head to aerotrainer.com now. now it's your turn to lose weight, look great, and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. annmarie: good morning. from bloomberg's european headquarters, it is 6:00 a.m. in london. this is "bloomberg daybreak: europe." u.s. stocks had a record as market attention turns to january's jobs number and size of a healing labor market. janet yellen says market infrastructure was resilient during the gamestop frenzy. vigilance is key. bnp paribas debt trading revenue

misses estimates, as it signals an uncertain outlook amid the pandemic. >> if we roll that fixed income into 2021, well, it is not anticipated that those record levels that we saw in the pandemic environment are to be reproduced. annmarie: good friday morning. it is payroll friday. we be counting you down to that all-important jobs number coming out at 1:30 p.m. london time. we did have another record day on wall street. 4 days of gains. 3871 where we ended up on the s&p 500. 3877 when you look at the futures market. in asia, equities higher on the msc asia-pacific. all the action in the bond market when you look at the 5-30's, topping 147 basis points. on the 30 year yield, we are inching ever so closely to that

2%, a level we have not seen since february last year. all that is going on in the yield market, treasury market has to do with inflation. below $60 per barrel on brent. the countdown begins on the payrolls number out at 1:30 london time. more at stake than usual with today's jobs number. the report card this week has been truly fantastic. on wednesday, it all kicked off with the services numbers unexpectedly expanded by the most in two years and a pick up in orders. we have adp employment numbers that showed private companies adding more jobs than forecast. yesterday, a fall in initial jobless claims, lowest level since march and also a better number on the revision. all of this is leading up to today's number. it is the first under the biden administration. what the survey is looking for,

105,000 jobs to be added to the economy. before i went to bed, i checked, it was at 100,000. we are seeing a lot of people on the street start to up their bet . we also spoke to a fed official overnight, esther george, about what is happening with the job market as well as the stimulus. many are saying even though the biden administration is pushing for this 1.9 stimulus, despite the data, fed officials are signaling now is not the time to discuss scaling back the central bank's massive bond buying program. esther george joined the chorus. >> it's too soon to speculate about that. until we see the path to getting past this virus, it will be difficult to make any prognosis about when that time might come. annmarie: esther george talking

to bloomberg there. joining us this morning is samy chaar, chief economist at l ombard odier. we are seeing record stock markets on wall street, back to regularly scheduled program. second half of 2020 was about this idea chinese exceptionalism. will american outperformance begin to be a theme yet again? samy: hello. yes, absolutely. i think this is basically what the market is guiding to. this is what we are seeing in the data. there is a consistency around the cyclical recovery narrative, right. commodities, inflation expectations, the yield curve. i think it is very consistent with an early recovery. this is what we are currently in today. this is what should be played. until proven otherwise, we are

in a recovery. annmarie: what happens today if there is a strong print on the jobs number? survey has 105,000 jobs. the biden administration is pushing for a massive stimulus program, $1.9 trillion. i do not think any american president wants to see it week jobs number but there -- but is there the risk of a backlash if the number is too good and there is questions if the u.s. economy actually needs that money? samy: first of all, those fiscal packages are here to support the recovery. the recovery is not yet complete. there is still a gap, in terms of where we stand now versus where we were before. there is still a level of output to recover. whatever the job market is today , and we anticipate it being

relatively strong, it's not like the unemployment rate is going to converge that quickly to the 3.5% we had before covid. there is a lot of ground to cover before we can say we are fully recovered and we can finally, finally start raining in some of those emergency measures. there is another topic. it's about the next 10 years. our economies need a higher dose of hopefully productive public investment. there is an energy transitioned to do. there are a lot of inequalities. there is infrastructure to improve. the public investment and the stimulus is not all about the crisis. it also has to do about improving our economies for the next 5-10 years. annmarie: for 2021, you talk about the green recovery, etc., how do you want to invest in the recovery? samy: the first thing is to focus on the short-term

