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.

>> good morning and welcome to "bloomberg daybreak: europe." i am pretty good job. president biden and g agreed to restore our military communications as the chinese president chaz beijing once peaceful ties with united states. agent shares holding a three-day rally well dollar strengthens across-the-board. meanwhile in geopolitics israel rejects humanitarian pauses in the fighting for hamas as it forces are continuing their operation because up las vegas biggest hospital. a lot of geopolitics, economics, will go through it all, let's get a check on the markets, because when you look at futures seeing a little bit of a risk of sentiment around the world. s&p futures virtually unchanged at the moment, not unlike what we have seen in the past few trading sessions, even euro

starts with a bit of a downturn, and that will be something depressing across the board. let's take a look at cross asset trading, because if you look at the bond market to receiving a bid into the bond yields coming down, which is in line with the mood are seeing. two year, move of 489, lower by two basis points, so a bit for the bond market, tenure seeing a movie is about to the tune of three basis points, or 50 on the 10-year yield going to be weighing on the dollar in theory. with a risk off vibe, you are going to see some of the moves in the euro and the pound weekend as well. euro-dollar, 108. pound, 123, just shy of the 24 handle. the dollar straight will be weighing on commodities across the board. 80 handle for brent crude. in the meantime, we have got the macro story. stop at the micro because were getting earnings still, and let's talk about siemens

earnings. therefore your comp revenue growing between 4% and 8%. that is a strong upper bound for the fourth quarter. siemens talking about preparing standalone options as well. and have dividend per share for the for your coming in slightly higher than what the street estimated. the euro coming in it or .7 for the dividend per share for the full year numbers. fourth quarter orders specifically, you were seeing the quite strong be, 21.8 billion euros in fourth-quarter earnings as well. the estimate was 19.3 billion, so a beat on some of these numbers are receiving from the revenues during two the comparisons to the comp sales, even margin growth as well, so we will dive into all of that. do not miss our interview with the ceo coming up just after 6:40 a.m. london time. it is an exclusive interview

with just how siemens is dealing with epidemics in this market. something we will be keeping a very close eye on. let's get to our top stories here, u.s. president joe biden as described talks with xi jinping as the most constructive and productive that they have had yet. president xi saying china is ready to be a partner and friend of the divided states. he hailed the resumption of military: indications, but the positive tone overshadowed by one comment that he made to reporters. >> would you still refer to president xi as a dictator? >> look, he is, he is a guy who runs a country that is a communist country based on a form of government totally different than ours. kriti: a lot of positive signals as well. let's take a listen to that.

pres. biden: in the months ahead we will continue to pursue a high-level diplomacy with the prc into both directions to keep the lines of communications open, including between president xi and me. he and i agreed either one of us could pick up the phone, call directly and we would be hurt immediately. kriti: john carney joining us from washington, working some crazy hours covering this. president xi has been speaking in the last hour. was his message similar to biden's? >> yes, if anything, i would say it was more positive. biden seemed to take a more pragmatic approach of the talks, if you will. even though china and the u.s. are competitors, they want very much to pursue this competition rationally, coolheadedly, and

without rancor. xi said china was not speaking -- seeking a sphere of influence and did not one war either hot or cold with the united states. look at where he said it. it was at a dinner with a very prominent business executives and financiers, and he is looking for investment in china. kriti: of course we have seen the last three years admittedly a function of zero covid policy out of china and we have seen this mass exodus of funding, of deals going to that part of the world, a real turnaround from what we have seen in the past 10 years, but then there were sticking point is well on geopolitics. the first thing that comes to mind is the military conversation. can you walk us through that? >> that was suspended after nancy pelosi's trip to taiwan

last year, then house speaker nancy pelosi angered the chinese , and it became a problem, because of the run ins in the south china sea and other potential military confrontation or misunderstandings or things that could get easily out of hand. this would go a long way perhaps to resolve a chance of some sort of military accident, if you will. kriti: and we should make it as well at the same time china kind of reiterating that they still view taiwan as their territory, while president biden specifically press more undertake for israel and hamas and have a conversation with iran on that front. we thank you so much for joining us this morning. in the meantime, we do still

