karim: the u.k. is facing quite the challenge. when we look at the u.k.ts outlook on growth and inflation, the bank of england is one major central bank that has acknowledged the recession that is likely around the corner as inflationary pressure builds. in the u.k. we have to make a distinction between the stock market and the economy. if you look at the stock market, large caps to get a lift from sectors like health care. international exposed companies more broadly. guy: in terms of what you described, the fact that shorts have been covered strikes me as quite negative given the next step will be to reappoint those shorts and put them back on again. karim: i do not disagree with your analysis. when we look forward it does not look positive at all for the equity markets in europe on a broad level. we can always get granular and there will always be opportunities there. on a global level it does not look too positive. not only do we have the lack of momentum, but also we have earnings decline that has not hit yet. you need to really strip energy and fina

u.k. chancellor tells bloomberg he is working on additional measures to help households and businesses with skyhigh energy bills. >> we know we need to do more because by december and january and into next year, those bills will probably go up further. i am preparing options for the new incoming prime minister. tom: let's check in on the markets. stabilization across the markets , again as investors digest the messaging from jay powell and the fed. there is a sense of calm. an interesting video from the office kashkari -- from neel kashkari and people were happy about the comments from jay powell. we also heard from the ecb officials, philip lane pushing back on the idea that we are going to get 75 basis points in september. the cac currently up 0.3% and the spanish ibex up 0.3%. you are lower on the ftse 100. you see iron ore dropping below $100 on top of concerns about demand for iron ore out of china. we know spanish cpr is coming in as well. -- cpi is coming in as well. i will get the

charlie: the u.k. as you rightly referred to, is centered around three year, five year and two year fixed rates. there are some longer rates but they are in the minority. you tend to see things working on an average of three, 3.5 year cycle. for the first time buyer market rising interest rates bite immediately. but for the majority of borrowers, some of whom are beyond five-year fixed rates, most of them are on some sort of fixed rate. they will see that coming through over the next 18 months or three years. anna: thank you very much for joining us. charlie bryant, zoopla ceo to talk about the housing market. let's check where european stocks settled. you can see we are divergent. the ftse down 9/10 of 1%. down energy, down oil prices and that is being factored into the stocks. the nasdaq has been boosted -- the dax has been boosted. alix: all of these will be on bloomberg radio 5:00 p.m. london, 12:00 p.m. new york time. you can find us wherever you get your podcasts. coming up, we have the quantitat

u.k. rates have been raising rapidly. u.k. rates really rising quickly amid inflation data. that surge in u.k. rates versus u.s. rates is not supported cable at all. it is the country with the runway inflation problem, yet a weak economy and it's not a good picture, it struggling with the aftereffects of brexit. then there's the fact that overnight, u.k. consumer confidence fell to a record low, data goes back to 1974. just look at the comparison. cable above two, almost every trader lost money. and then -- that was in 2008, it seemed like the crisis, it is even worse now. markets are convinced the next leader. francine: it is tough out there. i love that chart. thanks for that great chart. if you look into the petite, i think it hasn't done so badly. let's kick it off with the fed, we've been speaking on the direction of policy over the next few months. >> they confirmed what i suspected, which was that the fed doesn't know where it is. that the convey a collective message. >> they can get lucky or they can get it right, it is difficult to know where you are. i'm sure they'

the u.k. economy shrinks for the first time since covid as manufacturing and services drop. the readings are not as bad as feared. plus, the u.s. attorney general said he approved the search of donald trump's residence. the washington post says the fbi was looking for documents on nuclear weapons. francine: we saw a reversal yesterday on the futures in the u.s. session. the question is, what does it mean? we now need to focus on the jobs market? the session is strange in europe so we will see how that opens and we also look at dollar debt. tom: it is the question about whether or not that post-cpi rally has run its course. they came in softer in the u.s. than expected as well. in the u.k., we have that print coming better than expected. in terms of the ftse 100, currently range bound. we keep an eye on basic resources and china play into that as well. we check in on the pound and see whether there is any reaction to a better print and suggests that slow down that had been suggested by some eco

