♪ anna: good morning from london. these are today's top stories. u.s. futures positive after stocks were derailed by a bloomberg's group that president biden plans to double the capital gains tax to the wealthy. the president hails a decisive decade of tackling climate change in his global summit. there's no new commitments from the world's top emitters. we go live to mumbai amid

india's devastating covid search . a concern deaths may exceed official data. welcome to the program. it has just gone 6:00 here in london. we will start this hour on a bloomberg scoop that move the equity markets in thursday's session. joe biden is said to be eyeing proposals that would almost double the capital gains tax rate for the wealthy to 39.6%. this in a bid to help pay for a raft of social spending. let's have a look at where this has left markets. we saw a selloff in u.s. equities as a result of this yesterday. u.s. futures looking perhaps to draw a line in the sand or take stock. we see u.s. futures pointing to the upside this morning. nasdaq futures point higher. european futures point lower. it's an interesting question, to what extent europe needs to factor this in. what the u.s. can do on global

growth. it something that europe needs to pay attention to. we have the opposite date of the u.s. and europe yesterday. where the u.s. sold off late in the session, europe game to. the u.s. news came after the close. that's why we see those futures dipping a little bit downside at the start of european day. still a couple of hours to go into we get there. msci asia-pacific hearing on regardless. brent recovering a little bit from some of the weakness we've seen, driven by concerns around the pandemic, the resurgent pandemic and emerging markets. that has taken its toll on some risk assets including oil. oil making moves to the upside. a return to that top story around taxation in the u.s.. u.s. stocks slid the most in more than a month on that report. here's what our guests had to say. >> that probably would not be good for the u.s. economy. >> there's definitely taxes

coming down the line. whether it's corporate taxes or capital gains increases. >> in one sense, surprised by the market selloff. it's not a high enough rate to derail the recovery. >> this is a starting point. there will be a lot more debate on the conversation. >> we might be working ourselves into a uncompetitive situation. >> this infrastructure bill has to come this summer. all of that will weigh very heavily on the market. >> a 1% fall in stock prices is all that you get from a really major increase in capital gains taxes. that's not a big problem. >> the president's calculation is that there's a need to monetize our infrastructure. his view is that should be on the back of the wealthiest americans who can afford it. anna: tim draper weight in, saying doubling the capital gains tax rate might sound the death knell for silicon valley. donald trump touted a cut to the

capital gains rate, saying the impact would be positive for jobs. where do stocks go from here? we see initial knee-jerk reactions to the story. dani burger joins us now with details. dani: this should not have been a surprise to markets. this was part of the democratic platform going into the election. i want to flakka coat -- quote from goldman. this came in october. you had before the u.s. election to get ready for what would happen to taxes. history shows stock prices fall, equity allocations decline, and momentum underperforms ahead of increases in the capital gains tax. however, any potential equity selling will be short-lived and reversed in subsequent quarters. it makes sense to his point that momentum is what gets hit the hardest. what is rallied the most will face the biggest taxes once those gains are realized. we've seen this in history. this is something ubs has flagged. in the 1986 capital gains tax

rate hike, we also saw momentum underperforms the broader market. again, these calls are really for a brief time of underperformance. eventually, the top 1% says taxes will go back in and buy some of what they sold. there's a lot we don't know about exactly what this policy will look like once it gets its way through all the washington machinery. this might be the plane at the moment but we have to see how this develops. as you point out, not a huge surprise conceptually that the democrats would want to bring taxes on investment into line more so with taxes on labor. that's partly what they are doing here. how has this played out so far? i referenced the selloff in stocks yesterday. dani: it isn't exactly going to plane at the moment. of course, it could later. momentum fell yesterday. if you were to choose between a momentum etf and and s&p 500 etf , you would actually be best served yesterday by holding

momentum. we have not seen that selloff completely come to reality yet. perhaps it could in the coming days. we will need to really take this in to decide what they are going to sell. one very momentum, frothy asset that did take a hit yesterday and this morning's bitcoin. falling below $50,000. there are so many forces on bitcoin. its price action is really opaque. a lot of people who owned bitcoin are probably nervous about these taxes. that could also be behind some of the declines we've seen in the crypto currency. anna: where does the urge to taxco next? thank you very much. dani burger with the latest on the market response to what we heard from the president of the u.s. yesterday, what we have reported around capital gains tax. let's get a market perspective. lucy coutts joins us now.

