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.

kriti: good morning and welcome to "bloomberg daybreak: europe." it is instead day. the central bank is set to pause for leave the door open for another hike as early as november. five-year in 10-year treasury yields are levels we have not seen since 2007. inflation and focused on the side of the atlantic. in the u.k. the cpi is due in one hour and a 70% chance of a 25 basis point hike priced into the markets but some saying this might be the bank of england's last. present zelensky blames russia for weaponizing food while cracks appear between ukraine and poland over wheat sports. we have top interviews from the un's general assembly. let's get a check on markets because we are in the central bank -- palooza.

futures are down 0.1 percent. a laid-back approach to what is going to be a fed day decision. standing on the sidelines until we get more direction. the bigger story is the commodity market. brent crude trading at just shy of $94 a barrel. we are going closer and closer to $100 a barrel. today, a little pullback that will be a massive reflection of the sentiment you are seeing old white. the reflection in the bond market is interesting. valerie tytel joins us in a moment she pointed out you are not seeing this reflected in the bond market. the 2-year yields not showing much action off of the oil story. 5.08 on the 2-year yields. i want to zero in an asian story. those markets are still trading. the hang seng is down by 0.9%. in the nikkei down 0.6%. there's a lot going on in asia this morning. we did get news coming out of

china specifically saying their loan prime rate will remain unchanged. this comes after the pboc chose to pause last week perhaps not getting the same stimulus that's a lot of investors were expecting. you are seeing jgb's, the 10-year specific hit the highest level since 2014. we will dive into that. right now you are seeing some strength in the dollar against the yuan but some weakness in the japanese yen. it is time now for the top story of the day, the central bank palooza had been hinting at. valerie will walk us through the story. the fed has a lot on its plate. the treasury market already pricing in a bunch of different things. what is actually, what is the bond market saying? valerie: there is a lot of treasury supply at the moment that is hard to digest. i want to delve into the

possible surprises from the fomc this evening. it is good to know this is the first fomc meeting we are likely not to see the fed raise rates or raise expectations of the terminal rate. equity volatility priced into the market does reflect that. we are seeing the lowest for the fed meeting in over two years but there could be surprises at stake. on the hawkish side we could see a shift higher in the 2024.. jay powell nodding to the recent economic straight -- strength and cuts are not likely on the horizon. they would do that by the dot plot and he was strengthen his language around the threat of an additional hike later in q4 this year. on the dovish side we could possibly see a threat of initial hike move from this year out to next year which would cause the market to discount it being it is so far away the distance. they are -- there also could be a lagarde like emphasis that we are at or close to the peak

rates. they would do that via shifting out the dot plot or via showing a less number of members really gunning for that extra hike this year. kriti: you mentioned the liquidity story. central bankers famously like to say they are working with very blunt tools. in the last 7-10 days the idea of higher oil prices and wages has captured the world's attention. how much can chair jay powell do about that? valerie: not a lot when it comes to oil prices for the auto strike in the u.s.. to juxtapose that argument, we have seen a lot of progress when it comes to wages moderating whether that is average hourly earnings being the lowest in two years, the atlanta fed wage tracker softening, the implement cost index which is a quarterly measure of wage inflation also softening. the last few months we have seen labor market come into better surprised -- supply and demand.

when it comes to oil prices, powell is likely not to be deterred on this because the recent rise in oil prices is really not shifting inflation excitations. inflation excitations was a battle the fed fought last year and they have done it successfully. so far, there has been chat that the recent rise in oil could dent consumer spending power causing economic growth to slow, which would be positive for powell and something he wants to see before calling and trusting the moderation in inflation we have had in the last 1.5 years. kriti: this brings us into a perfect segue to talk about it. i want to go to the boj because i wonder how much of the fed playbook is being used by the boj that is dealing with very different than amex starting with the 10-year jgb's, hitting the highest level since 2014 ahead of that meeting. wall street penciling in a very wide range of inflation

