manus: good morning from bloomberg's middle east headquarters and you buy. i am manus cranny. andrea horton -- in dubai. i am manus cranny. annmarie hordern alongside me. jay powell turns his focus to the labor market, calling for a societywide push for jobs. joe biden holds his first talk with xi jinping as the u.s. president raises concerns over

coercive and unfair economic practices. unicredit posts a bigger than expected fourth-quarter loss. commerce bank numbers hitting the tape right now. it is a busy day. 6:00 a.m. in london. 7:00 a.m. in frankfurt. we have had the numbers. how do they look, italian style? annmarie: an unexpected loss, bigger than expected. 1.18 billion euros is a loss and that's double what analysts were expecting and it's the final days of the current ceo, and as you say, a new man back in the game in banking. the question that many are asking about what kind of bank he is going to lead is whether or not he is going to be more open to acquisitions and one name that has been floating around is commerce bank. i bring that up because those numbers i know you have now. manus: absolutely.

commerce bank loan loss provisions. this is the key thing for banks during this reporting see asian. -- season. at the top of your screen. commerce bank performed in the past three months. let's get to the fourth-quarter revenue, that's light. we were looking for 2.0 a billion, but the loan loss provisions come in at 800 million to 1.2 billion. that is what they are seeing for this year. they see a positive operating result in 2021 so they are giving us the guidance. credit agricole was a lighter loan loss provision than the market had anticipated. you are going to see slightly lower revenues into the 2021 numbers. we will digest those numbers in a while because we have to add names that will hit the bloomberg screen throughout the day. this morning coming up, we have the cfo of commerce bank and we have the ceo's of shell,

euronet, and another. annmarie: we have two great interviews coming up this hour. the next 60 minutes, me m&s will be very busy. we will speak to ceo's of zurich insurance as well as snyder electric. two minutes after 6:00 a.m., let's check in on where we trade in the market. s&p 500 futures are pretty stable this morning, relatively flat. euro-dollar above 121. it continues for a softer u.s. dollar and brent crude, we are lighter, down .5%, but we are still about $51. we are seeing lots of phone calls on oil. christian got occur saying $70 asset price target but really, i have seen targets all over the map which says to me that people don't exactly know where the demand picture is going to be, but manus, the story this morning, the cpi data. inflation was very subdued and powell was very dovish. these events may not exactly

spoil the reflation trade but the question is will we start to see it stall? manus: if you think of the double potency that we are actually dealing with, which is powell's message, which was we are not there yet. we are far from being at a successful point. that is the first point. the second point is you have janet yellen. you have the potency of this fed and treasury coalescing around a narrative which is we need to do more. there is something strange. the dollar is reacting, and the bond market is muted, but the equity market looks fully priced. it is all about jay powell. annmarie: he was not too fast about inflation -- fussed about inflation. he says the job market remains a long way from a full recovery and called on lawmakers and the private sector to support workers. take a listen. >> there could be some upward pressure on prices.

again, my expectation would be that that will be neither large nor sustained. in major part, we are looking at actual inflation. we want to see actual inflation. manus: let's see. let's get the first word news now with laura. she joins us. laura. laura: good morning. donald trump's impeachment trial has seen graphic video of a violent mob rampaging through the u.s., stocking mike pence and nancy pelosi. >> where are you, nancy? we are looking for you! nancy! oh, nancy! nancy! where are you, nancy? laura: the siege is being

portrayed as the culmination of his long campaign to stoke anger over the election. six republicans agreed the trial is constitutional but the prosecution seems far from winning the 17 gop votes needed to convict trump. germany is on course for a looser lockdown as schools and daycare may open as soon as next week. it is a win for state leaders over angela merkel, who wanted to extend the curves and maintain consistent rules across the country. other restrictions that were due to expire on february 14 will now last until march seventh. local media reports say the former japanese prime minister plans to resign ahead of the organizing committee of the tokyo olympics. it comes in the face of growing criticism over his demeaning comments about women, long known in japan for his numerous gaffes , he said you need to mimic the speaking time of women because they talk too much. global news, 24 hours a day, on air and on bloomberg quicktake,

powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus, amory. annmarie: thank -- annmarie. annmarie: president biden and xi jinping's first phone call. what was discussed and the future of u.s.-china relations. 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.

