manus: good morning from bloomberg's middle east headquarters. annmarie hordern is alongside me. short interest in gamestop plummets and so do the shares. this as reddit silver rally runs into a roadblock. stocks, risk on amidst hopes for

stimulus. and deutsche bank's debt trading jump outpaces wall street. the bloomberg school ahead. -- the bloomberg scoop ahead. we will get into the deutsche bank story shortly. excuse the pun, shortly. depends on which chart you choose. traders are covering, running for cover. crashing to 39%. is that the beginning of a big unwind? the stock draws down by 31%. is this when they knock into the retail investor? will fundamentals prevail? annmarie: it is interesting. gamestop is trading above its 50

day moving average. an absolutely stunning ride. we saw the #gme to the moon. yesterday, that hit another roadblock. cme saying they want to up the collateral. you have gamestop and amc. it was the brokerage that had to up the collateral. silver down 1.5%. trading around $29. look at the futures market and asian equities, we are back to regularly scheduled programming in terms of the narrative which is vaccines and fiscal stimulus. manus: you have the biden bid in terms of being bold and big regarding stimulus and the data. that is what matters for velocity. it is v for vaccines. we are seeing a fast the daily

rollout of vaccines in the u.s. than anywhere else in the world. 8% of the population are partially vaccinated. johns hopkins university says the risk is -- are the right people or right categories of people getting the vaccine? annmarie: vaccine, fiscal stimulus. the only game in town. gamestop -- what happened yesterday? it was the first thing i did -- what happened overnight with #silversweep. following a 30% plunge during market hours? . has this finally stopped -- following a 30% plunge during market hours. has this finally's.? stopped? dani burger joins us. dani: it is borrowed again to be

shorted. that is still in play. is a short squeeze over? you cannot definitively say. the data is showing that it looked like it happened on friday. gamestop's volume on friday was 50 million. 30 million of that was people cashing in and covering their short. it shows how nimble the short-sellers have to be to make a ripple in the market and not a tsunami. if you include the synthetic longs in there, short interest is at about 53%. if you exclude those, it is closer to 39 percent. what is important is the financing rate has come down dramatically. how expensive is it for me to borrow a gamestop share and then to short it?

it's spiked up to 204 -- it spiked up to 204%. if you were a short seller, you could not find a share to buy in order to cover your sure and that is what this is reflecting. it has now come down to 10% suggesting a lot of the stress has been removed. manus: if you listen to carson block, he would say it is the hedge fund on hedge fund. let's talk about robinhood. they raised $2.4 billion. there is money from somewhere to keep the doors open. how much trouble are they in at the moment? is that the right word? they are flush with capital.

dani: the trouble with robinhood comes down to its ipo plans. what this has made clear is that the cost at robinhood needs to move higher. they need to spend more on customer service. they need more hands. that is why they tapped into the market. a need more money to grow. that is something that ipo investors will have to keep in mind. with this money raised, a lot will convert into equity once the company goes public. the people will get a 30% discount. this well pressure robinhood further to ipo on the original timeline. robinhood has a lot to deal with to then add an ipo into the next. payment to flow orders -- someone like a citadel security

will say we will pay you money if you give us the bulk of your order and we will redirect them. that has come under so much pressure. these accounts have announced they will no longer participate in the practice of payment to order flow. is robinhood going to do this? this is a big source of their income. manus: dani, thank you so much for putting this into context. do not forget about the synthetics. dani burger keeping it real. raj shant joins us. he has been listening to dani. an associate at pgi yen limited. -- pgim limited. is this a realization of a true

market phenomena that we are going to have to get used to? good morning. raj: good morning. thank you for having me. i think it is an interesting phenomena. employees are in locked down and they have a lot of extra time on their hands. technology is making trading cheaper and easier than ever before. i think there is a concern in my own mind -- there is a legal point here. if you are the last person in silver and your left holding it when the music stops, how will

it be priced after that? if you are the first, you are well and good. but if you are the last, there is a painful pressure at the end. annmarie: you say for millennials that this is like being stuck at home and instead of binging on netflix, they are binging on these stocks. are you starting to think about what comes next? what would be the next target? it went from gamestop to silver quite quickly. raj: in terms of context, that is everything. in this situation, if you are looking around for relatively small stocks which these were until the reddit platform found

them, it is easy to have an impact on a small company. you will find it much harder even if you had more investors piling into move the price around. when you look around the global capital markets, the large-cap stocks, the fx market, the flows are so enormous that these dynamics don't have much of an impact. what you are talking here, i would argue that it is positional dynamics. it is not unusual. what is unusual is there is a sort of retail investor platform getting heavily involved and targeting specific stocks. in the context of global capital markets, this is relatively small. we are fascinated by this because it is new and we have not seen it before. fair enough.

