it is energy weaken in the u.k.rime minister has made a big commitment to the oil and gas industry. the government is providing up to 20 billion pounds for carbon capture projects, including the first in scotland, which the government said will create 20,000 new jobs. >> even in 2050, it is forecast a quarter of our energy needs will come from oil and gas. that is why carbon capture and storage are important. christian: the british government announced that the announcements are consistent with its commitment to reach net zero by 2050, which is set in law, but the prime minister stands accused of watering down the targets. labor say they will not grant any new drilling licenses if they win the next election. the opposition says their green strategy will create more jobs and is more sustainable. >> quite frankly, i'm astonished that rishi sunak is doubling down on his failed policy on climate action. businesses and individuals and families have suffered 13 years of failing energy policy. christian: suddenly, the cost

the u.k.my grew ever so slightly in the second quarter of the year, but is it a sign things are turning things around? the saudi's has kicked off. critics say e country is using sports to distract from its human rights record. we begin tonight with the continuing tragedy in hawaii. the death toll has risen to 55, buhundreds more are still missing. it is feared a number of dead could rise. governor josh green has called the fires the largest and most catastrophic state -- in the state's history. fire fighters continue to battle the flames. the bbc has been speaking with survivors sharing stories about dramatic survival. we are expecting a press conference in this hour from authorities. we will bring it to you as soon as it starts. joining me now is the associate professor of civil engeering at boise state university, and an associate professor of urban planning at texas a&m. at disaster recovery and. president biden made this major declaration. >> thank you for having me. i can relate originall

the u.k. certainly this will carry into europe. alix: that is what people were talking about. german jet to gdp, look how good it is. you can compare that to the u.s. because germany doesn't have its own currency. let's move that to the side. does germany want the title it has or would've rather have this pending the u.s. has? oliver: this is an interesting question. does it matter? there seems to be a unified course of no, it in the context of treasuries in the markets. are these the qualities that matter for an economy? the analogy i've been thinking of, is it is kind of like being a straight a student, but when it comes to going out into the world, not necessarily being so. what does the u.s. have? it has a nimble labor market, full-bodied support of the industries of the future. talk to any german company, they salivate at the inflation reduction act. the lack of bureaucracy. in germany you have stagflation -- not stagflation, you have the slope semi-recession going on. the question is, so

it ensures that the u.k.es a hostile environment, that we don't comply with our international treaty obligations. they have their claims determined. we were the beacon in the international community. they have made it clear that the illegal migration act will be international. asylum is not a privilege. it's a fundamental human right. we need to concentrate on the actual things. we know that 70-80% are genuine refugees. >> i want to ask you about the perspective in the u.k.. you shared some of the perspective internationally. we did hear from a portland resident saying this is not about racism. it's making sure we have enough resources for ourselves. >> the goverent needs to concentrate on the economy and making sure we deal with the shortages caused by brexit and covid. we concentrate on improving the level. the government has announced the fines to employers going up to 6000 pounds. we know that the delays in the system, they are entitled to work. they are not getting permission to work. the system is broke

first, a development in the u.k.tion fell sharply to 6.8% in july from 7.9% in june, but it still means prices continue to rise. prime minister sunak says it shows his government's plan is working. core inflation, which looks at price rises excluding food and energy, remain unchanged. according to the office of national statistics, the rising costs of hotels, air travel and rents are keeping inflation high, and economists are expecting interest rates to be raised further. the bbc's economics editor has more. >> the heat might be coming out of rising prices at supermarkets and convenience shops. that can be seen in milk prices on the shelves. overall, they are still rising, just by less than they were. >> all of this area was originally about two months ago, a pound zone. every bag was a pound. they went up to 1.25. now we see a further increase. it will definitely not go to a pound. >> some things have gone down? >> like the cost of milk has gone down. we have noticed that, but things like these that are made from mi

u.k. has had a rough couple days. it was the way to story yesterday and today is the cpi story. it is the details within the cpi story indicative of where the bank faces. headline inflation is coming off but holidays are still causing issues. they are very expensive. what we are seeing your services inflation remaining very sticky and core remaining sticky as well. these are the issues he is having to focus on. there has been hence we are going to see a pause. it is this white line, this very sticky services number, that is quite problematic. 7.4% is the figure. it raises the question of whether the bank of england can pause here. the bank's pricing significantly more work for the bank to do that here. is the bank of england prepared to do it? alix: if you are data dependent but the data is good, how does that work? governor andrew bailey spoke to francine lacqua earlier this month. bailey: it is the last mile where policy is doing the work. it will have to remain restrictive to have this