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annmarie: good morning. this is "daybreak europe." i am annmarie hordern in london with manus cranny in dubai. president joe biden and china's xi jinping have finally spoken for the first time since the new administration entered the white house. biden shared his concerns about coercive and unfair economic practices as well as human rights abuses in hong kong

according to a white house account of their call. for more, we are joined by bloomberg's government editor. walk us through a little bit of what was discussed. it is a very important phone call between the newly minted president and xi jinping. >> they don't appear to have been any surprises. a lot of what has already been said, they touched on major issues between the two countries. biden raised his concerns about china's economic practices and human rights abuses in xinjiang and he also expressed misgivings about growing restrictions on freedoms in hong kong. and what he called china's increasingly assertive actions in the region including towards taiwan. it has been a long time point of contention between the two sides. china's official news agency said that president xi is saying china and the u.s. should reestablish mechanisms for dialogue and that there would be an accurate understanding of a tethers policies and to avoid miscalculation but it also

repeated that taiwan, hong kong, and xinjiang were china's domestic affairs and said that u.s. should respect china's core interests in act with caution. you see a bit of a desire to reset relations but also, you know, a note of caution from china. manus: what can we glean from the readout from the u.s. and china? >> i mean, well, this first call could set the tone for the relationship between these two leaders as biden becomes president although it's important to note that the first readout between trump and president xi was also cordial before relations interior rated. china has taken a pretty cautious to the u.s. since trump that office and this readout echoed that. we have seen some of his rhetoric push for more cooperation. the readout was cordial overall. biden wished president xi appy s committed to practical

engagements. the most launched question of his foreign-policy is whether to keep or modify donald trump's largely confrontational approach to beijing and it's really interesting to note that the call came as the u.s. and taiwan can knowledge to their first official meeting in washington under biden and this is something that is very likely going to anger china, so you know, there's two notes being struck here. manus: thank you so much. karen, our china government editor. the federal reserve chair, jerome powell, said the u.s. job market remains a long way from full recovery and called on both lawmakers and the private sectors to support workers. in prepared remarks before the economic club of new york. >> as the economy reopens, we may see a burst of spending. many are monitoring for that. there could be upward pressure on prices.

again, my expectation would be that that will be neither large nor sustained is contrary to expectations. inflation expectations were to move up in a troubling manner, if that were to be sustained, inflation at troubling levels, we have the tools to address that and we will of course use them. >> as you think about all the data that you look at and the changing nature of this recession, are there specific health indicators that you are looking at, your colleagues are looking at, as new indicators, leading indicators of where the economy is structurally in the recovery? jerome: big parts of the economy have performed pretty well through that. you look back, jobs have continued to be created in goods manufacturing and many service areas. the risks seem to be the downside from a slower rollout of the vaccination or less successful rollout or from the new strain so we monitor all of

that and i think our view is that we need to guard against those downside risks and make sure that we do not move to modify our policy. in other words, to even think about withdrawing policy support, until we see we are really through the pandemic. >> might the impact of -- from the federal budget into her into the fed thinking -- enter into the fed thinking? jerome: budgetary issues do not play a role in our deliberations at all. >> look ahead at where we might be 15 years from now, do you envision the fed going back to a balance sheet or do you think we are in a new world where this expanded balance sheet is a permanent fixture of the financial system? jerome: we are not thinking about shrinking the balance sheet, just to be clear. but to get to your real question, in the long run, our

balance sheet will be no larger than it needs to be to meet the demand for our liabilities and allow us to implement monetary policy effectively and efficiently. manus: if there is anybody out there who has any doubt, it was a very clear message. do not even think about squaring up to me. i do not fight the fed. herein lies the point. the potency. the fed and the treasury. powell and yellen in concert is perhaps more reflective in the dollar trade, down for the fifth day in a row, than it is and what some are saying is a fully priced narrative in the equity market. annmarie: he had a little bit of a nuance rebuttal to the debate you and i have been having across the entire week. larry summers says the package is too big. he's calling on d.c. to go big and pointing to the figure that the economy still needs fiscal

support and remember, we had this a debate on inflation. powell says he's not worried about inflation. the fed is going to let inflation run hot. manus: exactly. to finish off the sentence, everybody has to run that piece that says we are still far from a strong labor market. go on and play the rest of the language. the benefits are broadly shared and this is the narrative, and the reason is the evidence. black americans, unemployment was 9.2% in january versus 5.7%. there is the point. the queen of charts has got it. its repricing by the market of when the fed might go -- it's not next week, not next month, not this year. fourth quarter 2023, but herein lies the point. this is about u.s. exceptionalism. that is still versus the ecb. the ecb is 2024, so the market

