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.

dani: good morning, welcome to daybreak europe. let's get the top stories that set your agenda. the u.s. bowing. or for israel but not everyone is on board. turkish president erdogan criticizing the move. elsewhere treasury yields drop with some of the biggest margins this year and hope the fed may be done with raising interest rates. plus we look at one of the biggest luxury goods makers in europe as demand cools, on the other hand the micro -- market for microchips may have turned the corner. we dive into the numbers. those are your major market headlines. there are a lot of geopolitical factors, what is it mean when you look at the bigger picture? simply the idea that you're looking at a drop in risk sentiment, it comes a little bit from asia but the idea of the

geopolitical volatility right now, what is interesting is that europe did rally by a big amount yesterday. it might simply be a little bit of a paring back, remember we also got those sales numbers, the heavyweight in the euro stoxx 600 as well, that likely weighing on sentiment there. that defensive bid that a lot of people would expect to see in the united states, were not seeing in the european and asian sessions. the nasdaq 100 futures higher by pointing percent but the exposure the u.s. has this conflict in the middle east is a real downer for a lot of people who are wanting that not to be the time to trade. on top of all the headlines we are digesting, we also have that bond market all attila the in the background. two year yield higher by three basis points.

down about one basis point. the idea of the yield curve flattening is scaring a lot of people because it is happening much faster than people expected. a function of what you are seeing in the yield space and brent crude, higher by just .3%. return to our top story of the day, president biden saying the u.s. is speeding military assistance up to israel following the surprise hamas attack over the weekend will stand by the jewish state as it strikes back against the palestinian militant group. pres. biden: when congress returns, i will asked him to take urgent action. the united states has enhance our military force posture in the region to strengthen our deterrence, and we stand ready to move in additional assets as needed. dani: let's bring our daybreak

middle east and africa editor. yusuf: we are talking about one u.s. aircraft carrier, what kind of special forces with they have? as much as the rhetoric makes clear that the support is there, what is yet to be determined is how much the u.s. -- it points to the fact that the attacks are still ongoing and actively involved in the gaza strip and we will have to wait and see in terms of when a potential ground incursion begins in earnest because as we discussed over the last couple of days, the israeli government is drawing up the reservist, is putting the plans in place for a major step forward. kriti: stick with me, i want to bring in our audience, because not everyone is on board with

what president biden is saying, the full-fledged support, president erdogan had some comments. take a listen to what he had to say. >> what is the u.s. aircraft carrier doing off israel? what is it coming to do? they will take down gaza striking the surrounding areas and start committing serious massacres. kriti: president erdogan of turkey really speaking out against what president biden had said. i don't think he is alone in the region. yusuf: no, he is not. erdogan stands out in this controversial rhetoric and always has. the fact that he's taking the lead on this and criticizing the u.s. when they are allies and should be working with each other, i also point out he was on the phone late yesterday with vladimir putin and some of the regional allies, but was in the

middle east and north africa, there are some nuances, the saudi arabia and government and the cabinet underscored once again they will do what they can to try to bring these hostilities back to a point where people can sit around the table and have a conversation while the u.s. appears to be leaning on the qatari side. kriti: wasn't he the one who brokered the ukraine deal, our bloomberg middle east and africa anchor, we thank you for that crucial insight. you have geopolitical volatility on one side and bond market volatility on the other. monetary and fiscal policy are coming to a clash and everyone has a different take, officially over at the federal reserve. i want to bring you something of what the fed presidents had to say. take a listen to their takes. >> we feel like we are on track

for a soft landing. the labor market has remained strong. maybe we could get inflation all the way back down and avoid a deep session. that's what i would call a soft landing. so far it is looking more favorable. >> i think our policy rate is at a sufficiently restricted position to get inflation down to 2%. i don't think we need to increase rates any more. >> if bond yields have tightened, that's an indicator that financial conditions broadly have tightened. it's more expensive to get a loan. if that is tight, maybe the fed doesn't need to do as much. that's why said depending on whether it unravels or the economy changes, that could be equivalent to another rate hike. kriti: a lot of commentary to digest from a lot of different takes.

jill, a growing consensus seems to be forming at the last rate hike is in the rearview mirror. what do you think? >> i think that's what you heard there. at this point we are just at this phase right now where i think what a lot of these fed officials are doing is kind of gauging the impact of this aggressive tightening cycle so far in trying to determine whether we do actually need that final hike before the end of the year or whether it's really just a matter of time, waiting to see how the hike so far are ultimately transmitting to the economy. what you kind of heard there is essentially, maybe it's a sign you've got this restrictive policy already and we just have to wait it out. we already know that rates will be high for quite a bit of time. i think there's that concern over whether the final rate hike before the end of 2023 is really going to push things over the top.

