lizzy: andrew bailey and co.been accused of being behind the curve, should they have gone for a bigger hike yesterday? >> i would expect it is probably right, 50 basis points, but we will be asking questions why they were at a three-way split. but we give the bank high marks, there are a lot of external pressures which have been very difficult to foresee. and remember, monetary policy takes 18 months or more to kick in so it is very difficult to get right. lizzy: mel stride, chairman of the treasury select committee. we will get the mini-budget later today, will it add to inflation and how much borrowing will it necessitate? tom: lizzy burden at westminster, thank you for that interview. we want to get you up to speed with hong kong entering its third hotel quarantine from september 26. from three days' time they will be ending mandatory hotel quarantine. they are now focusing on ensuring international visitors and hong kong residents can get back to that city easily. the other headline, visitors that are not vac

francine: lizzy burden joining us from the labour party conference. giorgia meloni is set to become italy's first female prime minister, we will discuss that next. ♪ tom: welcome back to the open, we are 16 minutes into the european trading day. what a day, particularly when it comes to gilt markets, a huge selloff. yields now up 50 basis points the two-year, 4.46. the 10-year above 4% for the first time in at least 12 years, and the 10 year with a move higher 35 basis points. the pound at 1.06, paring heavier losses at the start of the session. this aggressive selling of u.k. assets as the chancellor doubled down on his tax cut plans. something has to give either politically within the conservative party, or the boe having to step in with intervention, francine. francine: i am here covering italian politics, where everyone is transfixed with this entire yield curve. not moves we usually see in gilts, the entire curve has shifted 25 basis points higher from friday, the short end up 35 basis points. i have never sounded so british, but quite a move, sp

dani: lizzy, let's wrap this up with you quickly. as anna says, we will finally get the boe after that was put aside. how is the business of the boe different this week from last week? what does it mean for them to have been delayed and after this period of mourning? lizzy: now the bank of england can take full account of all of the economic data that came out last week. we saw inflation slightly drop but the labor market is still tight. growth was underwhelming. the inflationary impact weighing on retail sales so they can have all of that in mind as well as the emergency energy bailout being announced. i would also add the importance of the nhs announcement because you've got these long waiting lists and they could be partly contributing to why so many people are missing from the workforce, which is part of the reason why the labor market is so tight. it's not just a health announcement, it is also an economic one. a big week for the truss government to get on the front foot because they've been in suspended animation because of thi

lizzy, what did you get from boris johnson's speech? lizzy: very optimistic and supportive of liz truss. offers her nothing but support. he is not intending to be a backseat driver like margaret thatcher was to john major. he emphasized the manifesto and there may be questions about her mandate, but technically, the conservatives -- liz truss has a more radical libertarian agendas and that manifesto -- in that manifesto. johnson quoted his legacy, the vaccine rollout, the war in ukraine, but a positive message as he leaves. francine: what can we expect from liz truss in terms of plans? can her energy plan calm the markets? lizzy: as you mentioned, there is a deutsche's note that unless she can -- price, it will affect the prices of sterling. she has energy bills on the one hand and on the longer term fix the energy status in the u.k. if that is not a handout, it is hard to see what is, but economists are saying it is unavoidable even if it is expensive because the energy crisis facing most u.k. households this winter will be so painful.

lizzy burden joins us from buckingham palace. what is the atmosphere like at the moment and what is the plan over the next few weeks, especially as it pertains to politics and their ability to continue to handle with what is being laid out as an energy crisis in the u.k.? lizzy: the sun is just coming up at the king and pallas, but even before it did, people were here having a quiet moment of -- coming up at the king him palace, but even before it did, people were having a quiet moment of reflection here. liz truss pledged allegiance to the new king over the weekend, and she will accompany him on a tour of britain over the next week. tomorrow, the coffin will move here to buckingham palace and stay here through wednesday, when the state funeral will be on the 19th. the coffin will lie in state and to the public will be able to file past. some newspapers are estimating one million people will pay respects, filing past, creating queues, some say five miles long. that will pose security challenges. joe biden and his wife confirmed t

lizzy: i reckon the u.s. speaking circuit will be highly lucrative for boris johnson given his reputation among republicans. his nickname is baby trump. he used to be a journalist before politics and he could always go back to that. there were hints in his last speech he could return to the politics -- he is pasting -- he is facing an investigation over his conduct and could be suspended from the house of commons if he is found in contempt of parliament. the easier route for him would be to quit as an mp. we will have to see how he wants to handle his political career from the back benches. dani: thank you so much and thank you for all of your work covering this for us. bloomberg's lizzy burden. let's turn to the economic challenges facing liz truss. let's bring in the chief u.k. economist at pantheon macro economics. in terms of what we have heard from liz truss, the details are scant. one thing she said is i will govern as a conservative, i will deliverable plan to cut taxes and grow the economy. it is that