the u.k.'rmation commissioner said some public bodies have failed in their duty to protect the private information of citizens. we can speak now to dr. johnny burn, criminologist from ulster university. thank for you joining us. you work with a number of organizations including the police service for northern ireland and the department of justice. what have members been telling you about their concerns? >> it's been a difficult 24 hours for the p.s.i. in relation to the release of this information by mistake and having a significant impact in terms of staff morale and the culture in the position and also having a impact on public confidence in the organization itself. there are two audiences being affected by this data breach. >> we'll come back to the question about morale but f international viewers, rather, why is this data breach so significant? >> the reality is 25 years after the good friday agreement, policing is still not a normal occupation in northern ireland and unfortunately police

the fed can cut more aggressively then the u.k. and europe. guy: the u.k., there is nothing good here. these are not good numbers, they can be worse. probably the sense of what is happening here. this morning tax receipts are a little bit higher. more people are being pulled in and paying higher taxes. that gives the government room to move. there's not really room for tax cuts, either. i think it is actually the missing piece. it is not as bad as it is feared. everybody is struggling to understand and there are no easy fixes. how do you fix the u.k. economy and get it moving again russian . alix: fiscal. the u.k. does not have a, europe is like a malaise go through all of the roles and think of it. the u.s. is should first, questions later. i wonder as we go forward is that going to shape monetary policies. guy: the u.s. economy has been driven by fiscal at the moment. we have been hanging on for a long time. thanks so much for joining us. let's check with european stocks. more positive narrative coming out tech has done relatively well today. we faded as

u.k. time. the u.s.some government employees to leave niger following the coup in the country. a conversation with niger's ambassador to the u.s. next. ♪ lizzy: welcome back to "bloomberg daybreak: europe". u.s. state department ordered some of its employees and family members to leave niger, following a coup. been a week since the president was removed from power. the ambassador to the u.s. spoke to bloomberg about the conflict. >> i am optimistic because unanimous is the word started by african union. our partners all over the world, the united states of america, the united nations, germany, france all have called for the restoration of the elected president. our regional body ecowas went on to take a list of unprecedented sanctions to put pressure on the junta to give back to the legitimately elected officials. this pressure has started affects as we speak. now there are talks going on, led by the representative for the president of nigeria, so i think the military junta launched this attempted coup w

overall, i remain under what the u.k.quities assets are, and i continue -- but it's not all doom and gloom. i continue to buy short dated goats. i need to buy corporate blue-chip debt. >> ok. there are some silver linings. is good news bad news? joining us is jamie rush of bloomberg economics. thank you for being here. i will start with you. the economy continues to confound and deliver better than expected. they are not as bad as they could be. is that good news or bad news. does that mean that the bank of have to continue to hit this economy harder and ultimately when the pain comes, it will be worse? >> i think there's a question about whether the gdp data will matter at all for the bank of england. if you think back to november of last year, the bank was forecasting a recession, and it was plowing away rate hikes, nonetheless. back then, they didn't care. i think the balance of risk has shifted. they are not worried about headline inflation. core is headed in the right election. they are focused on gdp which brings us

angus: the national crime agency says 272 people in the u.k.ght from the canadian. 88 of them later died. although it is not possible to say the chemical was the cause of death in every case, the nca has launched a criminal investigation. but how did they know about kenneth law and the chemical? here is the answer, a pro-suicide website. we've been investigating this world for two years for t -- for two years. users encourages suicide, swap tips on methods, and suggested sellers like law. accessible to anyone with a couple of clicks. we found one supplier who offered us a package of chemicals and pills. he even sent us a picture, told us he often shipped to the u.k. new sellers appear all the time. >> i know how much the people are struggling. angus: another death too soon. holly's brother michael, one more of kenneth law's customers. >> right now i'm a bit of a mess because this is all i seem to be talking about, but i'm not going to stop. just can't -- i can't live in a world knowing this stuff exists without trying to stop it. angus: michael

