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. >> good morning and welcome to

the regular. let's get to your top stores now. they may be hearing -- head into a little bit of the peak. they are kicking of european earnings. they are cutting off the northern part of the strip from the south. let's get straight to the markets. the notable exception is going

to be futures right now. slight bids into the u.s. session. the bond market gets really interesting. you are going to see this. the tenure, 458. 123 on the cable rate. the dollar weakness you're going to see having a ripple effect into oil as well. green on the screen around the

world. maybe the fed may be making a dovish. . that will be using conditions for equities. there will be a ban on short selling. you can see the cost be up. green on the screen across the board. let's get a quick check on the micro here. ryanair talking about a 400 million euro dividend plus a 25% annual private payer. something their investors are really going to like right at the european open. they are warning about that some of the letter is important. some of the liver delayed. they are talking about potential dividends and buybacks coming up as well. the 2020 for-profit coming in at

about 1.8 5 billion euros and 2.05 billion euros. on a year-over-year basis, it has increased by about 59%. there are already giving you a warning. last year's third-quarter performance is not going to be as strong. digest all of these numbers with the understanding that comes are don't work in their favor. we will dig into those numbers later this hour. the cfo joins me live to break down what these earnings mean in the future of the company. in his interview you don't want to miss. 1:3 in the air. let's go back to the macro story of the morning. the soft u.s. jobs report seeing investors bring that forward. the fed may just be done raising rates. >> today, my outlook is that we are going to stay slow and steady. if we continue to do that, i

think where we are now will be sufficiently restricted to get us to the tippers percent level for inflation. this is what will happen. >> joining us for a little more context. mark cranfield, let's start with the green on the screen. cross good morning. i think you probably are getting ahead of themselves. this is what a lot of people have been waiting for. the idea that the fed is about to go from red hiking into red cutting. a lot of fun speakers this week -- i'm sure there will be plenty of pushback. didn't want people get too overexcited when we have not even quite reached the 2% threshold. this really is the big kicker for so many people. especially in the emerging market. if you're going to be looking at lifeguards, it will be in the

emerging market space where there are currencies and equities, bonds. there is not just equity markets, asian currencies are having a great day. all the kinds of currencies that tend to lag behind when people are looking for cases to go to your stollar when the odds are high there. there is potential and wrongly for this to go. the bowe bergdahl index has started to drift off. if you look at how far it has rallied, there is plenty of room , people looking for catch-up trades. looking for currencies to start performing. in asia, you have the come and the singapore dollar. they will start to perform -- i perform some of the undergarment -- other currencies. emerging markets are going to love this. there are still currencies there that you have more than 10%.

there will be very happy if they think the fed is going to be getting closer to a red cutting scenario. >> the strangely working in their favor. >> effort this time is different. you've seen the markets get ahead of themselves. pressing the cuts and peering back to the you mentioned the unemployment report as well. we had some softer economic data from the pmi. is this true that there may be a pivot point? is there an idea that the markets are not getting ahead of themselves? that this is something the fed is not forcing that is going to be a drastic deceleration? chris at the cross as a people will look back at last friday's appointment reports being the turning point. it is the inner sanctum sows. that is the day i knew things had changed as far as the fed was concerned. no doubt fed speakers will want to push back a bit because they don't like the idea that the market will be pricing for interest rate cuts.

we could easily see the situation where the two year treasury yield goes a hundred basis points lower than the fed balance rate. that would tell the fed that the market really doesn't believe anything other than to slowdown story. this is was the right is now starts to take up. they drift that way for a long time. 3.8 to 3.9, it may go to 4% and we are probably gradually starting to creep toward the 5% area. it is the kind of target where the fed will now they can start to ease back. they already have inflation heading while tour their target. not quite there but going in the right direction. couple of that with a bit of softness and the jobs market, the fed will become more confident and they will have to change the tone of their. probably not in the less -- probably not an excuse but by early 2024 they will have to send more dovish. >> they will be watching the bond market very closely and maybe already meant that perhaps the selloff we saw in recent weeks has actually done some of

the work for the fed. it does not have to work in reverse if you see these rate cuts priced into the market. mark cranfield, a question for another time. we thank you for your update this morning. i want to go from the macro to the micro. telecom has approved the sale of a domestic landline network. about 22 billion euros. the company made the deal without making a conditional. the biggest shareholder opposed the agreement and sent it will use legal means to challenge it. that is just one story. we will have an update for you shortly. stick with us for now. now i want to say what should be on your radar for the week ahead. starting tomorrow, that is where all the economic data starts to spew out. here, you have pbi numbers on the docket here. this is outside construction. if you're are talking about germany being -- this has been a

