we have tom mackenzie at westminster. you are watching the mps come out with flags saying who they are going to vote for. who is the frontrunner? tom: the front minor remains rishi sunak, but also the person who triggered the pushback that eventually led to boris johnson being forced out and that has alienated him in large areas of the conservative party. we look to the conservative newspaper, 40 mps backing rishi sunak. none of the candidates have officially confirmed they are in fact running but that is where we are and we are monitoring the mps putting their names out for the candidates. we could have a new leader of the torie party on monday. the official deadlines, friday the 28th. lisa: there seems to be an existential question of how much power he will have. tom cole these are politicians with policies being policed by the markets. that is being made more important. there are guardrails a mound -- around the policymaking. there are polls that show an historically for the opposition labour party. you are dividing you

i'm manus cranny in istanbul with tom mackenzie in london, with the stories that set your agenda. 30-year treasury yields reached the highest since 2014, following yesterday's move in gilts. tech stocks again leading asian chairs and futures lower. germany will back common issuance of eu debt to question the blow of the energy crisis with conditions. joe biden pledges to provide ukraine with advanced air defense systems as vladimir putin threatens more attacks. manus: very good morning from istanbul. we hear from the capital markets forum for bloomberg. but the depth charge in the bond market, you have a 20 basis point move on budget day, this is var shock 2 in the gilt market even though the bank of england are backstopping, it is not enough as kwasi kwarteng brings forward his fiscal plans to october 31. but the market has a lack of belief in the credibility of this government. oil, the battle lines are drawn between demand angst and opec games, lower this morning. the imf, world bank and jamie dimon all talking recession. oil is lower, aussie is lower on that story as well. dim

francine: welcome to the european market open, i'm francine lacqua in london with tom mackenzie. tom: the bank of england governor triggers a selloff after confirming the end of market support. hours later, ft reports the central bank could extend emergency bond buying. cable and futures pare earlier losses. president biden admits a downturn as possible. the president also says saudi arabia will face consequences for the opec+ output cut. francine: we had governor bailey commenting get ready for purchases to stop in three days, then privately saying to ft they are not. i'm sure he is having a bad day. we will have a lot of boe speakers try to unpack what is going on. tom: it's the bailey bamboozle. the way the markets adjust, the report suggested the support could be extended but the whiplash suggesting they might step back on friday, and then the ft report, a bailey bamboozle rippling across markets. after five straight days of losses in europe and the u.s., a bit of a turnaround. ftse 100 currently up .1%, the spanish ibex down .2%, and gaining four or five points on the cac 40.

i'm tom mackenzie at the conservative party conference in birmingham. u.k.quities giving up some gains yesterday, the benchmark down .5%. futures stateside pointing lower as well by .5%. and selling on the gilt market, the two-year with a move higher by 10 basis points. francine: twitter shares soared after elon musk revived his bid to buy the company at the original price of $54.20 a share. it over a potentially contentious courtroom fight. bloomberg had the story first, which was then confirmed by a letter from the sec. alex, i have a million questions whether he is doing it because he really wants to buy it, or if it is just a clever way for him to get out of the courtroom. >> not looking good for him as far as the court case was concerned. there were evidentiary hearings and he had lost almost all of them. it focused on the greek question -- key question, did they break the merger agreement? if they focused on that and not the bots red herring elon musk had raised. we have seen texts which give a claims into the way he operates the past few days. perhaps

tom mackenzie reports. tom: the speech by the u.k.r was an attempt to regain the initiative. this leader has been weakened. we conducted the market turmoil that followed the many budget of the chancellor exchequer, weakened after a u-turn on a major tax cut proposal and weakened by divisions within her own cabinet around her policies. but she wanted to stress in this speech that she's sticking with what she describes as a progrowth set of policies. she says she wants to create a new britain for a new era. listen. >> i have three priorities for our economy. growth, growth, and growth. [applause] cutting taxes is the right thing to do morally and economically. high taxes been working that extra hour, going for a better job or setting up your own business. that is why we are cutting taxes. tom: liz truss saying she wants to move the u.k. economy away from a high tax and low-growth cycle. she made a point of attempting to reassure markets, saying the bank of england independence is key, saying she is in lockstep with her chancellor and al

bloomberg's tom mackenzie we appreciate you sticking around for us. emea markets and senior strategist joins us. what the cable rate on this? >> i think it will be the growth element which will be the pressure. it shouldn't be challenging recently now just looking for them in terms of the messaging. there's less of a need and the support of the pound. but now with the mortgage situation it went up 6% today. that will really go to the household cash flow and demand. as we have government policies of the lack thereof. >> what does the government need to do to stabilize and continue to stabilize the situation? >> a concern about the ob are with the forecast. very soon. i know we have a bit of a u-turn on that. basically it gives markets a starting point to adequately price this in. that's the first point and then you have the starting point and they'll be able to have all the financial conditions. it all starts with the government having the numbers in place for the markets to accept the price. otherwise we are shooting in the dark. and that's a lot help