those waiting to arrive in the u.k. and those waiting to depart. >> 10% of flights for the u.k.e been canceled. that will increase in the next couple of hours as airline struggle to try to get their heads around the logistical nightmare. >> you hope the airline will come out and offer information but obviously in this case they couldn't because i didn't know. -- they didn't know. ♪ christian: a bank holiday meltdown. air traffic control in the u.k. experiences a serious technical fault which grounded flights all across europe. it could take days for the backlog to be cleared. we will bring you reaction tonight. have a date, donald trump will go to court in march on his alleged attempts to submerge the 2020 election, and on the 60th anniversary of the civil rights march in washington, we will speak to the family of dr. martin luther king jr.. ♪ christian: good evening. the last bank holiday of the summer is always one of the busiest travel days of the year, and air traffic control says it is now identified and remedied the fault that affected the fight -- flight planning system.

economy so i would expect that out of the u.s., the eurozone, the u.k., u.k.s going to be the first to experience recession. alix: we are just waiting for it. appreciate that. roukaya ibrahim, thank you. see, it's not just me that hate on the u.k. sometimes, guy. this is bloomberg. ♪ p you get th ere. - i felt supported throughout the whole process, even from the first call. [graduate] my advisors consistently reached out and guided me along the way. - it was like i was talking to a friend, like someone that i had known for years. - the instructors were very helpful with everything that i was going through. [announcer] we'll be with you from day one to graduation to your dream job. ♪ it all starts the moment you find your program. [announcer] go to snhu.edu to get started. 76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. and your store was also the first time you realized... well

it would be the first trip to the u.k. crown prince since the murder of journalist jamal khashoggi at the saudi consulate in istanbul 2018. u.s. intelligence agencies concluded the prince must have authorized the killing. we asked our security correspondent frank gardner to explain a little more of why's visit has been so controversial. frank: because really he is such a paradox. on the one hand he is transforming saudi arabia for the better. he is freeing it up socially, he has scrapped the absurd ban on women driving get the religious clerics insisted on for decades, he has allowed public entertainment, he is diversifying the economy away from the dependence on oil, he started these huge mega projects which may or may not work, but he has a vision for the future, which is incorporating something called vision 2030. but on the other hand, he's presiding over a country that has a very poor human rights record, and specifically he suspected by western countries of having ordered or at least been complicit in the very easily

u.k. time with the u.k. coming in at 9:30 a.m.tors have their eyes on this data to see pressures from higher rates will seep beyond the manufacturing sector. in stateside at 3:00 p.m. london time, the july reading for u.s. new-home sales, and lastly we are expecting invidious second-quarter results, do after the bell. coming up, we will talk about the outlook for the u.k. economy with an advisor to the chancellor german hunt. that is next. this is bloomberg. ♪ lizzy: welcome back to bloomberg "daybreak: europe." another bloomberg scoop this morning, sales of small businesses have collapsed by more than a fifth over the pasture, according to new research by accounting software provider sage. figures drawn from 85,000 s&p's showing there struggling with revenues and profits and cash balances. i'm joined by an expert, economic advisor to the u.k. chancellor of the exchequer jeremy hunt and a distinguished policy fellow at the london school of economics. lee great to have you back with me. years specialist is economic growth. i mentio

if the u.k. risk of default but it does have to fix its fiscal position at some point. >> there has been a debate about whether -- we have talked about this off air about whether the u.k. government should have done more fiscally to help control that problem. >> part of the inflation is a physical phenomenon. actually a good part. during the pandemic economies dramatically cut their production supply and they supported demand at an ordinary level through things like the furlough scheme and stimulus checks. at that generated a huge imbalance between the demand and supply which needs to play out. monetary policy accommodated it and now both policies are in reverse. whether u.k. differs from the u.s. fiscal policy is contractionary in the u.k. whereas in the u.s. it is moderately -- to the tune of half a percent of gdp per year. the fiscal authorities are to blame for the inflation just as much a central banks. >> let's talk about the central bank decision tomorrow. you are expecting a 25 basis poin