is already beginning to say that is real yield. now, when might you need to reprice the fed? annmarie: i like that point you brought up, manus. mohamed el-erian out with an opinion piece talking about we have this enormous contrast again in the world and the data from the cpi shows that. reported inflation rate for goods and services and the one for asset prices is much different. there is a disconnect between the real economy and what real people on main street are feeling versus the financial market. manus: let's just circle back to some of the big results we had. credit agricole. we had commerce bank. the top line from commerce bank is all about what kind of a hit they are taking in terms of the pandemic. they see positive operating so they are casting their net forward. they will have an operating profit and positive operating results for this year. fourth quarter was lighter than the market anticipated.

on the operational side of the business, coming in a bit lighter than expected. they are expecting a possible $3 billion in dividends and buybacks. 2023 and 2024 so that is critical to them. annmarie: i guess seeing that positive operating results for 2021, a lot of these banks are trying to put the pandemic behind them. we are going to have much more coming up, including the banking space. read energy remaining a hot topic for 2021. we will hear from the ceo of gm about the automakers push into ev's, coming up next. this is bloomberg. ♪ (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 to help you maintain comfortable, correct form. that means better results in less time.

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annmarie: 6:20 am, good morning. this is "daybreak europe." general motors beat the street with fourth-quarter profit.

it is continues earning -- continued earnings strength despite short-term damage from a semiconductor shortage that is cascading through the industry. the ceo says margins on ev's likely will not reach parity until the mid-or later part of the decade. david westin. >> we are going to have a very positive year in 2021 not only from a financial perspective but also the continued acceleration of our ev and av's nest. we are excited that very shortly, we are going to be launching a great vehicle and that is days away and then, you know, later this year, we will be serving the market with the gmc hummer ev and the cadillac lyric comes shortly after that as well as tremendous progress being made from an autonomous perspective as well. we are really excited about the growth opportunities we have in front of us so it is a year of

execution and the issues with chips, this is a short-term issue and we will work through it. david: are there things you can do to get an advantage over other automakers? mary: this is an industry issue. of course, we are working every day with a cross functional team to look for opportunities of how do we minimize the impact, so we will continue to do that. we did provide the guidance with a fairly wide range and we will work it every day and provide updates as we go forward. david: you have a lot of models coming out including the bold ev model coming out. you are investing $27 billion, part of a multiyear plan there and as a practical matter, what are the difficulties in that plan and i want to talk about supply chains, things like battery cells, some of the lithium issues. do you anticipate possible problems with supply chains into your battery operation? mary: we are one of only two

automakers that are doing cell manufacturer in this country. we also are doing a tremendous amount of development on our own, and our own r&d as well as partnering with startups and of course our joint venture with a development company as well as production so we are working hard to make sure we have all the cells we need and we work through these supply bases to make sure we do so -- we are accelerating our ev's with 30 by 2025, really covering the whole market so we continue to work it we think we have got a very strong plan. manus: that was the general motors ceo, mary barra, speaking to david westin. let's get back to the big conversation. jay powell says the u.s. job market remains a long way from full recovery and called on lawmakers and the private sector to support workers.

this comes amid the ongoing to play over in -- debate over inflation. the head of allocations and macro research joins us. a nascent cpi but are you convinced? pimco saying there will not be any inflation. larry summers is worried they could run hot. you see a temporary spike. when will that, and what does that mean to the market? good morning. >> good morning. it will mean a threat regarding change in inflation. we are in a disinflationary environment as indicated so there is a long run which started in the early 1980's. what we have to think about is a regime change regarding from disinflation to a re-inflationary environment. this is what it is in markets.

and then we have to discriminate what is an inflation spike and a regime shift. it's two different things and what could be a concern for markets? is not a's bark but a regime shift. if that is the case, the impact on asset will be absolutely dramatic for ag period of time. this is what it is in markets from a strategy point of view. from a technical point of view, if we have an inflation spike, we should get it. it will mean probably a spike in long-term interest rates. in the u.s. especially, putting a certain downward pressure on risk assets on the other hand. however, maybe another topic we could discuss is what does it

mean in terms of earnings growth for 2021? annmarie: hsbc's steven major cause the market positioning for a risk of pickup of inflation, not actual inflation. is that what you are seeing, just positioning for a risk? christophe: it is positioning for this risk. we have to take it into consideration for sure. on our side, this is the reason why we decided to downgrade u.s. treasury and bonds. we are now underweight in our asset allocation stance because we take exactly into consideration this risk of inflation spike with concern regarding a potential shift. we have to think about that over the long run. absolutely. same for gold. gold should benefit from an inflation spike and this is why we are positive on gold.