narrative, which is the catching up of the assets and the segments of the market that are most cyclical and that have lagged. basically, the traditional quality gross segment of the market. this is how we want to play the initial stage of the recovery, is to be more cyclical so it's more about sort of mid-caps, industrials, materials, potentially a little bit more financials as well as the yield curve steepen's. i would say this is how we have entered 2021 in the u.s., but also globally trying to play emerging markets. add cyclicality to the portfolio. once that theme is a bit more exhausted, we will get back to the quality of earnings, quality of balance sheets. for now, it's about trying to tilt the portfolios towards cyclicality. annmarie: many have been warning about the froth in the u.s. market. at some point, many are

expecting a pullback. how do you time that? are you seeing a timeframe where you think we could actually see markets begin to pull back even more? samy: it's difficult to -- you know, a significant pullback, let's say markets need to breathe, right? you are not going to have a straight line up. there is always going to be bumps in the road. but for a very severe pullback, let's say something in the magnitude of -10, -15, -20 type of pullback, my view is that you need some sort of tightening. very clearly, we are not getting that in the markets. we are not going to get that in our economies before long. i would not expect so much of a wide pullback. annmarie: everything you'd want to see in terms of inflation picking up is there on the screen, especially when you look at the long e of the treasury

market, commodity prices. but are we moving into a higher inflation regime? samy: no. very clearly, we are seeing something very consistent when it comes to inflation expectations. it is normal in a recovery when you had a profoundly disinflationary shock that drove down inflation expectations and prices, we are recovering from that. this is a normalization as economic activity slowly but surely improves, prices improve as well and tend to normalize. from the very depreciated 1.4 levels of core inflation that we saw on a year on year basis, maybe we go back to 1.9. are we shifting regime? many reasons for us being in a low inflation regime are still there, when you think about aging demography, competition, technology, the output gap,

still a lot of slack in the labor market. i think we will stay in that low inflation regime. it's a positive signal that prices recovered. annmarie: samy chaar, chief economist at lombard odier, stays with us. let's get a recap of the first word news. laura: the u.k. will require travelers from coronavirus hotspots to quarantine starting february 15. arrivals from countries on the u.k.'s travel list will need to isolate for 10 days in government approved accommodations. the news comes amid confusion about how soon the government would implement the policy. it was announced last month. the u.s. has voted to strip republican marjorie taylor greene of her committee seat are embracing conspiracy theories and violence against democrats. 11 republicans voted with the democrats. few defended her words but some voted against, saying it set a bad precedent. president trump once declared greene a future

republican star. robinhood has removed limits on buying shares of game stock and mc, the stocks at the center of the recent frenzy. the temporary restrictions caused an outcry amid day traders, who said the broker had sided with hedge over customers. gamestop has plunged over 80% so far this week with amc also down nearly 50%. 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. ? thanks so much for that -- annmarie: thanks so much for that. merkel warns against using germany's lockdown. more on the vaccine story next. this is bloomberg. ♪ (announcer) do you want to reduce stress?

shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates. and safe for all fitness levels. get gym results at home in just 10 minutes a day. no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now.

annmarie: good morning. this is "bloomberg daybreak: europe. bnp paribas's debt trading revenue missed estimates as the group signals an uncertain outlook amid the pandemic. they warned the strong client activity seen in 2020 is unlikely to continue. bloomberg markets european close anchor guy johnson sat down with cfo lars machenil. >> if we roll that fixed income into 2021, well, it is not anticipated that those record levels that we saw in the pandemic environment are to be reproduced. however, we anticipate that the market share that we were able to capture in 2020 will consolidate in 2021. that is on the fixed income. equities, which was impacted in the beginning of the year while the market was impacted, there