good morning. this came late in the day for european equity markets but it moved u.s. equity markets. big picture, it really does show it was only 1% move today. it shows the ability of tax stories to move markets, something we need to bear in mind as we go through the year with a focus on the u.s.. lucy: yes. absolutely. it will come as no surprise that biden will be raising taxes. he's recently done the 1.9 trillion stimulus bill, 2 trillion infrastructure bill. this is america's family plan. this raise in capital gains tax, for those who are earning over $1 million, will fund education and child care plans. anna: does this have broader implications for risk assets

some -- assets? is that going to be something that is in investors minds? lucy: i think there may be a short-term reaction. but it didn't -- it isn't unexpected. certainly, i personally would not be selling into this news at all. markets will adjust and recalibrate. yes, maybe momentum stocks and growth stocks, the hiring stocks may well selloff a little bit sharper. that's no reason to sell them. anna: is this a concern when it comes to those growth stocks, investments? those private equity and hedge funds, may be considering their finances this morning in the light of this kind of news flow. some of those in silicon valley with growth plans and investment plans might be thinking about what they do next.

this raises concerns around growth. you had concerns around growth given the many economies that will start opening up soon. lucy: yeah. certainly hedge fund managers, they have an interest, a preferential rate of tax. it carried forward. it will hurt them the hardest. but i don't think the tax rate, the raising of the tax is going to be material in the longer term for high-quality companies. the growth names that we know. anna: where are you going for that exposure inequities at this point? you still have appetite for u.s. stocks despite this. lucy: oh yes, absolute leap. we've got visa reporting next week. what we are looking for their is a resumption of consumer spending. the number of transactions. we are looking at dates and

domestic travel. we've got microsoft and facebook next week as well. these names will certainly have a close look at. anna: yeah. on the subject of those tech names, concern around regulatory changes that could be something that also comes from this u.s. administration. does that make you hold back on some of those technology plays at this point? lucy: no, i don't. there is absolute digital transformation. it's a most a fourth industrial revolution which is playing out before our eyes. we've got asml which is actually a dutch company. it's a maker of chipmaking machines, supplying the semiconductor industry. it is raising its growth for 2021 by 30%. so these names are not going to disappear. their earnings should still

continue to grow. anna: the covid pandemic has been something that we've all had to cope with and live with. it has affected everybody to some degree. when you look at the corporate fear, the pharmaceutical industry has really had this as a focus. whether they specifically operated and vaccinations are not prior to the pandemic, where in pharma are you looking for when it comes to investment opportunities? lucy: the vaccine makers, as far as i understand it, it is not-for-profit. we've got numbers from astrazeneca. the vaccine revenues are not material to the company at all. i think it's extreme worrying what we are seeing in india. we are seeing more than 300,000 new cases a day. yet, only 8% of the population has received its first vaccine. in comparison, europe has been

very slow but that vaccination program is beginning to accelerate with 19% vaccinated, their first dose. the u.k. and u.s., we are well ahead of those numbers with vaccinations around 49%. anna: thanks very much. stay with us. thanks for your thoughts so far. we will be back shortly. let's get a first word news update from annabelle droulers. annabelle: thanks. today is the second day of president biden's climate summit with world leaders. he open the event yesterday promising to how -- half green hound -- greenhouse gas emissions by the end of the decade. the first day reduce that produced modest climate pledges from the global clean unity. russia says it will begin pulling thousands of troops back from the border with ukraine starting today. it's a step that could ease

tensions with the west after the biggest buildup of military forces in years. the u.s. and european allies called on the kremlin to de-escalate. moscow said it was free to deploy its military wherever it needed in its own territory. could it be the end of the era for billionaire owners for britain's biggest football club? the u.k. is launching a review into the sport, examining different models of ownership. -- of particular interest is the german model were private investors can't own more than 49% of a team. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. anna: thank you very much. thanks for joining us with that. coming up, no talk. the ecb isn't discussing scaling back stimulus despite signs of the blocks recovery. we discussed. this is bloomberg. ♪