we could have -- on the short term. these are the major changes and impacts on markets that we are seeing in the wake of the inflation spike. manus: you packed a lot in. is it a spike over a regime change on the treasuries for the spike? christophe donay, head of asset allocation, our guest host this morning. the runway is beginning to back. the ceo's of an insurance company join us next. they posted their full-year results. the insurance market, the vaccine rollout, and the business outlook for the next couple of years. mario greco on insurance risk and covid. this is bloomberg. ♪

annmarie:annmarie: good morning. from bloomberg's european headquarters in the city of london, i am annmarie hordern with manus cranny from dubai. here are today's top stories. inflation adds to the u.s. debate over price pressures. jay powell turns his focus to the labor market, calling for a societywide push for jobs. joe biden holds his first call was xi jinping as u.s. president, raises concerns over

"coercive and unfair economic practices. " unicredit posted bigger than expected fourth-quarter loss at commerce bank sees positive operating results for 2021. the earnings season in full swing and we are going to have a number of executives to look forward to this morning. we will be speaking to business leaders, including the ceo's of shell and zurich insurance. that interview coming up in just a moment, manus. manus: indeed. the debate is this. just how dovish a message did jay powell get to the market yesterday evening? are stocks fully valued? you have doubled doves. you have fed and powell reinforcing the dovish message and yet stocks amble along rather than rocketed. euro stoxx 50 and the nasdaq future. twitter did well as the ad spend in america comes through

robustly despite the departure of mr. donald trump. have a look at the dollar because the narrative from powell is transcending itself and the dollar, not in the equities this morning. day five of the bloomberg brother dollar drop, down by .8%. nymex, have we overreached again? $65 is where you can get the nymex crude going to over the next period of the rest of this year. citigroup are at $70. jp morgan say we are in a new super cycle in commodities and 10 year yields reflect just that sort of slowness in the cpi that cancer yesterday. will that endure? will we see a spike in inflation or regime change? let's begin the ceo conversations on bloomberg. it's our first earnings interview of the day with his concerns and they reported profit that beat estimates as the swiss insurer managed to limit losses in a year that the industry was hit a global

pandemic and natural catastrophes. joining us now is the ceo of zurich insurance. great to have you with us as always. we look at the numbers. in terms of covid, last year, it cost you $852 million. you had the furlough, the lockdowns, and we are getting reopened now. do you think that covid losses could spike this year as we come out and economic reality hits? good morning. mario: good morning, first of all. let me say, we are very pleased with the results of the full year 2020. we had the great recovery in the second half of the year. we increased our profits in the second half of the year compared with 2019. covid in 2021 will be less of an issue and we expect economists to pick up strongly, especially in the second half of the year, and we expect that with this to

mean our business will become stronger. through the year. annmarie: i just want to take your attention, mario greco, to one thing we are seeing in the united states, and that is the u.k. variant is absolutely exploding. epidemiologists say that will be the main driver in march. are you not worried about this fresh variant is spreading not just in the united states but around the world? mario: look, of course i am worried as an insurer. i am worried about everything. what is important for us is how the vaccines work. the evidence so far is that the vaccines work against this u.k. variant and they might struggle to protect against the brazilian variant and maybe the south african one.

so as long as the vaccine works or as long as the pharmaceutical industry has the capacity to adapt vaccines, i think this will be -- i remain positive and will not change our forecast for the rest of the year. manus: mario, you mentioned the vaccines. this is going to become an integral part of how we travel and how we live our lives, so vaccine passports is something i asked a ceo about yesterday. the consensus seems to be building. we will have some sort of vaccine passport. how will that impact zurich insurance if it comes to bear? mario: i mean honestly, i don't know. the vaccines, just at the beginning, i find it impressive how fast has been our research in the pharmaceutical industry

to develop these vaccines. a year ago, everything started, and honestly, we did not think the vaccines would be available already today. now, we hear that vaccines can be quickly adapted for the mutation of the virus and i trust that this is the case, and yes, we are heading into a completely different world where we will need to have evidence of the vaccinations we took and we will probably need to have regular vaccinations over time. but you know, over the centuries, we have overcome similar issues and i am quite confident that we will overcome this, too. annmarie: i want to ask you about m&a. it's a big topic, especially of course after your metlife deal. one of their markets is the group looking at? mario: look, we have done our jobs at the end of last year.