is something where we have a base effect. 2021 should be stronger. and moreover, 2021 is the year where we integrate the prime brokerage activities from deutsche bank that we have in our systems as well. that's what we look at as the dynamics in the market activity. >> net-net, you think you will not see as good a year going forward for fixed-income? lars: if you look at it -- listen, i do not have a crystal ball. if you look at the overall market values that took place, it does not look like that is going to be repeated. again, i do not have a crystal ball. we stepped up our market share so that is basically something that works on the other trend. that is basically where we stand. the main thing is that there will be activity in the market which i cannot forecast. we have stepped up our market share and that is what we will continue to drive. >> the bank is operating with positive -- so let's talk about

costs. what does the bonus pool look like given the strong performance you have seen from your traders? some banks are going down the line saying that they want this to be fairly moderate this year. moderation is in order. would you agree with that? lars: if you look at it over all, if you look at the results, when you look at it, it takes into account all the elements, performance of the bank, performance of the individuals. that's basically what we would do and there is not much more to say about it. >> let's talk about where you go next. there is considerable speculation about cross-border mergers within europe. his italy too hot to handle -- is italy too hot to handle at the moment? do you look at italy and think there is an opportunity? or do you look and think that given the political backdrop, given what is going on with the debt loads, you could find yourself in a situation where you do not want to go down that road? lars: our stance is that those

large, cross-border kind of integrations, on one hand, they are not fully supported by all the regulatory environment. things are being ironed out. but nevertheless, for us, we are really focused on visualizing -- digitalizing and interacting via those digital ways with our clients and doing a cross-border integration would be a distraction from this activity. we really stay focused on rolling out all the digitalization efforts that we have done. annmarie: bnp paribas cfo speaking to bloomberg's guy johnson. the pandemic front and center for bnp. angela merkel says it is too soon to ease the country's lockdown, even as the pandemic shows signs of easing. the eu is under scrutiny after delays to its vaccine rollout. when will life returned to normal? according to bloomberg research,

a global recovery would take seven years at the current pace. that's factoring in the rate of vaccinations and the so-called "herd immunity" levels. samy chaar still with us this morning. current vaccination rates, what we are seeing right now, it will take years for g7 to develop that immunity. the united kingdom is front and center. who out of the euro zone is going to suffer the most? who should we worry about? samy: europe as a whole went into this strategy together to avoid competition among members. but then, they messed up a bit their supply strategy. there are a lot of talks about that. the rollout is underwhelming. they are very late compared to the u.k., as you mention. but we should also remember that we were having two quarters

ago about testing in europe. there were only testing a couple thousand people a day but by the summer emma they were testing millions. supply chains have a way of meeting demand. you have this very slow ramp-up, it is underwhelming. they should be criticized for such a slow rollout but at some point, there will be millions of vaccines available in europe as well. for those who want to have access to the vaccine, they will be able to have it. i think seven years to be able to get back to normal seems very long to me. i think we can achieve being there much earlier. annmarie: so you are saying this is kind of like it was testing -- with testing. should europe consider fresh stimulus? we have not been talking about europe. do they need another injection? samy: definitely. i could agree more.

this amazing challenging time. they have a lot to do. the testing is a bit underwhelming. vaccines will come. for now, the rollout is a bit underwhelming. the fourth quarter last year was less of a damage but still a contraction. the first quarter will be challenging as well so it's going to take quite some time, or time in europe, to recover the pre level of output. there is a lot of economic ground to cover for europe. they need more. they need more to support the cyclical recovery and to get back to pre-covid levels. when you think about what needs to be delivered for the next five or 10 years, so absolutely, that's hope they are able to put something more together. annmarie: samy, i want to draw your attention to italy. the markets are absolutely loving the return, the potential return of the government of mario draghi. we saw yesterday the italian

german yield spread following below 100 basis points, first time since 2016. italian politics can be messy. do you think this sentiment on italy will continue? samy: you summarized it pretty well. that's the issue. mario draghi is the man italy needs. he is the man that europe needs as well. we need more stimulus in europe. if we don't, the growth gap between europe and the u.s. is going to continue to widen. so more ambitious policy needs to be done in europe. in that sense, mario draghi can be a huge help. i think supporting macron and merkel while she is there. great addition to the club. the problem is obviously how long he will be able to govern and how long he will stay at the helm of italy. these are big questions, obviously. let's hope that he will be able

to put a consistent policy in place for a certain number of years. we know how italian policy works, as you said. there is, unfortunately, a big headwind on that front. annmarie: we certainly do. there has been a new government basically everyone .4, 1.2 years since he became a country. thank you so much for your time. coming up, tiktok rival surges on its hong kong debut. demand for the short video shard tart up attracting a record amount of interest from retail investors. if that's next. 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. wanna lose weight and be healthier? it's time for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com.

