dani: welcome to "daybreak: europe". i'm kriti gupta in london. let's get to the top stories. a hawkish skip. the dollar climbed as jay powell signals cuts are not on the horizon. stocks sold off in the u.s. session. >> prepared to raise rates further if appropriate. we intend to hold policy a restrictive level until we are confident inflation is moving sustainably to our objective. kriti: the knife edge rate decision in the u.k. after inflation unexpectedly fell to an 18-month low. central bank-palooza continues. tottenham hotspur chairman daniel levy is open to selling a stake in the london football club. let's get it quick check on markets because it is central

bankk this is a howell hangover, if you will. take a look at futures. anything can happen as we get more information from the bank of england. euro stoxx 50 futures down 1%. a lot of that is going to be priced in from pain in the equity market. he saw after chair powell's comments yesterday, the idea that we ours ticking to hire for longer even if it means pausing at the top. at the end of the day, we got a hawkish skip, however you want to say it. futures indicating that as well because a lot of this was priced into the afternoon of the u.s. session. overnight, futures continuing to selloff. by the rumor, sell venues. that's the dynamic in the futures market. it is the winners of the last couple of sessions. that tech outperformance taking the biggest hit. retracement in play at the moment. that is your stock picture. a quick check across asset as well.

the 10-year is going to be in focus. 4.43 is where we are. they are by two basis points. the two-year yield, the front end unchanged, that has to do with the plumbing in the bond market right now. euro-dollar, the biggest contributor to the dollar move. weaker by about 0.3%, 1.06 right now. brent crude trading just shy of $93 a barrel. all that will have repercussions for the asian session. let's see how those markets are faring. avril hong is in singapore with that report. >> asian stocks not doing well today on those fed signals of interest rates going higher for longer. the msci asia pacific coming under pressure for yet another session. it fell as much as one point 5% earlier, dragged by losses in tech and health care earlier. we also have msci china headed

for its lowest close since november and it continue to pessimism about the chinese economy. we are seeing not just stocks affected, we're seeing the bleed also in bonds and the currency it is worth noting, that we have some great decisions coming out of southeast asia from indonesia and the philippines. a hawkish hold is expected from both of them. no doubt, the currency weakness of late will be weighing on the minds of those central bankers. i want to zoom in on one currency we have been watching closely in the region. the japanese yen, as we await that decision from the bank of japan. there is the expectation that we might see some hawkish surprise from the boj governor. traders are hanging potentially to any word that will come out on the yen weakness we are seeing of late, especially as it hovers at its lowest level against the greenback in 10 months trade we got comments

earlier from the chief cabinet secretary. he says they are not ruling out any option when it comes to curbing excessive moves in the fx. that helped to bring strength back to the japanese yen, but still that weakness is what we're monitoring. kriti: avril hong in singapore, we think u.s. will is -- thank you as always. don't worry, we have the boj tomorrow. time for our top stories of the day. valerie tytel and lizzy burden keeping count right next to me talking about the central bank story. valerie, i want to talk about the federal reserve. that is the decision of the morning. let's start with what we actually learned, we knew a hawkish pause was in the cards, what changed? >> we did get that hawkish pause from powell. those 2024 dots shifted higher 50 basis points. to answer your question, what

changed, the assessment of the economy. they upgraded from modest into solid. but, it didn't come with the fact that this higher growth is going to lead them to hike higher. it came with the underlining that this better-than-expected growth is only going to allow them to keep rates higher for longer. that is what the dot plot reflected. when it came to his language on this use of this extra height they have penciled in, it wasn't that strong. it led the market to not shift expectations of this hike later in the year. at the front end, it is still pricing about a 50% chance that we get that hike when it comes to the november or december meeting before year end. the front end did move higher. we saw a cycle high for the two-year note after that dot plot was released. that higher for longer mantra did pressure the front end, but not specifically the risk that powell could have to hike again this year. kriti: what has been factored out from a markets perspective

is the cuts story. we will come back to that. i want to bring in the other major story, the boe, lizzy burden all over that. let's talk about what kind of precedent, for what kind of lead to jay powell has set for andrew bailey. lizzy: you already saw inflation data yesterday pointing maybe towards a hold, which would indicate the boe could follow the fed today, going for that hold. the reason was that inflation was a pleasant surprise, not just at headline level but on a core and services basis as well. you can point to what growth bolstering the case for the doves in the u.k. but the thorn in the side of the boe remains hot wage growth, which is why some on the monetary policy committee emphasize that, and may vote for that quarter-point hike today. the similarity as well with the fed is that markets are still fully pressing one more hike by the end of the year, we don't know whether it will be today.