straight line lower. there will be crucial in terms of what the ecb does next. china, some of the story on thursday. we have the chinese cpi and ppi data seeing a little bit of a rebound there. is it sustainable? i will be the question when we look at it from a year over year basis. the question will come right back here to london on friday. these numbers will be coming out. a little bit of a mixed picture. perhaps the weakening of the economy is coming way faster than expected. do we see that show up in those gdp numbers? i will have everything that should be on your docket for the week ahead. you can get around up for the stories you need to get today going. if you are terminal subscriber just happened d riep e-gov. our top story there is the geopolitics israeli troops circling and cutting off gaza city. that is what i want to go next. they are effectively cutting off the south. jordan says it has airdropped urgent medical aid.

that is the deputy prime minister condemning israel's actions. closely enjoy that this is a war crime and we will stop it with all our strengths. the arabic countries, the herbal demands an immediate set -- cease fire that will end the killing of the innocent and the destruction it is causing. across the u.s. secretary of state plus diplomatic push here. he made a stop in baghdad after meeting this leader in baghdad. >> for anyone who would seek to threaten our personnel, don't do it. >> i want to bring in our bloomberg reported. good to have you on the program. talk to us about blinken's

diplomatic tour. specifically, the unscheduled stops. >> he made his unscheduled stop in baghdad. the top of that was concerns this conflict is pulling into the wider region. the first has been highlighting concerns about civilian casualties in gaza. he has come to the message that israel has the right to defend itself. this is something about the status in gaza that he is echoing the comments of some of the officials he met in jordan around the wider middle east. he is also concerned about spill into the wider region. he came with that message that if u.s. military base's are targeted, there will be a response. there are discussions about what a postwar gaza could look like. >> this comes as the war escalates. there isn't really that hope of anything really slowing down.

this is the humanitarian toll on both sides continuing to mount. >> encircled gaza city. effectively, the north has been cut from the south. this comes after three weeks into this campaign with the military asked civilians to move south. there has been intense bombing on gaza and thousands of people i reported to have been killed. we're looking at and intensified comfort on the ground. at the same time there has been increased tensions on israel's border with lebanon. hezbollah has fired cells into israel in response to the crossfire there. this comes after the leader of has been sent all possibilities are open on the northern front. israel is both intensifying his campaign in gaza but also having to contend with increased hostilities to the north.

that is the spill that blinken has been talking about during his visit. collectively ultimate leasee the work expense not just to fronts but three more roxy worse? thank you so much for bringing that to us this morning. stick with us, there is a lot to digest year. this is bloomberg. ♪

>> >> berkshire hathaway has reported for the third quarter. cap started feeling the effects of its cash pile hitting a fresh record. really interesting dynamics coming out of berkshire hathaway. charlie rose joins me here onset. beat on those operating charges. something warren buffett almost pays a little extra attention

to. how? when marge's is everywhere else seem to be shrinking? questec is a really good question and it comes down to insurance. the last quarter in 2022, we would -- we saw other companies in this huge umbrella struggling. because there were so many catastrophic ones, they seems to really improve their. they did really good things for operating income. quick speaking of the extra margin, i will extra cash. you think i would be deployed. they're not quite there yet. >> it seems like berkshire hathaway has a lot of cash that they don't seem to know what to do with. there doesn't seem to be a lot of opportunities for this famous value investor. charlie munger, the right-hand man at berkshire hathaway did a recent interview saying there could be an acquisition but this seems to paint a picture of a

barter economy where cash can actually earn a lot right now. there could potentially be pressure for berkshire hathaway to find something. the share prices are should been performing really well. they had the peak in september but investors could grow impatient in the future. >> when you think warren buffett, it is basically he is the guy who invested in railroads and coca-cola, apple stock back in the day. and of course, his insurance company as well. not to mention help finance the accidental acquisition of anadarko as well. it is really hard to find value right now when you're dealing with so many different changes. that is a proxy for the broader economy is doing because of those investments. kuester has been questions about higher interest rates. i think when you look under, you see some of those business units struggling. business is related to housing struggling at berkshire hathaway

course, it seems like the american economy is holding up relatively strong and you see a lot of those businesses that are connected to the -- the american economy at berkshire holding a very strong as well. berkshire hathaway owns dairy queen, see's candies, some of these retail units tend to be stronger than expected. >> you had me at dairy queen. as a fellow american, i am sure you missed that as much as i do. thank you for walking us through the crucial berkshire hathaway story. it is a busy week ahead for this turning season. once he accompanies in telecoms, energy and consumer sectors reporting throughout the week. here are just some of the names in the banking sector. we have an extra i have for them. let's bring in mega shelter. she has been all over the story. we are going to have some crucial interviews as well and then that will be important when we talk about the global economy

specifically in europe as well. may is the onset. let's start with ubs here. that will be in the spotlight. are you looking for? chris ubs will be very eager to show some of the benefit from its recent takers of christmas. this will be a foursquare included credit suisse earnings. i think that investors will be looking at is to get a bit more of a gauge as to where long-term value really lies. this is on retaining some of the key talent across the board. the attention will also be on wealth as well as deposits and the pipeline going forward. the bank has a lot more of the revenue from equity strategy which bodes well for leaders across the sector at the minute. stremme results seen from u.s. peers goldman sachs and morgan

stanley which reported quad strong beats in that arena. >> we have to see just how much momentum they can really sustain. they are kind of in a league of their own compared to some of the other european banks. walk us through that part of the world. >> that is right. most european banks have been performing around consensus but we are really saying bigger and better performance across the u.s. given their economy is doing so well and drawing unexpected lay at such a high rate. we might see a little bit more of transatlantic divergence going forward as your blowers a bit further. that could mean they will have to seek new avenues of creating that revenue going forward.

ubs, the re-direct across from equity sounds strong and it is sent to have quite a strong day. >> i love that you mention the peak in interest rates. brazil, latin america, etc.. ubs will still allow the spotlight. thank you so much for joining us this morning. we will bring her interview with sergio armani tomorrow coming up at 7:00 a.m. in london, 2:00 a.m. in here. this is an interview you do not want to miss on bloomberg television. of the other stories around the world that have caught her eye. south korean stocks have surged after the nation reimposed a full ban on shortselling until june of next year.

they said the move is needed to stop the illegal use of a training tactic regular deployed . this could cupcake korea's bit to seek development status in the msci indices. >> elon musk has unveiled his own intelligence but to challenge chad tbd. they have a rebellious streak. a limited group of u.s. users are testing the prototype which has been in development for two months now. coming up on the program, australia's prime minister see a landmark visit to beijing. this is an interesting story that has global repercussions both on diplomacy, geopolitics and military usage in the pacific.

this is bloomberg. ♪

>> one of the concerns around the world is no one can bank on any technological solution. we need to be making sure we have the solutions now and that we are investing in the solutions now. lincoln -- one of the concerns around the world is no one can bank on anyone technological solution. >> there was the former new zealand prime minister. she is a trustee for the her sharp rise. now in other news, we got to

china, chinese premier has opened the china international import expo with a promise to expand access to markets as well as boost imports. he also vowed to protect the rights and interests of foreign investors in accordance with the law. the event's internet providing global exporters with an opportunity to increase their trade with china after border closures due to the pandemic. quick's not seen in a century is coming at a faster pace. economic recovery and economic liberalization is facing a headway against dispatchers to work with all countries. on the vast open platform. >> anthony albanese is meeting xi jinping in china.

australia's first leader to do something more than seven years. albanese sang at the press conference two countries are building a constructive relationship. >> it is a mature relationship and is energized by the complement of a nature of their economies. along with the other economies in our region, australia and china have prospered thanks to certainty and stability that is made possible by rules-based trade. every country has a multiplet in advancing trade that is both sustainable and inclusive. these are goals we can achieve their inclusive

>> was good morning, welcome

back to bloomberg to break your. i am pretty kept to in london. let's get to the top stories is that your agenda. equities mulling around the world as the rate hike cycle is nearing a peak. this comes after signs of cooling in u.s. job services data? dovish comments from the president of the atlanta fed. telecom approves a blockbuster network sarah. berkshire hathaway reports record cash pile. a big week for european earnings right here. plus, the work continues. his mother says its troops have entirely circled gaza city. effect cutting off the northern part of the strip on the south as the u.s. secretary of state antony blinken continues his diplomatic push. again, let's start right into the markets.

green on the screen around the world. futures trading is a little bit of a different story. the european and u.s. equity markets virtually unchanged. there is a reason for that. 50 features done a 10th of 1%. s&p and nasdaq 100 features -- even though in the bond market, a very different story. the u.s. rate story is nearing its peak. take a look at the yield. you can see it is a significant pullback from the key 5% level. this is where a basis point. in theory you should see the dollar follow. defend swaps and pricing and that records are on the horizon.