♪ annmarie: good morning. this is "bloomberg daybreak: europe."

i am annmarie hordern in london. the tencent backed video company kuaishou technology has almost tripled in its hong kong debut after raising $5.4 billion in the biggest internet ipo since uber in may of 2019. juliette saly has been covering this throughout the asian session. what a debut. juliette: absolutely. kuaishou means fast hand in a chinese and what a fast hand you had to be to get in on this and then to see absolutely skyrocket on debut. 194% jump. shares at 115 hong kong dollars in the ipo. at one point, they rose to 345 hong kong dollars and we saw 65 million shares changing hands in the first 23 minutes of trade in hong kong. it is now valued at $179 billion. if it holds, there is only an hour and a half left of hong kong trade, it will be the

second-biggest debut ever for an ipo of over $1 billion in the world. we already have by ratings on this stock -- buy ratings on this stock, three. in terms of offers, it is second only to a chinese giant in the last year or so. in hong kong, there has been some very healthy demand for ipo's. investors really seeking new issuance, despite market volatility, because there is this a glut of liquidity and ultralow interest rates. the other thing that will be interesting to watch is whether or not bytedance and tiktok more globally is now going to hit the market. it has looked at a valuation of around $180 billion in the past. when you look at what you have seen from kuaishou today, you could imagine that it would be looking potentially to hit the market, too, sending a really strong signal that now is a great time to go public in hong

kong. annmarie: looks like it is opening the window completely of hong kong ipo's. juliette saly in singapore, thank you so much for that. absolutely stunning debut. we will talk about the k-shaped recovery. u.s. stocks hit a record as market attentions turns to today's january jobs number and of course, signs of a healing labor market. the report card for the eco-data in the united states has been pretty stunning. adp employment adding numbers, pickup in services. that means a rebound in hiring. and what you are seeing in terms of the futures market ahead of the open in europe at 8:00 a.m., it is green on the screen. s&p 500 futures extending yesterday's rally, had a fresh rally. nasdaq, the tech, 0.5%. this is bloomberg. ♪

♪ annmarie: good morning. it 6:30 in the second city of london. i'm annmarie hordern and this is "daybreak europe." market attention turns to the jobs number. janet yellen says market infrastructure was resilient during the gamestop frenzy. esther george tells bloomberg vigilance is key. the end -- bnp paribas up debt

trading misses, uncertain outlook amid the pandemic. >> well, it is not anticipated that those record levels that we saw in the pandemic environment are to be reproduced. annmarie: good morning, 6:30 in the city of london. we are counting down until the u.s. job numbers today. we hit a fresh record across wall street yesterday, s&p 500 closing 38.71. we are seeing momentum bleed into the asian market, up .8% on the asia-pacific. in the bond market, it's about the five and 30 yield, topping 137 basis points, pedal to the metal when you look at refreshing -- reflation trade. we are inching to the 2% target,

something we have not seen since february of last year before the march meltdown. inflationary expectations is part of the narrative, bring this morning trading under $60 a barrel. as we count down to the jobs number, the report card this week for eco-data was stunning. wednesday we had the service numbers -- services number. pickup in orders means rebound in hiring. then we had the adp employment. that is private companies. they added more jobs than forecast. yesterday, a fall in initial jobless claims, lowest since november, better number on the revisions, all this leading to today, first of the biden administration, very important, the survey calling for 105,000 to be added. yesterday before i went to bed, i checked eco-go, and we are seeing more bullish sentiment coming out of the jobs report. that number will be at 1:30 p.m.