♪ >> we stand ready to adjust all of our instruments as appropriate to ensure that inflation moves towards our aim in a sustained manner while the risks surrounding the euro area growth outlook over the near-term continue to be on the downside. medium-term risks remain more balanced. the ongoing pandemic, including the spread of virus mutations, and its implications for economy -- economic and financial conditions continue to be sources of downside risk. an ambitious and core native fiscal stance remains crucial as premature withdrawal of fiscal support would risk delaying the

recovery and amplifying the longer-term scarring effects. we did not discuss any phasing out. it is simply premature. anna: that was the ecb president christine lagarde. the institution isn't discussing the phasing out of its emergency bond buying even as it sees signs of the economy starting to shake off the coronavirus pandemic. this comes as the number of the block nations are planning to slow easing of restrictions. italy, france, and greece are planning to loosen coronavirus rules in the next few weeks to varying degrees. it is an interesting development. lucy coutts is still with us. let's start with the ecb. that was quite a dominant theme in markets yesterday even though there wasn't a great deal of new information. that you take anything much new away from what we heard from the ecb? lucy: well i think what you have

seen in that clip is how deliberate the language that christine lagarde uses. i'm going to refer to this because i don't want to alter what she said. she was very careful. the eu, the consumers remain asked really cautious. she expects headline inflation to rise in the short-term on temporary factors. longer-term expectations remain at low levels. this tells you that the economy is subdued. also, there was some talk which he referred to in that clip that the pet would be saved out. that was absolutely denied by her. there was no discussion of any meeting. she expects interest rates to remain at present low levels and could even go lower until

inflation is consistent at 2%. it may well rise to that level but then i don't expect central banks to address it. i expect inflation to just be counted very slowly. a slow response from central banks. anna: yes. christine lagarde saying they didn't even discuss any phasing out. does that seem sensible to you? we are arguably through the worst for the european economy perhaps. maybe it still does need that support. doesn't seem sensible that the plan is not yet being terminated? lucy: absolutely. i do think that the eu, we are seeing growth in the u.s. return. we are seeing growth in china. certainly in the u.k., it is subdued. i think it is worse than the eu. at least we are ahead on the vaccination plan. i think there's a little bit more positive news here.

in europe, the numbers are still high with covid. lockdowns are still quite slow at being lifted. the economy is very subdued. absently right to keep the asset purchase plan. anna: is it a communication problem for the ecb? without deliberate choice of language that you emphasized, the ecb are communicating effectively. i read one analysis yesterday suggesting that maybe some of the messaging is being lost and markets are not hearing everything. some are also pointing to the fact that life has become much more complicated. used to just be an interest rate communication strategy. now you have interest rates, he reads, pet, references to the euro, inflation. it's a complicated picture in that sense. lucy: it is. but i think what the difference in yesterday's meeting is that the statement used to be put out by the committee.

there used to be some sort of comments before the president, now christine lagarde, gave presentations to the markets and gave a little bit more flesh on the bones and answer questions from analysts and commentators. that's why i have notes. the language that she used was very deliberate. she's absolutely determined to not see any phasing out of the purchase asset program at this time. i think that's a defensive measure and she knows that the eu consumer is very subdued and needs help. anna: thanks very much for joining us. good to speak to you. coming up on the program, u.s. president joe biden is going all out to show that he means business when it comes to climate change action. our world leaders convinced? we look at the latest from his

global climate summit, next. this is bloomberg. ♪

♪ >> no nation can solve this crisis on our own, as i know you all fully understand. >> the fight against climate change will be the engine for our global economy -- recovery. >> can build back better from this pandemic by building back greener. >> we will work on the basis of international law, follow the prince blew equity and justice, and focus on effective action. >> concrete action is needed. in large-scale and with a global scope. >> i'm delighted to see that the united states is back, his back to work together with us in climate politics.