they are saying that ultimately we are in a good spot and at this point we will have to see what things look like over the next few weeks. inflation data is coming very soon, but it's a really tricky time just trying to gauge what the yield surge means in the context of water lot of the recent economic data has told assess well. kriti: and on top of that you cannot make the accusation that new kashkari has any reason to not stand out. he is always the halt in the room, the guy who is almost contrarian. what is his take this time around? >> i think what he is saying is, he's being contrarian, saying we need to push things up. we can't just decide yet, and i think a large part of that comes from the fact that there are still a few weeks to go before the next fomc meeting and there

are key indicators on the calendar that we need to pay attention to. or going to see cpi cool off a little more and will the trajectory be maintained? recent jobs data showed more resilience and we initially expected. there are lingering concerns about whether the economy is cooling off in the way you don't want to think. the yield spike has thrown things into a bit of confusion but he's not really saying anything extremely dissimilar to what we were hearing fed officials say a few months ago, let the data tell the story and let that play out and we will make a gametime decision about what we need to do in november. kriti: a lot to digest. the treasury market taking that to heart. jill, we thank you for joining the program. the ripple effects are going to be crucial. the first hit you're seeing is over in the asian markets. walk us through the market

narrative in asia this morning. >> i think is coming from the double booster seeing from less hawkish fed talk and speculation that we will see stimulus from china in the form of special bond and she was says -- issuances. the chinese men's marks are off their highs from earlier in the day and there seems to be some skepticism that infrastructure spending or one round of it will be enough to jumpstart the chinese economy and the imf is flagging that what the chinese economy needs in terms of support is restructuring or property developers to ensure the financial distress doesn't spread from that sector. the msci asia pacific is headed for its longest winning streak since early september. we are seeing a positive on the south korean benchmark. the kospi is jumping to plus

percent and has rebounded from the brink of technical correction. is led by gains in samsung and lg energy. samsung points to potentially the chip market bottoming. we have some of the technical indicators on momentum for asia-pacific stocks about to turn positive and that seems to be adding to the optimism that perhaps a momentum in the region is turning around. we might be seeing the bottom as far as asia-pacific stocks are concerned. kriti: if you look at futures here in europe you are not seeing that same green on the screen you were seeing in your part of the world. thank you as always for joining the program. as we have those imf meetings and more commentary on the geopolitical and monetary policy front, janet yellen is speaking

over at the imf meeting at 9:00 a.m. u.k. time. will she comment on how the monetary policy should really be working? she has usually agreed with chair powell until recently when those recession concerns, she is unlikely to sate recession is on the horizon, so what will her latest take be? more data coming out of the united states, ppi data on horizon. it's not just about inflation for the consumers but also in terms of export and import inflation, 1:30 p.m. u.k. time you will get that and those fed minutes are due today. how much insight are we really going to get, given the recent changes in the geopolitical story? those coming out at about 2:00 p.m. new york time which will be 7:00 p.m. u.k. time.

if you are terminal subscriber just type in dayb . sticking with this program, later on we hear from a research fellow at the international institute for strategic studies. how european nations will be responding to the israel-hamas war. plus coming up next, we will discuss the u.s. increasing its military presence in the gulf region. more from her interview with white house spokesperson john kirby coming up on the program. stick with us. this is bloomberg. ♪

kriti: welcome back to "daybreak: europe."

the u.s. national security council spokesman says washington has not lighten sanctions on iran and reiterated there is no evidence to show direct involvement by tehran in the attacks on israel over the weekend. john kirby spoke on bloomberg surveillance. take a listen. >> we don't have a policy decision on that to speak to you right now. it has always been the case that that money to be frozen time. we said that we send it over to qatar. it's important to remember that a regime, even though none of it has been spent yet, even if some had been, the regime never sees a dime a bit. they never get their hands on it. it goes right to vendors that we approve hubei the humanitarian goods and ship them into iran for direct access to the armenian people. the regime will never see a cent of this. >> a lot of people has said it is just a distraction from the real issue which is that iran is