the u.k. 6.9%. the pound is the outperformer when you look at the key core currencies. one key currency, bitcoin up 3/10 of a percent. the language at this level -- we languish at this level. ed: we will have a big emphasis on china on the shelf. ed: -- -- on this show. jd.com beat expectations. the stock, u.s. listed shares down 3.6%. we will go to the bloomberg team that covered earnings later in the snow -- show. china, tesla cutting prices in china overnight, model s and model x cut. third day in a row where we had news by tesla doing something in writing. intel is walking away and abandoning id -- a deal to buy tower semi. the concern is the timeline. it goes to the core of their foundry business and we will talk to one of our guests about what this means for the foundry side. you can see the impact of the market, tower semi down 10%, intel by -- down by 2.7%. caroline: let's get to one of our reporters. it was a scoop but maybe the market saw it coming because tower at -- sold offer mont

is far behind countries like the u.k. so, the u.k. an incredibly impressive program called the u.k. bio-bank, where they have half a million people who have consented, who are participating in a nationwide program. and it is amazing. like, everyone, including 23andme, uses the data that comes out of 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 going to be running ahead. so, 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 really capture the benefit of the human genome, you need a massive, i would say, multiple countries that come together and have, like, 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 no

it was also present for the eu and the u.k. we will get some u.k.bers, it is biased by its nature, backward-looking but is that also what you are looking for in these numbers to say inflation is one thing, but the vulnerability of growth is another? >> we have had a huge umoja policy tightening in the u.k., eurozone as we have in the u.s. the puzzle is why hasn't had a bigger effect on the economy? is it that it doesn't affect the economy that much, or we get all the impacts with a lag? that's what people at the ecb and bank of england are thinking. are we going to get a 4% hit to gdp because the impact of monetary policy happens with a lack? -- lag. survey data points to modest contraction in all economies in europe over the next quarter or two. of course, it could be worse. for the u.k., we're expecting stagnation for the second quarter, which means the economy stagnated a whole year. you might have worries the u.s. is going too fast. that's certainly not the case in the u.k. dani: thank you so much for waking up early. enjoy the rest of your frid

u.k. story as to why the u.k. really did outperform. u.k.ent officials are scrapping eu arrow rules about where you can build homes. they are making it easier. previously, you could not build on lands that had runoff water. but they will now allow homebuilders to do that and that means about 100,000 extra homes by 2030. good news for homebuilders like persimmon, up about 5.5% to perhaps just do not drink the water around you in one of those homes. rifles downgraded by morgan stanley saying there is competitive pressure. those shares falling. careefour -- carrefour losing some of its market share to its competitors. at the same time, there are also local reports from brazilian and french media saying that car for -- carrefour may be wrapped up in brazil deforestation base meat supply. carrfour denies that. it is a busy 24 24 hours, really kicking of the data delivers. in europe, we will get spain, germany august cpi tomorrow. also some earnings including potential and delivery hero. u.k. sharp inflation came in with some of that easing inflat

more questions for the government here in the u.k.ut who is responsible for moving a silent seekers onto the bar before it was given the all clear. further attempt to turn people away from smoking cigarette packs in the u.k. could soon carry anti-smoking messages and advice inside the packet as well as outside, but would be enough to convince smokers to quit? first to the ongoing recovery efforts in hawaii. 96 people are known to have died in wildfires on maui with officials warning that number is likely to rise. governor josh green said more than 2700 buildings were destroyed in historic town of lahaina. hundreds are still missing and only about 3% of the area has been searched. residents say they had no official warning before they fled for their lives, raising difficult questions about the effectiveness of the emergency response and whether more people could have been saved. early warning sirens failed to sound according to officials, a failure now under investigation by the hawaii attorney general. our correspondent has more detai

first i guess the question is does this do it for the u.k. regulators?s this going to be enough to put them over the line? jennifer: i think it does. the u.k. regulator only had concerns about the cloud streaming market. this removes that problem. ubisoft will be the licensor of the activision games for 15 years to consumers in the u.k. as well as other countries, and that resolves the concerns. this will get it over the line with the antitrust authority in the u.k. amber: jennifer, to matt's point, does it remove substantially the economics? jennifer: i wouldn't say it doesn't because i don't think microsoft would be willing to make the agreement if it did remove the economics. most gamers are still downloading games and not streaming games, particularly games like call of duty, where they want to move pretty fast and they don't want to lag time you can get if you are streaming through the cloud. but they are getting are all of these content creators at activision and they are getting the rights back in 15 years. obviously it was worth it for them for t

