>> good morning and welcome to

daybreak europe. the top stories that set your agenda now. the chinese and hong kong stocks are setting off. over in japan, a different story. the nikkei is rallying. benjamin netanyahu rejects a new hostage deal from hamas, calling the terms acceptable. the united states wants military action to deter the iran backed who these will take more time. ron desantis bows out of the u.s. presidential race. can nikki haley indeed close the gap with donald trump? los to digest. quick, a check on the marketeer. a very diversion story. you are starting to see the chinese economy take a little bit of a hit. when you look at futures in your by the united states, a completely different story.

this is a little surprising for me. when you see those record numbers, you see a little pullback pairing those gains. this is the opposite. the fact that you're doubling down on that bull market, indeed. your stocks are higher by 9/10 of 1%. that seems to be the theme in the last couple of trading sessions. it is a tech lead rally. if you go across assets, really does -- a really interesting dynamic. we had some great comments coming out. also, out of christine lagarde. take a look at what the currency market is doing right now.

brent crude down 70. we will have a little bit more analysis. april, over to you. >> yes. as you said, we are seeing that divers but -- divers between japanese stocks. we have not see them -- have not seen them clocking gains at all this year. we are seeing the offshore yen hovering at 720.

this has been playing out under the stock market influence. there is a nested zero chance of a two week. the boj will have to keep its foot on the pedal. it is worth noting that we are seeing a yen that has lost most of the gains since november. the move was not on his back the pboc disappointed the markets.

what you need to keep in mind is this as well. these chinese lenders have been facing margin pressure. that is some of the chinese better stock. we will show you some of the stocks that come under pressure. question really interesting dynamic over in asia. i will bring one of the things that we are watching. it has had a merger termination letter.

this was supposed to be a $10 billion deal. this follows a two-year act -- two-year acquisition. the deal would have actually helped this asian conglomerate. that being said, this context is important. this is on the wake of some of the investigations going in here. a $10 million midea group scrapped.

>> i am suspending my campaign. i am proud to have delivered on 100% of my promises. i will not stop now. it is clear to me that the majority -- a majority of republican primary voters want to give donald trump another chance. i signed a pledge to support the republican nominee. we can't go back to the old republican guard of yesteryear. >> for more context, bill joins me. talk to us little bit about this endorsement. desantis came out on top of nikki haley in iowa. it is very clear why he -- is this a bigger benefit for trump

or haley? >> from will be no, he was pulling in the single digits. but the majority of them did put donald trump as their second favorite choice. i would expect more of his supporters to lean toward trump. nikki haley will certainly pick up a certain percentage of those. new hampshire is really built for her. as much as any state is. if you are an unaffiliated vote -- motor in new hampshire, there has been a little bit of a question that she has been building up. >> talk to us about the primary here. it feels like nikki haley you in of the weekend was doing some great analysis about some of the major donors that she is

actually bringing together might be enough to bring a real contest to president trump. because she is inspected to lead with some of the independence of the college educated population in new hampshire but her margin in the polls has actually widened to double digits. what does she need to do to take on trump? >> i don't know what the exact showing would be for nikki haley. but it needs to be a strong showing in new hampshire for her to kind of readily sustained or campaign and for her donors to remain -- her donors have arranged a fundraiser for her. the next big primary is in her home state of south carolina. she really wants to get enough momentum coming out of new hampshire to sustain the support -- they support and donor funding to carry through to south carolina where she would be looking at a breakthrough.

or trying to have a breakthrough. for that slice of the republican that considers themselves never jumpers, new hampshire is really pivotal moment for them. and it is all in south carolina. if nikki haley is going to make a strong showing in one of those, it will be over by super tuesday when the primaries take place. >> a really interesting dynamic. we will be watching it very closely around the world. we thank you so much for that crucial context. i really want to bring some breaking news as we are crossing across the bloomberg terminal. they are by a 7% minority stake here. it is just a 7% stake. i think it is important to keep in mind that this is a digital payment solution company coming out of france. is this another sign that they are following their wall street peers in tackling some of those digital payment solutions?