if you were talking about the overall capital markets in the world, it is not that big. in and of itself, it is not that big. manus: i would say to you, we have seen it before. it was back in 2000. maybe we have not seen something as virulent. volatility -- are you expecting much more aggressive volatility? equity vol relative to fx vol. would you want to use volatility as a form of hedge? you could see that explosion again. raj: i think for certain fellows, that would make sense.

we run equity portfolios. we don't tend to need to do that kind of thing. i think it is a fair case to say there are some fairly big medium-term issues out there related to vaccines but also things like when we reopen. and when we reopen, more importantly, which sectors of the economy will benefit most? will we carry on differently? will we see our doctors in a different way? those issues are paramount to the medium-term trajectory for the market. there will be two-way views. some will be optimistic. some will have great pessimism. there are some volatile times ahead. but what is the earnings capacity of different companies

from a fundamental point of view? this is where i back away from some of these short squeeze issues going on at the moment. they have little to do with the fundamental earning capacity of those companies and a lot to do with positional dynamics in the market. interesting. annmarie: certainly is. what is long-term investing when you have days like we have had recently. raj shant will stay with us. laura: president joe biden says the u.s. could reinstate sanctions on myanmar if the military does not give up power. it seized control yesterday morning did government officials including the defective leader, aung san suu kyi. the u.s. is calling for their release. new york and the northeastern u.s. are facing the heaviest

snow storm of the winter so far. the brunt of the storm is easing but it is expected to drop several more inches overnight. this could earn a spot in the top 10 worst storms. deutsche bank is beating wall street with a 20% jump in debt trading. bloomberg sources say the german lender -- the ceo is leaning on the units to drive growth. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus. manus: coming up on the show, europe stumbles. the u.s. is raising ahead with vaccine rollouts joining with only a handful of countries with more vaccinations than cases.

we have the details. this is bloomberg. ♪ want to save hundreds on your wireless bill? with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design

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annmarie: 6:17 in london. i am annmarie hordern. vaccine news -- europe's start to the vaccine rollout has been riddled with stumbling blocks. angela merkel is vowing to offer all citizens the vaccine by the end of september. similar to michael o'leary and what he said yesterday to madison and myself. the u.s. has registered more vaccinations than cases since the pandemic began. only a few other countries have crossed that milestone including

the you -- the u.k. and the uae. raj shant is still with us. i want to get your sense on the vaccine debacle here in europe. he expects europe to be vaccinated by september. angela merkel saying that as well. this debacle in europe, how far has it set it back? raj: it is really hard to say because what is happening is there are production issues which are causing a slower than expected delivery of vaccine. now, that does not mean -- it is not the end of the world. because this is very early days for the rollout of the program. the european union has far more doses than the people that need them. there is plenty of time and scope for the european union to

ramp up the rollout of the vaccines. and for the supplying companies to improve the supply chain. we have seen it in the u.s. and in the u.k. -- these companies are very good at managing logistics, expanding production. this is the first time they have had to do this at this scale and this pace and they are doing a pretty good job. it is entirely possible that in 4-5 weeks, it could become a historical political problem for the eu but the public health issue will be well under control. manus: various people have sent me data. tracking the vaccine rollout here at bloomberg. if you amalgamate everything at 300 million doses -- we look at

the u.s., does this help you differentiate the allocation given the trajectory we are seeing in the numbers in the u.s.? will that skew you in terms of investment? raj: the short answer to that is no. the reason for that is the bigger companies, whether they happen to be based in the u.k., the u.s., europe or elsewhere, 10 to be significant beneficiaries. they will benefit if the reopening is in asia first and we have seen many economies they're beginning to reopen and returned return to a high degree of normality are ready. whether that reopening is first in the u.s. or the u.k. -- these

companies transcend their national borders quite comfortably. most of the large-cap companies, that is not so much of an issue. the european larger companies with global reach are benefiting strongly from the recovery that has already happened in asia. and they will benefit when the u.k. and u.s. reopen. even if the eu is a couple of weeks or months behind. annmarie: it is all so globally connected. you really like em and it is not commodity driven. what are the changes? raj: it is an interesting part of the world. the mental map that investors have of emerging markets have not kept pace. most people still think of

emerging markets in the context of commodity cycles and commodity prices. maybe also in the sense of low-cost manufacturing. and export to developing country -- to developed countries. but, it is moving towards intellectually heavy sectors. investors -- whether it is information-technology or in health care where you can see because of the pandemic and the lockdowns that even the news coming up to 2020, growing investment. if you look -- the emerging markets account for an ever increasing share of the global total. that shows you that the emerging

markets are moving beyond low-cost manufacturing and exports and into more intellectually heavy sectors. manus: we are going to dig a little deeper when we have you back. raj shant, managing director at pgi yen. m. the tech titans report fourth-quarter results. we take a look at what to expect. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together.

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manus: it is "daybreak: europe." let's turn up the heat on tech. we are expecting results from alpha that and -- alphabet and amazon.

the s&p 500 in terms of profit and growth. laura wright is our reporter tracking the tech story. what can we expect from amazon? laura: amazon's fourth-quarter sales are expected to increase by around 37%. this is due to a holiday surge from secondary sellers. key components including electronics, apparel, and books account for more than half of their value. that is according to data from an e marketer. amazon believes a second round of stimulus will add to the momentum. the key jewel is a cloud product. this division makes up a good portion of operating profit, around 60%. fulfillment costs may rise and

regulation constitutes another risk. it is unclear what kind of antitrust scrutiny the group could face under the biden administration. annmarie: we will also be getting results from alpha bet. laura: 17% growth. sales driven by advertising demand. and the second is the cloud. since the pandemic, there has been a mass migration to the public cloud. the cloud could exceed 50% in the fourth quarter with the potential to reach $20 billion in annual reoccurring revenue. we expect an overall acceleration with paid clicks. for expansion to be affective , alphabet has to avoid

regulation. annmarie: laura wright, thank you for that tech roundup. coming up, the ceo of siemens energy company announcing thousands of job cuts. we ask the ceo wide. that is next. this is bloomberg. ♪

annmarie: good morning. from london, i am annmarie hordern. this is "daybreak: europe." short interest in gamestop plummets and so to the shares. this is a -- this as a reddit inspired rally runs into problems. progress on vaccinations. deutsche bank's debt trading

jump outpaces wall street. a very good morning to you, manus. we are hitting the brakes when it comes to the retail rally frenzy. i have been looking at the silver market. the cme saying you have to boost collateral. we were looking at the difference between the gamestop frenzy and the silver frenzy. when it comes to the silver market, it is the individual investor. manus: absolutely. it is also the exchange that hikes the margins. take a look at this. i have kept it clean. i'm just going for the

implosion. crashing to 39%. a huge reversal. the consequence is whether it is a pump and dump. whether you believe as carson block does it either way, the stock dropped 31%. if you were long, you just took a smack. the question is -- is there more of a smack to come? silver gives it back to. margins are erased. the vaccine rollout in the u.s. pumping away helping the s&p 500. i actually think i have turned into the grand national commentator. stocks are higher. there is hope for vaccines and stimulus. there you go.

siemens energy has announced they will cover -- they will cut employees. this is the latest sign that the worldwide shift to green energy is up -- is upending fossil fuels. dr. christian bruch is the ceo. not a good day in terms of the headlines. the number of jobs to go. is this the start of a bigger restructuring given the monumental reappraisal of green energy in the world? is this the start of a bigger restructure? dr. bruch: good morning. good morning and thank you for having me. it is one of the steps we announced last september in terms of the limitation of our transformation program. we announced that we also want to exit coal.

there is a consequence to that. we also see a shift in the natural gas market. i want to underline that we are doing these measures as we believe for example, in natural gas that we see a midterm future in terms of interim technology. what we will need for the electricity market. we need to be profitable. in the current situation because of the changes in the energy market, we have areas where we do not earn money today and we need this financial strength to invest in new technologies and drive the transformation. at the end, we want to provide safe jobs for our people. the unfortunate side of the challenge is investing into new things and getting profitable in declining markets and coping with our exit from coal -- i

strongly believe we are putting together a company that can shape the future of the energy market. the good thing with electricity is it is part of the growing market but it will require different technologies, approaches in different regions of the world. this is why we need to tackle this now. annmarie: given a mission cuts will accelerate, are these 7800 job cuts enough or will you have to cut deeper? dr. bruch: the program has been worked out and i am confident that it lives as all the levers to drive the energy market. this is what we are aspiring to and this is how we are implementing this. this is our plan at the moment. there are no additional plans on top of it at the moment. manus: let's talk about the

transition of the company. can you guide the market when you will rollover and produce more energy from renewables than fossil fuels? will that date be brought forward given what is going on in the world? dr. bruch: we have roughly 50% between siemens and transmission technology that i would clarify is sustainable. 50% in industrial technologies or conventional. this is shifting. we are also developing technologies to provide -- to make them sustainable. this is coming year after year. it will depend on the conditions and the electricity market.

it will depend on what we as a society want to pay for. we have 50% of our revenue today in sustainable areas and we continue to drive this upwards and this is why we are taking this measure today. annmarie: general electric has accused your company of stealing trade secrets for gas turbines. i you preparing to settle --are you preparing to settle? dr. bruch: it is concerning that we have a claim from our competitor against us regarding trade secrets. we received this last friday. siemens energy discovered this last year. we did an investigation and we informed that customers and the competitors. we are looking into the claim

which we just received and we will decide on our actions. but it is too early now to give more details. manus: as those details,, please come back and -- as those details come, please come back and discuss those. europe is at 500 billion. this differential -- how will that play out for your business? dr. bruch: well, it is something that we do see a lot of opportunities in certain areas like renewables and infrastructure. this is what we are trying to do. we want to be in both areas. we will have a stronghold in the u.s. and in europe and we want to be close to our customers.

at the end, i am convinced that we can tap into these opportunities to grow the company going forward. annmarie: siemens energy ceo, thank you for your time. coming up on the program, silver surges to an eight year high. we take a closer look at the metals trade next. #silver squeeze. this is bloomberg. ♪

>> this is happening because there is a lot of cash out their

moving. >> hedge funds are reluctant to short. >> not much was done wrong here. >> i want to do whatever we can do to help the retail investors. >> the investor is caught in the updraft. down 34% today. does the person that clicked the last buy understand that? >> that provide dividends. long-term investors have the benefit of those returns compounding. when you are speculating, you are in essence buying a lottery ticket. >> there are pockets of volatility. the market will be concerned about that. manus: just some of our guests

on the battle between wall street and main street that we have seen over the last week on the equity side. now, the surge to an eight year high has lost a little momentum. now, the precious metal is retreating in today's session. let's bring in dani burger who has been tracking the movement. who is driving the silver trade -- retail or institutional? dani: likely a mix of both which shows the point that trade ideas that start on reddit can have power but we cannot generalize and say this is a retail investor induced trait. we have heard wall street bets talk to cbs news saying there are bots posting on their site.

it is a very complicated sort of environment here for the silver trade. in terms of the margins, this is coming from cme which has raised its margins by 18%. before coming you had to put up 14,000 -- $14,000 but now you have to put up $6,500. this is discouraging investors. silver though is a complicated asset. it is not just the physical market. we also have etf's. yesterday, there were record option value for the silver etf in terms of elevated call option . people are still putting on this trade. the movement to rein in the volatility is normal and the

composite -- in the commodity market. annmarie: our thanks to dani burger setting the stage for our next guest, ross norman. ceo of metals daily. what do you think right now regarding the silver market? is it showing signs of struggling to absorb this extra demand? ross: we have had roughly 1000 tons of buying. a record amount. but volumes of physical metal are abundant. 34,000 tons. should the market continue to rise, scrap will come to the market. there is some tightness in the forward market suggesting tightness.

retail demand is very firm. premiums for coins and bars are up 30% over spot which is extraordinary. on the fringes, there were signs of stress. but it is quite clear that the market is a large and liquid. i might add that the etf is accessing the london market. manus: good morning. supply is plentiful. you are using very moderate language here. when we say margins have been raised, this is normal market practice. that is what the exchange is

there to do. does that say to you that markets are efficient and are being well-controlled? ross: i think so. i think it is a cautious action by cme. there is nothing extraordinary about it. they do this on a regular basis. it is in keeping with normal market practice. the market remains large and liquid. the market would continue to rally if we sell this for an extended amount of time. looking at silver -- what about gold's reaction to this rally? gold looks rather skeptical of this move and silver and remains rather muted and on the sidelines. should gold move, i would be more concern that this could see as hunching through that critical $30 level that we saw

last august. taking us towards $50 which many investors are hoping to achieve. the jury is out. momentum at the moment seems to be slipping away. annmarie: i just got an email from our internal metals group wrote. his question is -- metals guru. ross: this is a festering sore that goes back over a decade. one is visible and one is not. they typically all -- are short the futures. this is a private arrangement between the bank and --. the reason they do this to their

trade is to effectively borrow silver from the markets. they borrow silver to lend to their clients. people assume the banks have only one short position. one major bank was addressed by this why they would be running such a large position. this is a mechanism to borrow silver from the market. there is a misunderstanding that the bullion banks are short. they are not. manus: a great deal of speculation that retail can manipulate the market. they can cause injury in price spikes. how difficult is it for retail to do battle with the institutions that are so long in this market? it is not that easy.

it is a misnomer, isn't it? ross: this idea of retail investors concentrating to move a market -- that is a whole new phenomenon. it is compelling to look at and it is impressive because of its organization and it is unsettling. a mob army hitting a market. it is a new dynamic in the market has to take it seriously. but the idea that a retail investor -- we are now seeing it in precious metals. taking on silver is a large market. if they can manage to gather momentum from the indian market and perhaps more importantly the indians are reducing their tax on gold and silver. that could have long-lasting effects on the market. they may well get the bigger players on their side.

they may be swimming with the tide. it is impressive and unsettling at the moment but they are punching up against an important resistance level. time will tell if they can punch through this $30 level. manus: great to get your perspective on this unsettling mob army that should be taken seriously. ross norman, thank you for being with us. ceo of metals daily. deutsche bank debt trading beads wall street. this is bloomberg. ♪

nus: it is "daybreak: europe."

two deutsche bank in germany. they beat the street, wall street. that is double the average increase of wall street's five biggest banks. double what wall street did. that is spectacular by anybody's benchmark. how did they win? >> it seems like that. yes, they had a good quarter. especially since the last quarter, of 2019 was also pretty good. it seems they were able to extend market share gains they already had and it is looking pretty good for them. annmarie: the last time i saw you, we were at the agm together . there was a lot of anger towards management. what does this mean for the ceo?

>> that was fun. it has been an important quarter for him. he has staked a lot of his turnaround success on success in that trading unit. and for them to show a second consecutive quarter of market share gains, that is helpful. he said he is going to carry this over into 2021. if he can pull this off, that will really help him. manus: this will build the story if the price continues to improve that they could be a better and more equitable bed partner with ubs. >> yes, it makes them a more attractive partner. manus: it creates them on and equal footing. >> they are still trading at a

discount. a very heavy discount to ubs. if they can level that out, that would make them much more attractive to shareholders. annmarie: thank you for that. our bloomberg reporter. the results will be out on thursday. equity markets are elevated. some of the risk momentum from asia coming over to europe and asia -- europe and u.s. fiscal stimulus, the virus, and the vaccines. manus: the u.s. is pounding ahead. i like the upgrade that tesla got. a big night. big tech has to deliver big results if they want to stay in the game and avoid a hashtag. annmarie: is there contagion?

it seems like it is idiosyncratic. manus: lovely word. tomorrow, less racing and more markets. this is bloomberg. ♪

anna: good morning and welcome to "bloomberg markets: european open." i am anna edwards live in london, the cash trade is less than an hour away. interest in gamestop shares plummets, it runs into a roadblock. has the retail many run out of steam? global stocks are risk on in hopes of u.s. stimulus