what trajectory is the u.k. on? liz: we are not expecting the u.k. economy to shoot the lights out given all the issues you mentioned. the pain is mounting for those people re-fixing their mortgages or on variable rates. we have to remember they are still only a fraction of overall household. 2.4 million households are prefixing by the end of 2024. there are 28 million households overall in the u.k. as we move into that remainder of the year, real wage growth should turn positive. we should have higher wage growth than inflation. we are expecting inflation to come down to 6.6% in july while wage growth will be 7%. it is still high. yes, the mortgage pain is in place. the rental situation really worries me and there was more news on that in today's survey. that is really bad. but there are people who benefit from higher interest rates, finally getting interest on their savings. we think that u.k. economy will model through. alix: this that mean at some point a recession? if so, at what point? liz: economists are notoriously bad at forecasting recessio

and u.k.ot officials in beijing this week for talks on both trade and ukraine-russia relations. we have jody's this now for more analysis -- we have jody's this for more knossos. gina raimondo says u.s. businesses are seeing china become on investable because it is getting too risky there, so where does that leave her potential meeting with president xi? >> well, lizzy, i want to maybe manage expectations on this potential xi visit. this is gina raimondo's last day in china. she has already left beijing for shanghai and we have not heard any word on whether she is actually meeting with the president. she has held talks with not just her counterpart in china, but with some other major leaders, including the premier, li qiang. she has at least made some outreach efforts and has been able to meet with some major leaders. what gina raimondo is saying, what u.s. businesses are expressing in china is not entirely new right. we had a survey from the american chamber of commerce in china earlier this

around the world and across the u.k., this is bbc news. let's take a look at those u.k.es making news today. the collapsed retail chain, wilco, has been spent in while rescue bids for the store are considered. unns representing staff have met the administrators but worn wilco is not out of the woods yet. the chain collapsed into an administration which has put 12.5 thousand jobs at risk across its 400 u.k. stores. the government has announced plans to change water poution rules to allow more houses to be ruled -- built. unless it is proven that work will not have phosphates and nitrates to local rig -- local rivers. the changes will not solve the root causes of england's housing problems. england has announced there will be a signicant increase in the number of blood pressure checks carried out in the community. the service as it plans to extend tests and pharmacies and offering them in places such as barbershops and mosques. it is hoped that it will reduce death from heart attacks and from strokes. you are live with bbc news. the flight disruption that hit the u.k. over

and the u.k.on't think it is any accident that those are the countries that have the biggest problems with inflation. >> can i come back to you. china has been pushing over, several years, to push the alternative to the dollar. it's made no secret in that respect. but it has backed off recently. what is going on? is it because the dollars to established and strong, and globally recognized as a reliable f und -- f und and to invest in? why i sth -- why is there no faith in the won? >> i think you're mischaracterizing. i don't think they lacked faith in it. they've been putting together digital currency. they have been playing that out, doing it very slowly. they want to make sure it works. they are also doing currency swaps, with a lot of the nations that they are doing business with. remember china has over 100, almost 120 nations where it is the primary trade contributor. but, i don't understand where my colleagues are coming from. i would really like them to tell what they said to the man on the

coming up, u.k.ravel is back online after being hit by tech details on the biggest travel day of the year. we will have that next. this is bloomberg. ♪ alix: one hour ago guy johnson's plane took off from the u.k.. this was a huge moment because the u.k. air traffic control system was a hot mess. it is now back online. a technical failure caused delays and cancellations. joining us to discuss is benny hamel. benny: we don't know what happened but a system conked out and for several hours there were no flights into and out of the u.k.. it was not a total breakdown but a very much reduced air traffic. hundreds of delays. guy johnson might be one of the very people, very angry people taking to twitter. the authority overseeing this says we have identified the issue, we are fixing it, but we do not know what caused it, did someone spill coffee into a consult, was a cyberattack, that is the kind of stuff we will find out in the next couple of days. there will be an investigation. benny: air traffic -- ali