great stuff as always, lizzy burden that labor party conference. -- lizzy burden at that labor party conference. italy will have its first female prime minister at the head of the most right wing government since world war ii. let's bring in francine lacqua who has been holding ground for us in rome. what do we expect now? meloni at the top of the ticket, what happens next? >> i cannot stop thinking about the the great british pizza -- dani: pizza? >> that is what i heard. meloni is the furthest right prime minister of italy since mussolini. they are sticking to what was promised. in her speech last night, in room, it was very clear that broadly the polls were as expected and that she won the largest majority. what it means going forward is the markets will see if she is threatening to europe. for the moment she says she will stick to the plan. there will be some renegotiation with europe. as long as she sticks to the commitment mario draghi put in place that is something the markets can live with. on the social level, this is a woman and a party that wants to curb rights for lgbtq,

lizzy burden joins us from the labour party conference in liverpool. what are you hearing about the bank of england and what it does next? lizzy: sky news reported earlier that the bank of england was going to be making a statement. it has not come yet. bloomberg has not have that confirmed that we can expect one today. what we could get is talks. jp morgan's allen monk says that's what he thought would happen rather than emergency hike and that is an option. the other alternative is they could put the brakes on active gilt sales. that is what we are expecting they could do in the thursday meeting but they decided to press ahead with quantitative tightening. we are waiting for the bank of england to reassure markets. even one of liz truss'economic advisors is saying kwasi kwarteng needs to do more to reassure markets. he said on friday markets will react as they will. i've been going through the archives. in 2012 george osborne as chancellor says he gets a daily verdict on the credibility of economic policy from bond investors, very much keeping an eye

lizzy burden on the ground.hile, energy ministers are patching together plans to support energy companies. finland has called it an energy industry lehman brothers moment. it is a growing list of concerns deepening the energy crisis in europe. let's talk to jumana saleheen, chief european economist at vanguard asset services. it feels like every day we worry about something new. is there anything we should read and say it is not going to be as bad as the markets are pricing in? worship -- or will we going to complete turmoil the next few years? jumana: the questions that we have to remember are the inflation in advanced economies, in the u.k., 10.1 percent and not far in europe and the u.s. inflation is still high and the rates of interest are still in negative territory. we want to bring that back to targets, but interest rates still need to rise with some space to go. in terms of the growth side of the economy, we do see weakening indicators and our base case view is there will be a recession in europe. franci

in the meantime, we turn to lizzy burden,

that's bring in lizzy burden, who was with us. mood seems pretty grim heading into the conservative party conference. lizzy: grim, awkward, alarming. the pole that you mentioned is going to be worrying. it is the biggest poll lead any political party has had since the 1990's i think, more than 20 years. but this is because of the physical plan that fiscal plans. you have tory mps that he is pleading with to get them on the side behind them. some of them in fact calling on resignation after than less than a month in office, just to give the political cover to reverse their plans, but it doesn't look like he is going to do that. we have heard from clotting trust -- that they are digging in. they say that it will lead to growth. listen to this on bloomberg tv. >> we have seen markets be volatile before. sometimes these things can become a vicious circle where people unnecessarily when there is change or something unexpected. lizzy: it is an uncomfortable scene setter for the tory conference. some of the big political heavyweights wil

this photograph about lizzie. here she was last seen on august 8, about 3.30, in the afternoon near the 2700 block of 77th avenue. she was wearing a blue sweater and ripped jeans, lizzie's 5 feet. 4. she weighs about 220 pounds has black hair and brown eyes. if you have any information on lizzie's whereabouts, you're being asked to contact the oakland police. coming up. overdose awareness day. and the problem is devastating in san francisco. what health leaders in the city did today to try to prevent overdose deaths. >> plus, insight into why a nurse in southern california may have lost consciousness behind the wheel, killing 5 people and an unborn child. but her lawyers are asking for tonight. meet leon the third... leon the second... and leon... the first of them all. three generations, who all bank differently with chase. leon's saving up for his first set of wheels... nice try. really? this leon's paying for his paint job on the spot... and this leon, as a chase private client, he's in the south of france, tak

lizzy: the fiscal situation is undermining the u.k. institution.at how it has treated the bank of england and the leadership campaign, and this weekend it has to look at the boe for rescue from the pension funds. tom: there is a lot going on online, the prime minister and rishi sunak had forecast this move on the markets. that is going viral online from rishi sunak prior to losing that content. the burden, thank you and looking ahead to the tory party congress. bad news for mortgage holders. the bank of england will have to hike rates faster to compensate for the looser fiscal policy. for more, we are joined by jonathan. how are the banks reacting to uncertainty? jonathan: understandably, they are pulling off the standard amid rising rates. they swap rates and if you look at the two year yields, the earnings breaking beginning in september, it was looking around for percent. that is now priced around 7%. they automatically have to reprice higher but the expectation is that the bank of england moves beginning with the mini budget, moving 4% by the e