london time, we will bring it to you live here. despite the strong data, fed officials are signaling now is not the time to discuss scaling back the central bank's bond buying program. in kansas city's fed chief, esther george, joined the chorus. >> it's encouraging, the progress we've seen in the economy, the support that has been provided to this point. i think around all of that, of course, we can't forget the real driver, the outlook continues to be the virus. and as we watch the promise of the vaccinations coming out, as we see how readily people will take those, how quickly they can be deployed, that of course is what is going to ultimately shape the recovery as we look ahead. annmarie: so, basically, you and others have said -->> so

basically, you and others have said the recovery is about the vaccine. it was the virus. now it's the vaccine, how quickly it comes out. what will a successful rollout look like to you? the kind that we -- would give this recovery some momentum? esther: the way i think about it is, when the virus no longer factors into the day-to-day decision-making, then i think we might feel like we are out of the woods. what does that look like? it will depend on broad-based immunity, herd immunity, as it's called. and i think once people can resume mobility, resume activity, that will be the signal, i think, we're on track to complete the recovery. kathleen: you came up on the banking side. you had to shut down banks that were in trouble, so you know what this looks like, perhaps. you know what the signs are.

when we look at gamestop, the retail trading frenzy, the short-sellers, you're not the sbc. you don't have to comment about that. but as a banking regulator, is there anything like this that can lead to financial instability is this kind of thing continues? esther: you're right. financial stability is an essential condition for the federal reserve being able to achieve its mandated goals for full employment and priced ability. and so looking -- price stability. and so looking carefully at the economy is critical, i think. and we know from past recessions, 2001, 2008, came about because of vulnerabilities in the economy. so, it's an area i keep a close eye on. markets can experience volatility. looking broadly at

vulnerability, thinking about the capitalization of the banking system are all very important indicators and conditions for us to be successful in delivering on our mandate. >> treasury secretary ellen -- yellen met with fed board. the statement is that the treasury says the core market infrastructure has been resilient amid this retail trading frenzy. if you had been at the meeting today, what would you have advised treasury secretary yellen to think about, to watch for on this, and anything you might see as a particular potential threat in all this? esther: well, i think the issues they're focused on make a lot of sense. they're the right ones. we need integrity and smooth functions for the economy to work. that sums like that's exactly where they were focused --

sounds like that's exactly where they were focused. kathleen: what about the fed's ultra easy monetary policy, that key rate is zero -- key rated zero? this is something that can feel frothy, like a bubble, which can be stan -- financial stability. how do you enter that chrism? do you see truth in it -- criticism? do you see truth in it? esther: i think it's true, when you have financing conditions for a long periods of time, it can create incentives, incentives to reach yield. it can cause some to risk price and markets. b -- in markets. but my own view, the real priority has again been addressing this extraordinary shock. and the federal reserve, right now, as far away from what i would say is achieving its

objectives. and so in that context, it means you have to, again, be very vigilant. you have to be watching. annmarie: esther georgia speaking to kathleen hays earlier. with a year on since the start of the covid-19 pandemic and a borrowing binge continuing to pick up steam, 9.5 trillion dollars has been added to global debt, and that heavy spending has meant survival to many companies which otherwise would have collapsed. the rise of these zombie companies is especially apparent in europe. dani burger reports. dani: an army of the corporate undead are roaming around europe. everyone from london's iconic barnaby street to movies and airlines, companies that have been hammered by the pandemic are struggling. they haven't made enough money to pay off their debt. it's a criteria most experts used to define a zombie company. that is, firms who are just

limping along, surviving only off of government aid and cheap debt. in the u.k. alone, half a million companies are in distress. i spoke about this with julie palmer. julie: if you concur with previous recessions, this isn't a recession. it's a complete lockdown. business hasn't been able to operate. because of that, support measures have kept businesses alive. but they haven't been trading like normally. so estimates range from 800,000 to one million u.k. businesses may be at risk of failures. dani: now, zombie firms are everywhere you look. here, a real estate investor has been struggling to collect rent. they've had to raise more money in order to stay alive. ♪ zombies aren't just in the movies anymore. they've also overtaken the theaters. cineworld is wrecked with nearly $8 billion worth of debt.