what is in it for the u.k.?oreign secretary says he is clear eyed about the disagreement between the two countries. we will assess where the diplomacy might have worked. a 56-year-old dynasty comes to an end. another coup, the eighth coup in former french colonies in just the past three years. ♪ christian: good evening. idalia's power toward georgia. president biden says the storm is dangerous with winds of up to 75 miles an hour. it is worth remembering a storms category does not necessarily indicate how much damage there will be. this storm surge pushed into the big bend area of the gulf coast peaked at 15 feet. that area of northwest florida acts like a giant baseball mitt. it is flat, low-lying and there is every reason to fear these waters will have washed right over the top o it to the federal emergency management agency said it dalia is the strongest storm to make landfall in this part of florida in more than 100 years. there are more than a quarter of a million people in florida and another 100,000 in ge

the concern in the u.k.t are biggest tech company is going to be listing in the u.s.. >> it is an embarrassment really. >> that is one way of looking at it not if you are arm itself. the other way of looking at it is the ipo market more broadly, there are plenty companies out there, not the least of one's owned by private equity firms that are looking for annexes. this will be a big test of whether it can open again, particularly given some of the appetite towards ai applications. there are lots of other companies chomping at the bit ready to go if this is a bit of a bomb they might be more nervous about doing so. >> i know you have been combing through the filing documents what more did we learn about arms business from them? >> this one is not growing right now. that has been the case, large swaths of the chip industry have not been doing terribly well. it is seeking a generous -- between 60 and $70 billion. that would value it at something more than 100 times its earnings. we of course don't have a foreca

sofia: like most people in the u.k. i was off yesterday and i saw the headline and thought that is bad news. actually, the auction results were very strong. this is the market repricing a higher terminal rate after powell's speech in jackson hole. it is the market saying higher for longer is here to stay in this is the story going forward in it radical markets -- and it rattled markets in august. risk assets had a better month in july. the fact that there was still sufficient demand for this, the bid to cover ratio is good and it goes to show that actually market could adjust this. the size of these options, they were bigger than last auction for the same tenor. what this tells me is the headline number is saying the yields are the highest since before the financial crisis but this is the markets repricing something that makes sense there was still sufficient and good demand for these auctions. lizzy: when jay powell spoke at jackson hole, initially the ever action -- the reaction was dovish than mixed in hawkish. this

or u.k.t to talk about a deal you have done, a deal you brokered, and one not yet done. talk about carvana and how that came together. jim: we had been an investor for several years and we think there is a lot of great attributes to the business model and what they are trying to pull together. it is a very large market. it is not a concentrated market. it is very dispersed. as we got more involved that company, as they grew, they did take advantage of the low cost of capital provided by the high yield and bond market. in the last 12 months as the world has changed and the cost of capital and the impact on their balance sheet and financial conditions, they realize they would be better off pursuing their long-term growth by having a less levered balance sheet and were equity. we worked in a concentric manner with other bondholders and arrived at a situation where it is a win-win. the company gets to execute its business plan in a less levered structure, bondholders get paid down, equity gets ra

is the u.k.t case for some of the other regions where rates have gone up significantly but there are lag effects, or is it more specific because of how some of these mortgages are structured? i don't know the answer but it is something a lot of people are saying, just wait and you will see the slowdown. you will see prices of homes come down. people are not saying that because there have been all of these offsets. is the u.k. a leading indicator that that still holds true? eventually. it just will take a while. jonathan: it is taking a while. mortgage rates above 6%. if you take the effective rate on the average loan of outstanding mortgages right now, it is close to 3%, up from about two when they started hiking. it is taking a wild but it is happening. if the bank of england stays at these levels, everyone going further, more mortgages come off and more people have to start taking more financing, that average rate is going to creep higher and higher. lisa: it could not just be the slope upward.

., labor is still tight in the u.k.. think bargaining power in europe is stronger than it has been historically. wage price memory, and you see this in core inflation in europe, wage price memory will be a bigger factor in europe than in the united states. we had the payroll data today, and we saw the average earnings going up, but we saw that last july as well. there is a possibility that there is a calendar affect, and in august, there was a giveback of that. i am less worried about inflation in the united states, i think that you are speaking about this in the segment just before this. a lot of inflation came from huge car prices and oer. course ubs is coming down. it will probably ever something like 17 to 20 basis points over the coming six to 12 months. i think wages will be ok in the united states. less so in the art. i think we need to make a different association. >> how do we make that an investment piece? what does that mean for the u.s. to year and the u.k. to year and the german two-year? >> the german two-y

the u.k.aurse has been found guilty of murdering seven babies and attempting to kill six others when they were in her care in a hospital in the northwest of england. it means she's the uk's biggest killer of babies in modern times. in a statement, the families of her victim said justice could not reduce their extreme hurt, anger, and distress they experienced, adding that they were heartbroken. she was acquitted of two counts of murr and the jury was undecided on six charges of attempted murder. she will be sentenced monday. the government ordered an inquiry into the circumstances around those murders. i spoke to anna foster in manchester crown court about the case. i asked how lucy carried out these crimes. >> extraordinary and shocking trial. one that we are following closely. this is a nurse that was working on the neonatal unit. she was dealing with premature babies. some of the sickest and most vulnerable children you can imagine. at a time she was supposed to care for them, nurture them,

the u.k.s bbc news. take a look at some of the stories across the u.k. now. people in the west have voted to remove the mp from her seat in parliament. nearly 12,000 of her constituents side -- signed recall. the uk's biggest farming insurer says criminals have laid siege to the countryside after it recorded a 22% increase in the cost of rural crime last year. and they say some use drones and social media to scope out valuable agricultural equipment. the organized crime is an ineasing problem for the industry and it is causing widespread concern. retailers say the rate to which food prices are rising and -- in shops is at its lowessince last december. food inflation slowed to 13.4% since july -- in july. you are live with bbc news. next we take a look at the situation in west africa. several planes are apparently in the air headed to the country to evacuate french and other european citizens from the country. this is all of course after last week's military coup there. this is -- these are the

all of this coming at a time when the u.k. has been a vocal supporter of ukraine during the russian invasion and this will likely not help any of the countries. >> time for a short break. still ahead, we are at sea near the italian island of lapid is aware thousands of migrants and up after their dangerous voyage across the mediterranean -- we are near the italian island of lampedusa. >> on this vast voyage, there are people crammed in boats, trying to reach italy and not knowing if they will ever make it. >> and we look up why there is broad concern about the health of the world's second biggest economy. stay with us. ♪ >> the latest cold front on its way through western australia is this one here which will bring some rain of significance, but it has more significance further east. the left front is this one here. you see the rains coming in to adelaide and melbourne, typically in victoria thursday, but a closer look -- i will go a bit closer -- shows it is cold enough to bring some welcome snow from the victorian alps, whic

similar to u.k. stocks. one interesting story there, he telling government is reportedly looking at selling some of the stakes of the company to try to sure up the government balance sheet. we are going to be at the amber said he form this week -- forum this week. some local reporters are reporting she is nervous to face investors. we basically ran out of steam at the end of the session. we opened higher. we were higher for most of the day. it was just in the last hour or so that we get this drop. the end of the day has more data around it. perhaps traders who were rebalancing their portfolios to take some profits to sell. one-stop they do not see much profit taking was ubs. we have their earnings, the first combined earnings with ubs and credit suisse. they have this negative goodwill impairment. a confusing balance sheet item. basically saying the euro price tags -- that we bought for credit suisse is worth a heck of a lot more. there earnings look good. glencore following 4%. -- following 4% -- falling 4%

u.k. time, it is u.s. cpi. we talked to valerie about the importance for fed policymakers to comment although we get another cpi print before the next decision in september. then the 30-your auction. $23 billion of 30-year yield. pretty solid demand for the 10-year, so we will see if that can go through as smoothly. if you want a roundup of all the top stories to get your day going, dayb is where you had on your terminal. we will talk about 30-your auctions, what is at stake as the u.s. deficit grows -- we saw what happened with moody's -- more on that next. this is bloomberg. ♪ dani: it's your thursday edition of "bloomberg daybreak: europe". demand for the u.s. 10-year option was strong, the yield was under 4%. it was $38 billion of issuance, just showing you can't necessarily judge what the auction is like based on the market action. today, it's the 30-year treasury auction. joining as is bloomberg mliv strategist mark greenfield. is there any region through on demand for the 10-year into what it means

in the u.k. the markets blog looks obsessed with what is happening in the u.k. housing market. will go with u.k. housing market. higher for longer, as think they have a more novel medic higher for longer narrative than the fed does. mortgage rates here they are refinanced in the very short-term term. anyone who is refined -- free not -- refinancing will panic around that. and the majority of market has to finance pretty soon. alix: i told you. and to that point, we have been waiting for that for a bit. we've been waiting for the consumer to roll over and we waited for jobless claims to tick higher. add what gets hurt at higher for longer if it is not heard already? katie: good question. you may see some of that already in the u.s. equity market. square that with the fact it is august and trading is light. but with what we see in the nasdaq 100 with the growth tech oriented stocks which are theoretically long term. the nasdaq is in is third week of losses. he did not see that all year even in the banking turmoil. you are seeing risk assets adjust to login with rates having to be