forecasts going into 2024. what exactly priced into the market? avril hong and singapore joins us to slain his. what is a market expecting for friday? avril: yeah, we are seeing really interesting moves among market participants. it seems that the focus is really shifting away from what the boj might potentially communicate about tweaks to its yield curve control policy, but rather, the focus shifting towards what we might see and the possibility of the ending of negative rates in japan. in some ways, the swap market indicators are actually pointing to these moves because if you look at some of the yields of the secondary market, they are 30 basis points the last time i checked, miles away from where the boj has its new policy cap. it makes it seem less likely that the boj will exit tweak the band around -- will actually

tweak the band around its yield target and we will see that communication about what it will do on interest rates instead. indeed, the very way to open the door and field -- governor ueda open the door and fueled speculation with his comments about that we might have a clearer picture of wage growth by the end of the year which is a condition for change in policy. kriti: i love that you talk about that because you eta -- ueda saying all options on the table. in terms of him as a figure that the world is watching, what is at stake? avril: plenty is at stake. we always talk about how the central bankers are caught between a rock and hard place but for him, especially so because if you look at how the pressures is on to keeps to mess up for ueda based on the street ueda numbers coming out of japan, this morning as well it shows us how global demand is

really beginning. there is expectation that he will have to keep things on the stimulus pedal but the yen depreciating is comforting that picture. so, we get the sense that the focus will not be so much on what he says or that decision but what he says after, during the press conference whether we will get more intervention or hawkish comments in defense in a way of the depreciating japanese currency. the good news in a way is that we get the sense that is a lot more -- ueda is a lot more stable and away when he committed gets to the market versus a shock and all we got from his predecessor in the stands we got from governor kuroda. kriti: avril hong explaining a really important dynamic in the boj to us. thank you for joining us from singapore. the last place to talk about is

the bank of england. the decision is coming tomorrow and u.k. inflation data coming in just a few ms.. lizzy burden joins me on set to walk us through this. we will start with the inflation story. the data has not come in the boe's favor lately. what is the case for a pause? lizzy: the governor of the bank of england and chief economist of the bank of inland hew pill have been talking about a pause. we're going to the top of table mountain and that is because of the hit to the economy that you have seen in the gdp data. at the same time we get the latest inflation numbers at 7:00 a.m. london time and they are expected to point to in the wrong direction because of the contribution of fuel prices. the officials at perennial street are sophisticated and they don't just look at the headline number. if you look at core inflation that has been sticky in the u.k. and is only expected to take down from 6.9% to 6.8%.

services inflation went up. that shows that here it's in the u.k. we have the wage-price spiral, difficulty with domestically driven inflation and that is why it is set to become a kid decision and why markets cannot make up their mind -- be a complicated decision and why markets cannot make up their mind. kriti: valerie was talking about the fed that there is a liquidity story that is part of this as well which brings us to commentary from the boe around their qt program. perhaps they are not ruling things off the balance sheet. how much traction might they get tackle lizzy: it is something that that deputy governor has won the markets about. the question is whether we will get or how much the increase is going to be. the argument is it has been running like clockwork in the background and the active tool is interest rate rises. so they ought to restock the arsenal in case there is another

crisis. it is a difficult one but the bigger picture really is that qe is probably never going to be used like this in the same way ever again. kriti: a lot to digest here. three very different central banks and differed approaches to monetary policy. i wonder who rips off from the other. lizzy burden, we thank you as always for walking us through the story. you can get a round up of the stories you need to know to get your day going on today's edition of daybreak. terminal subscribers can type in dayb on your bloomberg terminal. perhaps a thorn in the federal reserve, the boe and the boj site altogether. we will discuss crudes rally and why higher oil prices could mean for the fight against inflation. we will dive into that next. this is bloomberg. ♪

meet the portable blender we can barely keep in stock. blendjet 2 gives you ice-crushing, big blender power on-the-go. so you can blend up a mouthwatering smoothie, protein shake, or latte wherever you are! recharge quickly with any usb port. best of all, it even cleans itself! just blend water with a drop of soap. what are you waiting for? order yours now from blendjet.com before they sell out again!