beata: in terms of the u.k.orecast, it is much higher because the conviction is that higher food prices, higher energy prices are going to hit. core inflation is much lower, around 6% and more in line with where consensus is. the winter is coming and energy prices, as we discussed before, continue to stay high. you have got the emerging bet that there will be inflationary pressures coming into the winter. tom: we are expecting 10% earnings growth this year and where the earnings contractions when we factor in this gas shock? beata: this is one of my biggest earnings, that earnings expectations -- biggest worries, that earnings expectations have to come down. they are classified for the next year. to be fair, they exclude the commodities sectors. it is a more reasonable 2% for this year and 10% for next year. adding to the economy forecast, we are going to anticipate 5% inflation in the euros on next year. that is quite bullish. i think it could come to the negative number for this year. the pain will be concentr

in the u.k. it is going to disrupt trade. it is estimated it will impact $800 million worth of trade. to give you an idea of the scale of the trade, about 4 million of those containers pass through this port every year, the equivalent of europe's biggest port and trading hub and it's going to impact imports and exports. port officials are saying that they can weather the storm. they have been through covid and brexit. the reality is, they are not going to know how bad it will be until they see how many workers cross the picket line. it is not just the disruption to trade. the economic cost is twofold because of yours there is the risk of a wage price spiral, not just workers here who are striking. it's also liverpool, the postal workers, the transport workers, the barristers, the nurses. if they strike -- if the strike continues to spread across sectors, the risk is that the unions add to the inflation surge they are trying to shield their members from. manus: thank you very much. heck of a backd

how do you look at the u.k. lens? we know that u.k.ubs and restaurants are also raising prices by 6%. is this a microcosm for what could go wrong for other big central banks? lynn: the u.k. kind of stands alone. it is hard to find anyone that is bullish on the u.k. market, especially on the pound. the inflation scenario and the fact that central banks are constrained in being able to raise interest rates. the boe is trapped, and a lot of that from analysts that we speak to, they say the only way is a weaker pound. francine: so many people say they are behind the curve and they should have started hiking sooner, but they don't want to take advantage. lynn: and bailey said that he would have been stuck either way. no one expected the war in ukraine, but now you are seeing the pound at $1.20. there are so many things that will comes in the months ahead ahead of the winter. francine: and we see on who becomes prime minister, liz truss or rishi sunak. let's get the bloomberg business flash. laura: uniper is finding -- providing a glimpse in

the u.k. on spending, and opec with a really minimal production increase. oil and snapping a slide, investor sentiment worse than it was earlier than in the week. the u.k. is pretty much flat as always. i would urge everyone to look at foreign exchange, the euro 1.0235. let's get to your cross as a check. away from commodities which we are always keeping an eye on. currently brent $94 60 three cents, 10 year yields 2.6809, once again more stability. let's get over to mliv managing editor mark cudmore, we've made it through the weekend you are looking at u.s. jobs? mark: i've only just made it but yes there will be jobs later on. i hope i will not be paying attention. i am actually playing a poker game later on. here are three charts to tee up for that jobs data because i think it is important given the recession risk and the cpi print. according -- we are very close to the pre-pandemic high. i think this is important to emphasize in the context of everyone talking about the recession risks. we

let's start in the u.k. u.k. job vacancies soared for the first time since august 2020.l real wages falling at the pace on record? real wages. alix: is it real wages? guy: if you say it quite quickly. give it a go. alix: real wages, that i can do. [laughter] guy: moving on now. this indicates tightening inflation squeeze. inflation is running away, wages are running to the bank of england to tolerate, but not hot enough for consumers to be confident. that is the pickle we are in in the u.k. that is the problem we got here, isn't it? real wages? we find ourselves in a situation, the banks are not going to be contra bowl with these wage increases we are seeing. from a consumer point of view, this hurts. >> be careful what we wish for. if growth -- wage growth goes higher, we will be worried it -- it will be something for the cost of living, it helps with the growth situation. if they do not, inflation may come off sooner but will mean more pain in the near time. alix: how much do you think real wages have the option to fall? we haven't seen -- build yet. how much worse cou

the u.k. made us feel like we are dispensable.work for their goals and aims, but when we needed them, they left us. >> the u.k. and u.s. government are trying to respond as quickly as they can. at stake, the reputation of the western world. already diminished by the rise of the taliban. >> that can allies left. from around the world, president biden assigned to lower the inflation act, a billion-dollar climate change and health care bill to promote clean energy, lower greenhouse gas emissions, and bring down health care costs. at the signing was senator joe manchin, whose support was crucial to the success of the bill after he initially opposed some of its provisions. russia blamed sabotage after one of its ammunition depots was hit today. one week after explosions on the peninsula damage the russian airbase. explosions damaged infrastructure and forced the evacuation of 2000 nearby residents. in portugal, over one thousand firefighters battling a wildfire in the central of the country, forcing the evacuation of several villages.