lizzy: indeed. safe to say that boris johnson will have a lucrative career on the u.s. peaking circuit at -- speaking circuit. he will also make millions out of his memoirs. he was a journalist before he was a politician, so perhaps he will return to that. indeed, you will go back to the back benches as an mp. he is facing investigation. the question is, does he quit being an mp? if you wanted to come back as tory leader, that could pave the way. i remember his words in his last speech -- "hasta la vista, baby!" maybe he will be back. anna: she will bring us the details of who becomes the next u.k. prime minister. that is said to be announced by the conservative party within the next half-hour or so. we are of course watching what is going on in the markets. this is the national gas price, jumping by 24.7%. they were not sending any gas over the weekend through that nord stream pipeline. that was expected to open on saturday, and it didn't. analysts quickly downgraded their estimates of how much gas

lizzy: good morning.ple have been calling since before -- people have been coming by since before the sun came up to take a moment of reflection and pay their respects. later today king charles will travel to denver on gray service of reflection and tomorrow the coffin will be brought back to buckingham palace before on wednesday until the funeral confirmed for september 19. the queen will lie in state. people will be allowed to file past and pay their respects. the u.k. newspapers are estimating that three quarters of a million people will come by and do that. the cues could be hours long. thank diana and the queen mother -- think diana and the queen mother and multiply it by 10. francine: politics and the u.k. taking a step back. the be awa -- the boe has postponed their decision. lizzy: figure showing an increase in economic output in july. a technical bounceback from the decline we saw in june which had been hit by the bank holiday to celebrate the platinum jubilee. a sad reminder that only a few mont

lizzy burden joining us from westminster. joining us to discuss more is a lecturer in law at langley university. he is an expert in u.k. constitutional law and politics with a focus on the monarchy and parliament. thank you for your time this afternoon. do you think the royal family, do you think the country, do you think the world will ever see a royal event like this again? >> i think it is quite doubtful. i think so much of our view of monarchy has been shaped by the reign of the queen, and this might be in some ways the old monarchy's last hurrah in that the international element of the monarchy might be likely to diminish in the years ahead, with some of the commonwealth realms choosing to be republics, and charles himself slimming down the monarchy. we will likely retain the monarchy in the years ahead, but it might be more of a european style where everything is down the down attach. -- dialed down a touch. something as spectacular as this may not happen again. alix: can you talk about what that would look like, a mona

lizzy: there could be overlapping strikes, and we already have strikes.he union is rejecting the pay deal by the port office, but liverpool is focusing on transatlantic trade. this is the worst timing as retailers are gearing up for christmas. did unions want to help the workers through this double-digit inflation. francine: thank you so much. king charles will make his first visit. coming up, plenty more on ukraine and russia. this is bloomberg. ♪ francine: welcome back to the open, 30 minutes into the european trading day. you is closer to power rationing. all eyes on today's u.s. cpi print with the headline number likely to be optimistic and that inflation has peaked. goldman and hsbc plan staff cuts. if you look at the markets, we have had peak inflation? tom: is it priced in already? the estimate is when it comes to inflation, the u.s. cpi print will come in at 8.1%. these markets getting 0.3% across the benchmark and building to what looks like four days of gains. the ftse 100 weighed down slightly, range bound. benchmarks performing on the back of

lizzy: also being much softer on the bank of england.ing he sees independence at the boe being sacrosanct, that they will meet the governor once a week and then down to twice a week. because as well, if to hundred billion pounds of an energy package isn't a handout, what is? francine: does she need to go big in the first week to actually set the tone? lizzy: this energy crisis as at the heart of the cost-of-living crisis. that's why she's taking it off of the top and dealing head on. it should have an im pact.our analysis suggests inflation could have peaked and recession may be avoided. maybe 75 points in the next boe meeting will be less likely. but you will have inflation higher over the long-term because of the economy overheating. francine: that's it for the european market open, surveillance early edition is up next. we will have a full roundup of stocks to watch, darktrace is one to keep an eye on. in europe, stocks are still rising, so we will look also at euro levels and talk currencies. this is bloomberg. ♪ an xfinity rewards s

lizzy burden of bloomberg joining us.will come back to you later in the show for an up date as we wait for liz truss to speak. coming up, oil's brief rally really cooled off. janine way of senior barclays emp analyst will be joining us. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ alix: we got the ism services index at the top of the hour, yields higher, stocks down. abigail doolittle is tracking those moves. >> we have declines at this point. for the premarket, we are looking at decent increases. we have that first up monday since june, nasdaq real