we are not looking today at doing anything else. now, all of our efforts are on integrating well and running a strong 2021 recovery for 2020 and we want to deliver and possibly exceed our targets by the end of 2022. manus: the cost of running the business, every ceo is looking at that narrative. we can see insurance costs are rising in the united states of america. are you able to buy the same amount of protection, let's say, as earlier years, or is the cost of that rising? mario: it is rising, and it is right and fair that this happens. and also, you can see the strong

rise of the price that we are having, especially in the commercial end of the business. the world has had unprecedented catastrophes last year on top of covid and capital has been consumed and there is a cost for that and the insurance market is making that evident. it's showing how much it costs to re-create capital. annmarie: you mentioned a lot of risks last year. a lot of climate change crisis is going on, covid. i'm trying to get a sense for you, for 2021, what are you going to be monitoring the most? mario: we have not spoken yet about the financial markets. that's probably the thing which has been concerning us the most and we expect that this is going to be remaining there for a long

time at the low if not negative interest rates. that is a totally different ballgame and that also explains why the insurance costs are growing so much and why also the commercial rates are hiking so much. we think that in the second half of the year, there will be some posing in this incredibly low rates are negative rates, but then we see this scenario going for the next year and remaining low for a long time. manus: you talk about being concerned about financial markets. do you concern yourself with bitcoin? the bank of canada say it is a speculative mania. do you have an opinion on bitcoin? mario: not really. i mean, we have not invested in bitcoin.

not really. i watch it as probably all of us to, but we do not own that asset and we do not take any speculative position in our portfolios. annmarie: thank you so much, mary a greco, ceo of zurich insurance. at the moment, manus, he is not looking at owning bitcoin. yesterday, the societe generale cfo told me he thinks bitcoin has a bad rap, trading under 45,000 dollars. i like what you said about the bank of canada. they are not too keen on it either. manus: that was the red headline last night. my favorite tweet in the past when he for hours, and i do have to send them before i go to bed, is from mike never grad. he said the bitcoin market cap will be larger than tesla. though tesla has much risk around elon musk.

and bitcoin is owned by a giant, decentralized community, which is growing by the day. that has to be the tweet of the past 24 hours. what else have we got in store? annmarie: let's get a recap of first word news. laura wright. laura: the u.k. is setting a target to vaccinate all over 50's by the end of april but boris johnson's morning it's too soon to talk about lifting the nation's lockdown. experts say more data on the success of vaccines is needed before restrictions can be eased. the prime minister told people not to book any summer holidays yet. the bank of england governor says the e.u.'s post brexit requirements are unrealistic and it underlines the gulf between the u.k. is a block over equivalent rules. amsterdam overtook london as europe's largest share trading hub in january. the u.s. is imposing sanctions on military leaders in the anwar

following a coup. it will deprive the army chief of approximately $1 billion of assets held in america. the news comes as the defective leader is still in detention amid protests across the country. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus, annmarie. manus: laura, thank you very much. coming up on the show, we speak to a ceo on the energy and automation side of the world. we discussed the firm's earnings, the impact of the lockdown, and the business outlook for the firms's carbon neutral targets. this is bloomberg. ♪

annmarie: good morning.

this is "daybreak europe." i am annmarie hordern in london with manus cranny in dubai. full gear organic revenue beat estimates, posting .8% growth in the first quarter with the energy management and automation company eyeing a more positive 2021. joining us now is the chairman and ceo of schneider electric. thank you so much for joining us for it i want to start with what you are seeing in 2021, especially for energy management. what kind of trend should we be expecting? >> he -- in all of our industries, we may hate it but all countries and all places in the world have learned to live with the virus so we see that the economy is recovering as we go forward. there has been a massive reaction of countries, especially in investing into an infrastructure in cities which

are more sustainable and digitized which we can serve at schneider electric. it will aid the economy in 2021. in 2020, many of the countries have been blocked during the lockdowns for 2021. and finally, the specialty of schnider, as you know, if you will, is to be the partner of our customer for digital solutions, sustainability. we see more acceleration as we are going into that. from that point of view, 20/20 was a good illustration. we were growing again and all of our economic parameters, we were progressing significantly up. manus: good morning.