the u.k. chancellor tells bloomberg it's working on additional measures to help households and businesses with skyhigh energy bills. >> we know we need to do more because by december, january coming into next year, there is ill -- i'm preparing options for the new incoming prime minister to be able to do even more. manus: it is a one point $5 trillion of an equity market implosion to get the fed to say, look, we are glad you are listening. i wonder how much more pain these markets have got to take to face the fed. dani: stocks have gotten the message but perhaps not fully capitulated if i can start using that word this early in the morning. we are seeing a more settled market today. let me get into the future session so far. european stocks futures, those up .6%. welcome back from the bank holiday. we are down about .25% so watch that perhaps continue to be the negative one today. s&p 500 futures and nasdaq, both of those are of. there is still light positioning among professionals so this mig

in the u.k.' we had this pretend retail market, the energy suppliers are helped in the good time and build up in the bed, the question is can they do. scale nationalization. manus: if you think back to the privatization of a huge number of these utilities. lizzy burden on the energy crisis in the u.k.. what is happening across the channel, french president emmanuel macron is off to algeria. one of the world's largest gas producers. will he get there too late compared to the italians? how are you? the trip to algeria, is there enough gas to algeria to give to the italians and the french? >> this trip is not about gas, it is not about energy, it is about improving the relationship that have been damaged by a lack -- a lot of misunderstandings. recently there have been tensions over visas. and of course the 60th anniversary of independence of night -- of algeria from france after more than a century of colonization. they have many business interests, france does not -- algeria needs more wheat, insid

multiple strikes have been hitting the u.k.ith workers across many sectors complaining about pay and conditions in the country's biggest cost-of-living crisis in living memory. they put down tools and refused to offload supplies across the contribute -- across the reporter: it handles almost half of the u.k. shipping freight, but on monday, the port was at a standstill. almost 2000 dockworkers are striking for eight days, demanding better pay to keep up with inflation. >> whatever we gain, we are using on utility bills and more. nobody is coming out a winner. reporter: it is expected to have severe effects on supply chains and trade alrea disrupted by brex and the pandemic. the port says the union has not put its offer of a 7% pay rise and lump-sum to members. >> i think we give them a fair days pay for a fair days work. reporter: workers from a range of sectors are taking action across the u.k., including postal workers, terrorist or's, railway staff and telecom employees. in scotland, rubbish is continuing to pile up on the s

alix: i'm get a harp on the u.k. for a second. what is that mean for the u.k. market? it's basically in essence a commodities play if you're avoiding that stock. is that a good bet? >> the u.k. a standout outperformer. it's got a lot of energy and was lifted up by the commodities rally. would we think is we will see lots of global growth weighing in on commodities because they are very cyclical. they have discounted very little, so now the play before is weaker growth and commodity plays underperform, one of the which is the u.k. relative to the broader european index. alix: we will get more of this, sebastian is sticking with osprey this is bloomberg. ♪ >> it's obviously a difficult situation for central banks because they also see the economy is slowing and europe is heading for a recession. when you look at core inflation in europe and some wage inflation coming through europe, it's difficult to already make that pivot because of the weaker economy. alix: i don't want to be a central banker right now. isabel spoke to reuters talking about the fact that a heavy hike

that's where the u.k.s because the bank of england had three forecasts on what could happen depending on energy prices and marcus pointed out they didn't factor in fiscal help and the e.u. is pretty much burnt toast, they don't have control of what's going on and they have murphy's law and affecting the role and energy will only get worse from all the forecasts for them and they'll go into the winter. they have a food problem because even with ukraine coming back online they're having a drought and so there's a lot of problems there and with that drought comes shipping problems, transit problems throughout europe. the europeans have a real problem, the european central bank can't get out of it and might be more useful to ask if christine regard would be as honest as andrew bailey rather than jay powell. kailey: it's fair to say the runway for jay powell looks clearer or less narrow because in theory the economic data to this point is backing the fed up that there is room for the economy to withstand these

