects of kenya. when we think about where you want to invest in africa nigeria comes to mind because of population but kenya seems to be the underdog. you are seeing a lot of foreign direct investment they are, how do you grow that? >> i think one of the things we pride ourselves on his we have come out strongly in terms of democratic principles. we have been tested time and again on matters of election, our judiciary system works. and in fact our election last time a year ago has been rated by many observers and many other key players in this field as one of the most democratic and open electoral processes on the continent. so that is a strong selling point. beyond that we are very broad

and open in terms of pursuing sound economic policies. we are emerging from a fairly difficult time, debt levels were very high and they remain high. and we are working to make sure that we maintain physical -- fiscal discipline and also ensure that we are not just taking debt after debt. kriti: let me speak to you about the economic policy. part of this idea of tax hikes essentially, being put onto target that debt policy. why do it now at a time when perhaps the kenyan government has other options privatizing for example some of the state owned firms to generate the growth in the company. give us a little more insight on what those plans look like? >> well physical consolidation would require that we actually live within our means.

in the privatization program is going to go on but getting the private sector in terms of the privatization takes quite a bit of time. it is something that you must run in parallel with other measures. so clearly we do not have the physical space that one would expect us to have and therefore we will have to raise more revenue locally. part of this involves not just raising hikes, taxes in specific areas but also making sure that there is less pilferage when it comes to tax collection. kriti: we only have 20 seconds, is your buyback plan still on when it comes to the bond story? >> let me put it this way, we have not gone to that state. we're focused on ensuring that

we raise more revenues at the base at this particular point in time and then that will give us the strength to restructure our debt portfolio. which at that time could include a repayment of what we owe. kriti: to be clear the buyback for these kenyan bonds into 2024 in 2027 is still not confirm? >> we are on schedule. i can only tell you that we have no intention of default and whatsoever. kriti: on schedule for the buyback or to hold to maturity? >> on oliver obligations we should be read on time and we shall make sure. kriti: let's talk then about your tax revenue, specifically when it comes to how that money is being allocated. yes you are increasing taxes and yes some of these foreign investments are footing the bill for that, is this the time to increase those tax hikes, to see more pressure on the consumer

from kenya given the stoxx? why put that money to use the bond market when perhaps he could be used in other ways? >> one of the things that we have to live with is the global dynamics come into play. the supply chains that have been disrupted, basically by the ukraine battles. the ukraine russia conflict has had an implant -- impact. the interest rates have been raised in the u.s. and other big economies have also had an impact. so him -- we have seen a slide on the schilling vis-à-vis the other hard currencies so some of these challenges come into play. but were confident that what we are trying to do is more enhancing of the revenue collection and we are taking

corrective measures to deal with something that has been brewing over a period of time. i finally let me just say on this point that if they are tough positions is better off dealing with them at this point in time when we have just moved out of an election rather than waiting for these critical decisions at the tail end of the term. kriti: now way to put you on the spot again get ready, you're talking with these tax revenues, you're talking about potentially buying back the bylaws, privatizing some of these companies that requires far more than the tax revenue will afford the kenyan government. or else are those revenues coming from? >> i can just tell you that the revenues that we are putting in, we've talked about privatization, were also talking about increasing our savings and we have a situation where

through entities where the savings of the country had been at minuscule levels. we are enhancing that. all of this is going to help us as we move forward. at the same time let me say we have been able to work out a program with our development programs and the imf. we have a program running and that is very important. and we are also seeing a rebound in the tourism sector as an example. kriti: certainly something are going to keep an eye on. we can't continue this conversation we think you as always for joining us, this is bloomberg. ♪ of course we have more markets coverage ahead before we leave you we still have more french steel it to says it is planning to resume paying dividends as early as 2025 as it seeks to erase its net debt