that's why the guidance will be really important. kriti: is this the bank of england's last potentially? it seems to be for a lot of the other banks are porting today. bringing it back to the story of ok, this is the ultimate height from the federal reserve. if this is in the rearview mirror, window the cuts come about? the dispersion on wall street is interesting. the market pricing more cuts, jamie dimon saying we will get more hikes, jay powell somewhere in the middle, where you stand? valerie: powell, when he did talk about this mentioned the fact that the economy is holding up better-than-expected. the fed is really going to need to see a growth slowdown in order to trust that inflation is falling to their target before they discuss cuts. before they even change from this hiking bias. they will maintain this bias up until the very end. the thing that will change their mind is a slowdown in growth. kriti: that's what's scary about

it. a cut in theory prices in the idea that we will see massive deceleration in the data that happens way faster than expect it. it's kind of a doomsday narrative similar to what is surrounding the language around quantitative tightening. this is where the bank of england has the high ground. the idea that potentially you could see active sales on the bond market. in theory, that sounds scary to me and i am not even in the markets. should investors be scared by that decision? lizzy: cutie has already been going on in the u.k. there has been 80 billion pounds of sales in the first year. the question is whether they ramp up the pace to 100 billion pounds. the groundwork has been laid, the deputy governor has been dropping heavy hints. this announcement today is really expected. what would rock the gilt market is if they ramp up the pace much more than we're expecting. we all understand the theory. they want to restock the arsenals in case of another

crisis. kriti: it comes down to what the currency impact is here. we are seeing the dollar higher this morning, but is that a positive? our interest differential still driving the trade. lizzy, quick take on what the market action might look like. lizzy: it's going to be volatile whatever happens, both on sterling and gilts. the first half of the year, the pound was boosted by the narrative of higher rates, now maybe we see the peak of table mountain the second half of the year and what growth, perhaps not so much, but it's difficult because we are on a nyfix. kriti: i'm just now learning that knife edge is a term here. bloomberg's valerie tytel and lizzy burden walking us through the two major central banks are porting but we have a ton of other ones on the docket. you can get a full roundup of what you need to know in today's edition of daybreak, including the bank of england and the federal reserve, plus, poland

cutting arms supplies to ukraine. all of that on your terminal, just type in dayb and you will get all that right on your screen. coming up, it is decision day for turkey as well. economists forecasting a 500 basis point hike. we look ahead to what we can expect from the governor. this is not bloomberg just yet. we have one more interview to promote. we hear from tottenham hotspur chairman daniel leavy on whether he is open to selling a stake. he gives us hints on the future of harry kane. that exclusive interview is later this hour. this is bloomberg. ♪

kriti: i'll come back. this is "daybreak: europe", i'm kriti gupta in london. among our slew of central bank decisions, we expect to hear from the south african reserve bank. we don't put a ton of emphasis on what the sarb is doing but a chart came to mind. when i first started covering emerging markets in the fx trade , there was a popular trade, it was basically this esau effect between -- seesaw effect between

the turkish lira and south african rand. fast-forward six years later, you see that the south african rand has seen extreme weakness coming from higher water and electricity prices, power cuts, not to mention extreme inflation. inflation that is much worse than it is in some of the other developed economies around the world. when i put this chart in front of you showing just how weak the turkish lira is by comparison, it speaks to the fact just how much worse things are in turkey. that's where i want to go next. we will get that update from south africa and also an update around midday london time from turkey. bloomberg expecting a jumbo hike, doing little to stop inflation from surging higher. joining us for more on the direction of turkey's monetary policy is our reporter in istanbul. a pleasure to have you on the show, turkey is a complicated story. you have seen liquidity fall off the map for a lot of assets. talk to us about a 500 basis point hike today. how effective might that be?