lizzy burden joins us now.ere staked out right by the seemingly never-ending line snaking through to see the queen lion and state, capped off by her funeral in windsor. going through it all, what stood out to you in this period of mourning? lizzy: standing and listening to the organs from the funeral, you can hear it from where we were west of westminster abbey. what stood out to me from the funeral service was how much thought went into it. this was obviously years into planning and how much it said what meant most to her. she let the people in. this is the first fully televised euro of a british monarch ever. just as her coronation had been almost 70 years ago. it was interesting how she was honoring her people, in that she had people who had received the victoria and george crosses among all those foreign dignitaries from around the world. joe biden, the emperor of japan in westminster abbey. also, the huge not to the commonwealth with the procession from westminster abbey led by the canadian mountie. every

let's also bring in lizzy burden outside westminster hall where the queen lies in state.esterday, president biden paid his respects to the monarch. he will be among many looking at this unprecedented gathering of world leaders in the u.k. capital. anna: a huge gathering of world leaders. you mentioned president biden, he paid tribute to the queen talking about how she was just as you would expect to find her in reality. also saying that she reminded him of his own mother, which was seen as touching. it was thought he might have a meeting with prime minister liz truss, but that has been delayed until the united nations later this week. so the focus is very much on the business of the day. upbringing 10 days of mourning to an end, with the state funeral of queen elizabeth ii. the early arrivals are just starting to make their way. we still have a couple of hours until the start of funeral proceedings. attenders will have not just president biden but leaders from many countries around the world. not russia, myanmar, north korea nor belarus. but many european countries sendin

dani: bloomberg's lizzy burden there. the bank of england's dramatic intervention took global bond traders by storm, and bounced stocks as well. let's get to bloomberg's executive editor for asian markets, paul, it seems like in trying to solve one stock we ignited a different stock? -- shock? paul: the biggest take away is how huge volatility in cross assets is. in the big bond markets, how easily prices have moved in both directions. we are all rates traders now, we are all beholden to these risk-free rates, but they have a lot of two-way risk. that is filtering across everything else in global markets, the boe increases in yields, denting currencies, then slamming it all back in the other direction. it raises -- for pushes down the tolerance levels, i suppose, for anyone that has a model for assessing their positions. it takes more liquidity out of the system and makes everything even more fragile. dani: which is terrifying considering liquidity in the bond market had all but evaporated. it sounds like what you're sayi

joining us now is lizzy burden.is the issue, the economic challenges that they will face once they enter office? >> this is a worse economic situation than theresa may inherited post-brexit, worse than david cameron has post financial crisis. you have to go back to the early 1970's. you have to find a decent historical comparison. it could go past 22% next year. you have got this largely driven by the energy shock which could be the new normal. energy bosses warning that more than half of households could be an energy property. they have got bargaining power because of the labor shortage is adding to the inflation but they cannot feel the benefits because the inflation is swallowing wage growth. the boe could hit 4.25% but it will be a nasty shock for anyone who is a borrower use a rock-bottom interest rate and then put it all together and the foundation told us yesterday that it could be the worst squeeze on living standards in a century and the boe is seeing two years of zero or negative economic growth. dani: we

i'm lizzie greenwood hughes, here with your i'm lizzie greenwood hughes, here with your latest sports set up an exciting decider on sunday in lahore. chasing 170 to win, phil salt helped power england to an 8 wicket victory with more than 5 overs to spare. michael redford reports. under the light in lahore england's task was simple. this must win to keep the series alive. important then to start strong, england did just that with two early wickets but this has been a series of twists and turns in this match would be no different. babar azam is one of the worlds best batters and he was seen changing the narrative. ascending selections of shots on show england's bowlers left bemused. commentator: he has nailed that, absolutely nailed it. _ pakistan's captain would finish unbeaten on 87. england needed 170 to win. a total that felt to everyone, but england's two openers, phil salt and alex hale got to work and in some style too. the boundary rope being found with ease england 50 without loss after just three overs. pakistan did remove hale, but salt did not stop. his half—century coming

lizzy: big debate over how much the fed influences the bank of england.kets are expecting 75 basis points from the boe but economists see 50 because they think the short term inflation impacts will be softened because of truss' energy bailout. it is not just the interest rate decision, but also it will be interesting to see if the forecast has reduced from the peak. the other big question is, is the boe going to put the brakes on active quantitative tightening, given all these tax cuts and bailouts, it will surely necessitate borrowing, and if there boe cracks on with gilt sales now it will be pulling in all directions. dani: i am looking at a yields moving lower in the u.k., they were just at a 2011-10 year, how much stricter does the boe need to be? tom: that run-up in gilt yields has done nothing to support the pound. question marks about how much softer the pound will become, currently down .2%. right, trade ties fray as tensions rise between china and the european union. this is bloomberg. ♪ (police radio call) (sirens) (news report) (sirens) (news r