the second half was good to you. when you talk about this transformation going forward, i am looking at your geographic split and the u.s. is incredibly important. biden has a $7 trillion green plan. what will that mean to schneider electric's business in the united states of america? jean-pascal: for us, it's a combination of energy management and digitization. we think the priority is about efficiency for sustainability, energy efficiency and process efficiency mixing together. new energy technology together with digitization technology. north america is our largest business in the world. we see a lot of opportunities with the u.s. rejoining the paris agreement and stimulus being put in the future into the

green economy, rebuilding america on green energy. these are all sectors for smartphones, smart buildings, smart manufacturing, that we can support with our technologies. annmarie: you did not make much progress in 2020 on your plan to dispose 1.5 billion dollars to 2 billion euros of assets. are you going to be able to do that this year? jean-pascal: absolutely. we have been very clear. two years ago, we announced we would like to rotate our portfolio and pipit our portfolio to reserve efficiency and sustainability. we announced a divestment of 1.5 billion euros to 2 billion euros of divestment. we did 600 million of that divestment in 2019. we declared we would close it in 2020 but we kept preparing for the further divestment and this

is something we are going to really start to activate now in 2021. manus: let's hope the evaluations come through for you and you offload those assets. the other side of that equation, the acquisition you made was in germany. if i said to you where is the piece of the jigsaw that you need to fill with an acquisition, where would that aspiration be? in america, in europe, and what size? jean-pascal: i think we have the size of the portfolio we need to digitize and make more efficient the management of processes, but 2020, for us, has been a very special year. the first one is the way we have attempted to a completely different economy on unprecedented conditions. 2020, excellent year in terms of operating results.

our operating margin is up. our cash flow is record. but at the same time, when most of the industry was frozen in 2020, we decided to accelerate the implementation of our strategy. first, making and finalizing the acquisition of electric automation and making us the largest country in the world on r&d, manufacturing. and second, initiating or closing the string of acquisitions for software so that we complement our present software offering. we acquired two companies in germany. one specializes in automation, the other in construction and the station and we initiated directly or indirectly to one of our sister companies the

acquisition of a company that specializes in industry software. and a world leader in something else. we started a very strategic partnership with a dutch company which digitizes for safety management so it's a little bit more than one operation. manus: the answer to these questions is always interesting when people actually do to answer them -- do try to answer them for us. jean-pascal tricoire will talk to us about the numbers. coming up, investing. we hear from the founder of a cryptocurrency platform. he predicts a paradigm shift in investing as younger people swarm into financial assets. the story here on bloomberg. ♪

manus: -- >> if you want to welcome the cryptocurrency, it will be welcomed by millennials and generation z. they are the investment situations, meme is the answer. manus: strategically investment via meme. justin sun speaking to bloomberg's tracy alloway. exclusive conversation predicting the paradigm shift into financial assets. we have seen perhaps the results of that over the start of year. it comes as mastercard is allowing cardholders to start backing certain cryptocurrencies in the network. they are becoming just the latest company to embrace digital assets and if you think, mario greco says we don't invest

in speculative assets like that. bank of canada's headline, speculative mania. annmarie: the cfo said bitcoin has a pretty bad reputation, but companies are starting to think about it. you mentioned mastercard and twitter saying they are doing some upfront thinking, which means what happens if vendors ask to be paid in cryptocurrency? given what tesla and elon musk have done, you cannot avoid it. even ceo's coming on our program all week, we have been asking them a question, how are you thinking about this and what is next? companies cannot avoid this crypto mania. manus: this comes down to whether the banks get on board. i think jamie dimon -- he pooh-poohed bitcoin and said maybe i made a mistake in being perhaps so irreverent about it but here in lies the point. frenemies.

why would you run the risk of letting everyone else run away with something. better to bring it into the family, let's make a few dollars off it rather than go i missed that trade. annmarie: we have seen the explosiveness from bitcoin when it came on the scene. right now, is holding steady around $45,000. do you want to get in now to the next level of $50,000? if you are a company, these are questions you have to answer. manus: at $50,000, it's worth $1 trillion. the question is, where is the store of how your? should we take -- store of value? we are trying to understand where we are with risk this morning. up .8%. annmarie: we are pretty much flat. the big question is does the reflation trade continue to hold legs? given the cpi data yesterday, it

was muted, sour. that does it for manus and i. we are back tomorrow. bloomberg daybreak: europe, but the european open is up next with matt and anna. stay right here. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london alongside matt miller in berlin. manus: today, the markets say inflation, what in inflation? u.s. cpi data fuels the debate over price pressures as the stock rally pauses. asian markets are closed for the lunar new year. the cash trade is one hour away. here