there can be no doubts about the world needing your contribution if we really want to fulfill our ambitious goals. >> all of us, particularly those of us that rippers of the world's largest economies, have to step up. anna: a number of world leaders pledging to shift to a greener print -- future during the virtual climate summit which kicked off yesterday. here to tell us more about it is action rossi. we did get some new big commitments. what did we hear? >> so the headline was the u.s. commitment which was to reduce emissions by 50% by 2030 relative to 2005. we also got to other big commitments, one from canada and one from japan. they were a little lesson vicious than what the u.s. promised. still, more ambitious than what they had previously done. taking the world closer to be

able to keep warming below 1.5 degrees celsius which is the stretch goal under the paris agreement. anna: u.s., japan, canada moving at the summit. other countries have moved ahead of the summit. 40 countries were in attendance. did that please environmental groups? i'm sure there's more that has been asked for. >> it was a mixed reaction. one is that we should know that the u.s. was absent from climate diplomacy and president trump's administration. of course, environmental groups are very happy that the u.s. is back. and it is back with something that is fairly reasonable if not all the way. the u.k. goal -- the u.s. gold doesn't quite yet match up with what the u.k. and the eu are doing on climate. but it's also a question of whether the u.s. will be able to actually execute on the goals

that it has set. unlike in the u.k. and eu, where climate laws have been legislated, and the mandate is across party and political spectrum, that's not the case in the u.s.. we know that republicans are typically opposed to climate action. promises are great but it really comes down to executing them. anna: yeah. what can be delivered? briefly, what happens today? >> so it's the second day. we don't expect any big announcements coming. but it's going to be a day of innovation. we know that we are going to need new technologies and the goal is to try to get different countries to join. anna: a focus on the innovation today. thanks very much. really good to speak to you. thanks for joining us. coming up on the program, india's covid crisis.

the country daily case number surge past global records. we get more details on the fight against covid-19, the battle to get medical treatment for covid-19 in india. all of that coming up next. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it.

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♪ anna: good morning from london. this is bloomberg daybreak europe and these are today's top stories. u.s. futures positive after stocks were derailed by a bloomberg scoop that president biden plans to double the capital gains tax for the wealthy. the president hailed a decisive decade of tackling climate change in his global summit. there's no new commitment from some of the world's top emitters. we go live to mumbai amid

india's devastating covid surge and concerns deaths may exceed official data. welcome back to the program. just gone 6:30 here in london. we will get back now to our bloomberg scoop. u.s. president joe biden is said to be eyeing proposals that would almost double the capital gains tax rate for the wealthy to 39.6%. this in a bid to help pay for a raft of social spending. that has an immediate impact on the markets. you can very clearly see where it dropped off. u.s. futures showing some gains, showing that we have re-factored in in the short term. i should point out that those u.s. futures are paring those gains a little bit as we go through the morning, certainly true of some of the u.s. equity markets anyway. european stock markets look different because this news about the u.s. tax story came

after the close in europe. we have to play catch up. questions as to what extent you need to factor that into the european stock market story. it will impact u.s. growth. it is relevant globally. asia pacifico goodies not reacting that much to this u.s. story. we do see a modest gain for u.s. -- asian equity markets. we see oil turning a corner from what has been a generally pretty weak week. it has been a focus on virus and the spread of the virus that has driven that. today, we see a bounce in oil. brent around half a percent. u.s. stocks slid the most in more than a month on that tax report. here's what some of our guests had to say. >> that probably would not be good for the u.s. economy. >> when you have stimuli of this size around the world, there's deftly taxes coming down the line.

