Welcome to daybreak europe. Lets get to the top stories. Israel said to hold off a gaza ground offensive as palestinian aid and diplomatic efforts to release hostages accelerate. The dutch Prime Minister and french president are set to visit israel in the next two days. The market spotlight is on japan. Traders on watch for yen intervention after the currency crosses the 150 mark against the dollar. Divisions within the boj are growing. Shares of the public arm of foxconn dropping the most in more than three months after beijing launches investigations into its chinese operations. I want to bring you breaking news. Phillips reporting thirdquarter earnings, adjusted ebita 457 million. Good numbers, they are also raising fullyear sales and the adjusted ebita outlook. How much growth is coming from their chinese arm . How much is international . Versus how much is from right here in europe . We are going to have an interview with the ceo coming up. In the meantime lets get a quick check on the data. I want to show you with the futures market is doing. You are seeing mixed movement. Talking about the broader markets, you need to talk about whether risk sentiment is active. We have geopolitical risk, Monetary Policy risk, and a little more defensive positioning when it comes to u. S. Futures specifically. Euro stoxx 50 futures mostly unchanged, ftse 100 futures lagging. The defense i would call this a little bit of pricing in the geopolitics, that is why you are seeing nasdaq 100 futures outperform. Lets go cross asset because the bond market matters, especially when we are talking about how to price in the next step of Monetary Policy. The two stents curve, you are seeing it actually only inverted by negative 15 basis points. That is good news for those worried about the inversion of the curve. The bond market volatility is showing up in the pairing of that inversion. We are going to dive into that. Specifically ramifications in the fx space. Dollaryen is where we have ri. It did cross 100 50 briefly, the intervention mark. You did see expectations the boj might intervene again. You are already getting going divisions within the boj about how to proceed. 14994 on the currency pair plus brent crude trading just shy of 92 a barrel. We are still in the 90s so you are seeing the geopolitical risk priced in. A lot of that is where i want to go next because of course the timing of it, a Ground Invasion into gaza remains uncertain as israels support for diplomacy to release hostages is set to possibly delay or alter its plans. Meantime french president Emmanuel Macron and dutch Prime Minister mark rutt will arrive in israel as the diplomatic effort to prevent the conflict from spreading continues. This comes as u. S. President joe biden and israeli president Benjamin Netanyahu pledge a, quote, continued flow of critical assistance into gaza after the first two convoys crossed over from egypt. I want to get expertise from reporters around the world. I want to start in tel aviv, bring us the latest from the ground. There was a lot to cover in the last weekend. You nailed a number of the main points. The question of hostages and the question of a. On the question of aid as you mentioned there were 20 trucks, less than 5 of the daily aid that would go into gaza from before the war. So it is seen by Many Health Organizations as a drop in the bucket of what is required. In terms of hostages, two released. That may bear on how israel goes about the ground operation. It also changes the nature of the ground operation. The israelis and the idf have kept an open plain in terms of the actions they would take. They have warned us not to make assumptions about what form the ground offensive will take. Hostages will play into that but really i suspect the two hostages out of the 200, they are going to want to see more than that. From the israeli side we have seen more actions within gaza. More and more we see actions on the northern border with lebanon. We see continued strikes into their and firing on both sides. This speaks to the escalation risk. These are all sorts of things, the israelis are also evacuating even more civilians from the northern border with lebanon. You stay in a hotel in tel aviv as i have the last couple weeks, at first people were evacuated from the south and now people are being evacuated from the north. Kriti to have this delayed timeline is so interesting. Everything can change in 24 hours. In the next 24 hours what do we expect . You mentioned diplomacy. Mark rutt arrives today. Macron will be here tuesday. In terms of things we are watching for, and i think this is a Significant Development we are going to get, at 11 30 israeli time there is going to be a screening held by the Israeli Defense forces for journalists up about 40 minutes of footage that has been collected from the hamas attackers that will be put out. Some of that will eventually be put in more edited form out to the public. The emotions of all of this and how the war goes is all connected. In terms of the economy we are going to get a Central Bank Rate decision and part of that will be telling the public what they see as the economic damage. The market has been down severely. The shekel has weakened severely. That into