joining us now from downing street is bloomberg's lizzy burden.n we expect from prime minister truss if she wins? >> liz truss' priorities will be shaped by the crisis she inherits. there is not a historical comparison. she has double-digit inflation. goldman sees that rising above 22% next year. bank of england sees a recession and you are workers striking. to deal with that she has said she prefers tax cuts over handouts. she wants to take on the economic orthodoxy at the bank of england she calls the blob and she blames the boe for the inflation crisis. she wants to review its mandate. markets have shown their concern about this. we have had a former deputy governor of the bank of england warning about a crisis in gilts and sterling and even some of her supporters have warned her tax cuts, subsidies for energy do not add up and it was amateurish to rule out tax rises. as the former deputy governor of the be always said -- of the bank of england said -- francine: is there any chance it is not liz truss? >> of course. as you well know, british po

tom: bloomberg's lizzy burden outside threadneedle street. let's get to the cio at bluebay asset management who for some time now has been calling this startling bear -- sterling bearish bet. to some degree saved by the boe, but are you surprised we are not seeing more declines toward parity? mark: the thing to point out, we are in a situation where you either control where the pound goes for where interest rate goes. ultimately i think the pound is going to be moving weaker. fundamentally, the real issue is around interest rates. if we end up with mortgage rates going dramatically higher, it could end up having the reverse effect. i think an intra-meeting hike is when to be very likely. if you end up with the bank of england need to go to an inter-meeting hike you are looking at a loss of confidence in the truss government. this is a difficult situation but the silver economic -- sober economic analysis at this stage is not enough to cause the bank of england to step two an inter-meeting rate hike. i think we will be sliding back towards par

lizzy: indeed. this is her first big act as the new prime minister. dealing with the energy prices which is at the heart of the cost of the cost-of-living crisis. documents suggest it will cost 200 billion pounds in terms of helping consumers and businesses. as we heard from the boe officials yesterday, it could help to bring down inflation in the short term. the big question is how you will pay for this. she seemed to rule out a windfall tax. later on, it seemed that she would increase or extend it. that means it's going to require a huge amount of borrowing. what we heard as well from andrew bailey at the treasury select committee was that perhaps they are going to have to put the brakes on active quantitative tightening which brings us back to what the former chancellor told liz trust on bloomberg tv. the markets are watching. dani: huge hurdles to tighten policy when all of this is going on at the moment. thank you so much. now to china where a city has extended a weeklong lockdown. most downtown areas after covid-19 cases increase. we are joined

lizzie, thank you. >> thank you, frank. >>> one last check of the markets. the futures off their highs of the morning. the dow looks like it could open 100 or 150 points higher nasdaq and s&p .50% higher that is it for "worldwide exchange." "squawk box" takes it from here. >>> good morning whipsaw week the lows seem to be lower. at least for now, futures are pointing to a bounce at the open after the s&p hit the lowest level in two years. >>> lawmakers racing against the clock to avoid a government shutdown deja vu all over >>> and elon musk twitter saga text change from musk and the founder ceo jack dorsey. it is friday, september 30th you know what that means tomorrow is october 1st. "squawk box" begins right now. >>> good morning welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. as joe mentioned, this is the last trading day of the month and quarter. if you are watching the equity futures this hour, you will see relief dow futures indicated up 145 s&

bloomberg's lizzy burden joins me now. the economic challenges that face the next trimester. >> to put in historical perspective, it is worse then theresa may got post-brexit, worse than david cameron got. you have to go back to the early 1970's to -- for historical comparison. you got double-digit inflation, goldman says it could hit 22% next year. it is driven by this energy crisis, there are warnings that more than half of u.k. households could face energy polity. people are asking for higher wages, they have some bargaining power is a but they are not feeling the benefit because inflation is swallowing them up. the bank of england is responding with rate rises, they could rise above 4%. this is painful for folks who thought they had locked in rock-bottom rates. the foundation said yesterday this could be the -- the boe thinks a recession is on the way , seeing two years of no economic growth. anna: a lot of economic challenges facing the new prime minister. if liz trust is -- >> she prefers tax cuts over what she calls

lizzy: definitely all eyes on the bank of england.he government welcomes if the bank of england steps into save the currency. you talked about how much the pound has tanked as a result of kwasi kwarteng announcing how much packages would be in the pipeline. before those moves an analyst at deutsche bank was saying bank of england needs to step into regain the ability in the situation. it is 160 five basis points of hikes in november which implies we will get an intro meeting hi. it is difficult for andrew bailey because he does not want to be seen to be responding to fiscal policy more than inflation. the other question is are they going to put the brakes on active gilt sales, which raises the same dilemma. jonathan: lizzy burden, thank you. we will cover the conservative conference later on. u.k. policy is in conflict. we have talked about that a lot. the prospect this will happen. we have loser fiscal policy. i think the greatest unknown at the moment, it is still unclear whether the boe will step up and validate market pricing. unc