>> thursday surveillance is live

from london for the bloomberg global credit forum. after a decade of credit, time, john and lisa address risks in the debt markets and opportunities ahead. tune in at 10:00 a.m. eastern, 3:00 p.m. london time for a special episode featuring an interview. only on bloomberg. context changes everything. kriti: welcome back. this is "bloomberg daybreak: europe." i am kriti gupta in london. oil is taking a breather. they will be a fed decision later today which is having a ripple effect. brent crude pulling away from the $95 a barrel. supply tightness still very much a factor in the market. let's get more analysis from bloomberg's and need apollo

joins us. talk to us a little bit about this dynamic in the oil market. when do we officially take a big u-turn? anthony: i think today is a pause like you said because of the inflation and upcoming central-bank decision. investors are taking a risk off while they wait to see what happens. it is interesting how it is a two-way street. you're talking about how high oil prices are feeding into inflation and that is creating headaches for the central banks but at the same time it is uncertainty about the central bank decision and how much that will affect the economy which is the uncertainty causing some pause on the oil prices. the fundamentals are still there. that is in terms of the supply side but we are looking at the demand side and will tightening central-bank rates if those do continue after they expect deposit now, will those hurt the

economy and will that then hurt the demand going forward? we will be taking a pause here probably and then looking to come back up as opec+ and suppliers continue to tighten the markets. kriti: you are perfect the position to watch that live. let's put our nerdy hats on because one of the interesting dynamics that i learned about in the last year or two when covering oil markets is simply when you start to see the russian invasion of ukraine, a lot of volatility in oil markets, the investor reaction for those using commodities as a hedge was to pull out. you saw opening to risk clearly drop in plunge because they did not want exposure to the volatility until the geopolitics were clear. now that the geopolitics is again perhaps driving the fundamental narrative as you point out, do you foresee that kind of hesitation to invest in the oil market? anthony: well, we are seeing the prices reaching a high for the

last 10 months. we have not seen prices this high since november. that indicates people are getting back into that market and indicates that at least on the physical side that the efforts by opec+ are tightening the market and are taking supply out. interestingly, today we are seeing as we said, a pause in the oil prices at the same time we are seeing inventory draws in the united states which is normally more of a bullish factor. because that means that we need more oil and we cannot take as much out of storage anymore. at the same time we see the drawback because of those economic factors. of course the politics will still be there but we are seeing at the moment, lots of russian oil still coming into the market and iranian oil coming into the markets. these issues could change. we have not seen a whole lot of enforcement from the u.s. side but that could change. there are clouds on the horizon between the u.s. and china relationship. if that starts to heat up again and impact global trade, that

could have an issue on confidence, on trade and on oil demand. we still have geopolitical factors out there for sure. at the same time, we are looking at a lead of diplomatic initiatives by the biden administration and here in the middle east. we'll have to see how those work in terms of the long-term strategic goal of the biden administration versus the saudi goal which is to support the oil prices which is of course working against kind of the u.s. gasoline pump prices which does not help politicians running for reelection. kriti: a lot of crosscurrents. and need apollo -- anthony di paola is all over that. let's look at stories we are following around the world starting with instacart delivering a 12% trading gain on his first day taking valuation to over $11, ac plunge from $39 billion in eight 2021 funding round thanks to pandemic

lockdowns. it is known for grocery delivery service but spent years building up its advertising division. a higher-margin operation that capitalizes on its trove of shopping data. amazon planning to hire 250,000 logistics workers ahead of the holiday shopping season, a jump from last year's quota. the online retail giant will also boost average paper logistics workers amid a u.s. labor shortage. the announcement after analysts expect overall holiday hiring to stay muted. at disney, shares fell overnight after said it plans to nearly double investment in its parks and resource division to $60 billion over the next 10 years. it has over 1000 acres of land that it could develop and cited increase profits in recent years from investments and rides, cruise ships, and other attractions. disney has seen record growth in customer spending at parts of the past two years. coming up, poland's president