u.k.. it is getting hammered, doubled it inflation. that. leaders readout is coming in just under minutes. will. the pound is frowned. what do we think? >> it is about the impact of the cost of living crisis. vacations in the u.k.. great weather in july. most economists see a not quite our economists see a slight gain. there is a survey showing how hammered confidence is. i. act fight and same inflation. it might be 50 basis points but some may want 100 basis points this point. dani: all of that is really remarkable. thank you so much. indonesia's president says the covid made a tax on nickel exports this year. they look to refined more at home. they spoke to us. >> you spoke about putting attacks on nickel products. is that going to happen this year? an export tax on nickel products? >> it is possible to impose it this year. dani: joining us now from singapore is juliette saly. any surprise there? juliette: what we really saw the biggest reaction to were some above comments saying that yo

the blockage is the u.k. and it is the u.k. parliament. they have primacy on it and they have not devolved it. >> thank you. i wanted to ask both representative higgins and representative bowman, if the schedule commits. i would like to take mr. thomas -- thompson's opening statement. >> i would like to if i could. >> i'm from new york. i was listening very carefully to what alan wright had said about the good -- mcbride had said about the good friday agreement. i think we have a tendency to underestimate the power and the significance of that achievement. the good friday agreement was one of the greatest blue medic achievements in the later part -- diplomatic achievements in the later part of the 20th century. it dealt with the issue of identity. if you live in northern ireland, you have a birthright to identify as irish, as british, or both. and brexit can change that. i think brexit was the right answer to the wrong question. if you look at the political analysis of the good friday or of brexit, it was a demonstration of english nationa

in the u.k., the ftse 100 is currently up around 56 points. the pressure is growing on the u.k.ent to draw out the most measures to protect households and businesses from high energy costs moving into the winter. household bills have been soaring and are set to rise further. tomorrow has an announcement from the energy regulator about a price cap. let's bring in lizzy burden. what are we expecting tomorrow? lizzy: they will tell us how much household energy bills will rise in the fourth quarter, and one estimate says it will be 80%, and that would take the average built about 3500 pounds. three times the pandemic level. energy buses warning that more than half of u.k. household will be in poverty by january because they expect bills to continue rising and this is why we are forecasting that more than 18% inflation in q1 next year. this is top of the interest. both contenders to be prime minister look at how to change the system, but there is also the question of how to deal with businesses because they have not had any help so far. industry bosses are warning that several compan

u.k. yield story today. bank of england in a bit of a pickle to be honest. how aggressively will it have to go to deal with this cost push inflation we are seeing in the u.k. economy. we got some energy into food, those are driving the inflation story right now. you can break it down nicely on the bloomberg terminal. we will talk about this in a moment. what's happening with the gas story. the germans have a problem and you can see that in the numbers today. we will talk about what's happening in just a moment. but they are filling up their gas, we still don't have enough if the russians turned the taps off today. signs of stabilization but still a very elevated level. sonali: in the u.s. we are seeing a lot of red on the screen. yet the dow jones industrial average really fading from that wall -- from that high, snapping five days of gains. i want to bring you a little but of macro. we have the dollar a little bit stronger again today versus the yen. that yield, if you take a look at the

in the u.k., the u.k.k in the second quarter, gross mystic -- gross to mystic product impacted. calling on the european union to fight wildfires that have been blazing for days. germany, greece, poland, austria sending resources. in england, the summer of heat waves have declared a large part of country in a drought and recorded the driest july since 1935. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪ alix: one stuck to watch is lung power, the company makes hydrogen fuel cells, and that has gotten a lot of help from the inflation reduction act and most likely will be signed later today or the company reported earnings seeing revenue on the high-end as much as $925 million. joining us is the ceo of plug power, andy marsh. great to see us -- great to see you. talk about what hydrogen fuel cell batteries are what is the difference and describe that for us before we get onto oth

in the u.k.. alix: 130, i think that was a record -- 1:30, i think that was a record. one minute and 30 seconds. that was pretty good. let's get a deeper dive with stacey widlitz with s w.h.o. advisor -- with s w retail advisors. it something else going on here? stacey: i think the consumer is getting hit from all angles, whether it is food, energy, anything. your basics are costing more. we also had a big stimulus and starting in june timeframe saw things drop off in a significant way, particularly for discretionary. in the u.k. despite the amazing weather, consumer is obviously feeling terrible with double-digit inflation and things could get worse with energy prices against that to rocket in october. alix: -- guy: how much work? stacey: the retail sales look okay on the surface, but if you look beneath you remember there was amazon prime day moved into july. that drove online sales up as everyone is trying to keep up with amazon. if you ask that out, you see volumes down 3% to 4% and inflation

the u.k.hen is it going to rain? what economic impact will we see? this dry spell could last into october. when we going to see a change in the weather? let's try to answer that. the weather looks like it could have a hugely important economic impact over the next couple of months. the operational meteorologist is joining us now from the u.k., giving us an idea. when is it going to rain? >> it could be sometime with a high-pressure been very dominant across europe and the u.k. at the moment. it is pushing everything away that would be bringing rain to these locations. we are having a long day of prolonged sunshine, it is very dry. high-pressure is looking to stick around into the weekend and the start of next week. it's very uncertain at this stage that if you showers may want. alix: we might have to wait for rain a little bit longer. how hot could it get? >> we are expecting a gradual build in temperature over this week. by the time had friday and saturday, some areas could be 36 celsius. thi

guy: what about the u.k.?here are reports out from the economic think tank, talking about inflation will be in astronomical level in the u.k., which will be about rpi, the old measure of inflation, getting close to nearly 18%. the bank of england will have to raise rates aggressively. the market is penciling and 50 basis points tomorrow. how much more do you think is to come? aneeka: if we are looking at inflation hitting levels of 18%, that is something that is definitely not priced in at this point. it is 50-50 right now the number of forecasters saying we could see a rate hike because if you look at the committee, it was 63 or 50 basis point rate hike at the last meeting, so this meeting, the chances are a lot higher for a 50 basis point rate hike, but going forward, we expect to see the bank of england because at 25, and then do another rate hike of 25 basis points and then pause, but given the upcoming conservative board, it will be interesting to see if we see the labor market tightening further alongsid

yield curve, but in the u.k.. we had a warning from denny branch water -- denny -- danny blanchflower who says that these will make this interesting. i want to show you the u.s. 10 year yield that would give us an indication of what investors will buy in the yield curve. european stocks down 0.8%. let's get over to our bloomberg mliv managing editor mark cudmore. mark, you are looking at -- this morning. mark: this chart was flagged to me at daybreak this morning and they got it from eric albert. it is an believable charge. it is the housing affordability chart in the u.s. as of the end of june. this white line is affordability index. it has fallen below 100. it means the median income in the u.s. is no longer sufficient to earn a fixed rate mortgage for the median house price in the u.s. high spouses -- house prices are becoming increasingly unaffordable. we saw the covid stimulus, so they are now unaffordable and they are the least affordable they have been since 1989. we have not seen them get this drastic at t

is far behind countries like the u.k. so, the u.k. has an impressive program called the u.k.io-bank, where they have half a million people who have consented and are participating in a nationwide program. it is amazing. everyone, including 23andme, uses the data comes out from the u.k. bio-bank. the u.s. has totally fallen behind. so, we have a program called "all of us" where we are trying to get people. it is supposed to be one million people, but the u.k. has already leap-frogged us and has a 5 million-person program that is running ahead. the u.s., in part, there has also been a lot of politics around how is this going to execute, what are the ethics on it? if we want to capture the benefit of the human genome, you need a massive, i would say, multiple countries that come together and have come alike, 100 million people that come together so you can understand what the code is. david: the u.s. is obsessed not so much with the u.k., but with china. so is china ahead of us in this area or not? anne: china is crushing us too, but we don't know as much about what they are doi

at 10:00 u.k.e, it is the investor survey, consumer confidence in the eu's largest economy has been hit. at 12:00 u.k., walmart releases its second-quarter results. housing results in industrial production. finally in the u.k., the candidates will be in scotland as a guide to be the country's next trimester. next, theodore's earnings miss the estimate. they say they will -- the chief executive of the danish jewelry company joins us next with all the details. we were wondering who the biggest -- who their dream client would be. sons of a sharp economic slowdown weighing on stocks. here in europe, there still gaining .2%. in asia, commodity prices down. u.s. data yesterday pointing to a -- homeowners and -- homebuilder sentiment -- will have full roundup with u.s. futures down .2%. this is bloomberg. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g

u.k. recession. lazy is outside the bank of england -- lizzy is outside the bank having one, markets have placed bets about half-point height, what could we get? >> francine, the majority of economists see a half-point hike. there is this interesting minority seeing a quarter-point, including morgan stanley and citi, that is because they point to the recession risk. it is said that the u.k. is already in recession. on top of that, they point to the labor market data. yes, it is tight in the u.k. but it seems like we are past peak tightness because people are coming back to the workforce because they need money to deal with the cost-of-living crisis. these economists point to the economic picture. yes, the ecb and be -- the fed have gone for jumbo rate hikes. so don't take andrew bailey at his word when he says 50 may be on the table but is not baked in. we may also get an upgrade of the inflation and growth forecast, and are expecting details on qualitative -- quantitative tightening. fran

dean: i think the u.k.abor market is an interesting one, it has -- it shares more similarities with the u.s. market than the euro zone labor market because we have quite a shortage of labor, that is what the data would suggest. one of the things i would say, there is some hint of sign in the most recent labor market report that inflation pressures explain a fair degree, i would expect we can see participation rates increase over the incoming quarters, that should be some -- beat some of the wage pressures in the u.k. with growth being weaker, and this morning's pmi data did point relatively to a weaker labor market, but we are questioning about making that marketing higher. that combination of increasing participation rate, slightly weaker to demand then labor, should ease wage pressures. perhaps that is a story or for next year. over the next few months, the headlines you have mentioned we have been seeing are going to be quite common. kailey: interesting insight. thanks so much, dean turner, european econ

the price of u.k. exports has fallen and imports have skyrocketed. the u.k. needs a weaker currency to help with the exchange rate. jonathon: could you imagine if the fed forecast a recession like this one, starting a q4 and running to the whole of next year? [crosstalking] >> i can see it happening, but they are a bit slower. jonathon: john rochester there. a snobby joke from birmingham, tom, which you won't get. tom: lisa, help me here. between pharaoh -- between jonathan and rochester, i can understand a word they are saying. lisa: i didn't understand at all. jonathon: just read sometimes. that's all. can you imagine the fed forecasting this? q4 and going through the whole of next year? lisa: the issue is not the possibility of that happening. it is the issue of them saying it out loud. the fed would never say that out loud. that, i think, is the distinction. jonathon: 50 point basis hike by the bank of englund. yields lower at the long end by seven basis points on 810-year. twos and tens invert for the first time since 2019 still more to come. this is blo

gdp growth in the u.k.lowed and the economy is now forecast to enter recession later this year. dani: plus, past the peak. elon musk sees inflation trending lower as the carmaker approves a stock split. manus, happy friday to you. great to be back in the driver's seat alongside you. it is concern about recession, yield curve even deeper inverted but markets not doing too much this morning. manus: yeah, i mean, two ceo's on daybreak middle east talking about inflation topping out. that builds on the narrative, doesn't it? let's have a look at the gmm board. you have this view. iron ore ramping up by 3.87%. you are seeing more activity in china. copper on the bounce, 1.26%. keeping an eye on the pound. you know my favorite line of the day, which is when you tell a market that you do not have a crisis in the currency, that's one way to unleash hell on it. dani: i thought you said your line would be from michael burry. i thought you might. look, perhaps the silliness is continuing because we are seeing a rally

u.k.ounces new sanctions against the military regime. the french president president is in algeria to reset their strained relationship, which links back to france's 132 years of colonial rule. in southwest china, a heat wave is forcing people underground to escape temperatures above 40 degrees celsius. ♪ we will start and ukraine, where there's growing fears of a nuclear accident at the zapper easier nuclear per plant -- at the zaporizhzhia nuclear power plant, held by russian forces. it's been temporarily disconnected from ukraine's electricity grid for the first time ever because of a fire. the zaporizhzhia plant is the biggest in europe and sits on the south bank of the dnieper river, right on the front line of the war. russian forces took the site just after the invasion of ukraine. since then, it has been under moscow's control but run by a team of ukrainian staff. up to 9000 ukrainian workers are still base their -- are still based there. ukraine says russia is using the ant as a mi

the u.k. plans possible blackouts in january in a worst-case scenario. industry and households face organized power outages. very good morning, we are talking about terror in tech and particularly of outages in the u.k. waiting for a bit of news flow but this is a moment of a mini terror attack in tech. dani: tech is just such a huge proportion of the market. an analyst asked the question, what is the point of buying the stock market if tech isn't attractive? let me jump into stocks speaking of which because we are seeing other regions catch up with the negativity when it comes to yesterday's session because of micron issuing that morning. the msci asia pacific down by .8%, asian tech underperforming given that. you are also looking at european tech, or a futures i should say, down .2%. s&p not down as badly. the drama came from yesterday but still hanging tight. we get cpi out today, why would you take convictions when that report could change the narrative. i know you are about your allitera