creditors had to give them lifeline, lending them $750 million in extra funding. >> since the financial crisis in 2008, when we've been carrying these zombie companies, it's almost stifled the recovery. these businesses are allowed to fail. they haven't failed because interest rates have been low. banks have been very supportive, and governments have supported businesses through differing structural liabilities. dani: cheap debt and government aid may have staved off bankruptcy's, but these types of companies can drag down the economy, as assets stay tied up in unproductive and barely alive zombie firms. annmarie: dani burger on the zombies problem, as you take a walk around the block. coming up, protecting investors. that's what janet yellen is most

concerned with in light of the reddit field rally. more on that next. this is bloomberg. -- fueled rally. more on that next. this is bloomberg. ♪

>> understand deeply what happened before we went to action, but certainly we're looking carefully at these events. we need to make sure our financial markets are functioning properly, efficiently, and the investors are protected. annmarie: treasury secretary janet yellen there about protecting investors, her first interview as treasury secretary to good morning america, not a financial network. and this is the head of her meeting with regulators to discuss the recent events surrounding gamestop. let's get more on the saga with

dani burger. dani, yellen says markets are resilient. but could we see any lasting impact on the markets from those wild two weeks? dani: one thing that's been made a moderately clear from this saga -- abundantly clear from this saga is that there are more retail investors out there, they're more active, and it's hard to see them go away anytime soon. there are calls to delete robinhood. we still saw more people downloading the app, getting involved. you can see more and more people keep trading on those retail brokerage platforms. it's not just in the u.s. the u.s. has the biggest share of retail investors. but if you look in the u.k., for example, barclays has data that shows a huge amount of growth, as well, to these platforms. so, the attention means more people are interested. i've talked to hedge fund. managers about what that means

what does it mean if you are trading in these markets? it is a torn topic. one said we've seen this before. perhaps it's not retail investors, but shorts get sweet all the time. i've talked to others who said he's not going to touch shorts in the u.s. right now. here's another call option frenzy. so many are buying calls because retail investors love this. according to goldman sachs, call option volume is 100 when he percent of the shares -- 120% of the shares. annmarie: joining us is fiona frick. really fantastic to catch up with you after these past two really crazy weeks in the market. the consensus on wall street is that these idiosyncratic events and gamestop and other mean stocks won't have contagion risk. but you believe there's a broader risk of d growthing, and it's greater than what is being priced in. why? fiona: because i think -- two

things. first, there's a new actor in the market, retail investors, which tend to go together in different ways by social media, in a more intense way, which can, as we have seen, could have immense repercussion on stocks, but also some hedge funds and on some companies. so, i think this is the first thing we have to take advantage of. the second, the market has priced perfections and valuation. and therefore, any sentiment move can have a great move on markets because they are priced to perfection. annmarie: in 2020, you were head of some of the official data due to your newscast, i guess how you tracked the sentiment on social media.

you're literally scraping the internet. with your firm able to see some of the moves we saw the past two weeks? fiona: no, because we tend to look more for macro signals, how they come into social media. i would say that the technology is there. so, the idea that retail would get rid of the hedge fund is too idealistic, because some will be able to use those signals. and play these trades, as we have already seen. so, they will be in the game quite soon. annmarie: the wall street journal had a great report on hedge funds that got in on fundamentals in 2020 and sold at the top. what they called the top was the elon musk tweet. i want to look at the current drivers of the market. we had good earnings quarter. we had excellent data coming out of the u.s., which we'll see, potentially, cap off the week