talks to bloomberg about the intensifying dispute over grain and shaking the relationship with ukraine. we dive into that next. this is bloomberg. ♪

kriti: welcome back to "daybreak: europe." i'm kriti gupta in london. breaking news around qantas airlines. they are holding alan joyce's payout. we are waiting details but the context is important because we know qantas has been dealing with a union story. the transport workers union representing 1700 baggage handlers, it looks like they had been laid off early on and then there was a court case in legal action taken about how they would be compensated at a time when qantas specifically had to

deal with higher wage prices, higher fuel prices. that is a concept we are seeing around the world. we don't know that is part of the reasoning that we are seeing a pullback but is accelerating the selloff in qantas airways shares, down 1.7%. we will keep you apprised of the headlines as we get them. i want to broaden out and take it news. u.s. president biden has urged walgreen leaders -- world leaders to back ukraine and the war against russia as a brace for the prospect of a long-term public. >> russia believes the world will grow weary and it will be allowed to brutalize ukraine without consulates. if you allow ukraine to be carved up, the independence of any nation will not be secure. i respectfully suggest the answer is no. he had to stand up to this negative aggression today and deter other would be aggressors tomorrow. kriti: president biden there speaking at the u.n. general

assembly in new york. the ukrainian president has told the general assembly that russia is committing genocide in his country. fled ms. lewinsky says moscow is weaponizing food and energy -- zelensky said moscow is weaponizing food and energy. they moved to restrict laxity grain imports. >> russia is launching food prices as weapons. the impact from the atlantic coast of africa to southeast asia and this is at a grayscale. i would like to thank the leaders who supported our black see grain initiative and brought despot grain from ukraine. kriti: poland's president has urged ukraine to not have public attacks. andrej duda spoke with bloomberg's annmarie hordern. >> from the beginning of this

war since a full-scale russian aggression since february 2022 it is poland in the polish people who are those in the closest neighborhood who has been helping the most to ukraine and the cleaning people. it was us who write from the start decided to open our border and take in million are -- millions of refugees from ukraine. we had several million people coming through poland. 2 million ukrainians are still in our country. that from the start, we started to send help to ukraine. we have supplied 300 tanks and almost all of our jets that we had. we sent more than 100 armored vehicles and supplied state-of-the-art howitzers produced in poland. we delivered them in a huge number and have been helping

ukraine all the time. this is also help which is given by ordinary people in poland who have taken ukrainian refugees into their homes. we believed and still believe that it is necessary and tried to serve as neighbors to those up their neighbor, their brother. who is a difficult situation. so this is a situation we have them we understand it purposely well but this is a war and there are different situations in a war. also normal life goes on. there are different situations, difficult ones. that is simple. annmarie: back to the grain deal with there's a lot of friction, you said today there will be a legal solution at the wto but also said it will be good if ukraine will remember it does receive assistance from poland. you said that ukraine should know it is a transit country,

poland. is that a threat zelensky? andrej: no, this is not the point to lead any discussion in the media. i regret there is a discussion going on in the media. i will try to cut it off are sure because someone has to be wiser here in the situation is not easy. we tried to help ukraine and we have created transport corridors, transit corridors precisely to transit ukrainian grain through poland. in the direction of seaports, be it polish seaports or the seaports in the balkan states to make sure that the ukrainian grain can be exported were ever is needed because ¡se fue la luz! pero todavía tenemos wifi para hacer las tareas. ¿y eso es algo bueno? wifi y estudiar. buenísimo. wifi y pedir una pizza online sería buenísimo. presentamos storm ready wifi. solo de xfinity. ahora puedes mantener una conexión

confiable durante apagones, con datos celulares ilimitados y batería de respaldo de hasta 4 horas para mantenerte conectado. obténlo solo con xfinity. el hogar del 10g network. entérate más hoy.