juliette: ruling out raising the u.k.ice cap if he becomes prime minister, his rival warned against throwing money at a short-term fix for the problem. instead of allowing it to rise again in a few months. republican liz cheney has suffered a crushing defeat in her bid for reelection. she is now calling on americans to unite across party lines to keep donald from winning the white house again. she made a point of conceding to her opponent, something she long criticized trump for never doing after the 2020 election. and local officials from six key prominences being asked to bolster the economy with provincial officials asking to help boost consumption and offer more fiscal support. reported a technology and pressure from covid lockdowns and told officials to strike a balance between virus control and economic growth. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: juliette saly in singapore, thanks so

surging u.k. yields fail to save the pound.lk fx on bloomberg. ♪ manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai. dani burger in london. the bank of england, rate hikes alone -- have a look at this. two year yields. the pound still getting -- against a triumphant dollar. this is what the market things is going to happen. we have this move. 231 basis points of hikes >> in by may of next year and still, the pound cannot get a bid at all and this -- dani: it leads to a lot of people saying that pound and euro trading like nem currency that even the rate spread is not healthy for lift them and adding to that, i still think it's really remarkable's, 18% inflation in the u.k. is what they are predicting if we get a gas prices. this is inflation being priced into those yields. what can an ecb or boe do to curb inflation coming from a gas crisis? manus: there is a level in the piece by jordan rochester. he got more twitter followers than both of us put together. the fx market for him is mispricing energy prices. w

plus u.k.ator of jem -- ofgem -- prices for households as european energy ministers discuss a solution to the energy crisis. will jay powell pushback with a more hawkish stance and pushback on the market positioning for a pivot in 2023? james bullard says he prefers to frontload hikes in september. important data coming through before that position and esther george saying the rate may need to get back above 4% to get inflation down. the benchmark gains of 0.4% in europe. we had ofgem and that announcement, increasing to 3500 pounds in u.k., a reminder on the squeeze on households. the ftse 100 getting 0.5% and the dax is up 0.6%. let's look at how things are playing out across sectors. energy is gaining this morning and yields are up in terms of the benchmark on that yield space. tech up 1.4% and we have that coming out in terms of a deal closer between u.s. and china. that possibly is providing some support in terms of asian shares and the chinese listings in hong kong. that is what is happen

in the u.k. for example there certainly need for policy tightening partly because the labor market is not as tight. but again a lot of uncertainty there. the stickiness of inflation and how much these get infected by the current high inflation rate. anna: you mentioned the u.k., let's go there now with our conversation. i want to play you a clip of what we heard earlier. he used to work at the obra as well. now is at the london school of economics. this is what he had to say. >> i could see investors starting to think the u.k. looks like the place to invest with risk premium non-guilt which is a ready starting to happen. in the worst-case scenario you could see a difficult situation involving from the government early next year when the price is much more expensive to finance borrowing and sterling is coming under pressure which forces the bank to run a tighter monetary policy. >> yesterday we spoke to a guest who is concerned about imbalances with the rest of the world on a number of fronts and

strikes at the u.k.'s bigger container ports are set to a bend supply chains -- to upend supply chains. francine: a number of french people are telling me that they strike more than us. futures are up. it is a big week. a huge week because of jackson hole. all years on jay powell. tom: the run-up in stocks we saw take a bit of a breather. gains around 15% since june on u.s. equities as we look ahead to see if jay powell will reset the expectations on friday. the market is divided as to whether we will get 50 or 75 basis points. the futures have pointed lower. the spanish ibex down 0.7%. the cac 40 down in similar territory. it is worth remembering that the five-year in china. let's show how things are playing out across the assets. cuts deeper in china when it comes to the five-year, that is the benchmark that supports the mortgages with continued pressure on real estate in that country. in the u.s., losses -- it was a little more pronounced earlier in the session. the context is a you started the year at

dani: lizzy burden getting us set up for u.k. data, do at 7:00 a.m. u.k. time. hour, about an hour away from the start of cash equity trading. you are looking at european equity futures rising higher. that coincides with australian equities moving higher. it is a dichotomy in markets where we are buying the dip in equities and yet bond yields are moving lower. we are having a bid into havens, and there is concern over china and the data after the surprise rate cut from the pboc. will it be enough? analysts in national newspapers saying no. will there be more easing to come? we will continue the discussion. bloomberg markets: when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing ins