manus: this is "bloomberg daybreak: europe," i am manus cranny into by with tom mackenzie in london. e are the stories that set your agenda. tom: u.k. chancellor jeremy hunt appears to have calmed the markets by dumping liz truss's economic plan amid a report that the boe could delay qt as liz truss admits fault. >> a recognize we have made mistakes, i am sorry for those mistakes. tom: u.s. futures pointed to an extended rally on wall street with asian equities broadly higher after downing street's reversal and positive earnings. plus, a sale in the cards? sources say credit suisse is considering divesting its u.s. asset management business and make it interest from private equity firms. -- may get interest from private equity firms. manus: tom? tom: those are the key stories, i think front and center again will be the gilt markets on the back of this report. there was a pause, a delay. but the boe are delaying qt. yields fell at 1.50 basis points yesterday, the long end of the curve we are looking at. manus: the second-biggest move in the gilt market on record, the fuel has been adde

open trading, i'm francine lacqua in london with tom mackenzie. tom: liz truss battles to rescue her premiership. the pound gains on expectations of more u-turns as a new chancellor is said to make a fiscal statement at 11:00 a.m. london time. president xi backs covid zero at the party congress and doubles down on policies at the center of tensions with it -- with the u.s. the eu promises to overhaul be gas market with a dynamic price cap. francine: if you look at the futures, it's definitely a cautious start. some futures are down between .1% and .2%, the focus is on china. and we are also starting earnings season. tom: the new chancellor of the exchequer was on the airwaves trying to reassure markets. we will get that statement from the chancellor around 11:00 a.m. before he addresses the comments. markets are in the green, in spain gains of .5%, the ftse 100 up as equity markets reopen after the losses last week, with concerns about breakdown in the u.k. the cac 40 gaining .3%. it is all about the gilts, the pound has gained but we will see what

happy friday, a minute until the start of cash equity trading, i'm francine lacqua in london with tom mackenzie. tom: u.s. cpi at the highest level since 1982. a 75 basis point next month is all but solidified. tax u-turn, liz truss said to be preparing to abandon a central part of her plan following weeks of market chaos. kwasi kwarteng flies back early from his u.s. trip. ahead of this weekend's commonest party conference in beijing, we look at she's same paying --xi jinping and his plan to stay in power. francine: what a week we had, it was 10 hours ago that dax futures gained 1.5%, and if you are a trader in these markets you don't really know where to place your bet when you have hot inflation out of the u.s. because there are two interpretations and we saw that yesterday. tom: at one point the s&p 500 was down 1.5%, it ended up 6% despite the red hot inflation print. is this a bear market rally, and we have to factor in what is happening in the u.k. as the boe prepares to step away from bond buying action. the spanish ibex gaining 1.5%, the ftse 100 up more than 1% and the cac 40 gaining

from new york, i am alix steel tom mackenzie in london. guy johnson is off today. welcome to bloomberg markets. thanks for joining us, pulling triple duty. i feel like we can have a list of all the risks that are out there. >> and to what extent we are becoming normalized. it is remarkable that the boe has perhaps stepped in again. its operation is expected to end friday, designing a new tool to ensure there is adequate liquidity. and the geopolitics and what is happening with ukraine and russia and that data working ahead to thursday. alix: there is a stronger dollar. you have inflation coming out. how do you hedge all of it? i should point out the semi conductor index down almost 9% in the last two trading days. tom: what is the biggest risk event this week for markets? joining us, christine in the studio in london. what is your take? there is a lot markets have to work through this morning and the hit already across the equity space. >> i'm going to argue it is with the boe's went to do with this program. if you recall, the long end of the gilt market, that reve

i am tom mackenzie is in london. here are your top stories. liz truss resigns after just 44 days, the shortest premiership in british history. rishi sunak and penny mordant lead the pack, but some mp's call for the return of former leader boris johnson. plus the hawks better markets. they prices and a 5% peak in the fed terminal rate. we square up to another major day for u.k. politics and a reminder of the economic fragility. retail sales coming in softer than expected and a bigger jump for borrowing costs as we await those contenders to come through. we could get a new prime minister as soon as monday. the ftse 100 currently opening down, 0.1%. markets are starting to price in a higher terminal rate. you have the fed president coming out and saying we will be at 4% by the end of this year. we will continue to keep and i on european markets in light of the decision and agreement around addressing the energy crisis. the germans giving back a little bit of wiggle room as the european union comes together on some response. the ftse now lower by

improved cash flow in six years under the guidance of the cfo, on the latest edition of -- tells tom mackenzie made this happen. >> one of my priorities has been to really focus innovation on better cash generation. it is not just a finance job. making sure that revenue converts into cash is the responsibility of the whole organization. >> cannot be successful as a company if we are not connecting the services we have provided. she has not missed one opportunity to talk about that. >> it is a comfortable situation , particularly in the current environment, to have a strong balance sheet. i would rather have a bit more on the balance sheet. tom: spell out for us what the longer term priorities are in terms of putting some of that cash to use? >> organic growth and our capex budget, investing into organic growth. we are focused on our regular dividend payments and then if there is something left, as is unfortunately the case at the moment, we will think about inorganic opportunities and other means to allow our shareholders to participate. that is why we are running they share buyback program. >