>> good morning welcome to daybreak europe, let's get to the top stories that set your agenda. the federal reserve expected to pause today but leave the door open for another rate hike as early as november. five and 10-year treasury yield's already heading levels not seen since 2007. an inflation in focus on the set of the atlantic and the u.k. this morning. cpi data due in one hour. or 30 minutes now. a 70% chance of a 25 basis point hike being priced into the boe. some saying this could be their last. and over in new york president zelenskyy blames russia for weaponizing food while cracks appear between ukraine and poland over wheat exports. we have top interviews from the u.k. general assembly. i want to get to breaking news because we are getting a headline here from courier day at les sarah one of the italian newspapers talking about italy's steak in one of its oldest

banks. potentially talking about selling a 15% stake. the context is crucial because this is one of the oldest banks and they have had a cash crunch in the global financial crisis. nationalized in 2017 now that it's back on its feet, now that it's making more money you start to see more pressure from giorgia meloni's cabinet specifically from the right of the italian political space saying look, it is time to sell and this is how the italian government can get a little more money in their coffers. that is going to be something we are monitoring closely. of course it does not open until 8 a.m. local time but certainly something to watch as we get perhaps a 15% stake in that move. also worth mentioning it was the best performer in the ftse mid index yesterday so something to watch at the european market open. a quick check on the broader markets because already we are seeing caution ahead of the federal reserve meeting. it take a look at futures, a whole lot of nothing. especially when you look at euro stoxx 50 futures even the dax taking a breather.

but the real action in ftse 100 futures, we know the past couple sessions the u.k. benchmark has taken a hit down about 3/10 of a hit -- of a percent. all subject to change in the next couple days futures in the u.s. as well unchanged. it is a sign of caution that you are seeing around the world right now ahead of central bank palouse. i want to get a quick check on how asian markets are faring. april standing by in singapore walking us through some of the key market stories. averill: >> we are seeing that central bank anticipation filtering through into stock markets in the region, we are seeing it red across the board and it is the msci asia pacific that is headed for another session of losses. all of the sectors are trading in negative territory today as the higher for a longer narrative really puts these equities, in the spotlight. i want to draw your attention to the japanese currency against the greenback.

we are seeing it holding steady for now. if i could just pull out how it is faring today. we see it holding steady more or less against the greenback, the anticipation really is on what we are going to see from the boj this friday or here rather. we did see that strengthening right -- early on in the session. intervention from the top currency official in japan and janet yellen talking about how yen intervention would be understandable in order to smooth out the volatility in fx. so just highlighting for you what we are seeing on the japanese currency ahead of these key central bank decisions. kriti: certainly a lot to watch right now. of course the japanese space, talk to us about the chinese space as well. i believe the pboc and the and drc are all coming out with some commentary. avril: absolutely we had a joint conference from the pboc, the and drc in the finance ministry. just before that we saw the chinese lenders keeping the lpr

unchanged. to be sure this was in line with the market consensus, but it is perhaps a disappointment for people that were hoping for a bit of stimulus in the market. we are seeing the benchmarks in hong kong lower, weakness in the chinese currency as well just to get you up to speed with what we heard from the pboc officials they are talking about how there is ample room for policy support for the chinese economy and they are reiterating their previous stance of just getting more of a countercyclical adjustment and stepping that up if needed. some of these stepping up of policy support, based on comments coming in from these chinese officials. kriti: it's really interesting to see both china and japan trying to tackle the local issues with various central banks to different degrees of success. thank you for those two major stories, i want to stick with

that theme. it is a major week for central banks around the world, today the federal reserve kicks it off the latest rate decision to at 7 p.m. london time the fomc expected to pause while leaving the door open for another increase as early as november. joining us now is bloomberg's valerie tytel. a hawkish pause seems to be in the vocabulary quite a bit. i still don't know what that actually means. it feels like the dots are in focus. valerie: that could be where the hawkish surprise really does land. a hawkish pause would be if powell went and paused rates, if there is no hike today. he very much foreshadows the hike in the cards in the future. the way they could do that is by having more members vote for that 2023 hike in that dot plot. they also could shift the dots higher in 2024 which would be the hawkish surprise today. if those dots shift higher by more than 25 basis points that is powell giving a nod to the