whether it's corporate taxes or capital gains increases. >> in one sense, surprised by the market selloff. it's not a high enough rate to derail the recovery. >> this is a starting point. there will be a lot more debate on the conversation. >> we might be working ourselves into a uncompetitive situation. >> this infrastructure bill has to come this summer. an income tax plan all of that , will weigh very heavily on the market. >> a 1% fall in stock prices is all that you get from a really major increase in capital gains taxes. that's not a big problem. >> the president's calculation is that there's a need to monetize our infrastructure. his view is that should be on the back of the wealthiest americans who can afford it. anna: tim draper weight in, saying doubling the capital gains tax rate might sound the death knell for silicon valley. bidens predecessor donald trump touted a cut to the capital gains rate, saying the impact would be positive for jobs. joining us to dig deeper into the details is derek wallbank.

good morning. what are some of the details of the proposal? it might not pass through all the washington machinery. what are some of the details? derek: sure. the main central detail is the idea that the capital gains tax, which is currently 20%, would rise to a top rate of around 39 .6%. if you out obamacare stuff on top of that, you could be into the low 40's at the very top end of this. that would put the top end of capital gains tax above what would be for salaries. sort of put your capital tax above labor at the very high-end of the u.s. tax code. anna: we know that the biden administration, when it wasn't the biden administration, stood on a platform that included wanting to increase capital

gains tax. with that in mind, should this really have come as a surprise to markets? derek: absently not. you are totally right. the biden campaigned on this almost exactly. this was written in the platform. this was something he said he wanted to do. it is something he will be putting forward as soon as next week. you mentioned about what they are trying to do here. they are trying to pay for a raft of policies that would, in the white house his view, lower income inequality. the sort of infrastructure of inequality, if you will, use the white house's favorite pet phrase. sort of pay for that. you have to do something that will pay for that. this white house is not going to sit there and say that we will pay for all of that through cuts in something else. the view of a lot of democrats, there's a problem with capital

gains taxes being too low with people throwing actual salary money over to capital gains the dump taxes. with the basic idea, to throw back to a previous campaign phrase, of people secretaries being taxed at greater rates than executives. democrats think that they need to realign that sort of equation. this is a way. it's a starting bid. this is where the starting bid comes in. anna: we should not necessarily be surprised by redistributed tax policy. we should not be surprised if this administration wants to try to tax investment in a similar way it tries to tax labor. what are the chances of this getting through, with your experience in washington? what we know about what the republicans will thing about this. what are the chances that this policy remains intact? derek: i think that the idea that this is going to get through completely unscathed, from what you are reading about

right now on the terminal, is a slender chance. a very slender chance. that's because democrats don't hold big majorities. their conference stretches from people like center across your cortez all the way to joe manchin. you have to get basically all of them on board in the house and senate to be able to get something through or there has to be a compromise with republicans at some point. as we all know, the basic party platform of the republican party is don't raise taxes. so i would say that it's not that nothing will happen. i'm not saying that. the idea that it tax plan is going to get all the way from the white house introduction on forward, maybe that's less likely. indeed, the white house is signaling that themselves. they are calling this an opening offer. they are saying, we know that we need to do this infrastructure of inequality stuff.

this is our way to pay for it. if you have other ideas, come to the table and let's talk about them. see where we go. i think this is very much a start. it's a statement of intent. you should look for democratic policies, even if this does not get through, to try to equalize those labor capital gains policies certainly at the top end. look at this as a starting point. anna: thanks very much for your insights. let's get some of the other big stories we are covering here at bloomberg. annabelle: the white house is weighing an appeal to accelerate global access to covid-19 vaccines. the proposal is to waive intellectual property protections including patents, property rights, and trade secrets. the move is opposed by big drugmakers who say it would be ineffective. many countries don't have the capacity put -- to produce more vaccines. a lantus jackson airport has

been the busiest in the world for more than two decades. with 2020 grinding travel to a halt, it has now lost its top spot. china's international airport has claimed the title. knocking atlanta into second place. the trade group that publishes the rankings says china was home to seven of the 10 busiest airports last year. there's a sign that intel is losing market share to rivals. sales for the biggest chip maker slumped with a steep decline in its profit margins. that unit is intel's most profitable business. lower revenue puts a big dent in the results. it performed better on continued demand for laptops. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. anna: thanks very much. now let's get an update on the