with the job number. are we treating the economy as the main driver of the market? fiona: so, it's true the results of the company were quite good. they beat the earnings estimate by six he percent -- 60%. we see also the correction in sales was less strong than anticipated, which shows companies have adapted to new environments, except a few companies where it's really difficult, like leaders and tress pertain, etc. -- transportation, etc. this is a good surprise. although there was surprise, it still hasn't had a huge effect on market. this is because a lot has been priced in already on the price. it's not a variation in advance

since november, since the breakout of the news of the vaccine. annmarie: what's the biggest risk right now to the market? fiona: rational exuberance. the market is ahead of itself and pricing for perfection and some numbers or some news around vaccine deployment will bring back more negative sentiment on investors. annmarie: and we've seen the vaccine trade in europe, really in the fx market, very optimistic for the pound, but some weakness on the euro. how long do you think this vaccine trade could continue to strengthen sterling? fiona: i think it's an important thing because it's not just a vaccine trade. it's when the economy will be able to stop again to return as

normal. the fact the u.k. did much more in advance than in europe, make that there is a strong likelihood for the moment that the u.k. markets economy will be running ahead of europe in terms of reopening the shops, etc., etc. so, i think the vaccine trade is an important one. i think europe will catch up. they have a start, which is a bit comes a, but when -- clumsy, but when capacity is there, they will catch up. annmarie: i want to end on your conviction call, playing nicely in the market today. if you are all in, where exactly do you want to invest? fiona: it's we see more risk of

reflation going forward than risk of recession. a reflation, for once, monetary policy that will remain more on the lower side than on bringing up interest rates. so, i think we want to have a portfolio, which is overweight growth assets to a certain extent. although there are irrational exuberance, is not across the board's. the markets, you still see some value there. we went to have some assets that will perform well in terms of inflation. certain types of equity perform well in inflation scenario. you want to have commodity exposure. so, you want to have a portfolio with growth assets and inflation assets. annmarie: right, citi warning iron ore may be very volatile.

fiona frick, thank you for joining us this morning. coming up, a household name, a trendsetter, maybe an icon. manus is off today, but he left us this interview. not kidding. coming up next. this is bloomberg. ♪

>> i have to be honest. nothing can replace a real concept with real people. and i believe in the vaccine, you know. i feel very lucky because i'm in dubai. i got vaccinated. and they're very advanced on that. so, i feel very lucky with that. but i don't think there's any other answer to our problems. so, i just hope that things are going to be fast enough in the world so that we can go back to having real. consequent is

because i miss people. manus: i think we all miss people. i think we are miss that experience. do you think there's a chance we get summer, 2021? >> i hope so. you know, and based in eb said during the summer, and this is probably -- if these are -- ibiza during the summer, and this is probably closest to my heart. when this is all out, we're going to have the biggest party of all time. imagine the frustration of millions of people. i told my kids already, listen, enjoy my company because when this is over, i'm gone, i'm onto her nonstop. -- on tour nonstop. manus: angela merkel says she's going to vaccinate the whole country by september. is there a chance they roll it late? why not? david: i just hope, july,

august, i do hope so. i think -- i mean, i don't know. i'm here in dubai. i'm pretty amazed by the life, like restaurants are full. and of course, social distance and all of this, but there's still alive. annmarie: manus cranny off today, but i know he's watching his interview right there with david guetta, thinking the government should have done more for the performing arts. he's putting on a concert in dubai this weekend. it will be streamed online to raise money for children's charities, including unicef. i like what he said there. the world will have the biggest party we've ever seen following the pandemic. that's what we're seeing when we look at the stock market, fourth day of gains, topping fresh records. stoxx 50 futures up nearly .5%,

s&p 500 futures extending those gains. it's a countdown to the jobs report, 1:30 p.m. time london time, streets looking for 105,000 jobs. this is bloomberg. ♪

♪ anna: welcome to bloomberg markets: the european open. i'm anna edwards, live in london, alongside matt miller in berlin. matt: good morning. the markets say so much for the retail revolt, just a week after gamestop's 1000% surge cost hedge funds brilliance -- billions, it seems to gain a little, sicll