recent economic strength almost in a bid to prove to the markets that cuts are not on the horizon. the need to keep rates higher for longer, they need to see economic weakness before trusting this down take in inflation in this recent softening in the labor market. on the dovish side he could maybe take a playbook out of lagarde's page and bring this emphasis that we are at or close to the peak in rates. they could do this via the dot plot by shifting out that threat of an additional hike to next year or just soften his language entirely on the start of additional hike in q4 of 2023. kriti: valerie talk to us a little about the sticking points. what are we not seeing that we are talking about that wages, oil as well. do you think you will address that? valerie: i think it is a high bar for him to address it directly. he could soften his language and it comes to the threat of an additional hike in a way giving a nod to things like the auto

union strike. it's possible government shutdown. the weight of higher oil prices on the consumer. those are the things that would be likely on powell's mind today. i do not think he's going to think this recent rise in oil prices is going to directly hurt him in his inflation goal at the moment. it is not had a huge effect on inflation expectations so far, this recent rise in oil prices and there is a lot of chat out there in the market that this could actually help powell in a way. that consumers spend more money on filling up the gas tank, they're going to spend less money on anything at the department store and any excess savings that they have have been depleted. by these high oil prices. maybe he does give a nod to the issues that the consumer faces but i don't think he is going to explicitly tie these oil prices as a threat to his inflation. kriti: there's the fed policy

lag and the thing that works in the opposite direction which is how quickly do oil prices hit the bloomberg -- the economy. i want to go to the broader story here. european commissioner president has told us there needs to be investigation of china's massive subsidies for electric vehicles. she spoke to francine lacqua. >> we like competition but it has to be a fair competition and we want a level playing field for our companies. and what we see his massive subsidies in the ev sector in china, which is of course on leveling our playing field and we do not accept this in the market for our companies so we do not accept it for chinese companies and therefore the investigation is now into subsidies in ev's in ev's and china. >> have you since announced since -- talk to chinese officials? >> we are in constant contact with the executive vice

president. i will travel to china and discuss it also with the chinese but we have now to look at the figures and we are moving on. >> in the past there was always a tit-for-tat, some type of retaliation and china making noise back. will that happen? >> we will see but important and for us it is very clear we want competition. we want competition on quality, cost effectiveness, but not on subsidies. and therefore this is something, as i said we would not tolerate for our own companies than the single market so it has to be fair play. kriti: some strong language from president ursula speaking to francine lacqua. for more on the story were joined by oliver crook standing by. the european auto space really butting heads with china. were going to get a little more information later will be get some of the eu auto sales numbers. what are we expecting here, what

are we watching? oliver: it has been a strong year for sales here in europe and we are expecting that to continue in the month of august. according to b.i. they have estimates out expecting the comparison to be 18% up from 22 year to date. it is a significant uptick for sales here but the weakness might be in the back half of the year because a tough comparison with 2022, sales picked up in the back end of the year. and all this economic uncertainty. are you going to buy a car when you're not sure about what's going to happen? we care about ev sales. we expect volkswagen to hold 22% of ev sales market share in europe, tesla had 18% and with all the worrying about the chinese automakers in europe i only have 5.6% of ev sales in europe. this is a low base. the fear is about the future but maybe if you are worried about a foreign car worry about tesla. tesla has got 13% of the market share with only the model i. the model why became the

best-selling ev in the first half of the year but the best-selling car in europe. a company that sells 1.3 million cars every year versus vw that sells 8 million and they command 13% of the market share with a single model. kriti: really interesting dynamic and you can see why they are butting heads clearly. let's go across the atlantic and talk about the other major auto story this week. the uaw strike making some progress on some fronts. oliver: we know a little bit but the thing we are looking for is friday, noon, we have no increased offer. nothing palpable. there have been discussions but we need to get offers on the table for us to say there will be progress. they can expand strikes starting friday if they don't come up with anything better. in terms of how it is affecting the company, say they have inventory and have prepared for this and are doing ok. some dealers are reporting some inventory shortages and s&p global mobility says for the big