country currently being hit hardest by the coronavirus. india's daily case numbers have surged past global records. the nation's health system are crumbling under the pressure. leaving the sick with nowhere to go. the vaccine rollout can't keep up with the crisis. several countries have announced travel restrictions on visiting from india including singapore, canada, and the u.k.. jeanette rodriguez joins us now. could to speak to you once again. what is the latest on the situation in india? jeanette: thanks for having me. it's a humanitarian crisis here in india. one of the country's top hospitals said this morning that it has only two ounces of oxygen left. 25 of the sickest patients died in the last one he four hours. two hours of oxygen left at the hospital. this follows another hospital change -- chain is pleading with

the courts to ask government to supply with oxygen. this is what the court said. this is just bad planning. why didn't we for see this? this is not rocket science. the administration is under trouble. really what we are seeing is a all hands on deck approach. citizens getting beds for the compatriots, life-saving medications, oxygen. everyone is trying to help each other out. anna: people are trying to help each other, cope with the virus that is already raging. are there calls for further lockdown measures, a return to some thing tougher to stop people from gathering in such large groups? jeanette: a lot of the restrictions are already in place in certain keys states. india's wealthiest and most industrialized state already has very strict measures. authorities are not calling it a

lockdown officially. it is effectively a lockdown. businesses have been asked to work from home. several industries have been shut. some have been told not to use oxygen and divert oxygen supplies towards medical use. these are already in place. the prime minister came on national television and urge provinces not to call for lockdowns. he said the situation is different. we have vaccines, we know the medical protocol to treat people. therefore, let's use lockdowns only as a last effect. with the way the cases are increasing and panic is increasing, authorities are announcing for strict measures. anna: it is different this time. we have vaccines as long as enough of the people have received the vaccine. what is the vaccine rollout plan like in india? it won't escape any peoples

attention that india is such a large manufacturer of vaccines. i know it is holding onto some of them as a result. jeanette: starting may 1, all indian adults are eligible to get the vaccine. as of now, only those 45 years of age or older could get it. starting may 1, all indian adults are eligible to get the vaccine. will india have enough doses to vaccinate its population? jeffries ran it's numbers. as of a couple of days ago, both many factors could produce vaccines for only 17 days of doses. india is the largest manufacturer of vaccines. they can't turn it out quickly enough to vaccinate the large population. anna: thanks very much. jeanette rodriguez reporting on the latest on the fight against coronavirus and the spread of

coronavirus in india. coming up on this program, we will be back to the business agenda. we will be back to the opening up story as well. it's a summer holiday season under threat as nations strengthen their borders against coronavirus. we get the latest, next. this is bloomberg. ♪

♪ >> i'm still not entirely sure that we have the pandemic under control. we think we've got it but it's alarming. look, we are -- larry summers is not being completely foolish year. it's a lot of money they were throwing out the economy. it could be a problem. i think we have ways to deal

with it. so we are getting really big boost to things right now. i'm very optimistic. there's always some downside and upside risk from the covid pandemic or -- we are starting to see bottlenecks. there are problems with rapid recovery and we still have disrupted supply chains. it's not going to be totally smooth sailing. anna: that was paul krugman giving his perspective on the state of the u.s. economy and our report that president biden may double capital gains tax for the wealthy. more from that interview throughout the day. we've been providing plenty of different reactions to president biden's plans with regard to capital gains tax. as global coronavirus infections continue to rise, many nations are tightening up their movement restrictions. an airline group has sounded the alarm about the impact this may look -- move is happening -- having on the industry.

bloomberg spoke to some of the industry top executives in this week's world aviation festival about their predictions for the coming summer season. >> i think the second half, we should be optimistic. >> we will move into more of a recovery phase. >> the vaccine will be much easier. amsterdam or paris or new york. >> we need governments to set out a plan, to give an indication for when it's likely they will start removing restrictions so that people can start booking with confidence. collects -- >> what we don't know yet is what type of framework will be in place and what type of restrictions will be in place. >> we will have an extended summer here. people will find a way of enjoying the sunshine. >> we know that travel will come back. it's just a matter of what the shape is and the speed of return. >> we have to get the balance of

flying activity compared to demand. we have to get that right. anna: some voices from the aviation sector. joining us now is charlotte ryan. very good to speak to you. our colleague guy johnson spoke to a number of those executives. i spoke to the ryanair ceo who's expected -- in's -- expecting a later summit than usual perhaps. what is the summer travel recovery looking like from here? charlotte: good morning. yeah, indeed. i think the prediction from ryanair and eddie wilson is that summer travel reopening could happen very suddenly and quickly. ultimately, a little bit late. it seems to match what we are seeing at the moment both in terms of coronavirus infection rates and also the policies of governments. here in the u.k., we have this expectation that travel will restart from may.

the u.k. government has held off on confirming that plan. indeed, we don't yet know where we will be able to travel. we are not going to get those countries until the beginning of may. in the u.s., the state department has actually this we said it plans to declare about 80% of countries in the world no go zones. it is looking like for the start of the summer, it might be more focused domestically. anna: we could be dealing with restrictions in terms of the u.k., a traffic light system. read amber and green countries with different research and attached to visiting them. are any airlines more optimistic? are any telling a more positive story? is it a case for those with a larger domestic network? charlotte: we have seen a little bit of positivity, particularly from easyjet. it's worth pointing out that

there's obviously a vested interest therefrom the airlines point of view. getting consumers to be more confident in travel. that's one of the main hurdles for people. they just don't know if they will be able to take that trip. as a result, they are not making advanced bookings with their airlines. some of that positivity is coming from that point of view. it's true that airlines have a domestic presence. low-cost carriers do have room to be more optimistic. they can keep their costs down and just provide destinations that are viable. anna: thanks very much for bringing us an update. wrapping together a lot of the commentary we've had this week. thanks very much. coming up on the program, we take a closer look at china's crackdown on its tech giants. this is bloomberg. ♪

>> on the government standpoint, it's not in the interest to see tech companies become smaller and weaker. >> what leverage does jack ma have? >> the leverage lies in the cash-rich. they have strong pound pool. they are very sophisticated development. >> they have the data. the government wants it as well. >> i would not disagree with that. >> a year and a half ago, china released a document codifying data as one of the core socialist factors of production. under the idea that you must have a well regulated data market in order to maintain economic growth, this is the fundamental core operating

principle that china will be using to regulate big tech over the next 10 years. it is something that really hasn't yet entered into the western lexicon. >> the chinese government is said to be mulling estate back to joint venture with a large platform to oversee how their combined data is managed and shared. >> anti-monopoly alone would not solve the problem. rather, there should be an agency in charge which serves as the champion for an internet. not try to crackdown the problem , try to develop the tech. >> pooling data raises a host of privacy issues. john mott conceded that data is extremely complicated. there's a fine line he says between ensuring users privacy and opening up data to sharing. others like baidu claim to be open to opening their data vault. >> it's very much in line with our belief.

we run a lot of open platforms for ai in general. we like openness. we want to share data with other partners. >> giving up one's data could upend existing market-leading positions. but noncompliance is perhaps the bigger risk. for alibaba, getting off with a fine doesn't mean it's in the clear. that alone surely won't pave the way for an anti-ipo resurrection. >> it depends on how the government restructures our framework in terms of financial technology and also depends on how the company reacts to the changing environment. >> which begs the question, how far will the government go in taking on alibaba and tencent and all the others? >> of course, they need the golden egg laid by these keys. they need the innovation and growth.

they know that if they try to do this all from state companies, it's not going to work. anna: a closer look there at the china tech story as part of a new bloomberg television special. that's it for bloomberg daybreak europe. european open is up next. we'll be back in just a moment. this is bloomberg. ♪

♪ ♪ anna: good morning and welcome to the european open. i'm anna edwards live in london. mark cudmore joins me in singapore to take us through all the market action. the cash trade is less than an hour away. here are your top headlines. u.s. stocks slide as president biden ways tax increases for the rich. future stage recovery. covid slams india with record cases and deaths.