getting a ton of money through the exports of oil, particularly to china, despite sanctions. how much is the u.s. talk about enforcing the sanctions and more significant way, or the ineffectiveness of those sanctions? >> i would push back on the idea that sanctions have been lightens. we have added additional sanctions. some 400 sanctions on iran just since the beginning of this administration and we are committed to full and total enforcement. other nations have to enforce their sanctions as well we talk with them about that. the u.s. is not backed off on any sanctions. we have added and increased our enforcement capability. not to mention that we have increased our military presence in the gulf region to deter would-be actors like iran who might want to take advantage of the situation. >> there has been a distinction drawn by officials saying that while it is clear that iran has been involved in backing hamas

financially, it is unclear whether they were directly involved in orchestrating this particular attack. what is the difference from a policy perspective? what would the u.s. and israel do should iran be determined to have been intimately connected with orchestrating this attack? >> i won't get into speculating about what paul is this -- policy decisions we might or might not make. all i can do is reiterate what we've been saying. we haven't seen any specific evidence that points to iran's participation in these particular attacks. clearly, we've made no bones about it, there has been for a long time a degree of complicity by iran because they been supporting hamas for many years. supreme leader's out their pricing this attack by hamas. there is a degree of complicity, but we just don't have any direct evidence and neither have our israeli counterparts.

kriti: john kirby speaking to bloomberg surveillance. coming up later we will hear from the former bank of israel governor on the conflict and the market impact there. it's an interview you do not want to miss. stick with us. this is bloomberg. ♪

kriti: welcome back to "daybreak: europe." let's get to one of the major stock movers this morning, samsung shares moving higher after the company warned of more modest slide in quarterly profit than expected, raising hope that they're turning a corner. a 78% slide in third-quarter profit, on the surface it seems pretty brutal. why is the stock higher right now? >> it looks like investors are

excited about the result, even though it represents a pretty steep decline from the previous year. is still an improvement compared to the previous two quarters when samsung reported a pretty terrible loss in its mainstay semiconductor division. as a sign the memory chip slumps might be coming to an end. were seeing potential recovery signs not only from samsung electronics but from suppliers in the chip industry. we are seeing big gains across the chip sector and south korea, not only samsung but other related sectors. it looks like investors are taking the results from samsung as assigned that memory chip recovery may be in place finally. kriti: where else should we be

watching? the concept of bad but not as bad as people thought is a fascinating concept to move a stock higher, but what keeps it moving in the right direction? >> what investors will be watching going forward is that samsung didn't really give the breakdowns about its individual business divisions. investors will be watching exactly what helps samsung beat market expectation. one analyst said it may be coming from the display business and other said the mobile phone business may have helped after the launch of the galaxy smartphones recently. investors will also be scrutinizing the results from -- for signs of wear samsung sees the market recovery really taking place. another place investors are interested in is samsung's potential supply deal with

nvidia. ai has been really big in the stock market this year and samsung has been seen as falling behind its rivals when it comes to supplying the key memory chips that power nvidia is ai chips. it's one of the most keenly watched areas by investors. kriti: something we are watching very closely. think is so much for joining the program this morning. another major company in the headlines, birkenstock and his private equity owner have price shares in the iconic german sandal maker at about $46 per share, toward the middle of the market range for the ipo. we've been talking about this reemergence of ipo's, the idea that people might want to dive back into the market. is this pricing supportive of

that take? >> things have calmed down a bit from when we last spoke. the markets have obviously come down quite a lot on concerns about u.s. interest rate staying higher for longer. it's a very different market environment to what it was in september. it is a reflection of the more temperate market sentiment. investor appetite might still be good but they probably decided to price it a bit below the top of the range, whereas the other ipo's in september were all pricing at the top or even boosting their ranges. it shows that there is a bit of a comeback in the ipo market but it's not the broad-based recovery that many bankers were hoping for. they are basically looking

toward 2024 for that as opposed to this year, given the continued risks around the economy and interest rates, and now war. kriti: it's a tricky environment for the markets broadly. talk to us a little bit about the precedent that this sets, the idea being that it led to other companies following suit. do you see the same for birkenstock? >> in terms of the debut? >> and in terms of other retail oriented companies. >> it's hard to say, frankly. august performance was good at the start and then it came down quite a lot. obviously in a high inflation environment, consumer stocks

tend to suffer a little bit. so it's hard to say whether it will be a great success and lead to other retail companies coming. kriti: quite the test of the ipo market. thanks for that crucial market insight this morning. we will get a full check on those markets and cover it live right here on bloomberg television and radio. this is something that is going to be impacted by the bond volatility in the geopolitical volatility we are seeing across market headlines. stick with us, more market reports and analysis coming up. this is bloomberg. ♪ hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds,

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kriti: good morning. welcome back today break europe. the united states speeds up military assistance, vowing. for israel but not everyone is on board. president erdogan criticizing the move. treasury yields dropped by some of the biggest margins this year. shares and asia rally for a fifth day. the latest numbers from samsung suggesting that the market for microchips may have turned a corner. demand cooling at the world picture -- biggest luxury company. we dive into the numbers later. you are seeing a real regional diversions at play, especially when you look at the equity market. some green on the screen in the equity market in asia. you are not seeing that in europe. futures are down 5/10 of 1%. a good chunk of that will come from sentiment around lvmh, a

heavy hitter in the index. ftse 100 futures falling as well. in the face of geopolitical volatility, you would think there would be a defensive move into american assets. the exposure that the u.s. has to this conflict is preventing a more sustained bid. you've seen that for the last four trading sessions. today is no different. let's go cross asset. bond volatility absolutely matters. you are starting to see the curve starting to flatten. the problem is that it's happening at a really fast pace after the major selloff in the bond yield curve that you saw last week. the two year yield higher by two basis points, shy of that 5% level. the impact will show up in the fx market. the bloomberg dollar index stuck in this tug-of-war between the risk on commodity exposed currencies and your traditional

risk off safe havens. brent crude is trading higher by 4/10 of 1%. let's not forget asia because it's trading higher at the moment. those markets still open. outperformance in china and south korea. broader sentiment across the region. the nikkei higher by 9/10 of 1%. the kospi index, 33% is just one company, samsung. the idea that their profits are coming in not as bad as expected, creating a bid into the broader index by 2.3%. different story in china although more positive news. we don't know what that's going to look like. higher by 1.9%. earlier in the session, the yuan strengthening as well. we go back to the major story of this morning. president biden saying the united states is speeding up military assistance to israel following hamas's surprise

assault and will stand by the jewish state as it strikes back against the palace billion -- palestinian military group. >> we are asking them to take urgent action to fund the national security requirements for critical partners. the united states has enhanced our military source -- forced posture in the region to strengthen our deterrence. we stand ready to move in additional assets as needed. kriti: let's bring in use of,. we note that president biden has been vocal on this. it's no surprise. what kind of precedent is he setting for his peers? yousef: in terms of support for israel, what we saw is the extent of military assistance. you will get the world's largest aircraft carrier, ammunition but there's no dollar amount around that nor do we have an actual volume to work with.

what we also point to is the move by the u.s. secretary of state who will go visit tel aviv , jordan as well. they will try to see how they can find an offramp and all of this. the international israeli defense force conducting more airstrikes. the death toll is over 2000. kriti: it's a real tragedy and it feels like the end is nowhere in sight. let's talk about the pushback that we are getting. not everyone is on the same page , specifically within nato. yousef: there's an irony to it. the turkish president has always been known for his controversies so that's not new in itself. it's a sensitive time were a lot of the regional global diplomatic puzzle is still playing out. he made some very controversial comments and basically said that adding u.s. military assets to the region is only going to cause a massacre. he's been on the phone with vladimir putin and he's been liaising with regional leaders.

we know the saudi's had a cabinet meeting yesterday. they want to see how they can contribute. we have an arab league meeting that is scheduled to see whether any of these resources can be deployed to help break the cycle of violence. kriti: we are looking at live images from ashkelon, southern israel. you see the devastation throughout. thank you for that crucial insight as the conflict really continues its fifth day of fighting. we go from the middle east to europe. european commissioner terry britton has warned elon musk that his social network is spreading illegal information and called on him to take quick action. he reminded moskowitz aguilera -- obligation to take precise content moderation measures under the european union's digital services act. we will hear from the former bank of israel governor on the

israel hamas conflict, coming up at 10: 10:00 a.m. london time. we will talk about the intervention at the bank of israel into the fx markets. the applications for the shekel and beyond. we continue our story in europe. bloomberg has learned that finland is on alert over suspicions that a baltic sea gas pipeline to estonia was sabotage. gas prices surged as concerns were raised over the cost of its energy infrastructure. we are joined by ross mattson. we are dealing with a lot of crosscurrents in the geopolitical turmoil. what is the reaction from the finnish government and nato? rosalind: this gaslight was detected outside of finland's territorial waters. therefore, it is leading the charge with this investigation. we've learned that the operating theory behind that investigation was that the leak was caused by an incident that was deliberate,

there was sabotage involved with this pipeline. it had happened in shallow waters off the coast, 60 meters down. the base of the investigation is that this was deliberate. there were very few other details about that, what might've caused it. who might've caused it is to be questioned as well. that investigation will take some time. just a matter of days after the leak was detected, they are saying that it looks like it was a deliberate act. they are sharing as much information as they can with nato, other allies in the region to try to ascertain as quickly as possible what might've happened. you can imagine they are looking at any kind of visual elements and damage to the pipeline itself. it's very interesting that they've said, their operating principles from the outset was that it was deliberate. kriti: the fact that it's being considered deliberate, the

question is who. there are so many conspiracy theories circulating. timing of all of this, given that the focus in terms of war has shifted to the middle east in the last couple days or so. talk to us about the vulnerability of this energy infrastructure. who has incentive to do it? >> -- rosalind: that's a big reminder as we start to get towards the cooler months in europe and the questions around energy security. you can't help but notice finland's proximity to another country and that country is russia. finland is not naming any country in particular but we do know that russia has used its gas supply to europe, energy in general as a weapon in its war against ukraine. cutting off supplies of energy to europe. the question remaining of the explosions on the nord stream pipeline a year ago. no country has ever been formerly blamed for that.

a lot of fingers pointed at russia also potentially. you have a history of russia using energy as a weapon. we know they are stepping up their attacks on energy infrastructure. inside ukraine, targeting those assets going into the winter months. it feels a pattern. no country is assigning blame this early. kriti: suspicions swirling. crucial story out of scandinavia. thank you for your insight. germany has announced a ukraine air defense aid packet worth 100 billion euros. this includes an additional patriot system to protect critical infrastructure. the government will supply an additional 10 leopard battle tanks and artillery ammunition to ukraine sources. coming at a time when european

defense is already outperforming. we go from continental europe to the u.k. were starting salaries and pay for temporary workers rose at their slowest pace in 2.5 years last month. the survey is a sign that the labor market is cooling as higher interest rates way the economy. official data showing that wages are rising at a record pace. you would think that is wages rise, demand would cool down. that's exactly what you are seeing when it comes to luxury. the luxury boom waning. lvmh, what a great example. sales growth sharpening as shoppers reigned in spending. more evidence of the post-pandemic luxury boom. caroline conant joining me now from paris. talk to me about where the pain points actually are. is this regional? >> it is a different story compared to the beginning of the

year. lvmh was making paris the biggest stock market in europe. today, lvmh is suffering from weak demand in china, soft demand in the u.s., and moderation for its champagne brand. you have a high inflation environment that's impacting the aspirational luxury consumers. if you look at the details of the third quarter sales data last night from lvmh, you had plus 9% in fashion and leather goods division. that's the biggest division including louis vuitton. you had some brands doing better than others. -14% in the spirits division that is much worse than estimates. people drinking less champagne. small growth in the jewelry division as well.

doing slightly better than tiffany which is more exposed to the u.s. consumer. one bright spot was the regional division. we have strong strength at sephora. the cfo last night in the call actually said that we are now more in line with the historical levels and we are reaching some kind of normalization after three years of really high expectations for the stocks. kriti: it's fascinating. so many people looking at this luxury boom and likening it to the big tech rally we are seeing in the united states. this will be the european version of it. perhaps no more. thank you for your personal analysis this morning. letting more ahead. stick with us. this. ♪ -- this is bloomberg. ♪

kriti: welcome back today break

europe. the israel hamas war enters its fifth day with a combined death toll approaching 2000 people. israel's military says it's building a base for thousands of soldiers in preparation for the next phase of its retaliation as the united states pledges israel will support. joining us now for more insight is rym momtaz. thank you so much for joining us this morning. there are so many different geopolitical players and crosscurrents here. let's talk about israel itself and the concept of it. fighting a war on three fronts. we know that it's dealing with the issues in gaza, the west bank. as well as the border of lebanon. that's where i want to go with you. your initial take on the confrontation, hezbollah and the role that lebanon plays in this conflict. rym: good morning.