three this is costing them about 3000 cars a day in terms of production. the white house team has not yet arrived in detroit, they should be there to facilitate talks with the president of the union has been very skeptical about political involvement. he came out with a statement after hearing that trump might go next week to gain support saying this is the billionaire class in a system that we have been fighting that the strike is all about. while the stalemate in the u.s. and canada that there was a breakthrough they are union. have reached an agreement meeting 5000 workers will not strike as long as they ratify the agreement so some progress therefore the automaker. kriti: oliver crook covering the auto story from around the world, we think he was always. he talked about ev's, cars. my brain goes to oil which is handy because goldman sachs just raised their 12 month ahead of print oil forecast to $100 a barrel relative to that 93. we're still on the back foot here paring some of the gains we got in the past couple days but

goldman sachs broadly led by jeff curry at the time was really advocating for the start of some super cycle in the broader commodity market. we know the former of commodities there has less, it will be interesting to see what this thesis is for $100 oil in 12 months time. coming up we speak to the boss of the world largest cosmetics company about china, the rise of ai and investing to address those global challenges. our interview with the ceo of l'oreal, coming up next this is bloomberg. ♪

kriti: welcome back this is daybreak europe in london, how has the world's largest cosmetic

company investing in a sustainable future? they go green and key leaders across a range of industry see how they are navigating the transition. francine lacqua sat down with the head of l'oreal to discuss ai and that green investment. >> what is the biggest transformation happening in beauty is what we called beauty tech. it is the help of technology to augment the performance of beauty products either through diagnosis or through personalized beauty products and that is the future of beauty. ai, we use ai to augment our researchers. to invent new ways of formulating products to go faster. we use ai to provide the best advice. >> for color matching. >> color matching, skincare. in india consumers are passionate about beauty. duty is the number one topic of

conversation on tiktok for example. it is something that in passions people but it is a jungle out there. there are so many products so you need to help people choose so cure ration is a very important part in to help people make the right choices you need some sort of either diagnosis or virtual try on so they can see which shades are going to fit better. same for hair. so technology is a great help not only to great new products but make consumers happier about the products. >> you can watch the full interview with leaders with lacqua airing at 9:38 p.m. tonight in the united states and 6:30 p.m. london time on thursday. let's get a look at some of the other stories were following, bloomberg has learned that -- in advance talks to sell its unit -- the installment lending platform. goldman bought it less than two years ago and it's part of a broader retreat from consumer

lending after attempts to woo retailers and it proved costlier than expected. the deal could be worth as much as $500 million. sebo says edward tilly has resigned as ceo following an investigation that found he did not disclose personal relationships with colleagues. the derivatives and security exchange says it has appointed a current member of its board of directors as new ceo effective immediately. we go from a little about wall street to the broader geopolitical story. azerbaijan has begun a military operation to take control of a region, it will destroy armenian military positions in the disputed territory. the errors -- area has seen armed conflict between both countries for years and the escalation has prompted international condemnation with the u.s. and russia both calling for the fighting to stop. over to china, their top diplomat has pledged to strengthen strategic coordination with russia as the two nations lay the groundwork for a meeting of their leaders

in beijing. the foreign minister is on a three day trip to moscow for security and foreign policy talks with his russian counterpart. vladimir putin will visit china next month for a belt and road initiative form as well as a meeting with president xi jinping. up next we look ahead to the u.k. inflation data due out in a few minutes. it could really change the course of the bank of england that it has paved or itself. we discussed that next, this is bloomberg. ♪ >> as we look to the future, credit has been the most rapidly growing part of our business for the last three years. and to some degree that is helped central banks increase rates so now credit is very competitive with other equity types. other products. and it has the virtue of being much safer than some of the

equity products. ♪

>> the responsive government should be turning this awful crisis into an opportunity creating green jobs. a green new deal. thinking about how we can both save the planet, address climate change, but also give people security. this is basically lazy politics from a weak prime minister because he is so weak and ineffectual. kriti: mayor of london saying the government should respond to the climate crisis by creating even more green jobs. it staying on the theme of the u.k. in just a few minutes to get the latest cpi data for the country. lizzy burden is here for everything we need to know about that. let's talk about the expectations. what are we going to see in seven minutes time. the expectation is that

inflation will go in the wrong level and it comes down to fuel prices. at the majority of economists reckon it will go to 6.8 to 7%. our economists hear it reckon it will go higher to 7.2%. obviously it does not make for nice headlines for the bank of england tomorrow but they are more sophisticated than to just look at the headline rate. at the bad news is core inflation has been sticky here in the u.k. and that is only expected to edge down from 6.9% to six point 8%. it services inflation in the last data went up and it speaks to this wage price spiral we have had. kriti: also striking with the boe will do about it because we have been chugging along to this narrative that the boe is the most hawkish central bank in the world and here we are potentially contemplating the possibility this might just be its last rate hike. is this the moment we look back and say the boe is getting on the same page as the rest of the world? lizzy: people talking about the bank of england being first into the party unless out of the

party. a few weeks ago, not that long ago the governor of the bank of england, and chief economist were talking about us getting to the peak of table mountain but this data today could make that more difficult. we have had hawks on the committee like catherine man saying we need more rate rises to get in control of inflation expectations. it is a difficult picture and especially at a moment when the confidence in the boe according to its own inflation survey is at a record low. this is a game of expectations management and by its own numbers the bank of england is failing miserably. kriti: first into the party and last out you would think it's a fun party but not quite. talks to us about the political implications. lizzy: if you look at the number one priority of rishi sunak to have inflation by the end of the year, he has talked until we're blue in the face so that could be even more difficult. not just because of this number but yesterday we got the latest

forecasts from the oecd saying they reckon inflation could and the year at 7.2%. to hit his target it would have to be over about 5%. so it just over, that is even more difficult. and it is a more bruising forecast because the chief economist the oecd knows the u.k. economy inside out because she used to be the chief economic advisor to the u.k. treasury. on top of that, because of a quarter of our debt is tied to inflation this makes it an even more difficult picture for the treasury and we heard from hsbc liz martin, it might mean that conservatives have to be conservative actually before the next election. kriti: the structural quirks of the u.k. economy not working in its favor. thank you for explaining that to our global audience and for joining us this morning. a quick check on the markets, brent crude still top of mind for a lot of folks. goldman has about a 12 month

forward call of about 100 dollars a barrel. at $93 a barrel is where we stand now but you are seeing the selling accelerate in the last 60 seconds or so -- or 60 minutes. down about 1%. looking at standard deviations it is not a major move probably just retracing some of the moves we saw on past sessions. $100 still potentially on the horizon the two year yield not seeing much movement and that will change when we get that federal reserve decision later today. 509 on the front end of the curve within a version of about 73 basis points. no reflection in the dollar all will change this afternoon. stick with us, markets today starts right now. this is bloomberg. ♪ with the ultimate pool party essential. blendjet gives you ice-crushing, big blender power on-the-go, so you can soak up the sun with a frosty beverage. enjoy 15+ blends before rapidly recharging via usb-c. and it even cleans itself

with a drop of soap and water. stand out even when you're accidentally twinning with our kaleidoscope of colors. make this summer the coolest ever. order yours now from blendjet.com. flu shots at cvs are pretty... flex. schedule one for you... or the whole crew. plus, they're free. really? healthier is getting a flu shot on your schedule. (jennifer) the reason why golo customers have such long term success cvs. healthier happens together. is because we focus on real foods in the right balance healthier is getting a flu shot on your schedule. so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a size 12 to a 4.

before golo, i was hungry all the time and constantly thinking about food. after taking release, that stopped. with release, i didn't feel that hunger that comes with dieting. which made the golo plan really easy to stick to. since starting golo and release, i have dropped seven pant sizes and i've kept it off. golo is real, our customers are real, and our success stories are real. why not give it a try? 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. 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. tom: