we are joined by valerie tytel, maria tadeo and frankfurt let's start with the cpi story valerie. we did get some headline numbers and core numbers that divert as we expected but it did come back to the oil prices. valerie, walk us through what we got. valerie: for the headline, much of the story around three acceleration and gas prices in the u.s. causing uptick in the headline number, but a lot of the markets attention was on the core number. we saw them month-to-month print for the month of august tick up just very slightly to 0.3%. the market was hoping to get another 0.2%. however, it did very little to change the narrative on the fed. we are still pricing in a 50% chance of a hike come november. so, the market is very much expect in the fed next week does keep optionality on the table for whether they do hike again come the fall. the attention is very quickly now shifted to what we could see in a summary of economic projections. we know they are very likely to hold the rates but what will they try to signal on the path ahead? will they use the dot plot to try to signal that

for more on the rate decision, maria tadeo joins us in frankfurt. is the ecb done? do we have clarity? maria: it is a good question but no, we don't have clarity in a way that is explicit. this is what we know, of course i -- it went in for a hike. it was not a consensual decision in the sense she said it was a solid majority that agreed to those hikes but also said let's not think it was antagonistic. that was not the move in the governing count -- mood and the governing council. sometimes you hear the hawks and doves fight it out on the council but many times though there are intentions, this is an intellectual conversation. when it comes to answering your question, she was asked twice, is this an, flight yes or no. she is ponded sighting saying i get the question, sometimes you have a door, open or closed, but that is a movement plan not real life. she was asked is this a big rate for the european central bank and she said she cannot make that determination, though on the flipside she did talk about a conversation that is moving into duration. she talked about sub

kriti: bloomberg's european correspondent maria tadeo joining us this morning. is this the start of a new china doctrine for the eu? >> it's a good question. at this point, it is too early to say. i have washed a lot of speeches over the years. probably a new approach. to the extent that the trade commissioner tells china directly, you have to balance out this relationship, or it will not work anymore. when you put together the entire narrative, over the past 24 hours, we heard a lot about reciprocating. he pointed to that trade imbalance when it comes to the deficit that is in favor of china. dombrovskis suggested the relationship is at an existential crossroads. it is up to china if they want to make it mutually beneficial, or set them on separate roads. it is interesting how the head of the trade -- mr. dombrovskis also said it is up to china to reciprocate and make this better trade policy if they want to maintain that foreign investment that come from europe. kriti: what is china's response to all this? it's one thing to make eu the middle ground between th

maria tadeo joins us from brussels. what is the message about trade? s you say, he is leading the delegation and this is a very political, very experienced political operator in the european commission. someone who really knows how the committee -- commission works. also very good on technical detail. he's been at this for a number of years. to china, a very clear message, the european union says this is a relationship that needs to be recalibrated, it is imbalanced and needs to be fixed. he also says -- into me this is striking -- that ultimately the european union and china as it stands today find each other at a crossroads where they either find a win-win formula or they will move apart. let's take a look. >> broadening access to china's market for foreign companies and maintaining a stable business environment is necessary to ensure fair and mutually beneficial trade relationships. it's also necessary to maintain our mutual trust as partners working together to address a number of global challenges. maria: that was the trade boss for the european un

for now, we go to maria tadeo in brussels. was this a misunderstanding? hat's what the polish government says. there's a level of damage control from the polish authorities over the past 24 hours. they say that this was a confusion of the words but it's difficult to see where the loss in translation came from considering he was speaking in polish when he said that poland would stop the transfer of weapons to ukraine. just to break it down, the polish government says there are a number of things here. it's obvious that some of the stocks have been depleted because poland has helped ukraine since the start of the war. now the polish army has to focus on replenishing those. he was alluding to that. they say that poland will honor the contracts that have already been signed with ukraine and they add that it would be false but also wrong to now suggest that poland has not helped ukraine considering the amount of resources as a percentage of gdp that the country has spent not just on the weapons but dealing with the refugees coming into poland because of the war

alix: thank you so much marcus ashworth and maria tadeo. just how low does the euro go? we will speak with hugh gimber from jp morgan asset management department. this is bloomberg. ♪ >> i don't think at this point they can hike but they will keep wide open the possibility of another hike in push back against the notion that they are coming anytime soon. the message will be that we are going a little higher and we will stay there for longer. guy: that was mohammed el-ehrian speaking earlier. how long does the year ago? are we in for a bit more? >> when they are hiking it is dictated by inflation when they're cutting it is growth. there are two factors holding back the euro zone. the energy story even though you have inventory at high levels they are seeing higher prices after the russian invasion of ukraine. if we were to see a big acceleration that would be something that could prevent the depreciation of the euro continuing. it's hard to see it changing i think the euro desk a lower. alix: it looks like the eu will be tit-for-tat at the very best with china and it will

maria tadeo is there. maria: we are joined by the french finance minister.hank you so much for joining us. what is your take on the european central bank because they hiked again and rates are at 4% and some say enough is enough so what is your take echo the ecb is independent but they would like to follow what christine lagarde says. i think we are at the right level of interest rates in the eu to stop and asian and these are the goal of the interest rates, to reduce inflation we are on the right track and i think christine lagarde's right to stick to that level of interest rates. maria:. what you say is that you feel this was 25 basis points and it's over? >> since we are on the verge of reducing inflation we are on the right track, i don't see christine lagarde say we need to go further. 4% as a high level of interest rates. it might have some impact on the level of activity. we are on the right track to reduce inflation which must be our common goal. enough is enough. maria:. that was very clear. let's move onto the other big topic. this was a massive de

alix: joining us now is maria tadeo. maria, the mood felt gloomy. what was your take away?aria: it sounds gloomy of course when you have the numbers presented today. this is an economy that clearly is facing real downside, risks that are not just manifest in the future, but are almost palpable now. the market had been almost repositioned to now count this hike. she said i don't want you to think the mood in the room was antagonistic, but of course you can decide whether you believe her or not. what she said was this is not a consensus decision, but it did bring about a solid majority. to me, what was interesting, the consecutive been dealt on this very aggressive cycle from the european central bank. in that press conference she perhaps added a little bit more nuance. he referred to a number of things including -- that she hedge it again by saying perhaps the focus now is on durations. so you could argue maybe this is it, but you can't make it that explicit. guy: she doesn't even want to use the word cut. this is the problem, isn't it? she says she is done, the next thing t

joining us is maria tadeo who has been all over this.al came out of this meeting but did anything actually come out of this? there was a lot of hype around a potential breakthrough in the standoff. maria: there was a lot of hype because president erdogan is one of the few international leaders that still gets face time with vladimir putin. we have seen isolation from the west of the russian leader. president erdogan with a face-to-face meeting, becoming unusual for vladimir putin. not to say that erdogan can influence vladimir putin but certainly maintains a level of clout. this meeting, the expectation, the hope is that erdogan would convince vladimir putin to reinstate the green deal, the black sea initiative. it has been credited for exporting more than 30 million metric tons of grain. the reality is there was not a lot of content out of this meeting in terms of the specific of how to revive and reinstate the deal. vladimir putin said he's willing to talk and he is willing to listen to solutions. president erdogan conceded that the un

at 10:00, we hear from the france economy minister with bloomberg's maria tadeo. this comes as eu financial ministers meet in spain. christine lagarde will be there, the eu commissioner, the span economy minister, this will be awkward because they disagree. heard from the german finance minister, this is a good thing. tom: what will come from this meeting? lisa: they will talk about what the regions need and countries need to foster growth at a time of stack legionary headwinds and a controversial rate hike yesterday among some of those officials. we already heard the pushback. jonathan: calvino already complained. tom: she was with us, i loved when she was here. they are really living between climate change and inflation of the agricultural complex known as spain. spain is getting hammered. jonathan: big time. many parts of europe, germany for that matter. let's get back to our big story. strikes, craig joins us from london. crag, we have them all three simultaneously at the same time. i will point to this breakdown? how big is the difference between gm still at

maria tadeo joins us for more. a lot of ground to cover in the developing's in ukraine. . what is expected. maria: the meeting is underway in sochi and russia. there was speculation whether vladimir putin would go to turkey. we see it is erdogan that has made the move to go see vladimir putin. the focus of the meeting is to reinstate the brain deal russia pulled out from a month ago, unilaterally. this is a great deal that facilitates the shipments of food out of the black sea, this was negotiated and mediated by the united nations and erdogan up the turkish president as made it clear he wants to see it reinstated. we have 's from vladimir putin who is meeting erdogan. he says he is open to talking about this deal but to me i do not see anything specific that would point at this deal would be resuscitated anytime soon. there is a lot of pressure in terms of facilitating exports out of the black sea. we have seen tensions crescendo over the past weeks because in pulling out russia said it would treat ships as potential military targets, so that no longer guarantees the saf

maria tadeo is the expert on this, but there was war tone yesterday which got us to saudi 97.an: earlier today, basically said that high tolerance for economic stress abroad, they want to prices near 100. his opinion maybe it resonates but that is his view. tom: he works in the building. he is a heavyweight. jonathan: an update on uaw. autoworkers weighing in on expanding their strike as negotiations for the choice automakers continue. the union set to hold a facebook live event at 10:00 a.m. friday. where they would discuss whether more will join the strike. like we had last week, we have a deadline, noon eastern friday. for further progress, if we do not have that progress, ultimately two hours before that we get some kind of news conference from uaw which may signal a broadening of the strikes. tom: it is not your father or your grandfather strike of union members. are these companies the same companies in acting the same process as they did in 1958? i do not think we know yet. jonathan: uaw changed their approach. this is targeting all three simultaneously. tom: they're so