lizzy: i have to say, economists are not as hawkish as mark. they see only a half-point, i say only, it would be the biggest back-to-back increase since black wednesday. the reason they see only a half-point is because of all the week data -- weak data, may have had time to digest that because the meeting was delayed because of the sad news of the queens passing. but they also reckon liz truss' energy bailout will soften the long-term low if inflation. you might see that in the inflation forecast. officials will hit they see inflation weakening lower than the 13% they have seen in october. the flip side with the budget we are expecting tomorrow is they can necessitate so much borrowing, that the bank of england today puts the brakes on active quantitative tightening because officials have previously said they are not going to sell gilts in a time of market turmoil. we are watching the exchange of letters between the chancellor kwasi kwarteng and andrew bailey as to how they intend to review the bank of england's remit. tom: thank you very much

lizzy: it does not look like this.s not targeted in not asking people to turn off the lights, as they are in european cities. we still have all of this unnecessary energy consumption. it is a blank check, the u.k. energy bailout. javier blas said it is the biggest short on the wholesale gas electricity market because it is a blank check, and documents bloomberg has seen say it could cost 200 billion pounds. that is the major criticism, along with truss throwing out the windfall tax and it will lie on borrowing. jonathan: perhaps it is not a one-off. lisa: they plan to do this in perpetuity. at what point afford investors say we are out? jonathan: yields up. lisa: another way to say yields up and currency is weaker. jonathan: we have talked about 75 from the ecb, the 75 we might get from the federal reserve next week. the day after it the bank of england's turn. tom: you just mentioned culturally is different and the united kingdom is radically different than the structures of europe and america. it is a separate and di

let's get out to bloomberg's lizzy burden.do we know about what will be in this fiscal package? >> a lot of it has been leaked. we are expecting measures centered around tax. liz truss has said that she wants simpler lower taxes. we are expecting a constellation of the tax or even a corporation tax. we are expecting a reversal of the pay rise tax. that has already been announced. we could see the property tax rise. we are expecting measures to boost budget. all of this is intended to boost growth. we are expecting parting at the growth target. the worry from economists is that this is not going to hit the growth target. it will lift inflation and will add to borrowing at a time when the pound is weak and interest rates are rising. dani: markets are pointing out that there will be an update from the debt management office. today, bloomberg says it will be some 60 billion pounds worth of issuance. this is all on the back of your very long day yesterday with a 50 point -- 50 point basis rise. how does this change everything? >> t

lizzy burden outside threat needle street. closing out the hour with reaction. looking at continued red, continued weakening in euro and a record dollar. more markets to come. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ >> good morning, welcome to bloomberg markets europe. i'm anna edwards

lizzy burden joining us from bloomberg. the skidmore with ray newton smith. what does this mean for british businesses? will we see the kind of reinvestments we need to see to help growth despite what is happening in the economy? >> look at, i think it is important that the government set out an ambitious target for growth in the u.k. but now we absolutely need to deliver that hand i think an important part of that was some of the incentives they set out for investments so keeping corporations tax at 19%, keeping the annual allowance at one million pounds per year. that will help drive investment and growth in the u.k. but i think this is only the beginning. there is more that needs to be done around skills, around the business rates, so many other parts. importantly we need to have some of the medium-term credibility around the fiscal rules and fiscal part. i think businesses will be looking for that over the coming weeks. guy: we have seen the cost of borrowing surging today and the pound collapsing. that cannot be good news for british business. rain i thi

lizzy: you can ask the same of the many budget. we will have to see.he hope is the energy bailout for consumers and businesses will win the hearts of voters on that side while also introducing all of these measures that will hopefully boost the city of london post-brexit and the bankers come flooding back. thank you -- lisa: thank you so much for this. to your point, the social response is fascinating. torsten bell put out this tweet i thought was fascinating. any of you earn one million pounds? you're getting a 55,000 pound tax cut, twice what a typical earner brings home. you know very well the social pressures that can arise in a circumstance like this. how much are people looking at the u.k. like emerging-market currency when you look at the pound? damian: when i look at the u.k. i'm thinking chile, the social unrest in other places. not to that extent but the path is there. the populist pivot we saw throughout latin america is now reaching europe's shores and reaching the u.k.. lisa: how much pushback, and we have been looking a lot of rate develo

joining us is lizzy burden. walk us through the choreography of the next few days. >> we are going to find out who has won the contest at 12:30 p.m. today. this will be the fourth prime minister and the u.k. inside see years and it is likely to be the third british prime minister in history. over the weekend there has been a discernible shift in tone and the u.k. newspapers from what liz truss would do if she was prime minister what she will do and that is since voting closed on friday. tomorrow boris johnson and the winner will fly to bal moreal to see the queen after which liz truss will make a speech behind the black door or in front of it and address her priorities. it is expected to be the urgency of the cost of living crisis. on wednesday she will run her plans to deal with it past her new cabinet and have her first cabinet meeting before she goes to prime minister's questions. the report is that she will announce the package on the go of the covid furlough program. the challenge is going to be staying in