also how the economy is going to perform in the future. Kriti and of course we are monitoring closely. The bank of israel has created cash reserves to stabilize the shekel to various degrees of success. We thank you for your reporting. Israel has warned that hezbollah risks dragging lebanon into the war and said it responded after antitank missiles were fired from its northern neighbor as u. S. Secretary of state Antony Blinken says there is a threat of iran inflaming the situation. We expect there is a likelihood of escalation, escalation by iranian proxies against our forces, against our personnel. We are taking steps to make sure we can effectively defend our people and respond decisively if we need to. This is not what we want, not what we are looking for. We do not want escalation. Kriti lets bring in yousef gamal eldin. What can you tell us about israels hezbollah warning . There was expectation they would get dragged into this anyway. Where are we with that . There has been escalation in the sharpness of rhetoric, especially from the level of Prime Minister of israel, netanyahu. You mention him a moment to go. The verbatim is that they would hit lebanon with a force that they cannot even imagine. It comes after the back of an eventful weekend, the titfortat responses around the border area. At some point you are going to move out of the operating theater of relative normality. There are certain conditions where you could say this is not yet meaningful escalation and once you add new weaponry, antitank missiles over the weekend and more casualties, where is the line for either side that would be a major escalation and would warrant major response either from the israeli side or the side of hezbollah . Fiery rhetoric is not going to help in the coming hours. The Israeli Government is also taking off some of its citizens from the northern border, evacuating them to safer areas, maybe in preparation of possibly an inevitable escalation. Kriti what warrants a major response . I want to bring that to the broader region. We know the summit in oman was canceled but there was a summit from regional arab leaders. Was there some sort of consensus . It was a photo op. There were High Expectations given that european leaders were also present. They had arab leaders there. Absent the saudi crown prince, mohammad bin salman, the saudis ascending the saudis sending a lower level political representative. Ultimately what you got was no clear statement or conclusion. Got the chat, got to exchange views. It underscores how far apart the arab world is with european and u. S. Counterparts. How difficult that path is to walk. I would follow on with what is happening here in riyadh, the saudis are going to be hosting the future investment initiative. Some canceled. 10 to 20. This is going to be on the agenda of items they are going to be discussing, whether or not that is going to help clear the way for a diplomatic solution, and during solution. Enduring solution. The saudis said they believe in a two state solution which seems very far from where we are. Kriti the challenges you have already seen with the rafah crossing and the egyptian aide that has come through, the u. N. Said we are getting 1 5 of what the humanitarian population actually needs. We thank you for reporting. Lets get a quick check on the week ahead. The economic lens surrounds how the bank of israel are going to be responding to the crisis on both sides. On israel but as well as whats going on on the gaza strip. How do you reassure the Financial Base the Rate Decision is going to be crucial in addition to what they do further when it comes to fx reserves . We are going to keep an eye on the shekel. That coming up at 2 00 p. M. U. K. Time. If we go broader we are going to bring the story back to europe. When we talk about whats going to move the markets. Tuesday you are going to get pmis in europe and the u. S. On both sides of the atlantic. Thats going to tell us the narrative about the global slowdown. Do bc that accelerate or perhaps pause a little bit . Thats going to be the concern ahead of thursday when we get that ecb. Rate decision to Central Banks around the world want to hike in the face of geopolitical conflict, especially when we are talking about some sort of read across into oil market, which will feed into inflation . The ecb Rate Decision on thursday is going to be really important when we talk about what the Market Reaction will be and what tone Christine Lagarde and her colleagues set perhaps for the Federal Reserve and the boe next week. A lot to digest but coming up on the show, foxconn shares sliding after china announces a series of investigations into the key apple supplier. We will bring you the details next. This is bloomberg. Kriti welcome back daybreak europe. Haverhill hong standing by in singapore. Walk us through the markets. What we are seeing is no letting up in selling across asia assets. The stock benchmark for the region is off to a bad start. And it is under pressure for a fourth straight session. This is on the back of those concerns about elevated Interest Rates as well as energy prices. Despite those bets being unwound today. A good example of what higher treasury yields need from asian assets is the indonesian rupiah. We saw a surprise hike from the central bank in the country last week, to stem currency weakness. Today it is intervening in fx. A spot of what higher treasury yields is doing to asia fx as well as stocks. Lets zoom into china. There is yet another session of weakness on the csi 300. Those persistent concerns about the property crisis as well as the worsening crunch in the local Government Debt market. To that end we are actually hearing that china is planning to convene a financial policy conference which typically takes place every five years. Planning for that to be taking place next week. The idea is to resolve some of the Financial Risks that are dogging investor sentiment. Kriti certainly something we are going to be watching closely. You mentioned dogging investor sentiment. To me that screams boj. We saw the end cross 150. Where do you go from here . We are seeing a bit of a cap on dollar yen movements because there is reduced bet on the risk of intervention. Traders perhaps are not going all out where they see the yen weakening. I want to draw your attention to what we have seen from some of the respondents of this mliv pal survey mliv pulse survey. The majority see the boj tightening coming in the first half of next year. There is growing speculation about an exit from the negative Interest Rate policy of the Japanese Central bank. This is added on from what we saw over the weekend on the back of the nikkei report. It said boj policymakers have started to discuss, you know, that further tweak to the yield curve control policy, lets look at what we saw on the yen. We saw the pop above 150 in a very early hours of trade. Some have pointed to potential speculation. Those were the very hours where we typically do not get very much volume. It might be more of a speculative move we see in the japanese currency. We are closely watching for any signs of intervention here. Kriti thats going to have repercussions around the world in terms of how exposed peoples portfolios are to japan. The short jgb trade is still a massive trend we are watching. Averell hong standing by. I want to stick with one other major story out of the asian session. Shares in the public arm of foxconn have failed excuse me, have fallen after a series of arrests and probes by chinese authorities. The company says it is cooperating with the investigations. Lets get more from Peter Elstrom standing by in tokyo. What are the latest probes . Why do we care . We got a series of announcements over the weekend that have sort of rattled the confidence of Foreign Companies and investors in china. First of all as you mentioned, foxconn. The most important supplier to apple, one of the most important employers in china, revealed theres an investigation into how it has handled this taxes as well as landuse. On top of that we got wpp, the british advertising company, saying several of its employees have been arrested. Theres a Japanese Trading Company where an employee had been detained and then we found out another japanese company, astellas pharma, said one of its executives have been charged with allegations of espionage. This has shaken the confidence of some of these companies. Foxconn is not just another company within china. It is taiwanbased, it has significant operations within the company. Apple directly or indirectly employs more than a Million People there. It is where it makes essentially all of its iphones. The idea beijing could now be going after this very Significant Company at this sensitive time when it needs help with the economy, when it is suffering from the housing downturn you referred to earlier , thats very sensitive and that is where investors are seeing. Foxconn industrial internet is down by its limit because of these concerns. Kriti what kind of precedent does this set for other Foreign Companies . The former chairman of foxconn is running for president in taiwan. There are geopolitics involved in this story. It is not just a corporate one. What message is this sending to Foreign Companies . Im thinking apple, microsoft, the has exposure . This is a complicated situation. The founder of foxconn is now running for president in the taiwanese election. One of the key issues is taiwans relationship with china. There are some people drawing that conclusion, that there are political pressures being put to bear on foxconn and on terry guo directly. He is a long shot in the race, but he has advocated closer ties with china. It is important for apple. Apple has been able to gain market share within china after huawei, the Chinese Telecom company, ran into trouble, got blacklisted by the u. S. What we have seen in recent months is that huawei has returned with force. They have been able to get domestically produced chips and get back into the smartphone market. There is speculation that china will support huaweis efforts, that huawei will claw back share that it lost to apple. Apple could lose on the consumer demand side at the same time it has operations in china indirectly through Companies Like foxconn. That could create problems longerterm. Apples trying to diversify for a bunch of reasons we talked about previously. It wants more production in india which is considered an opportunity to diversify the manufacturing base. That is sensitive with beijing which wants to have the job in the economic firepower within china. The jobs and the economic firepower within china. Kriti something the Global Community is watching very closely. We thank you for that report. I want to bring our global audience some breaking headlines. Roche is looking to buy televant. The nearterm milestone about 150 million, looks like it is a done deal. A biotech deal in the works. At the european open you can probably expect some m a arm coming there because it was not preannounced. Roche will gain the rights to develop, manufacture, and commercialize a specific drug in the u. S. And japan for the treatment of inflammatory bowel disease and multiple other diseases. This comes in the broader realm of diversifying postcovid, post focus on a lot of drugs. A lot of companies hooking to really broaden the portfolio. Thats going to be a deal we watch very closely. Coming up on the program we will look ahead to the top earnings do, including volkswagen. Europes biggest carmaker missing the preliminary Third Quarter estimates. Stick with us. This is bloomberg. Kriti europes biggest carmaker has trimmed its profitability forecast for the year after earlier hedging losses were compounded by higher costs and supply chain issues last quarter. Preliminary results operating profit with last year. Now for what to expect from the german automaker and what else we expect, leo joins me on set. Vw preliminary operating profits missing estimates. The main issues were overhead costs. Inflation and in addition overhead costs at bw. Vw. Volkswagen has been trying to come up with an efficiency plan. You mentioned supply chain disruptions. In slovenia one of their ev suppliers was hit by flooding. That was a factor here. In terms of read across to mercedes, it is important to note the strategy at mercedes is to focus on selling the most expensive cars. Investors will focus in any commentary on how it is holding up for these cars. Kriti you mentioned china and that is going to be relevant for the Banking Industry which brings me to other banks we are expected to hear from. Santander, Deutsche Bank among them. What should we be looking out for . It is a simple story. Basically all those bumper profits we have seen as a result of higher Interest Rates in the past quarters, those have likely peak this year. Now investors turn to geopolitical risks as they unfold and the impact risk have on Profit Margins but also credit quality. Another theme on the Investment Bank site is the question, when will the flow pick up again . Thats one of the things we will be seeing. All 5 wall st banks have posted clients in the m a advisory feeds. The pictures going to be the same. Kriti something we are going to be watching closely. Leonard walking us through the crucial bank earnings. The volkswagen update we need to know. Plenty more to digest. This is bloomberg. Hi, im katie, ive lost 110 pounds on golo in just over a year. Golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. I had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. Golo has been more sustainable. I can fit it into family life, i can make meals that the whole family will enjoy. It just works in everyday life as a mom. Kriti lets get to the top stories that set your agenda. Israel said to hold off a gaza ground offensive as palestinian aid and diplomatic efforts to release hostages accelerate. Dutch Prime Minister and french president are set to visit israel. For the markets, the spotlight is on japan. Traders on watch for yen intervention after the currency crosses the 150 mark as divisions within the boj grow about what to do next. Phillips has raised its fullyear outlook after supply chain constraints ease. We will speak with the ceo later this hour. Now a sprinkle of earnings. A quick check on the markets. How do you price in geopolitical risk and the earnings story and fears a slowdown is upon us . Futures market seeing a turnaround. Euro stoxx 50 have gotten a bid. They were about flat. You are still seeing a defensive bid because the bid into s p futures and nasdaq 100 futures is new. Going to preach geopolitical conflicts in israel you did not see as clear of a bid into the u. S. Markets. Looks look a turnaround story. I want to go to the major asian stories we are getting out right now. Going to have international ramifications. That is foxconn. Their public arm is down after china looks to probe their operations. They are already creating a precedent for scrutinizing tech companies. We know this has roots in geopolitics. The former president of foxconn is also running for president over in taiwan as well. Really the taiwanese government has already said look, we are going to support foxconn if this probe really leads to something broader and scarier for investors. Thats just one part of the equation. We are still factoring in the cross as that picture. Bond market, its getting interesting. You would think you would see a bigger bid into the treasury market. We are seeing the opposite. What is the readthrough into inflation . Wartime thinking is not only going to have bigger ramifications for the oil markets, but also for accelerating economies. That is the purely