for strong-arming the u.k. into cutting back business with china. and accusing the u.k. of being weak for going along with it. talk me through how these new numbers will play into the ecb thinking. >> we had a lot of upsetting data surprises out of europe recently but maybe this hits the right spot. we had factory orders for germany coming better than expected. if this industrial production also comes in better than expected, maybe people will start rethinking the trajectory of europe's economy. we had a soft spot already and are looking for more positivity going forward. >> thank you for joining me for our morning roundtable. you can get a round up of the stories to get your day going on today's edition of the daybreak newsletter. today they lead on the commodity fall out of ukraine attacking another russian vessel over the weekend. they also have that latest fed speak we have been talking about and finally they have the story of the bank of england coming out on capital rules. all of that and more on the daybreak newsletter. if you are a terminal subscriber, you can fi

around the world and across the u.k., this is bbc news. take a look at the stories making headlines in the u.k. former metropolitan police officer, who abused his position to prey on women and girls, has been in jail for a series of rapes spanning eight years. the court heard the 44-year-old's predatory behavior dating back to the 1990's, and went unchecked until one of his victims came forward. the train driver and passenger christopher stock very died when the train to railed at carmen in august, 2020. the train hit a landslide after heavy rain. the caseill be heard at the high court in aberdeen next month. a children's charity in england says the cuts to the hours of young people spend doing sports should be a national concern. new data shows a further 4000 hours of physical educatn have been lost from the curriculum in state-funded secondary schools last year. youth port trust says it is a further threat to pupils well-being. you are live with bbc news. they used to be a time when globalization appeared to be spreading the wealth, knit

the latest u.k.ail sales data. more interesting than usual perhaps given the mixed eco-date that we have already had this week. on the one hand, you have wage growth finally outstripping inflation, the rising on appointment suggesting the labor market is loosening and inflation falling though not by as much as economists expected. the bad news is more wage growth likely means more inflation, core inflation stay the same and services inflation rose. that suggests domestically generated inflation may remain an issue which is what the bank of england is worried about. therefore, traders expect the bank of england to keep hiking. they are pricing a one in four chance of a half point hike in september and had already priced a peak rate of 6% off the jobs data and that is what economists reckon will trigger a u.k. recession. the numbers at 7:00 a.m. will speak to the resilience of the u.k. consumer potentially. the flipside of that is inflation. economists expect retail sales to drop from 0.7% growth in ju

the u.k. is exploring a similar settlement.the ftc wanted to take a constructive approach with amazon they could and i think there is room for compromise. i don't think that is what is going to happen because she has publicly dissed settlements as being over conciliatory, trimming sales. i would not expect next week's meeting would be an exchange or real opportunity to had off a lawsuit. it's more of a formality and i would expect the ftc to file their lawsuit pretty soon after those meetings. ed: since we last spoke the big development in the world of antitrust is the warren graham bill. the broad proposal for a new agency to regulate the technology industry. what was the group response to that? adam: we took a look at that. one of the thing i see about tech policy debates as you see policymakers doing things like that where we need a new agency. we need a new regulator. what that does, it's a bit of a cheat because of puts aside the harder question of what behaviors policymakers want to ban. this amazon case is a good example

the u.k.nment, it must be said, has already unveiled a list of sanctions against wagner's senior officials, including in places in africa in marly, in the central african republic where senior commanders of the group have been accused of torture and executions, also in places like south sudan where the u.k. government has accused its commanders of stoking instability, being behind propaganda undermining the authorities locally. so these are well established operations across africa one would expect to continue p. i think certainly the u.k. government has been accused by m.p.'s of not having done enough to prevent wagner using the city of london's financial institutions to raise money and to move their funds around, which is one reason why my understanding is from government sources that the home secretary was just poised in the next few weeks to announce this move stepping up from sanctions against the group a its senior figures such as prigozhin to a prescription to a terrorist organization t