lizzy burden and julian jessup, thank you for your time. it was the biggest ipo in europe in a decade. the first day of trading for porsche. joining us is jefferies global auto analyst. this is bloomberg. ♪ >> we do not expect a slowdown because of the recession effects because we are well-positioned in the portfolio for the next years looks very stunning. so we are looking very positive to the future. guy: porsche ceo speaking outside the frankfurt stock exchange earlier. the company went public earlier on today and ipo valued at $73 billion and out the door at $82.50. coming in towards the end of the day. jefferies global auto analyst joining us now to give us his take, this seems on a day when the market is falling apart as it is it seems to have gone quite well. what is your take on the ipo and what should investors be doing. buying or if they haven't, selling. >> it's a difficult day to go to the market. seemed like they had shares in the beginning. i think what to do with shares. porsche is a fully formed business. we've known for a l

lizzy: a survey of chief financial officers from businesses of all different sizes across the u.k.ave in increasingly tumultuous on the bank of england policy decisions because it is a question of how much inflation is embedded in u.k. the medium term was about 1.4%, so if it is still at that level, it is uncomfortably high-level for the bank of england to reach its 2% target. it would not only add to the foundations for more than a half-point hike at the next meeting. anna: thank you. let's get back to emmanuel cau, head of european equity strategies at barclays. we talked about the european central bank and the fed, but we do have other factors to limit energy. extreme bearish positioning around european stocks in your notes. is there anything we can do to change that? emmanuel: the value scale is very much in -- been in stagflation. the u.s. economy gets inflation now and the ecb is more complex because they look at the rises. the sentiment is a variation which might prevent europe from being fully contacted with the u.s. because we have capitalization, but we need people to inv

>> uh-huh. >> when sarah still hadn't appeared by sunday afternoon, lizzy went to the police station to report her missing. >> i said, "i need to report her now." >> that report set things in motion. prosecutor janet albertson, since retired, was brought on to this missing person's case from the beginning, learned that on the day sarah was a no-show at the party, a woman had spotted a blue bmw abandoned next to a wooded lot. >> a police officer had responded to that location, thinking that maybe this is a stolen car, the plates were -- were bent. >> albertson says the bmw was found less than a mile from sarah's mother's house where sarah and jocelyn also lived. >> when the officer ran the plate number, it came back to sarah goode with an address. and after that, he went to sarah's home and there was nobody there because as we would later learn, they were at the birthday party. >> around the same time lizzy was at the police station, that officer noticed the abandoned car was still in the same spot. >> the officer radios it in again. and at this point now, sarah's family had reported

sure, lizzie, up that monday august 1st take his can up eggs in ms. kaufman of decisions about pressing the sla charter by.

lizzy burden starting out at the bank of england early on. very smart analysis prayed thank you very much indeed. we had this coming through. the shares of credit suisse under a little bit of pressure, we around 50 minutes away from the close. stocks moving sharply. their report to may be looking to exit the u.s. markets. there was basically a restructuring plan that's been formulated at credits west at the moment. a lot of things moving around at the moment. all kinds of plans it seems being potentially tested right now with the markets. we will talk about that later on. joining others by raising rates but only by 50 basis points. this is bloomberg. ♪ >> inflationary pressure increased. the inflationary forecast plus included the interest rate hike. we came to the conclusion to the right time to tighten monetary policy moving from negative to positive. guy: thomas jordan, the snb chair. raising 75 basis points today. the market seems like it wanted even more. other central banks being more cautious. we spoke with the central bank governor on

lizzy burden has been covering this. she joins us now at westminster.us through the parts of the market objective to the most. there was a lot unveiled here. >> yes, you've got a massive tax cut. the chancellor trying to boost growth across the energy bailout had been announced. the reason this is such an economic downfall, first of all, because markets reckon it is going to -- inflation. traders are pricing for 100 basis points for the bank of england in november. it is clearly going to anticipate a lot of borrowing while it is going to add to borrowing, it won't necessarily stimulate growth significantly. they biggest/to tax cuts since -- slash to tax cut since 1972. it is a political gamble. this is happening in a cost-of-living crisis, two years away from an election. not a lot of time for liz truss to prove herself to her voters. a lot did not choose her. because of the tax cut, analysis -- if you earn more than 155,000 pounds a year, you earn -- you win. if you earn more than one million pounds a year, you will be 40,000 pounds a year better off b