>> it looks like they're really hopping on that same team. i want to bring another headline. fda j. this is -- this is from france getting taken from the swedish listed kindred group. get this, but at $2.5 billion deal. that is about 130 swedish krona per share. this could combine to make one of the largest online gambling cavities in the world. this was early reported by the wall street journal. it now looks like it was brought into some context for the team as well. all after the call for a potential sale of kindred itself. really interesting take over and dynamics. all as we had more information to you here on bloomberg television. i want to make hard pivot and bring you the latest from the middle east.

here are the top stories we are following. benjamin netanyahu has rejected what he calls undetectable terms for a new hostage deal. i'm joined by sylvia west all. the managing editor for the economy and government in the middle east. president biden had spoken with the israeli prime minister for the first time in almost four weeks. how did those discussions go? >> there have been tensions between the u.s. and israel over what a postwar gaza will look like. the u.s. and arab nations have called for the palestinian authority to be running gaza once the war is over. israel has said it wants to keep security control of gaza and the west bank after the war. that is about what solution could be found.

israel has had back on some recent comments. saying any long-lasting solution is to have estate for palestinians at the heart of it. that is very important. i think we are seeing some frustrations on both sides about what will happen next. israel maintains the focus is on fighting the war with hamas and that discussions on what a postwar gaza look like. it is important to discuss what is happening. that is where the frictions have come in. and these from countries in the region that israel is not being reasonable in discussing this. that is what is pointed out to the u.s. as well. >> talk to us about the internal pressures as well. if you look at the comments from netanyahu were especially around a hostage deal, especially at home in israel, he keeps saying

the terms are unacceptable because it requires pulling out of gaza, the operation has cost lives on both sides. talk to us about the domestic dynamics for benjamin netanyahu. >> i think netanyahu made the point that under this deal, it would involve releasing people to israel says were involved in the attack. it is a difficult one. it is going hard to overstate just how big a change the shift

in public opinion has been as well. there is a real sense that the country as at war and it must defeat hamas. there are all these internal pressures happening. also, reports of frictions when the actual cabinets of netanyahu and a sense that once this is all over, what will be his political future as the person who is running the country? there are always different internal domestic pressures around the government and a board. >> domestic and international. we thank you so much for that crucial context on the developing story. coming up, we stick with the global geopolitical situation. the u.s. secretary of state traveling to africa days after his chinese counterpart began his own tour of the region. stick with us, this is bloomberg. ♪

>> welcome back to daybreak

your. i am pretty in london. joining us with all this, walk us through some of the issues that take us to center stage during the visit. quick security is one of the issues due to rising islamic insurgents in the west african region. another issue that will be heavily featured. there have been eight military coups in the last three years. the last time antony blinken was

in the chair, they were at the helm of leadership. now they have ousted him and they're making deals with russia to make ties like this a point of concern for america. in terms of economic development, infrastructure will also be a point to focus starting with expansion of the board here. also, america's most substantial project was heavily featured. ? about how the tryst america's influence in africa. we know on the chinese side, they caught a lot of attention and concern from their peers around the world. how does the united states respond to something like that question mark >> this trip is meant to accelerate some of the

commitments the u.s.-made to african leaders during the u.s. africa summit that was held in december of 2022. it is also meant to try and bolster those relations according to the white house. out of the pledge that president joe biden made $55 billion will be spent in africa -- at least 40% of those commitments have been achieved with one of the most significant was being closing 547 million new business deals. what this trip is meant to do issue ever to that america still has the interest at heart despite all the things that happened globally that appear to have shifted america's focus out of the continent. the government has also maintained there is nothing like china verse america when it comes to africa. africa is important for its own stake and -- its own sake. >> really interesting dynamic. does africa become the economic

-- we thank you so much for that crucial context. anytime i want to stick with the continent of africa because it may be having an effect on the market. we are seeing an interesting dynamic play out here. went through trading at a 78 handle. a five dollar spread we will call it between the two. usually when using a five dollar spread like this, they made a geopolitical premium is priced into the international benchmark. there are a lot of different factors here. you have opec really creating a kind of cushion underneath the supply. you have extra supplies going on cushion oklahoma's love but it is also in line with some of the tensions you are seeing over in libya as well. as we start to see which players in africa actually have a way to meet their quotas, it will affect how much exposure some of these international players actually want to the oil market. you can see them actually drop in these two little headlines.