economic lens. We have to put the humanitarian piece aside. The two year yield at 512 higher by five basis points. The inversion is only higher by only inverted by 15 basis points. Seeing some movement in the bond market which is going to have repercussions into the dollar story. Dollaryen 14990 four, retreat from the 150 level which we of course know has been the line in the sand for a boj intervention. Reports there are perhaps some cracks in the way the boj is thinking. Brent crude trading at a 91 handle. Less Risk Appetite for brent crude right now. Down 1 in the fallout of uncertainty in terms of whats going on between israel and hamas and whether its going to be a broader regional conflict brings us to that story. The timing of a Ground Invasion into gaza remains uncertain as israel support for diplomacy to release hostages is set to possibly delay or alter its plans. Manual micron and mark rutte Emmanuel Macron and mark rutte will travel to israel. Benjamin netanyahu pledged continued flow of assistance into gaza after the first two convoys crossed over from egypt. I want to bring in reporters from around the world. Patrick sykes joins us from istanbul and oliver crook joins us from tel aviv. Oliver, give us the latest from where you are. It has been a very eventful weekend. There were first steps that had not occurred since the conflict began over two weeks ago. The first was aid crossing into gaza which was a very significant step. It is not enough aid according to the gazans and certainly according to the Health Organizations and other organizations. It is really a drop in the bucket. The 20 trucks of the first load were less than 5 to the aid gaza was getting before the war. The second was the hostages being released which was a meaningful step but again, two people out of more than 200 that are unaccounted for for the israeli and u. S. Side. That is going to be seen as a positive but perhaps not yet enough. That all goes into the very complex equation we have been talking about, about if and when the ground offensive takes shape. As we have been talking about the last week or so the Israel Defense force has kept an open latitude in terms of saying do not have preconceptions about what this ground offensive looks like. It seems to be evolving as time goes on. It is a challenging equation with a great many inputs. We should say with the theater of war we have had more strikes in gaza. Increasingly we are seeing activity on the lebanese border and the israelis evacuating tens of thousands of people from their to get away from where there is an increasing amount of fighting. Kriti what happens in the next 24 hours . We take a very close look at this and we look at the few things we can predict of which there are not often a great many. One is the diplomacy side. Mark ruta who arrives today in israel will meet with netanyahu and with mahmoud abbas, the president of the Palestinian Authority that presides over the west bank. Emmanuel macron will arrive in israel tomorrow. The other significant event, this is so central to everything has gone on, is how much emotion , how much anger there is on both sides. Israelis will be screening the footage they have collected from the hamas attackers, 40 minutes of raw footage for journalists later today and will put that out to the public. These are significant steps when you think about the degree of emotion in this conflict. There is an israeli centralbank Rate Decision. We will get their perspective on the Economic Impact within israel. The shekel has we can substantially. We are looking at Economic Projections into the future. Kriti the Rate Decision at 2 00 p. M. U. K. Time. Israel has warned that hezbollah risks dragging lebanon into the war. They responded after antitank missiles were fired from its northern neighbor. That comes as lloyd austin warns that the u. S. Is waiting to respond if more american troops or people come under attack. If any group or country is looking to widen the conflict and take advantage of the situation we seem, our advice is dont. We maintain the right to defend ourselves and we will not hesitate to take appropriate action. Kriti lets bring in patrick sykes. What can you tell us about israels hezbollah warning . Israel coming out with that very clear message of deterrence like the u. S. You had in the clip. Israel said hezbollah is playing a dangerous game and dragging lebanon into a war they will gain nothing from and stand to lose a lot from. This comes after hezbollah has been attacking Israeli Border posts, army posts, some residential areas for the past two weeks since the hamas attack started. We have seen an escalation in the frequency and sometimes the kind of weapons used, drones used most frequently most recently. Israel coming out with that message to say it is time to deescalate. The u. S. Definitely supporting them. Kriti theres a lot going on and one of the concerns is broader escalation. Is this the start of something that could last maybe from weeks to months to years . We thank you for the update this morning. Its going to be our top story on the roundup that you need to know. We can get that on daybreak, terminal subscribers, all you have to do, diy bigo dayb go on the terminal. We are going to give you some of the other stories from around the world. U. S. House republicans have set up a nine man contest for the speaker post. It includes represented of tom and her, an ally of kevin mccarthy. Lawmakers are expected to start the process tomorrow after mccarthys removal earlier this month hamstrung congress and halted fiscal priorities. The u. S. Faces another funding deadline next month. In argentina, the president ial election be settled in a runoff after a surprise lead by sergio masa in sundays boat. For more, heres a report. From patrick gillespie. Economy minister sergio masa is headed to a runoff vote against an outsider candidate. He pulled off a major upset by winning the general election. His opponent lost momentum. The promarket candidate was illuminated from the race after only securing 24 of ballots. Argentina will choose between masa who oversaw argentinas economic crisis marked by strict currency controls versus milei who wants to change argentinas currency from the peso to the u. S. Dollar. Argentinas next president will inherit titanic challenges. The country is heading into its sixth recession in 10 years. Inflation has pushed 40 of the country into poverty. Still argentina owes 44 billion to the International Monetary fund. Its current agreement may need to be negotiated again. Looking forward a big question is the city of bunn osiris buenos aires. Where voters go during the runoff could decide who is argentinas next president. Reporting in buenos aires, patrick gillespie, bloomberg news. Kriti we go from geopolitics to earnings. Philips thirdquarter pointing to a brighter outlook. The ceo joins me next. This is bloomberg. Welcome to ameriprise. Im sam morrison. My brother max recommended you. So my best friend sophie says youve been a huge help. At ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. Our neighbors, the garcias, love working with you. Because the advice we give is personalized, hey, john reese, jr. Hows your father doing . To help reach your goals with confidence. My sister has told me so much about you. Thats why its more than advice worth listening to. Its advice worth talking about. Ameriprise financial. Kriti come back today break europe. Philips has raised its fullyear outlook at it received breathing room from its costly device recall. Im joined now by ceo roy jakobs. Congratulations on strong numbers in your last quarter. Where did you see the most improvement . Where did you see the most growth . Roy the exciting part of the results showed 11 sales growth is of course very strong. Coming from all businesses and all regions. Contribution was all around. That gives a lot of confidence in our project tree our trajectory moving forward. We doubled profit on the back of strong sales but also the cost measures and productivity measures we are taking increases the cash flow. Overall indeed a strong trajectory. Performance we saw in the Third Quarter also led to the second raise of our fullyear outlook toward the sixth or 7 comparable sales Growth Outlook and the 10 to 11 adjusted ebita outlook. Kriti tell us about the china piece. On the surface these numbers look great but there is a global concern across sectors about how much china is that next leg of growth. Where does china fall for you . Roy china isnt has been an important market. We celebrated 100 years in china for philips. We have a longstanding history and we see a Bright Future ahead. It is to be acknowledged the current state of the economy is under pressure in china. That is something we see coming back in our results. We started the year strong in china. We saw slowing into the second half. But actually if you look toward the demand for health care solutions, but also the consumer strength and the demand for Strong Innovation and brands, we have no doubt we will be continuing our growth trajectory in china. We made sure we can play locally because the rules have changed. You need to be local in your manufacturing and innovation and or delivery. And your delivery. We made sure 90 of our products apply to those rules so we can fully compete in the Chinese Market. Kriti are you worried that strategy is going to hurt you at the end of the day . I am coming from an american kind of thinking if you will wear a lot of people are coming out of china and reassuring closer to home because supply chains are in danger. Apple for example pulling out of china, why are you doubling down . Roy there are two parts to the story. One is china for china. Theres a chinese opportunity of Chinese Consumers that have specific demand in Chinese People that need health care. For those, we trade the Chinese Market for the chinese demand. Then there is Global Demand and we are regional lysing as regionalizing as well. To make sure that we can serve closer to the markets. The same we have in europe. Closer to end consumers and customers is a trend we are catering for and we are setting ourselves up for success. You saw with improved supply chain delivery the actions we are taking on supply chain are having effect. That does not mean we can also play successfully in china for the future. Kriti it is fascinating to have you say that and have you talk about your confidence in the region. When i think globally a lot of people are questioning just how strong the Chinese Consumer will be in five years time. I would like to pivot and talk about the antigrowth campaign in china. What is the readthrough into philips bottom line . Roy what you saw happening his government measures did pause some of the chinese hospitals to go into full chasing in the quarter. We see Strong Demand but you did not see it materializing in the quarter. That is something you saw in order and take. That affected the whole market. We expect that will have overflow in quarters to come. For me that does not take away that there is a very big market out there with strong opportunity for us we will also capture. It is important to acknowledge the china opportunity in itself with 1. 3 billion, secondbiggest market of the world for us, is something we say very focused on we stay very focused on. Also with a very strong brand acknowledged as a contributor to progress in society. We are looking at results where contribution came from all businesses and all regions. We had a very strong u. S. Contribution. We had very strong contribution of other parts of the world. China is part of the total mix of opportunity we see. We also make sure we set up for success there. As much, we focus on how we can be successful in other markets. We showed we had 100 million coming out of the u. S. Market, we went into a big monitoring agreement to make sure we can monitor in 20 Hospital Systems the patients and vital signs in a very strong platformized way which shows productivity to our customers. With ai on top you can become predictive and show the best analytics on those patients. There is demand and opportunity across the world and we are going after those. Kriti i love that you mentioned the u. S. Market. That is my home turf if you will. Talk to us about the investigations your company is dealing with from the united states. Talking of course about the department of justice, the fda, around the recall. Can you give us an update on that . Roy on the Positive Side on the recall, we have a 99 of patients on the right therapy. That is our priority. 99 is back so that is Good Progress we have made. Ventilation we are still working on. We are also working with the authorities through the questions they have post. We showed our own testing results, which showed no appreciable harm was done. Followup questions we are now working through. Overall we keep working this recall very hard. It is a priority area for us. As you have also seen, one billion out of the 18, we need to make sure all of philips is very strong, making progress across all of the fronts including Patient Safety and quality as the First Priority for all businesses, but also supply chain improvements we need to make sure we can convert and deliver to the customers and simplification of the organization. In an environment of turmoil you need to control your costs and productivity. We are doing that in the quarter and the year. Kriti the efficiency efforts i think they have put forward are quite interesting. Im curious how xor feels about it. A massive push from them into health care. Are they not worried about these regulatory issues, doubling down in china . From an outsider perspective it feels like theres a lot to worry about here. Roy we are very excited they came in because they showed a strong vote of confidence in the plan we presented and i presented in january, secondly in the performance trajectory, and they looked in all the facets. Them coming in externally validating our plan and putting a vote of confidence is something i think from an external perspective but also internally for our team is a very strong encouragement to keep delivering on our trajectory, keep making the progress. A Fourth Quarter of growth is the start of this three year trajectory we need to continue. Kriti certainly something we are going to be keeping a close eye on. Roy jakobs, we look forward to having your next quarter as well. Stick with us. This is bloomberg. Kriti welcome back to daybreak europe. Theres a lot to talk about in economic effects, one of the most read stories on the terminal this weekend was this about u. S. Car payments. Im a new yorker and also a texan where we drive cars, everyone drives a car in the u. S. When you are not able to make payments it is a massive red flag to the rest of the world about the slowdown and the affordability of the American Consumer and that is what the chart is showing. I want to show you all the way to this line, the link when seize on auto payments, starting to tick higher. You saw the slump lower off the 2020 stimulus payments. How much of the repayment of debt is going to be an issue for broader spending capability . Thats going to be an issue. I want to show you one more chart for the ecb. Lets talk about the european story. Youre seeing traders price in a higherthanexpected terminal rate saying the ecb is not done. We get them thursday as well. The question is, do you start to see the ecb hike in the face of geopolitical risk . Are they going to set the tone . Thats going to be one of the major questions, something im sure the markets today will explore closely. Anna edwards, mark cudmore, and Tom Mackenzie take it from here. This is bloomberg. Anna