when the sun daughter. hired by about .5%. that will be a crucial piece of the equation. when we talk about some of this -- these rate hikes and this processing, this idea, this narrative, i am trying to get all of my words confused. it is a very confusing market narrative. this is where you want to go next high cost this is really the result of the economic data you are seeing right now. the idea shows about 150

thousand. the estimate is 200,000 on the higher end. what is important to keep in mind is that it missed estimates. that is the concern here. now going back to that norm is concerning. that brings me to of the fed is being priced into do. this is what is being priced into the dollar here.

chair powell did not actually double down on its usual hawkish rhetoric. we'll keep you apprised of how that changes in the coming days and weeks. very bleak -- let me bring some sound about how this is being interpreted. mike mckee had an interview with the atlanta fed president. take a listen to what he had to say. >> in addition to looking at the dinner, i do a lot of on the ground stuff. in a time that is really unusual for me. everybody was saying the same thing. we have seen the economy

normalize this hot pandemic. there is nothing on the ground that is probably stronger than what i would see in the data. even though the data came in very strong in september, if you look over a longer term trend, it is still said the economy was moderating. those two things together made me very comfortable with the notion that we still have time to watch, be patient, be cautious and make sure that we understand the trend and don't overreact to any single thing. >> barring some exaggerated shock, would you say you are at the peak now and you don't need to raise rates anymore? >> i would say there are three possible outcomes. either inflation is going to stall out and then they will continue slow and steady. i have all of those possibilities in play.

today, my outlook is that we will stay slow and steady. if we continue to do that, i think we are now will be sufficiently restrictive to get us to the 2% over inflation. there is a lot that is going to happen. we'll get a couple of jobs numbers, a couple of readers for inflation. that will give us more signals as to what is going on in the economy. >> can you characterize how things are slowing down? others are saying the soft landing there -- greedy business people see it? >> many work in areas of moderation back to normal. they understand they go through a time they have sales and levels they did not expect. that activity over time has come

is lower than expected. that is with the dynamic that really governs. >> rafael bostic there. speaking with michael mckee over in the united states. this is a global issue. this idea of simply how europe would eventually fund these really massive costs they have undertaken. that is part of the conversation in the united states and over in italy. i think that has led to the following deal. they have approved the sale of domestic landline. about 22 billion euros approved. the deal expected to close by next summer. good morning to you. how big of a boost is this to telecom's domestic turnaround? >> this is an historical moment.

we have been reading about these for years. telecom italia will ease their dead. finally, they will manage to get the -- get them in the hands of a new entity. it will also be supported. the italian treasury will own a stake in the company. they strongly oppose the deal. they will take -- they are very sad that it will take legal action to stop the deal.

>> it is interesting how this is pushed through without shareholder approval. we will have to see what the government says in response. this does the trick and terms of shoring up the italian budget. we thank you so much for joining us on this crucial story. i am sure it will have repercussions when we see the european market open in just over 80 minutes time. we will see europe's biggest economy, through to a political cross was of its own. this is bloomberg. ♪

>> one of the earnings stories we have from this morning is going to be right answer.

i want to be cap some of the numbers here. we got some pretty decent ones. 49 billion euros of -- and looks like they are seeing a 400 million year dividend. that is pretty significant relative to his peers. a pleasure to have you on the program. in morning, thank you for joining us. it is a pleasure to have you. best of these massive numbers. this is a pretty impressive by a promise that you have. how long does that sustain? is this a one time thing? >> no. we have the size and scale of maturity here. we have a large program.

we are not comfortable we can also sustain annual, ordinary dividends. 409 equates to what our shareholders see at the head of covid. we are delighted to read from that. they put 400 million into their in september of 2020. we did raise a bond on the back of that. the portal commissioner started from the next financial year. $.25 should be paid between february and september of next year. it is a strong vote of confidence with the business we have. a large program. also to return -- to return some

funds as well. press you mentioned your bond issuance as well. i want to go there next. if we look at your debt distribution, at the same time, you have this massive pay are promised. a lot of people will look at your numbers and say this is great right now. but what happens when you start to see the macro economic risk rating on european consumer demand? how will it hit your bottom line? how will you service the $2.8 billion of debt you have coming due? >> we have finished this and that was after paying down a billion in debt. we paid down 260 and the credit facility. we have a very manageable profile with a nice bar maturity

in 2025. similar to what we have done over the past two years. we expect to be able to service the capex out of our own cash resources. this puts us in a very unique position. raising funds, interest rate environments. we are actually paying down debt out of our own cash resources. then just touch and run demand question, demand is very strong as you saw. we had one hundred five passengers. we are targeting 183.5 million. 90% of our summer of 2023 -- december 23 of our schedule is on already. capacity is very constrained in the market at this point. we're only at 94% recovered passively -- frequent capacity.

capacity will remain there for some time to come. >> ticket prices will be higher. consumers will be wondering if dick parsons are there. is my vacation next month going to be any cheaper for me? close we were averaging about 50 euro per ticket. that is in most people's best friend. we are staying low to mid teens compared to last year. in wanted to say what will happen for the balance of the year. q4 and beyond, find your strategy is always trying to for the planes. we had the lowest cost was that we had there. the national you're probably looking at -- it will be up a bit. close how much? close we don't have the ability

to say. ducey demand is sharp business of transmissions. i don't think will get back to becoming capacity. in the and demand. plus you mentioned the leasing cost for the airplanes. he said he appears have higher leasing costs. while you're here -- why are your needs and costs lower? when you're dealing with delays coming out of boeing? >> i think that one thing you must is we don't miss the feet, we on the fleet. we are in the very happy position that we are not having to go out and lease aircraft one there are increasing rates between 30 and 40%. 534 of our 737s are debt free. that gives us huge flexibility in what we do.

a massive competitive advantage. >> it does except for when you say that you are having constrained capacity. ryanair is expecting 10 out of 57 of the boeing deliveries to be delayed. does that not want to spur some sort of increase or even desire to lease aircraft to mute the capacity you're talking about? chris davis and capacity on the lease inside of the business. they don't have what we have. it is up to tear -- up to 10 aircraft. we will regardless. we will be one of the only major airlines in europe: strongly into the summer of next year. cross talk to us in a little bit about what this next quarter looks like. also, cost of around the world.

what do your next three months look like? class we had a very strong midterm break. people trying to get away from the cost-of-living crisis you are talking about. christmas is barking well at this point in time. we do have a sort of easter in their which -- that would be a busy time for us. 90% of our seats on sale for the summer of next year. there are early signs of bookings and demand. close a final question to you on the geopolitical risk we are seeing, in the last month we have seen a lubricant between israel and hamas. talk to us about what the world we have a lot of traffic. we are primarilyily men europe based. we have seen a spike in fuel as a result of the tragic events

but we are well insulated against that. we are hedging after the edge of march. 300 million in savings. we have had to move some capacity and of israel. we were risk assessing it on an ongoing basis. >> you have cut 900 flights. and just last month or so because of the geopolitical risk. when you talk about hedging in the last month or so, where prices also increased by some 10%. i am sure in the last month or so, half of your -- have your hedging efforts increased just off the geopolitical effect? critics we been very strong hedge book. there are levels to lock in at about 300 million. that insulates us against

short-term spikes in oil. the 901st that you talked about. so when you see those canceled but put in context, that is out of 20,000 flights a week. this is over the traffic that we have in the organization. thanks to the strength of our balance sheet. we have been able to lock in fuel at attractive levels next year. >> i wish i could talk to you. we thank you so much. the ceo of ryanair joining us on this earnings day. morehead. stick with us. this is bloomberg. ♪

>> >> welcome back to daybreak era. a quick beat on european politics.

it is on the rise of germany's far right party which is targeting frustrated voters amid a persistent economic slump and surge in immigration. joining me now is chris miner joining from berlin. how did we get here? >> we got here because of the slipping coalition. germany at the same time is dealing with a lot of crises all at once. it started off with covid destabilizing a little bit. some antiestablishment sentiment and then it moved on smoothly into the energy crisis of last year and the coalition is not helping things in terms of both read support for the mainstream. >> what does that have to do with chancellor allow schultz? how does he fit into the picture here? does he hold off this afd offensive?

what do you think? quite the problem with the coalition -- he is largely seen as absent and disconnected from the day-to-day problems of germans. the afd on the other hand is often playing the identity card. for the average german, that is on stabilized, frustrated by what is going on in the world. they see germany changing and facing a lot of challenges. they don't really see schultz as being the man that can solve these problems. that is the core of the political problem and fragmentation in germany right now. >> it is a lot to digest. the fact that you talk about economics being at the core of it is really crucial. kenneth president does this set? thank you for joining the program this morning. a couple more things for the global audience to put on your docket.

you do not want to miss our interview with the sergio armani. up next on markets, i think we will dive into a lot of the same things we have dove into in this hour. the fact that the federal reserve is being interpreted as dovish. that means a massive move in bond yields lower. creating this massive bid. how you traded? marcus today will explore that all with you. stick with us. plenty more analysis and geopolitics ahead. this is bloomberg. ♪

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