how much exposure do you want? that is just one reason -- and speculating here. you are seeing relatively muted moves in the oil benchmark when they suggest that the clouds should be rallying. that is just one thought to put on your radar here. stick with us, plenty more ahead. is bloomberg. ♪

grace we want to bring some of the other stories from around the world. macy's has rejected a $5.8 billion take over. the plans to offer compelling value. sticking with the corporate space. aviation administration is recommending airlines and spent another boeing 737 model aircraft that has meant exit door plugs. this is the same type it ultimately failed in an alaska airlines blowout earlier this month. boeing says it fully supports the faa action now, say they expect checks to be completed in the next few days. moving to the hedge fund space. hedge funds delivered over $218 billion after fees in 2023, tcf

making $12.9 billion to top the rankings followed by citadel. they are scooping up hedge fund founders in is as they shut up shop in exchange for big pay. speaking of asia. a quick check on those markets. you are seeing the tale of two markets. real diversion when you look at the equity picture. look at what you are seeing in the nikkei, higher by 1.6%. in line with what you're seeing in the global stock rally. they closed at an all-time record. cementing that bull market. perhaps taking a cue from the japanese picture. but japan does seem to be alone in this. if you look at some of the hong kong and chinese equities, you are seeing a very different picture so, exhilarating. a little bit of concern around china. where do you want exposure at the moment? a global rally could be afoot. it is kind of the play?

this brings us to the week ahead. hence, the other things you need to watch. there is a lot going on. he was he put the of central banks as well. the boj for example is coming up on tuesday. remember you're having an expectation of the wage increases and the waste turnaround in the spring -- it was actually going to change. that does not stop the market from pricing and some of that hawkish rhetoric that time and time again, they do price in ahead of the boj decision. although be proven wrong? look at the pressure they are facing. i want to know about the currency conversation. 109 is where we are on euro-dollar right now. to see that kind of strength in the face of it struggling continent is going to be crucial and then followed on friday by the u.s. pc numbers. the feds preferred gauge of inflation. how much of that changes not

only defend pricing but the pricing from around the world? all of that will be in crucial conversation in terms of what the markets are getting right and wrong. 67 requests -- six to seven rate cuts here. they are actually positioning against it. saying this is going to be the future. they'll come fast and furious. coming up on this program, take industries to protest far right extremism and the rise of the party. we will have

>> >> let's get to the stop

start -- of the stops -- let's get to the top stories that your agenda. >> let's go over to japan. it is a complete, story, the nikkei rallying. hundreds of thousands of germans have rallied to protest against our right extremism and the rise of the anti-immigrant afd party. ron desantis bows out of the u.s. presidential race, the spotlight now on the new hampshire primary. can nikki haley close the gap? there is a lot of pricing and perhaps that is why you are seeing a lot of this matter more. we'll get a quick check on these markets. it is interesting dynamic. if you look at the european and u.s. story, you are seeing green on the screen and buy a massive margin. outperformed by .8%. >> over in the united states,

still green on the screen. higher by 6/10 of one percent, i'll just buy the s&p 500 hitting an all-time record on friday. traditional you would see some sort of pull. this morning you would see the exact opposite. does that change when the european market opens? i want to take a look at the cross asset story. the bond market matters just as much of the stock market does. the 10-year yield about 4% still. for 10 is will be on that note. all of this as you see yields stick down slightly. the euro-dollar, 109. the strength there do we see a dislocation, some sort of reversion to the mean in this? brent crude kind of doing its own thing. all of this down by .5%. that will be something throughout the rest of the show.

let's get to one of our top stories out of your. hundreds of thousands of processors have taken to the streets in germany. oliver is all over the story. live in berlin for us. walk us through these protest. >> the scale of these is much larger. the spark ignited all of this. there was this meeting that occurred just a couple weeks ago. all this were members of the afd and allegedly members of the cdu also attended this meeting where they were discussing migrant people within germany out of the country. it is not just to talk -- deporting illegal immigrants which is part of it. this is not just getting people to leave the country who have legal immigration status and even some of those who are citizens of germany who have not

assimilated enough. these are some of the echoes of some of the darkest chapters in german history. protesting again. you see nothing. what is the powder keg beneath it? how popular the afd is. it has 23% of the vote. it looks like something the particle establishment has really been able to ignore largely. it can no longer do so. these protests send a strong signal. there is only so much you can do. it has been a debate. you can't just ban a party because you don't like what they are saying. there is a provision in the constitution to do so. only if they oppose and abolish freak democrat order. that is this tension that is now building up within german society. >> talk to us about why they

have so much support right now. >> there is a lot of different factors. immigration is a major issue. this is a fact that members of the government having knowledge. they are trying to put in measures that would make it easier to deport people who are here illegally. make it harder for people to seek asylum. that is one of the main things. the other thing is economic factors. people feel at risk and vulnerable. people are wondering why we are spending so much money on non-germans. this is a really big part of the conversation. you heard a lot about in the form of protest. this is a protest vote. the feeling in germany that there is the mainstream politics that is not servicing the needs or hearing the people. this puts a lot of the people in the farmers protest, they were not necessarily pro-afd or

anything but they felt a disenchantment with the mainstream political establishing here in germany. it has largely been able to ignore the afd. you need to start to take his hat on and deal with it. that is the tension building up. course in interesting dynamic. we thank you so much for your reporting out of berlin. i want to stick with the story in europe. focusing more on the military policy. the focus will be on christine lagarde. speaking to bloomberg in davos last week she said it is possible the rate cuts could be expected of the summer. >> i have to be reserved. we are also saying that we are military dependent and there is still some indicators that are not anchored properly.

and we would like to see them. >> the head of the ecb there, they are laying the groundwork in the summertime. what does that mean for the market? >> yes. a great interview last week between the head of the ecb and francine lacqua in davos. it really does change all this. hobbies that she cannot commit to a two way i. she said all this is very likely. she now sets a timeline for the european central bank where they are pushing the conversation to a summer that would be around the june meeting. this is about a number of central-bank earners last week they came out in force. all this against the market expectations. they believed a lot of the calls were all over the place. perhaps the market was running too hot and had run ahead of itself. this shows this is european

central bank that really wants to stretch this idea of higher for longer but also push back to any debate that you could see move in q1. it will be interesting when it comes to thursday. they were allotted to what they said in the markets pricing. that would be the key in the goal for the ecb going into thursday. >> there is an understanding or historical norm that perhaps chair powell -- i am curious as we talk about the strength in the currencies combined with the weakness you see here in europe and the lack of resilience we are seeing here. if he could actually front run the federal reserve in 2024, what do you think? >> that was already in the conversation. there was a question that dominated the press.

you can see a european central bank the cut before the fed. i can almost hear the words of madame lagarde and i had right now. it is not the dependent and therefore what they did to say is the nature of inflation that was on 2023 would be different between the two. the dynamics are different but you make a very good point in terms of the european economy. this is going to be here between 24 it was dynamics are definitely going to change for the european central bank. it will go from hiking nonstop almost automatically to narcotic rates. a lot of that was he given the weakness in the economy and the concerns for european economy that can not catch a break here. but also, even more openly if i may say, 2024 is where the european central bank will have to contemplate a lot of volatility.

a lot of the messages that you have heard repeatedly. the best way to protect european interests is to have a strong single market. there is this called to complete the european capital markets union. it is different to monetary policy but nonetheless connected. >> really interesting dynamic. is this something markets are getting right? do they have some shock in store for them in 2024? we thank you so much for bringing that into some crucial contacts there. we want to get some more news from around the world specifically. the financial times reported the european union is imposing consequences on israel. all of this as benjamin netanyahu continues to oppose palestinian statehood. russia says ukrainian shelley has killed at least 25 people in

the russian control city here. let's discuss all this. all of this due to a fire. according to ukrainian media, the fire was the result of a special operation carried out by ukraine secret security services. travelers bind to the u.k. and ireland are being forced into lengthy diversions, even to different countries as they threw plans of course. all of this as europe's largest discount carrier faces an outsized impact. i am going to get this right. you're up to meet a logical agency has warned of the danger to life and risks of extreme structural damage. >> a big story out of the united

states. ron desantis has endorsed donald trump after dropping out of the race to be the next president. the move narrows the republican field with the departure of desantis, leaving nikki haley as trumps only major rival remaining. bill has been watching this very close appear talk to us about the dynamics here. we are now seeing goals of an 11 point gap. what are nikki haley's odds here for that nomination? >> nikki haley wants to try to pick up as many of those desantis voters as she can. desantis did endorsed front but there is a significant step that will turn to nikki haley. she has to back on more moderate and independent voters coming out. she probably wants to get that cap you're talking about. she would love to be that cap being single digits. she was to build a little bit of momentum.

a lot of momentum headed to the south carolina primary. it is her own state but it is a month from now. in that month she needs to be able to show that she has not just voter support but don't support. >> in terms of that donor support, a lot of it is coming. -- he is bringing herself as a fiscal conservative. i am curious -- there was a big question in the iowa caucus of whoever wins out is the number two potentially becoming a real candidate for vice president. do you think nikki haley is missing out on that opportunity? question has doubled it up but she says she is not running for number two. i think it has been a pretty testy relationship between nikki haley and donald trump. i think the chatter in drum circles have been around other potential candidates perhaps the

senator from arizona. also, a few other people. it has not been so much around nikki haley but if you look at truth social, former president trump was going from a globalist in the pocket of wall street donors, that is not something his base would be really excited about. if she were to be the pic. i think her focus right now is staying within close fighting range of donald trump and showing that she could be the most powerful non-from candidate. quest it is a really interesting dynamic. we talk about what that means for the markets in particular, but we talk about his who is the more market from the candidate -- some would say that president trump is the no-brainer but then again is nikki haley winning more of those donor campaigns because they ultimately have more faith in her economic plan? only time will tell.