have the trade alive and going, at of sentiment in europe right now. let's see how asian markets are faring. alcohol -- avril hong is standing by with that story. avril: it has been a really interesting day for markets today in the region. we saw many of these major indices paring losses on the back of the chinese president's remarks at that dinner, which pretty much shrugged off his u.s. counterpart's comments calling him a dictator, so in a way markets are heaving a sigh of relief, but to be clear we already saw many of the indices opening with declines, because there was that unwinding from the gains yesterday on the back of the u.s. inflation print, and we got the chinese home price data as well, showing them slipping by the most in eight years, so that highlights the

property downturn in asia's largest economy despite all of the support measures coming through from the government. i went to show you something interesting as well, because we saw a gauge of chinese property developers sinking earlier, but there is that pairing of the losses, tencent 1% higher, so there seems to be more risk-taking here on the back of what we see from that meeting. kriti: avril hong, we thank you so much for joining us this morning. we are coming over to the u.s. where the u.s. senate as overwhelmingly approved a temporary funding measure delivered a government shutdown at the end of the week. that deadline was tomorrow. it delays a partisan class over federal spending until early 2024. the bill goes to president biden to sign, and the proposal does not include additional aid for israel or ukraine, and that is

where i went to go next, because the united nations security council has faster of a solution -- has passed a resolution calling for trinitarian pauses in the release of all hostages held by hamas. israel's envoy to the yuan has rejected the move saying it is disconnected from reality. joining us now is henry meyer. israel has rejected this you end call for humanitarian pauses -- u.n. call for humanitarian pauses. talk us through the significance. >> is the first time you see any kind of consensus emerging, albeit russia tried to get a resolution through the called for a durable cease-fire, so the compromise was something: four extended pauses in the fighting, so israel says that it is going to continue the offensive. it is now almost six weeks since israel began this operation in

gaza, the international pressure is mounting. the civilian casualties, a number of deaths, more than 11000 and gaza reporting to the hamas run health authority, and the u.s. has been comment more insistently for a focus on reducing civilian casualties and allowing more humanitarian aid, but so far israel is quite determined to pursue this operation. kriti: to your point of preserving the operation, they are at the largest hospital. what is the latest in terms of the hospital itself? >> israel started its operation to take control of the hospital yesterday just after 2:00 in the morning local time, and in the course of the day they actually established full control over the hospital. they say they found evidence that it was used for military purposes.

previously israel and said it was the main military headquarters of hamas located underneath the hospital. we have not actually seen any evidence of that yet, but i think they are going to go on after other health the next in the gaza strip, which they say are all being used for military purposes. kriti: certainly something we are watching very closely, just how or whether or not it escalates and how the 80 conversation from the united states follows as well. the united nations making a comment saying because of those deal shortages specifically to the hospitals and humanitarian aid, their operations might be omitted as well. thank you so much for joining us this morning. much more ahead. stick with us. this is bloomberg. ♪

kriti: the united states and china have agreed to restored military communications is the leaders of the world's two biggest economy spoken person for the first time in over one year. let's talk about the economics. i am joined by elizabeth garcia -- alicia garcia herrero. your initial take on the progress or lack of progress made on these talks. what do you think of it? >> it is overwhelming progress for the u.s. they got a lot of out of this summit. the first thing was major cooperation that stopped after nancy pelosi's visit. it is very much taiwan related. i think the likely victory is a

concerning issue for the u.s., and they want to have control on what may happen after those elections on the 14th of january , so that was a big deal for the u.s. and president xi made clear it has no intention to engage in a war. so that is a big commitment. kriti: i am old enough to remember about three or four years ago when the stir of conversations workers happening between china and the united states, the trade war had come about. you sought massive market moves, 5%, 6% with an oil and 2%, 3% onto the s&p 500. now we have a summit, some positivity coming about. the markets very sanguine, not volatile at all. do you think that is a function in the last 3.5 years the economies have in fact been decoupled? >> the economies have not been

decoupled because that was the first intention. decoupled means stop trading, but economists -- the u.s. economy is more resilient torch in in terms of china no longer being its artist -- largest trading partner. the u.s. is less dependent in terms of eating kind of feeding tournament technology because with export controls and semi conductors, the companies have not collapse whatsoever, and this is frankly also part of the story of the success of ai coming at the same time which is creating additional demand globally for high-end semiconductors. even if china is not in their portfolio anymore, they have a lot of demand elsewhere. anyway i think, yes, the market is tingling, but that does not mean we are decoupling --

recoupling. the market sees that some risk is there. kriti: i love that you call it resilience in particular, because let's take the pure economic set of it. back in 2009, 2008, i felt like one of the major recovery points or give it point was that massive -- pivot point was that massive stimulus bill that helped not only china but the entire world, including the united states. it now feels from an economic standpoint the federal reserve, pboc being on two completely different pages. what is the readthrough between china and the united states in terms of not only trade but economic and monetary policy as well? >> i think for trade the summit will imply the u.s. will export more to china. whether it is oil or other

products, not technology but all of the rest, so that is positive free engagement on the u.s. side. for china, they will have to use their venues, vietnam, you name it, so it will be a reshuffling of the value chain out of the summit. financial flows, to your point, i think monetary policy will remain quite disentangled, so basically the pboc cannot hike rates anytime soon. it needs to superior data support the economy. the fed might remain high for a while, and that will imply china has to remain very careful with outflows. this is why the summit with all of this business -- high-level business in the u.s. is so important for china. as part of the summit is possibly is important, because that is the only place where china gains, and what china gains is accessed back to the mainland from major businesses,

more money into the mainland because the valuation source or low. this summit opens the door for inflows into china, which china desperately needs. kriti: a final question then. we were talking about the implicit it feels like to encourage that you would need some sort of confidence on the regulatory side and china for energy, rare earth, technology, and ai is well here it it does not feel like that much progress has been made on that front in light of the fact that the readthrough from china to the united states is not the same it was 15 years ago. when it comes to the technology side, what do we need to see to encourage more of those flows you just talked about? >> first of all, i do not think we see flows on the technology side. i was referring to any other type of fpi.

that does make a difference to the u.s.. you can see portfolio flows, people investing. i think we are in a de-risking mode, and we will continue. they are going to continue to build their own capabilities for tech and access to critical raw materials. i do not think that is going to change, because that is too important to depend massively on china, which of the situation today, so there i think de-risking will continue. kriti: something will be keeping a close eye on. alicia garcia herrero, we thank you for joining the program. we will explore the challenges facing the global wind industry and how key players around the world are trying to mitigate them. that conversation is next. this is bloomberg.

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>> we bought into the web business fully because we believe future energy technology company must be present, and i do not believe it goes without wind. the question to be have to ask yourself is out with that helpful? because we have to begin certain areas and we will analyze our strategy on that. if it is a lossmaking business it is something that i do not seek is practical. we need to take certain issues ourselves, definitely need to look into optionality's, but i see the future of a technology company always with wind. the question is where to play and how to play, but the wind will be decisive to drive the energy transition. kriti: the ceo of siemens energy

speaking to be yesterday where he was doubling down on a turnaround plan for their we do business. at the same time the offshore wind industry is struggling through one of the most difficult periods in its history thanks to higher financing, component cause, and increase competition not helping either, all helping us with the pace of growth in the sector. that in turn making it harder for developers and suppliers to make those new projects actually profitable. let's bring in a senior associate at the nef wind team. this is such an interesting topic. we have seen cancel projects, auction flops, siemens energy having their own troubles as well. what is the squeeze all about? >> as you mentioned, the wind sector has been hit by a storm. high aluminum prices, rising interest rates and supply constraints, so we are looking at the market like the u.s.

where there is no inflation protection. this law means that for a project they have troubles when it comes to economic viability. as you can see right now there are already 10 gigawatts for more than half of the u.s., and have been canceled to renegotiate contracts. we are seeing similar pressures in europe too. kriti: what turns that around? what uses all of that? >> in the past 6 to 12 months we have seen early signs that prices of key raw materials for wind turbines, steel and copper start to stabilize, and we have not fully return to normal yet, and actually right now is facing long-term [indiscernible]

all of these problems and the challenges are not incentivizing manufacturers to invest and expand their production footprint, and this means without additional announcements, europe after 2025 may face potential supply shortage or will have to rely more on imports to fill the gap. kriti: let's talk about the international competition aspect of it. this feels a very european story. we need to talk of china's role here? >> the answer is yes and no. today, it is very hard for china to enter. they have 1% of the total market share in europe. challenges around dependability will remain kia barriers for them -- key barriers for them. we have seen a widening price

cap -- gap. making it more competitive in other markets like africa and southeast asia. we are seeing european utility companies using chinese equipment in these regions, so what we are seeing if this competition is happening. kriti: it is a really interesting dynamic driving a lot of the gains in the european index yesterday as well. we will see how china felt intimate all. leo wang, we thank you so much for joining the program. we talked about china's role. we will broaden the discussion about the world las vegas two most powerful

kriti: good morning and welcome to "bloomberg daybreak: europe." let's get to the top stories this at your agenda. president biden and president xi agreed to of us were high-level military communications is the chinese president says beijing once peaceful ties with the united states. asian shares halting a three-day rally, the dollar strengthening as traders weigh whether gains on the weak u.s. inflation report are overdone. israel rejecting the call force military pauses in the fighting with hamas as forces continue their operation at gaza's biggest hospital. a lot of geopolitics at play. is it having the readthrough into the markets? not so much. futures market on both side of the atlantic, euro stocks, ftse 100 virtually unchanged. a similar dynamic across the

pond when you look at e-mini futures. this is not the trade tariff moves in five years ago. this is a paring back of the massive gains you have seen in the last couple of days. cross asset as well, take a look at the 10-year yield, a move over of four basis points, service clubs sentiment very much translating into the bond market. 489 on the two year yield down two basis points. that should have a repercussion for the dollar as well. it is having the opposite effect so today's market rate is more apartment sentiment that it is interest rate differentials. euro-dollar off the dollar strength and went to three for the cable rate pulling back from the one to for label that seems to be a technical line in the sand for the currency. dollar strength having a ripple effect across commodities. brent crude trading $80 handle, down .6 of 1%.

u.s. president joe biden as described talks with china's xi jinping as the most constructive and productive that they have had yet. president xi says china is ready to be a partner and friend of the united states. at the united states president hailing the resumption of military medications but a tone overshadowed by one comment that he made to reporters. >> mr. president, after today would you still refer to president xi as a dictator? pres. biden:, look, he is. he is a guy who rents a country that is a communist country based on a government totally different than ours. kriti: that, grabbing quite a few headlines on the sideline of the apec summit but lots of positive signals as well. pres. biden: in the months ahead we will continue to preserve and pursue high-level diplomacy with the prc in both directions, keep

the lines of communication open including between president xi and me. he and i agree that either one could pick up the phone, call directly and would be heard immediately. kriti: our bloomberg senior editor joining us from shanghai this morning. what was through the commentary from both sides? i feel like for the first time in a very long time the chinese side has been far more optimistic or positive than their u.s. counterparts? >> definitely, president xi made the right noises especially to the all important business audience. a lot of top business officials were there, and it is important given the fact that china is trying to get foreign investors back into the country. most importantly, xi said china wants to be friends with the u.s., china does not want a hot or cold war, and was the clearest expression we have seen

for the desire of peaceful ties. he talked about their shared history, the flying tigers, it is time in iowa 30 years ago. trying to relate that he has a sense of shared history with the u.s., but it also seems like the u.s. got better of it. now we have got deals on fentanyl, military communications but also 50,000 students over five years to china. seeing that in some ways the u.s. is getting a little more than the chinese side, but what xi was trying to do also was make it seem like china was trying to do more to placate the business community and make it more friendly and less the hostile places some have been

warning about with the intentions of the crackdowns. time will tell whether or not that is going to work. kriti: i have to say panda diplomacy as the all of branch between china and the united states, i did not see that circa five years ago in the middle of the trade war, but it feels like there are still quite a few sticking points when it comes to military, technology. what caught your eye? >> what you mentioned earlier about the dictator mark -- remark, folks are not going to be happy. it will be perceived as insult re: -- insultory, but you have u.s. presidential election next year and all of the republican candidates are talking about will be tougher on china, the chinese will probably let it slide. on fentanyl, there is a deal but

there is a deal during the trump area as well. like a biden said, i think time will tell whether or not china is actually going to do something to enforce this deal, and there is taiwan as well even though biden reiterated in principle, you have elections in taiwan coming up in january, and if the dpp wins that could inflame tensions again, and the u.s. could continue to sell military weapons to taiwan. all of these issues could undermine what was achieved at apec. kriti: you outlined the issues perfectly, and i love that you mentioned the presidential election, because one of the candidates for president is one of the former executives at tsmc as well, which is the major chip supplier to the entire world, so a very dire and sensitive situation on both sides.

we thank you so much for that update this morning. we want to continue with the business aspect and readthrough of these conversations. the pwc chairman says c-suite leaders are closely watching as the leaders of the world of las vegas two largest economies reconnect. he spoke last night. >> for each of the conversations we are having, no matter where they may be around the world, it is critical. this is a top one or two issue in every c-suite regardless of sector or geography. the people here have a very keen focus and are eager to give a comes out of this, and there was a lot of anticipation of a positive sign. it signs that go to both reducing the stress today that exist between the countries and tactical actions that can be taken, and allow for the technocrats, those underneath her tutorship teams from china and the u.s. to enable themselves to continue the dialogue after these meetings. at that will be important,

because it has got to go to talk and continue to talk thereafter. >> a lot of people are saying president xi imprisoned by an talking is a victory even if nothing comes out of it and constraints and restrictions remain. what does that mean for companies themselves and what they were able to do in terms of moving forward with being able to bridge whatever supply chain issues they're having between china and the u.s.? >> it is clear when you look at supply chain discussions, ceos, etsy suites and management teams are looking at a company could affect us make those decisions. at they are looking at the skills in a country, infrastructure that exists, the relative scale of workers providing manufacturing or goods and services of some nature, but they are also looking for certainty. they're looking for reduction of political risk and regulatory risks to make sure that they cannot only make decisions today, but sustain them over time for resiliency, so what is

coming out of the conversations is not only what is happening today, but what is anticipated to happen over the next 3 to 5 years as they make the supply chain decisions. kriti: pwc chairman speaking to scarlet fu from the sidelines of the aipac conference. british prime minister rishi sunak sankey will push ahead with the plan to deport failed asylum-seekers to ramonda despite the u.s. supreme court -- despite the supreme court rubbing it unlawful. he will guarantee asylum-seekers safety and planning legislation that the declarant to be a safe country. in spain, the acting prime minister pedro sanchez is said to win a third term on the back of a fragile alliance. seven parties have voted to support his socialist group, which would hand him a majority in parliament. sanchez as sought to betray himself as a bulwark against the

far right. will bring you interviews with the seamen ceo -- seimens ceo. morehead -- more ahead. stay with us. this is bloomberg. ♪

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but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ kriti: one of the top earning stories from today will be coming out of siemens, good results when it comes to the numbers. i went to get more from oliver crook. look at the numbers come met with sent up from you? >> this was a solid quarter and solid year overall. this is a company dealing with a number of different things and has been transitioning. it is known for its heavy industry background, but it is

involved in efforts of digitalizing the industrial world, so their orders in fiscal 2020 three rd 7% and had a revenue rise of 11%. they had new record highs on their industrial business of 11.4 billion euros, and the margin climbing to 15 point 4%, so this is all very strong including the net income, which nearly double that 8.5 billion euros, and this gave them the kind of confidence they needed to raise their dividend by about 10% to 4070 a share. that will be more muted than what we saw this year. versus the 11% we saw this year. we should also mention that the weakness that we saw, and this is the weakness that we will continue to see probably into next year, it may be well into next year is in china. orders are done in china. this will be critical and a drag

on their balance sheet and terms of the business that they are trying to generate here. the united states with the inflation reduction act has been a strong tailwind for them, so this is the equation going into this, and we had the siemens energy deal, so this is an albatross of debt from them. they still own 25% of the energy business, so we will hear from the ceo very shortly and i asked him about that and how he felt that situation was resolved. looking ahead into next year and where he is seeing strength globally, because this is a business that operates everywhere around the world and as a unique view of the industrial landscape across the world. we will hear from the ceo roland busch right now. >> top line fourth quarter a percent growth right, which is still high compared to our

markets. we are planning to win market share, and we are guiding our market per share to 11. this is in line with what we are projecting, and we are very confident that we can have another great year. we are working from a very big record high order backlog of 111 billion, which keeps us going until next fiscal year, and yet there are different sentiments in the region, but due to our global footprint and presence around the world, we are well-equipped to take the opportunities we have an all of the regions. >> and i went to go around the world with you if we might. in china, you said there was quite a pronounced letdown coming on. today, is the situation in china better, worse, or more of the same, and what are you seeing for next year? >> we stay tuned in china.

put it that way. china is still a weak market. we know that private consumption is not picking up. obviously as a major exporter, they are having a drawback by the weak economy, so we are looking closely into the next start of the calendar year. we believe in the second half of the year, there will be momentum after the chinese new year. the government is very well aware they have to defend their operating model and making their industry more competitive with technology. they talk about high-tech manufacturing, and this is where siemens comes into play. we are there with software, automation, hardware portfolio to support the countries. it is about 350,000 small to medium size companies that will step up. we are looking very closely. >> another to such development

will be the united states of the complaint act. you have spent more money there. when you look at running such an important global and industrial business, where do you find it right now the most friendly place to do business? is it the united states? >> obviously, the united states would definitely be among the top of the list. we have the inflation reduction act. you know that we recently invested twice, number one in the east coast with more than 200 million investment into a manufacturing plant thanks to the great order we got from amtrak and other customers, and number two, the investment in dallas-fort worth with electrification. there is a massive amount of data driven by the large language models and ai, so we are in the game there. we have 45,000 people there, and the demand for our technology is

an automation, digitalization, or electrification is very high, and the united states makes it easy to invest. >> which brings me to your home market and where we are speaking from now in germany. there was a lot of talk about the german economy, this refrain . what is your experience of the german economy now and looking at orders in the fourth quarter are very strong. what is your experience in the german economy? >> we had a big discussion about high energy prices, and that is in fact, and therefore the government is working on supporting energy intensive industries. for me, but the point is we have to play our strength in germany, which is innovation. we have strong small to medium-size pennies and strong echo systems around health care, chemical, automotive, so we are working with our partners on making them stronger and using technology. kriti: the ceo in conversation

with oliver crook. thank you both so much for joining the program. i want to get them in of story we are working closely, aeon coming up with the third quarter trading update. they are targeting free cash flow around 800 million euros by 2025 and nursing care operating capital generation about 1.2 billion euros. third-quarter cash capital coming in it to .9 billion as well. i want to go through some of these numbers with the chief at the helm of the company. the ceo joins me live from new york. we appreciate you staying up late for us, lard. some of the analyst community in particular is really looking at your cash award -- hoarde, if you will. i am wondering what you will be doing with it? >> good morning.

today we are giving an update to the capital markets, and one of the elements in that trading update is that we have launched a buyback of 1.5 billion euros. we did that already at the beginning of july. we are progressing well and that buyback. we have 45% done, so still require a lot of time needed to execute it, but it is a big capital returns that we are doing to our stockholders, but i think more importantly today we are disclosing that the operating capital generation of the company is actually doing well and is 60% up over the same period last year, which allows us to raise the guidance to 1.2 billion for this year, which i think is good news. and it comes on the back of good commercial momentum that we are seeing in some of our markets, especially the u.s. where our life insurance sales are up 10%, where we have doubled our

retirement plan sales in the midmarket. in the u.k., we are seeing a bit of the next picture with retirement plan sales still doing well in spite of the loss of a large client, and with the retail platform not doing that well against the market backed up in the u.k., which is a little more complicated. and to top it off, the capital ratios we publish this morning demonstrate that we are very resilient in this geopolitically very difficult world at the moment. kriti: and that geopolitical world we are talking about, we'll get to that in a moment, but you are talking about returning a lot of cash to your shareholders. would you consider m&a given that aegon as a parent company to the largest pension fund, where else might you look to expand that portfolio? >> we have a state of capital

management policy where we aim to keep the capital positions of our subsidiaries at a very strong level and that we want to keep the cash capital buffer between 500 million and one billion, and we are outside of that range to the positive. hence we launched the five point 5 billion buyback the summer. our guidance we are giving on that as we look at m&a would present itself, we will judge it at its own merits, with m&a it is always discipline needs to meet opportunity. we will remain disciplined at all times. kriti: in the effort to discipline, talk to us about where the potential de-risking some of your non-core assets. what might that look like? >> we have spent the last couple of years, a lot of time and

effort into producing the risk profile when i joined as ceo 3.5 years ago. we have put hedging programs in place to reduce the volatility around our variable in the u.s. we have reduced at the leverage of the holding company, and we have also announced the summer that we aim to reduce the leverage of the holding company up to 700 million before the summer as well, so i think we have done a lot of work to make the balance sheet stronger and more resilient, which is demonstrated by strong operating capital generation and at the same time maintaining strong capital ratios of the company. that allows us to ensure that at all times the client's money is safe. kriti: in the last minute, speaking of that client money, what kind of appetite are you

seeing from clients when it comes to your asset management business as well? do you see in the face of geopolitical risk you mentioned earlier that people want to invest in this market? >> asset management has seen the market backdrop of interest rates rising, and as a result if you are a fixed income skewed asset manager, we have seen the revenues coming down. we are adapting ourselves to that reality by doing a number of things. first of all, we are focusing our asset management business more and more on alternative fixed income products and strategies on real asset strategies, and we have actually done a number the partnership since -- and acquisitions since last year to increase our capabilities in that space. we have combined our dutch insurance company with another listed company called asr. it was a large transaction to be

announced last year that has led to another partnership, because our asset manager will also be the partner for a very long time of that combination, which strengthens our asset management abilities even further. in addition, we are reducing expenses and am amending a new operating technology system, which will allow us in the near future to operate much more efficiently than we do today. so those of the way we are navigating through a period which for the asset management industry given to rising rates is actually quite difficult backdrop to navigate through. kriti: one to we will be keeping a close eye on given the bond volatility we are seeing. i am afraid that we have to leave us there. we thank you very much for joining the program, and that dynamic he is talking about that in the current climate we are seeing when it comes to bond volatility, let me give you an example and taste of that.

we are seeing in today's trading session with global sentiment souring, two year yield 489, two basis points lower as we start to see that repercussions show up in the fx space, the dollar actually stronger. euro-dollar at 108. brent crude trading off of that dollar strength, $80 per handle, and that might be something that comes up a conversation later today at 9:30 an u.k. time. we will be having a conversation with megan greene. you do not want to miss that exclusive conversation. up next, and edwards and tom mackenzie taking you through the european open. this is bloomberg. ♪ of our clients are likely to recommend us. our neighbors, the garcias, love working with you. because the advice we give is personalized, hey, john reese, jr.

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