>> the overall consensus today is that the turkish central bank will raise rates by 500 basis points. inflation is running at nearly 60% annually, and has yet to peak. policymakers see it peaking next year second quarter. even with the 30% rate hike, that leaves real rates when adjusted for inflation well below 0%. the bank says it is going to curb demand, tightening monetary policy through backdoor steps as well to increase the effectiveness of monetary tightening. and we're likely to see more tightening steps in the coming months. kriti: at the same time, you have the fiscal policy working its magic, at least in theory. the finance minister in new york right now trying to convince investors that his policy steps are going to work out. it is similar to what you are seeing in china, trying to bring investors back to the country. how is that going to pan out? >> for simsek and the new

economic team, swaying investors is a number one priority to fix the external financing needs and bring them back. tackling inflation is the number one priority. that is what simek said to investors. today we will see if this have full bank is determined, or if the policymakers are determined enough to show that with a sharp rate hike. simsek has also prioritized budget discipline that had taken a toll from february earthquakes, as well as elections spending in the run-up to the may election, where president erdogan got reelected. so, budget discipline, monetary policy discipline are all priorities and key messages simsek told investors in his trip to new york this week. kriti: take turkey seriously. that is the message both from the monetary and fiscal side. let's talk about when a terry policy. governor erkan when she took

over the turkish central bank, in new york, there was a lot of questions of how you go from leading one of the major real estate underwriting companies in new york to the head of turkish central bank policy. how much independence as she actually have at the helm? >> in july, during a presentation, governor erkan was asked a very similar question. she firmly set the central bank is independent in its policymaking. but there is still speculation over president erdogan's influence on monetary policy. up until recently, investors look at erdogan's remarks for clues on what the economic policy will look like. erkan recently appeared to endorse the steps simsek are taking, that was a key message delivered to investors in new york, that erdogan was fully on board with the policies which is

important. we have seen in the past, erdogan removing central bank governors for not taking a dovish stance. he is not a fan of higher interest rates. his go to policy up until now has been growth at all costs, even if it came at the expense of price stability. there are local elections slated for may. there are still concerns that erdogan may take a step back and return to championing cultural loose monetary policy -- ultra loose monetary policy. so far, erdogan is behind all the steps they are taking to rein in inflation. kriti: a playbook that a lot of world leaders to varying degrees of success have tried. beril joining us from istanbul. here is what we are watching in markets ahead.

at 8:30 u.k. time, the swiss national bank will deliver its latest rate decision. most economists seeing a increase to 2%. likely the snb final hike. in london, at noon, it is the boe's turn. the unexcited drop in inflation has given the central bank plenty to digest. is it going to hike? the jury is still out. in the u.s. at 1:30 p.m. a slew of economic data starting with jobless claims create an then existing home sales. is the housing market a bigger deal to worry about them the labor market? saudi arabia, in the meantime, getting closer every day to a landmark deal normalizing diplomatic relations with israel. also the words of saudi crown prince mohammad bin salman. he spoke to fox news. >> the policy issue is very important. we need to solve that part paid we had good negotiations continued until now.

we have to see where we go. we hope that it will ease the life of the palestinians and get israel back as a player in the middle east. it seems for the first time serious. we see how it goes. kriti: yousef gamal el-din joining us now. your take on mbs's interview? >> there are historic ships in the geopolitical calculus in the region. this interview is timed to leverage that major shift. it's very significant. it is the first time we have seen him speak english in public in a very long time. he doesn't give a lot of interviews. it took place along the red sea close to neyo. you have to see pictures to understand what neom is meant to be. it is a futuristic city unlike

anything ever seen before and speaks to the ambition saudi arabia has. it is halfway toward the vision 2030, as they try to diversify from oil. this is not a diversification project, this is a transformation project. the saudi's have shown they are willing to work on sensitive issues. complex negotiations underway with the u.s. and israel would see washington offer security guarantees to riyadh, the saudi's would normalize relations with israel, and israel would take actions to preserve the possibility of a palestinian state. he spoke about the possibility of iran getting a nuclear weapon saying if they get one, we get one as well. diplomatic ties or back into play. they have restored ambassadors. the focus for saudi arabia is to allow the kingdom to be a layer beyond crude oil. as a result, that means saudi first in a lot of domestic and international thinking. that means u.s. foreign policy

is not always front and center in terms of what decisions they make. kriti: really interesting take, because you talk about diplomacy, when i think mbs and fox news, i immediately think about how close he was with former president donald trump. especially when it came to oil. he talked about that, what did he say? >> he underscored that this is not about helping russia out. even though russia and saudi arabia ci to i within opec+, he made the point that the saudi's voted against russia when it came to the united nations motion on the ukraine war. at the end of the day, his take was it is all about supply and demand, echoing what his family relative the saudi energy minister keeps saying every couple of weeks. that they are looking at the data and making decisions on that basis. the extension of the saudi cuts to the year end of a million

barrels per day will raise flags of concern in a market that is already restricted. goldman sachs talking about $100 a barrel by year end, up from $93 a barrel. we are all left thinking about whether there are any bigger geopolitical strokes that are being played behind the scenes to make the most of this oil power in the soft equation out there. kriti: a complete game changer for the entire world, i imagine. yousef gamal el-din, we thank you as always for running the program. another big piece of the saudi agenda is perhaps what they are doing with the sports story. tottenham hotspur's chairman is open to selling a stake in the london football club. our exclusive interview with daniel levy next. this is bloomberg. ♪ you deserve better than that. i'm in a hurry, i don't have time to make anything healthy.

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>> are you getting players saying i want a slice of that? >> you have to look at the saudi arabia situation as a huge influx of money into the market. the market is particularly tough outside of the u.k. at the moment. and i don't see that what's happening in saudi arabia will have direct bearing in terms of player contracts in europe. >> what do you expect it will change? >> is another market for players to look to. not every player will want to go to saudi arabia. just as not every player was to go to germany, or france, or whatever. kriti: daniel levy with his thoughts on saudi arabia's recent soccer spending spree. more from that interview later in the hour, one you do not want

to miss. let's go to other stories around the world starting in the united states. u.s. house speaker kevin mccarthy won the support of hard-liners in his effort to pass a short-term spending bill. the speaker is still short of the votes needed to spend a republican-only spending measure in the house before the legislation hits the senate. the risk of u.s. government shutdown remains high with 10 days ahead of a funding labs. poland has stopped supplying weapons to kyiv, escalating a dispute over grain shipments, threatening a key alliance in ukraine's fight against russia. poland's prime minister says he has no intention of risking the security of ukraine. more stories from around the world after a short break. stick with us. th ¡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.

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kriti: good morning. this is "daybreak: europe", i'm kriti gupta in london. a hawkish escape. bond yields into the dollar climb as jay powell signals cuts are not on the horizon. stock selling off on in the u.s. session. >> we are prepared to raise rates further, if appropriate, and we intend to hold policy at a restrictive level until we are confident inflation is moving sustainably toward our objective. kriti: is this the boe's last strike? a knife edge decision in the u.k. after inflation on effectively fell to an 18-month low. central bank-palooza continues with decisions from turkey, norway and south africa. let's dive into the markets because already you are seeing movement in futures. that selloff in the u.s. session reading into not only the asian session but european futures. euro stoxx 50 down over 1%.

a selloff on our hands again. digesting the news we got overnight. that sets it up for a little bit of sour sentiment going into other decisions we get later today. take a look at peter's in the u.s. i bring you not just s&p futures which are down 0.3%, but nasdaq and russell 2000 futures. i bring the small caps index to your attention because when you see the nasdaq futures and russell 2000 dropping by the same margin, it tells you the momentum is in the markets. that's a good way to think about it, the big and small are on the same page. that tells you this is a very broad selloff. when premarket trading begins, some stocks will be dealing more with market sentiment as opposed to fundamental stories. let's talk about the treasury market. the 10-year and two-year in focus. you are seeing miner movement, 4.42 on the 10-year, 5.18 on the two-year, your biggest overnight movement came from the two-year yield resetting for the european

session. the five-year yield is creating strength in the dollar to the detriment of the euro, euro dollar weakness by about 0.2%, 1.06 there. let's talk about how asian markets are trading. avril hong is all over that. avril, walk us through it. >> we are seeing asian stocks coming under pressure for yet another session. traders not liking the sounds of higher for longer from the federal reserve. the msci asia pacific slumped as much as 1.5%. it was dragged by the tech and health care-related stocks. we're seeing weakness in msci china, headed for its lowest close since november, amid continued pessimism about the chinese economy. i want to draw your attention to japan. after we have gone through the fed, the next one happening at the end of the week, tomorrow that is, is the bank of japan. and we're seeing the reaction in the treasuries market, the jgb's

i should say. there is that selloff happening. it looks like traders are bracing for hawkishness coming through from the boj and the yield on the 10-year is hitting the highest level we have seen since 2013. just to give you a sense of what we're seeing in terms of jgb's pay let's take a look at the currency, the japanese yen, because continued weakness is figuring into the calculus for the japanese central bankers. we did see a bit of strengthening coming through earlier on, after comments from the chief cabinet secretary saying they are not ruling out any options when it comes to curbing excessive fx moves. but overall, there is weakness on the japanese yen, and we are shifting our focus to the boj tomorrow. kriti: just in case you don't get your fill of central banks today. avril hong joining us from singapore. let's bring back valerie tytel to talk about the federal

reserve decision overnight. he kind of said the same thing, that higher for longer is going to be the mantra. what's the surprise here? again, it feels like we are seeing these very varied forecasts. on the one hand, jamie dimon singing the same tune, and the market saying deterioration could come way faster than expected. valerie: the fed themselves is frankly mystified on this resilience of the u.s. economy. he was asked about this in the press conference. he noted perhaps it means the neutral rate is higher. perhaps it means we are not at sufficiently restrictive. perhaps we haven't left rates high enough for longer. we just don't know that yet. but that message has nailed home this phrase he used at jackson hole first. the need to proceed cautiously. he repeated that six times. he is almost gratified that we have reached this stage, because

the fed went out of the gates hiking rapidly at the beginning, and what has that won them now? the ability to sit back, be patient, watch how this market develops. watch how the economy develops and allows them to proceed carefully. they don't necessarily need to rush to do this extra hike, even though they do revise up there growth forecasts. kriti: this extra hike, what kind of damage could inflict? people talking about the ecb said is this lagarde and trichet's moment. is this powell's john-claude trichet moment? valerie: the fed is dealing with an economy that is still running quite well. nominal gdp is nearly a seven handle. it is more the risk of the fact that this economic acceleration will ache night inflation. -- ache night -- ignite

inflation paid he was ambivalent, saying they are not sure if that tells it. if you look at their projection changes, he indicated that the economy could grow faster. unemployment could rise less, will still getting inflation back to target. the forecast did present quite a big soft landing narrative that they could handle the stronger economy and still get inflation back to target. kriti: fascinating, because they are building their own playbook as they are doing it, kind of one might call it winging it. valerie tytel all over that story. back in europe, this was central bank and snb have their rate decisions at 8:30 a.m. london time. joining us for what to expect as bloomberg's reporter in zurich. let's start with a simple question. hike or hold from the snb? >> the base case scenario is they are going to hike. out of 31 economists we talked to, all but four said they will hike by 25 basis point, bringing

the benchmark rate to 2%. but there is a what if. if you look at swiss inflation, first of all, it is very low to international standards. it has returned to target for the last three months. basically, they could say we don't need to hike, we could hold rates and that would be a big surprise. kriti: speaking of holding rates, let's talk about that scenario. in that the market readthrough will really show up on in the fx story. what is striking is that the two safe haven currencies -- putting the dollar aside -- for swiss franc and japanese yen are seeing different stories. within the time span of today and tomorrow you could talk about currency intervention for the boj. i'm wondering to what extent a hold by the snb also functions almost as currency intervention for the swiss franc? does the rally, to an end? >> the franc has outperformed

g10 peers year today. it is a very strong currency, we see strong flows, a lot of speculation of traders who speculate that the franc will stay strong. this has come to an end. traders have doubled their shorts of the franc because they are expecting the snb's tightening campaign may come to an end today. if they hike another 25 basis points today, it is likely that they might be at the end. our forecasts show at this time that they probably are going to hold rates until next september. but they are not going to go 30. traders expect the franc rally might have come to an end. kriti: interesting that we talk about the market impact. i want to get back to the core of what the inflation story actually is. if you look at other parts of europe, let's talk about scandinavia in a moment.

the idea that commodity-driven inflation is the issue. same story in africa and the federal reserve. is that the same story for switzerland, what is the sticky part of inflation? >> the sticky part of swiss inflation is that for a long time, you didn't see price hikes. for a long time, everybody was saying we can't hike prices because nobody is raising prices. this wall has kind of broken. companies have started raising prices. so, we see second round effects. to swiss national bank has repeatedly said that they see second that even third-round effects. they are worried about inflation. they have an inflation forecast which says inflation is on target right now, but from next year on, from january on, we see it exceeding our target again. this is why they are expected to hike today because they see those second round effects in action and think that price

risks down the road are greater. kriti: again, just the nerves around all the central bank decisions naturally. the snb captures special attention. you are already seeing shorts being piled up for the swiss franc against the dollar at the moment. bastian will speak with the snb president, stored in on bloomberg television. stay with us for that interview. it is bank of england decision day. we look ahead to what we can expect from governor bailey and his team following those soft august cpi figures. this is bloomberg. ♪

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>> i'm announcing today that we're going to ease the transition to electric vehicles. he will still be able to buy

petrol and diesel cars and vans until 2035. even after that, you will still be able to buy and sell them secondhand. kriti: rishi sunak speaking as he softens key parts of his government's green agenda, including pushing back on a ban on new petrol and diesel car sales by five years, to 2030 five. sticking with u.k., let's talk about the readthrough. boe decision day is today. rate hike expectations in the balance after inflation figures for august fell away more than expected. we're joined by bloomberg u.k. correspondent, lizzy burden, as well as kpmg's chief economist. yael, let's start with you on the legs that we feel like the boe may be relying on diffuse some of its work for it. when can we expect those lags to take effect? yael: if you look at the mortgage market, we have more

than half of people with a mortgage not really feeling the full effect of the rise so far in interest rates. that is going to take some time. although it is quite quick, but it's going to take a year or so, before that takes effect. obviously, they are already planning ahead and looking at the rise in costs they are going to expect. there is going to be at least a year still before we will see the full effect of that very sharp increase in interest rates that we've had over the last year. lizzy: yael, we have also seen hot wage growth in the u.k. but the dove of the monetary policy committees what he did groep says that is a lagging indicator. as we get towards the peak of table mountain as huw pill put it, should economists be focused on more forward-looking indicators perhaps? yael: absolutely, because when i

speak to our people on the ground and to our clients, wages doesn't seem to be a big issue anymore. we had large increases last year. this year, with the exception of a a few sectors, it is likely to be much more muted. especially now that people are coming back from holidays. september seems to be a relatively weak month for wage growth in the private sector. lizzy: if the bank of england to does hike today, should it be the last and when should they turn to cuts? yael: i'm not an mpc member. so, i leave it to them. but ultimately, what we need to bear in mind is that these are very slow-moving changes. and ultimately, we do have relatively high inflation. we do have still relatively sticky core inflation.

so, we had a very good one-month figure. the trend is definitely to the downside. but we're still relatively high. kriti: talk to us about the quantitative tightening piece of this all. the idea that the bank of england's out front in terms of using this as a tool in terms of tackling inflation now ramping it up. how does this go wrong? yael: officially, it is not a tool. is not a tool. it's not an active tool. and that's how they are trying to portray it. especially with signaling that it is very long-term. it is more trying to prepare the tool for later, when it's needed, rather than anything else prayed for me personally, it seems a little bit premature to try and accelerate that tightening. i don't see the need to do that because we're very far from the zero lower bound.

and there is quite a lot of room when it comes to the active tool to potentially cut rates, if needed. so i think they could probably keep the pace as it was before, rather than accelerate it, especially when you think about the costs to the treasury even though this is not one of their considerations, it is one of the things that others may look at. lizzy: kriti mentioned the impact of previous bank of england rate hikes on the u.k. economy, on the growth picture. we also played that clip of rishi sunak making that you turn on net zero. when you have got the u.s., eu and china for that matter throwing money at the green agenda, what does this u-turn mean for the u.k. growth picture? yael: it is a little u-turn not a real one in the sense that the

timelines we had in place were probably unrealistic for the majority of people involved, and households, etc. putting the timeline in a more realistic frame, therefore allowing people to make more realistic plans in order to reach that goal. kriti: something we will be watching very closely. i want to stick with the theme of the u.k., perhaps something more chary to talk about. tottenham hotspur chairman daniel levy is open to selling a stake in the london football club. he gave an exclusive interview to jonathan ferro. >> would you be open to selling a stake? >> my question has been the same for 23 years. we have 20,000 shareholders, we

run this club as if it is a public company. if anyone wants to make a serious proposition to the board of tottenham, we will consider it. if we fail to do the interest of the club, we will be open to anything. >> has anyone made an offer? >> over the years, people have made many offers. >> where have they come from? >> all parts of the world. the far east, the middle east, america. but nothing has been put on our table that we feel has been in the interest of shareholders. >> does that mean it was insufficient in terms of size? for the wrong people or the wrong kind of contract? >> lots of reasons. as a board, we are the custodians of this club. we want to take this club to another level. we have shown progression over the last 20 years.

we made a big investment in our capital projects and our team. if someone came along and we felt they could take us to another level, we would look at it. kriti: tottenham hotspur's chairman speaking exclusively to jon ferro. coming up after the break, we will talk more about the central bank decisions, because everyone is nuance, every one has a read through to other countries around the world. this is bloomberg. ♪

kriti: welcome back. this is "daybreak: europe". i'm kriti gupta in london. swedish headline inflation dipped below 5% in august down from a peak of 10% in december. where does that leave the rick's bank today?

joining us, our helsinki bureau chief. it is interesting talking about scandinavia especially as an american. look at the real estate woes that suddenly the central bank has to factor in. it is unique in having to do that. >> going into the riksbank meeting today, all but one economist in the bloomberg survey expected an increase to 4%. everyone is expecting them to leave the door open to further action because there are so many factors at play for the swedish economy. there are a number of economists who expect a further hike still in november. as you said, inflation has been stubbornly high, but we did see august figures for core inflation start taking in the direction the riksbank wants to see. kriti: as we heard from the

rick's bank, they have said inflation is a bigger priority than their extremely highly leveraged property market. norway, on the other hand, dealing with a different story also setting their rate today as well. what do we know about norway? boyle is proving to be quite the question for them. >> for norway, we're pretty certain that today they will increase by 25 basis points to 4.25 percent, that would certainly be the peak for them. the economy has held up better, the labor market has been strong, the kroner has been weak recently. it has recovered a little bit. the economy on the whole is on track for a softer landing, certainly th in swedenan where the finance minister has called this an economic winter and some banks expect even two years of mild contraction. kriti: 30 seconds if you can,

what is the bigger decision to watch right now, the riksbank, or norgesbank from your spot in helsinki? >> from my vantage point, i would say sweden. there are so many factors at play. you mentioned the real estate market and that has been the worst-hit sector in sweden from the rate hikes. the prevalence of variable rates in sweden means the monetary policy tightening has really hit the economy. some of it is coming in two or three years, but the bulk of it is already having a play in the economy. for residential real estate, we saw almost a year of price declines which have now stabilized but for the commercial side a lot of landlords are struggling to refinance maturing debt, and are having to resort to asset sales and right issues to stay afloat, so i would say we have to watch

sweden very carefully. kriti: certainly something we will be watching, among the slew of central bank decisions. bloomberg's helsinki bureau chief, thank you for joining the program. before we say goodbye, a quick check on the markets. interesting dynamic about how these things are being priced in. this idea that as we talk about central bank decisions, it might not be about interest rates anymore, it will actually be more about the lags, and the reception in the bond market. a great example is what you are seeing in the u.s. two-year yield hovering at 5.18 pushing the dollar higher, weakness everywhere else in the world. more markets analysis ahead. markets today begins in just a few moments. this is bloomberg. ♪

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