thank you so much for your analysis on that story. coming up on the program, the clouds appear to be lifting for the global chip industry. we will have an earnings we preview coming up next. stick with us. this is bloomberg. ♪

>> go back to daybreak europe. and kriti gupta in london. the clouds appear to be lifting for the global chip industry promisingly for a and st micro. all of this amid a slowdown in the sector. there is a lot to digest in the european corporate space. maggie is all over the story. let's start with the chip sector

in particular. this is a sector that has seen a lot of pain. a lot of volatility. >> quit an exciting earnings season. it is looking like the worst of the downturn. we are seeing a growing use of ai impacting demand pretty positively. we see global chip sales up for the first time every year. asml still has sales expected to slowed to less than a percent in the fourth quarter. it is really looking pretty positive. they are in the week, we will also have electronics reporting. the chipmaker is inspected to post earnings more or less in line with guidance made the driven by its highly automated

exposure. >> that is the only one of the segments that are expected to have reported positive growth in the fourth quarter. despite a couple of warnings in recent weeks, analysts are fermenting pretty cautiously optimistic about it given how resilient chip demand has remained recently. >> we talked about this chip demand. the s&p 500 really ending at a record on friday because of that tech driven rally. the it is usually not the leadership we see. erickson, nokia, they are on deck for this week. >> all of that is still likely to be affected in the earnings from ericsson and nokia later this week. carriers are still putting off investing into 5g. interestingly going forward this year, we are going to see a bit more of a divergence between

those two key players. erickson reporting on tuesday it is expected to post an adjusted 20% lower. these are looking upbeat in the midterm. it recently secured a contract with the u.s. carrier at&t worth around $40 million. that will really go somewhere -- some way to easy investor confidence. nokia, things are looking a little bit different. it lost out on the key contract in investment where -- in a space where investment is so scarce. it will miss it for your expectations. it already cut its long-term probability outlook in december now, it has a lot of work to do to regain some confidence. the only way for her to do that was to keep investors on site was to start delivering some of those ambitious cost cuts.

quest this is something that telecom has always had their work cut out for them. to see them desperate for that one contract, it could be a make or break story. lvmh reflecting reporting this year. it is ahead in the stoxx 600. talk to us about the improvement. >> it has been like a tricky start to the year. we started off with a profit warning from disappointing sales as well from hugo boss. we have also seen quit a bit of variation in the sector. they foster their sales beat. it is looking like the higher end of the sector is proving to be a little bit more resilient. his mix of categories may provide a little bit more questioning than those against the recent shopper volatility we are seeing. in the last quarter. things are expected to have been driven here.

but also more letdown by one his peers which is like -- likely to continue for some. analysts are not really expecting any gains in the sector until the second half and in the meantime, the players within the sector seem like management will leaking to save that profit going forward. >> this is something i think is extra interesting. for european story. especially because a lot of the ones driving the lives of all this are coming from global investors. it is european story but it is not. it is not really reflective of the european economy in the way that a similar name in the united states might be. fascinating story. we will tell you a lot about the global economy. maggie all over that story. i imagine she will be joining us throughout the week. we will have much more ahead on

the markets, the earnings and the geopolitics, stick with us. this is bloomberg. ♪

>> welcome back to daybreak europe. when you're talking about the asian markets, we don't really pick that much of the asian trade. you are seeing some real selling pressure. in the context of volatility in the context of standard deviation, this is not that big of a selloff. when you talk about the global

picture, we are seeing a global rally following that record that you saw on friday for the s&p 500. to see that continue especially head of the boj -- the expectation is they will change in the spring to have some sort of more hawkish pivot. the markets expect that every time and they are disappointed in physical time. i want to talk about the ecb for a moment. what is getting posted here? some of the market pricing is just not there. the markets pricing and 67 rate cuts. if you look at this pricing right here, these images have pulled back. they ease some of those bets.

what does that tell you about the dislocations baked into the market? that brings you back to what is happening in the united states. you should pay attention to what the smart money shows. they are positive those rate cuts will happen in 2024. coming up, the edelman chief executive joining fasting -- francine lacqua on the post. that conversation coming up at night: 40 am. bill gross will speak inclusively to bloomberg at 8:00 p.m. here in london. stick with us. putting had. that is up next. ♪