thank you for having me. indeed. since the beginning of this round of fighting, hezbollah has entered the fray but in a very measured way so far. the first we saw of it was mortar fire on disputed piece of territory. but then that has escalated a little bit with some palestinian factions firing directly from southern lebanon onto israeli territory. so far, that confrontation has remained contained end at a low level. just by doing these low-level operations, the lebanon front is actually keeping apart of the israeli military pinned down in the north. so in away, providing assistance to their brothers in arms in hamas. kriti: when we talk about this kind of piecemeal approach almost to gaining territory,

this has been an approach that's been in play since going back to the 1940's. what is the endgame as you see it? kriti: what we are -- rym: what we are hearing from the israeli authorities is that they want to deal a blow to hamas that will basically decapitate the leadership and get rid of hamas over the long run. that's quite a very big goal. very ambitious. they are preparing for a very long ground offensive as it seems. they've been telling their own population that it's going to take some time and it's going to be very bloody. on the palestinian side in gaza, we are seeing quite a lot of devastation. the casually to -- counts mounting while the gaza population is unable to move or seek refuge, given that even the

border crossing with egypt is closed. kriti: talk to us a little bit about this ground offensive. we are talking about the hostage situation specifically. how does this play out when we know that hamas has a history of trading even just one hostage or a thousand hostages for just one hostage on the israeli side? how does this play out? rym: so the number of hostages that hamas was able to take is unprecedented and has added an unprecedented dimension to this conflict. when israel has had to fight thomas in previous times, it never had more than 100 civilians captive. that is definitely factoring into the israeli preparations. we are seeing them take time, figuring out what to do, how to do it. it seems they are preparing their own people for loss of

life among the hostages as it seems inevitable. kriti: talk to us a little bit about who the game changes are here. we are seeing this from so many different perspectives. the saudi's pulling back from those efforts. iran being accused of being behind the funding for this multiple reports. even turkey, the president there chiming in about the u.s. military aid. who is the game changer of those three? rym: i think that's a very complex question. no one of them is a game changer at this stage. the u.s. involvement is obviously going to depend on what the israeli leadership ends up deciding to do. how ambitious it wants to be and what kind of support it's going to request from the u.s.. iran already is in the best position of the three, given that hamas, which is close to iran, has delta game changing blow to israel.

if i had to appoint one game changer, it would be the hamas attack against israel. it was sophisticated in a way we've never seen. it inflicted civilian casualties among israelis on israel's territory within the 1967 borders in a way we've never seen before. that was the real game changer here. kriti: talk to us finally in terms of the u.s. military approach. we expected this rhetoric from president biden, even from his predecessors as well. do you see this being the conflict that suddenly brings in the rest of the west? rym: that is certainly one of the risks here. the u.s. has immediately dispatched its biggest carrier strike group into the mediterranean. the secretary of defense said it has arrived now. it's a measure of deterrence. it was sent to deter hezbollah

from entering the fray, to deter the syrian border from also being opened. of course, deter -- to deter iran from further expanding this conflict. only time will tell whether that deterrence will be effective. the u.s. in the past in recent years has not actually been effective at deterring iran and its network of influence in the region. we saw that with iranian attacks on saudi oil facilities. the lack of u.s. response. we also saw that if you want to go all the way back to 2013 with president obama not honoring or enforcing his redline. what we are seeing today, this level of iranian challenge, in addition to all of its partners in the region, was definitely emboldened by that redline that was not enforced way back then. kriti: i mean, it is such a

complicated issue with no clear solution as shown by 80 years of conflict in the region. thank you so much for joining us. we thank you for your analysis as always. more markets analysis ahead. stick with us. this was bloomberg. ♪

kriti: welcome back today break europe. we are getting breaking that australian journalist -- has been released from detention in china. this comes after she was held in china since 2020 on espionage charges. you've seen the prime minister speak about this on wednesday,

saying that this could actually be a very and to a difficult few years for her family. we will keep you apprised of that. he said he met with the former detainee over in melbourne and that she had been reunited with her two children. crucial as we talk about the thawing of tough relations between australia and china. we will keep you apprised of those headlines as we get them. as we march to the european market open, let me bring you charts that you need to know to get your trading day started. a lot of that centering around bond volatility. we are getting a lot of different fed speak from the different players in the united states. you are starting to see a real diversions forming. 2% inflation target. maybe 3%, may be neutral. the lack of consensus will create a little bit of panic for lack of a better term into the bond market. i think that's what you are seeing in this idea that on the surface, you are seeing the

yield curve flattened. the problem is that when the yield curve flattens, that's a point of concern to suggest that the u.s. economy is expected to slow much faster than it actually is. is that happening or is this a return to normalization when you look at the bond market? the two year yield at about 5%. the 10 year yield at 465. those moves having repercussions around the world. i think that's the chart you take away today's. you talk about the ripple effects throughout the rest of the market. i will leave it there and handed over to the market today team. anna edwards and tom mackenzie will take it from here. this is bloomberg. ♪

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anna: