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. let's get to dublin. -- let's get to the top stories in london. a report that china's iron ore has kicked up top to the world's largest a prior. -- largest supplier. salons keep urging countries to stay united in the face of russian are the stories. it is all but the bond market -- euro stoxx 50 features higher.

ftse futures by about the same margin. we are seeing here in the u.s. features will be a theme. it is not coming internationally , it is truly happening in this training session. -- we are going to get to that later on but reinoehl, look at the two-year. we are looking at the two-year at 5.02 earlier this week. again, on the surface in today's session so far, not that much movement. a little bit of the calm before the storm.

mexican peso suddenly stronger and moving the dollar the most in the last few days. let's kick it off with our top stories are reporters joining us from london, singapore and granada. we did have an interview with mary daly, the president of the fed making some interesting comments. take a listen. >> we can hold interest rates

steady and let the effects of policy continue to work. policy is going to grow more restrictive as inflation expectations fall. kriti: basically the bond market selloff craziness that was happening this week, is that the equivalent of a rate hike? >> she said the recent bond market tightening was equal to one rate hike. if yields remain high, there is no need for another rate hike. last week they did hint that this would be tightening for them. they might not need that additional hike later in the year. mary daly, really changing the narrative.

the market selloff will tighten financial conditions. i think it is quite surprising for the extended pause. we are not sure the selloff is done yet. does that mean market yields will continue higher? kriti: in the last five days alone, the basis point route higher on the curve. momentum is accelerating. what posits it, what changes that? >> payroll, if we get a week number. or will it be a few days of relief before the selloff continues again? the headline numbers are

expected to come in at 170 jobs added. that is down from 3.8% to 3.7%. the reason why traders are so on edge for this payroll print is data with the labor market this week. adp, coming in week on wednesday. initial jobless claims coming in lower than expected. it could be decided today with this print later in the afternoon. kriti: how height does the yield get? >> 10 basis points on average.

i don't think this bond market has stabilized enough. what the 10 year yield at 4.70, where coming close is this number comes in hot. kriti: of course the fx market as well. the same time, those jitters are going global. it is also about how that part of the world is digesting. walk us through the asia story? >> we are seeing a pretty muted picture because all eyes are still on u.s. payrolls.

they are not giving us that much movement. it is hanging onto those gains after the lunch break. we saw gains among the chinese e-cothere is optimism with the return of mainland markets. a resume of trading on monday and optimism that we are seeing early indications of the chinese economy that is bottoming out. this is piled on as it shows a jump in the holiday spending compared to earlier levels. part of this chinese economic narrative, they are bringing up bloomberg reports that was set

up to increase the space and cloud for commodity. it's in talks for next year. suddenly the mining sector will be keeping a close watch. kriti: just how fast that growth slows down. here we are, talking about disconnect in the market. what is happening on both sides of the atlantic is just how much aid ukraine is going to get. maria is joining us from

granada. walk us through the debate on the ground. maria: a very lengthy debate. this was the community that met here in granada. all eyes were here on the ukrainian president zelenskyy. he has already left the country and is on the way back to ukraine. he came in with two key messages. just let you in on your antidote, a number of meetings. we know that. at the end of the session, a small number of journalists called into a room and we were able to ask questions directly. at one point we were able to ask , are you ready for that european union perhaps stepping back?

he said, politics is never easy, it's not easy in the united states or continental europe. also, secondly, this goes into logistics and practicalities of war. he wants a winter plan. rumor, russia attacked their credible infrastructure. president zelenskyy says he wants to avoid that. they will furthermore need more defense. kriti: maria giving us more updates. in terms of budget physically and -- 7:00 a.m. u.k. time, the manufacturing sector, is germany

coming from the manufacturing sector, maybe. that is why the data matters. we will have a live. the highlight of the morning is that u.s. payrolls report. do we start to see that pleaser -- to see that breather. not just the united states. canada is on deck. canada has made more progress as well. 1:30 a.m. u.k. time. of course, a full round of of the stories you need to know to hear day going. covering major deals, movers and shakers in the commodity space. it's these are storilove market.

a lot of news to go through. we will be right back. this is bloomberg. ♪

kriti: welcome back to "bloomberg daybreak: europe."

numerous economic woes including information -- including inflation. just to name a few, ground down. both are in dire straits, currently operating without a cio -- a ceo. joining us now is jennifer with a guest to discuss the topic. >>'s we are joined right now by one of the people who overseas that. good morning to you. the two biggest companies that you are overseeing and that this company relies on, without aco right now.

talk -- >> it takes long. and it is a difficult challenge. she a ceo -- it's a ceo is one thing. and in terms of personnel and at the management level as well. we have come along way over the last couple of years. she >> -- >> at least some of the candidates going forward, is

there some truth to that? will we have some candidates by the end of 2023? we will have more than an adequate enough team. we have a partnership between the government and private sector. it's -- >> both of these companies have really affected parts of this economy. notably the mining sector. do you anticipate the mining

sector to continue feeling the pain that this country is enduring during the sector should -- during the sector? >> in each of those cases, we want to make sure we are better prepared the last. we will remain in constant discussions. >> do anticipate there will be more job cuts? >> i think the global economy itself is not doing that same thing.

he is also looking in a downward direction. our task is to make sure we survive and go beyond that. >> it's -- in regards just,, the energy sector is really what is dampening any growth in south africa. what is your focus in terms of energy plan. >>6 -- [indiscernible]

it will give us the backdrop for that. the third is what we have seen. she it is an extension of the transmission. now it needs to be as is expected to be. there are discussions going on within the public and private sector. >> how much does the energy transition partnership plan to that -- play into that? is it going to be critical in

any kind of turnaround. this we learn from elsewhere it's -- remember that the process does not give us everything required. to make sure that developing in emerging economies should be able to pay for that tradition as well. >> that will be a discussion.

thank you so much, minister, for your time. kriti: crucial conversation on south africa. we have, we go from south african politics to american politics. this time, nuclear submarines shared by the public minister. this is bloomberg. ♪

kriti: welcome back. some of the other stories we are following. u.s. president is sent to reveal secrets.

the account the trump discussed some of the most sensitive nuclear secrets could help prosecutors establish of the former president has a long habit of reckless handling classified information. his trial is set to start in may. she jim jordan of ohio to be the next speaker. yes been a staunch ally and told reporters -- a key piece of the biden agenda. she -- before acquiring twitter must first purchase -- most

purchase run 5%. 50 x co-founder wang has taken a stand saying immediately that hidden in his former friend committed a multibillion-dollar fraud. his testimony promises to be among the most powerful in the case against sam bankman-fried. it's these are most of your stories. there is one i want to bring back to you. it has a lot to do with the market environment we are in. such -- we are starting to see oil prices get higher and higher. the correlation was very strong.

now that relationship has broken. bonds perhaps not following. the momentum really turns us all into a disarray. it is not actually there anymore. coming up on the program, the ukrainian president is looking for concrete pledges while officials try hard to root -- tried nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch.

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kriti: good morning. welcome to "bloomberg daybreak: europe."

markets on edge. u.s. payroll on deck. the recent bond market selloff does the job of the hike. we are live in granada where they are laying the groundwork. ukrainian president zelenskyy is urging them to stay present. we are seeing a very dynamic layout. such -- the outperformer globally is europe. what changes is the payroll report. really, the pattern over the last 10 days has been that

european and asian traders are selling american assets and american traders are not buying them overnight for us. that is really interesting in terms of who's buying the assets. that is where we seeing a lot of pain points. perhaps the payroll number will put an end to that. a retreat from the highs we saw earlier this week. it could still go much higher. it really interesting currency story that no one is talking about is the unwinding that we are seeing. that is just how much risk the sentiment has soured when it feels like that story in the go is the real thing.

a far cry away from the $100 oil story. >> we are seeg markets mostly in wait-and-see modea lot of thg through from the chinese e-commerce. when markets reopen on the mainland, that southbound flow is supportive of the hong kong stocks. holiday spending has jumped compared to 2019 levels.

we see a china's old buyer in supply talks. it is a massive steel industry. it's kriti: a major chip

manufacturer coming out with sales, down 30% year-over-year. those are about rough estimates here. still, a drop in theory. this is going to be something you want to watch. down, 13% year-over-year amid spc end business demand really fades, the biggest consumer.

sources say both companies have scouted meeting sites and sentences. eu leaders gathering after the ski's after zelenskyy urge them to remain still. yousef: -- >> we have seen the united states take important leadership role. we have a temporary situation. based on broad support, based on

what president biden said in recent days, based on polling across united states, we anticipate american support will continue. americans fundamentally understand what is at stake. kriti: we go now to maria. >> gisela emma interview yesterday. he also said that it is interesting that some nato allies called the united states

and said that president zelenskyy was here. the speech was short and intense. one to reinstate this messagecod ukraine for as long as they need. president zelenskyy was there and made a few comments to the press. politics are always difficult but ukraine is fighting a war. every day has been difficult for almost two years.

the country went to blackout a few times because of the infrastructure. they want to avoid that blackout the to lace. it's -- that took place last year. kriti: what else will they be talking about at the summit? maria: just perhaps another diplomatic technicality. country specifically about the eu and a seven that was ahead of

the european council. let's take a look. >> they need to do their homework. it is not the main purpose. it's the purpose is to be more powerful. this is ambitious, i know. >> maria: that is the head of the european council speaking to us. that may seem a long way off. it is not that long. kriti: certainly something we

will be watching very closely. she let's get to some other stories. it looks to strengthen its finances. talks stalled after the bank of england closed. it were not allowed to use the new model for assessing risk that would ultimately allow metro to bolster capital ratios. pharmaceutical giants are's flooring a potential cancer drug maker. she they are in the process of

producing a drug that would treat a type of lung cancer. she pilots remove the threat yesterday of a walkout and averted the chaos previously seen at airports. this is just as the spirit company reported better-than-expected earnings in july. exxon mobil is in talks to acquire national resources. making one of the largest oil companies in the world even bigger.

this is bloomberg. ♪

kriti: welcome back. some of america's best-known brands are declaring bankruptcy. berg's sonali basak has more. >> companies found for bigger see at the fastest rates in years. global companies have borrowed more than 500 billion dollars. fed rate hikes began in 20 trade

two. -- began in 2022. despite high borrowing, debt continues to grow. by mid 2023, we will see but the costs rise. companies were paying 8.7%. in part because this is by design. interest rates were kept for higher longer. this higher rate environment has createdaounin of distrust -- distressed debt. it has jumped to around 400%. >> the companies upstream supplying, it will impact those businesses.

the appetite for risk has declined a bit. it's -- >> to its high point in the 80's, interest rates have always fluctuated with the times. following the great financial crisis, have hardly been the norm. when companies have not been put off by heart rates and keep borrowing, it may be assigned that the fed needs to do more. which increases the odds and someone will get caught off sides and left take the hit. kriti: it is a story that goes global. it goes to the european rates and property sector as well. let me give you an example. 1.2 trillion four a quarter of

the swedish population while under the spotlight. there's so much risk here. a pleasure to have you. read your story, fascinating concept. it has been under so much pressure. how far does this go? >> in this case, it is part of sweden's biggest management fund. this time around, it is in the crosshairs of nearly $500 billionnow there is a risk thatt could go sour. with the history of what happened, you have the media and

public scrutinizing investors as things are. kriti: tell us a little bit about contagion here. it's is this a sweet story or does this go broader? >> the residential landlord, amongst the biggest we have seen. of course, there is a worry that the investment grade rating could have spillover effects on the wider sector. kriti: a look at something we will be paying attention to very closely. looking out several weeks and months ahead. plenty more ahead. the charts you need to know. stick with us.

this is bloomberg. ♪

>> bond market has tightened quite instantly since september. we used to tightening additionally. it is not there. for my own perspective, that is what i look let -- that is what i look at. our job is not just to tighten one part, it is to watch financial conditions. we need to -- we may need to

boost the more. >> the rising rates actually does the fed for it -- the fed job for it? financial markets have collectively seemed to take on board a variety of things. there is a general understanding now that we are committed to keeping rates higher in bringing inflation fully back down to 2%. we can put all this doctors -- all those factors back in the list. then we can really feel we have

done the job of putting inflation at rest. >>'s in terms of what the fed is saying, when is it overly disruptive and causes concern? >> so far what i see is this. it is coming from a lot of information. cost is going up and demand is going down. another factor in the fed policy and guidance about how the real neutral rate has actually risen.

kriti: more on that interview, more on moving the markets. let's talk a little bit more about this. we talked about the selloffs, we talked about was priced in. what are we missing? the big one being, what has happened in oil this week. it has plunged $10 on demand concerns. she they had the worst weekly since march. haven't back in march?

-- what happened back in march? the biggest turmoil. we just heard them speak at length about what that means for the policy with this recent rise of yields, widening of credit spreads, strengthening of the dollar led by the real curve. ms. mary daly put it, she went on to say, if the yield does hold, she sees that and maybe no need to hike later this year. kriti: more on that bond market data we get payroll from the u.s., how much will that impact it? >> that is already too bad were

looking -- already too backward looking. these days that we do get after the drop support or some of the most volatile days of the year. if you just look at this year, it becomes a 10 basis point swing on the week of jobs day. kriti: we thank you for that update. coming up, we will speak with the indonesian central bank governor. that exclusive interview later. you do not want to mess. we start with "bloomberg markets today." ♪

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