lizzy burden, bloomberg news, westminster. haidi: next, we are counting down to the ethereum merch.search joins us to discuss just how big the stakes are. this is bloomberg. ♪ >> the ethereum merge is a really big story. it is finally here, and that gives energy to the space. >> growing proof of stake is a huge step for ethereum. it makes the network more secure, it is using less energy and ready to be much more scalable. >> ethereum's energy and consumption will go down so it will go from being a big problem to basically not a problem at all. >> whereby in the past you could hold your ethereum and use it but if you were an institution, now you can steak it and earn yield on it and that will definitely be a turning point for ethereum. >> we have been much more excited about ethereum in the last month or two than bitcoin. >> i am personally really in love with ethereum. >> i don't necessarily think proof-of-stake is a great thing in the short run. >> what i care about is that the merge is successful and that this upgrade does not have a technical glitch. >> it will be as smooth as if

there will be these gonzo. lizzie's who people, i think around the world will see this as, as a, a definitely is special day when we don't have queen elizabeth elizabeth the 2nd any more asked her monarchy in the u. k. b, get new, been living and working in the united kingdom for many years now share with us or some of your personal memories of the queen. well i haven't really met decline for a longer period of time, but i have been at events where, where she attended and it was really striking that she, steve, she was this really very small lady dominion to figure. and yet she had obviously all the attention and she was lighting out the the people's faces were wherever she went. and i spoke to one lady our her mother was a cleaning lady and it's dates so well back into to the seventy's. i think the queen was there to open a building where this lady's mother was the cleaning lady and she made a point of not just speaking to all the dignity king to this lady bowed an older brother. and that was really, i think, very typical of, of what many people have told me, right. interactions with how tha

lizzy burden, bloomberg news, westminster. >> take a look at how these are trading.ot of movement when it comes to the aussie and kiwi dollar. this as we had the dollar pretty mixed. we had the key leading the declines or the gains on the others. it little bit of weakness right now while the offshore you want is past that seven level. we continue to see the weakness. we are expecting to see the china yuan. today, after the pboc did a move this month, but they already cut in august. we are also watching the turkish lira. amidst the wrath of policy decisions from central banks, the turkish central bank is not expecting much change in the rate at 13% after the bank. surprise craig -- surprised rate cut last month. incredible inflation in turkiye. 's president erdogan unorthodox policy continues. that is leading the lira to close to record lows. haidi: coming up in the next hour, volatility will persist. we have more on that shortly. this is bloomberg. ♪ >> from the world of politics to the world of business, balance of power with david westin, news and analysis, insight

good evening, i'm lizzie greenwood—hughes here with your latest sports news.lam record when the ao—year—old steps onto courtjust after midnight in the third round. but it's the end of the road in new york — for this year at least — for britain's andy murray. he lost his third round match against the 13th seed from italy, matteo berrettini, paying the price for a slow start as he lost in four sets. and it's also the end of tournament for british youngsterjack draper, who was level at a set all with russia's karen khachanov when he had to retire with an injury. cameron norrie and dan evans play tomorrow. england's in—form cricketer jonny bairstow will miss the rest of the summer season and crucially the whole of the t20 world cup, which starts next month after injuring his leg in a golfing accident. he slipped walking to take a tee shot and has a suspected broken leg. bairstow has been brilliant this year, scoring over 1,000 runs including six centuries in test cricket, and is a key part of england's short format game. another wicket keeper batsmen ben duckett h

.: lizzie, you have them watching the scene.h the crowds have been assembling? lizzie: they have been queuing up today and overnight despite the rain and the warnings of 30 hour long queues. people are jovial. they seem to be making friends with each other, asking, hold my spot, so i can grab some food. they are desperate to pay their respects and show their affection for the queen. i think it is poignant that we remember boris johnson's tribute to who he called elizabeth the great. it is unlikely we will see national grief like this or that you would have a british monarch reign for 70 years again in our lifetime. this is history. tom: guy johnson, the last number of days we also have a united kingdom, including king charles yesterday in northern ireland. in westminster hall, we have seen this. the judiciary history, including the gunpowder plot, is extraordinary. how unified is this nation around the imagery that king charles is trying to construct? guy: he is building on his mother's legacy. he wants to use that legacy to lau

but i'd, she would go, lord, let good of up with visit even the slightest lead dusky. lizzie, the widow briskin is here. you do? said his of it. he actually away lloyd the course. got good. his dad's case the law was eulogies resonated a good. yeah, a good. yeah. a yeah. what i see right of that ah ah, your, and you'll say what if somebody opened a reasoning my can keep them i can't bring my it's and your skills. i mean, i think it was like, i'm down, is that at this on some more you saw occur way or did you leave a message if it is a way to go out on the bus. so business to what it was, i need somebody to do. i want to wish i was waiting on you on a, [000:00:00;00] with a limit or to book with him as up. he's in a classroom, but it just came from the by, you know, what the president of shares have. she had it done and i gotta get the chaise concept because otherwise i would normally or the previous to this message. most cases like almost what i just me 3 the database but the real, the west talk with ask them what do you believe it was consistency mission i i am a with a pelzer and do y