♪ annmarie: good morning. i am annmarie hordern. this is "bloomberg daybreak: europe." stocks are in the green after signs of a strengthening u.s. labor market, even as above forecast consumer prices reinforce concerns of rising inflation. the cdc says fully vaccinated americans can ditch masks in most settings.

conflict between israel and gaza escalates. it's now the fifth day of hostilities. the u.s. security council schedules another emergency meeting. very good morning to you. let's take a look at where we trade this morning. happy friday. what a week it has been, a week of volatile data. yesterday, we did see that ppi number, producer prices, showing inflationary fears. that is bleeding into those inflationary concerns. labor market strengthening, we saw that in the drop of jobless claims. we saw a shift in the equity market from a migration -- with a migration from growth to value. will that continue? those inflationary concerns being called up a little bit. s&p 500 index, nasdaq snapped three days of losses. we are in the green alongside european futures. u.s. treasury yield, 30 year, 2.37%. yesterday was an auction, a bit

of softer demand, and we saw a steepening of the curve and the widening between the 5 and 30's. brent crude below $67 per barrel. a lot of this has to do with inflation concerns. also, demand picture still a bit precarious when you look at some places, like what's going on in india. the pound getting interesting. boris johnson saying that he is anxious about what's happening in the united kingdom in regards to the variant out of india. will this mean a potential delay in the reopening of the british economy? that's something we will talk about later. what a week it was in terms of volatile u.s. economic data. let's get a recap. stocks got a boost yesterday. jobless claims fell more than expected in april. we also got more inflationary pressures, ppi, prices paid to u.s. producers, rose more than forecast, adding two signs of price increases being passed on to american consumers.

forecasters have been wrongfooted left and right. on wednesday, we got one of the hottest cpi readings in years. estimates missed the mark by some distance. the big debate is whether inflation will be sustained and what action the fed should take. it is being branded temporary, saying and accommodative monetary policy has an important role to play. joining us now is frederique carrier, rbc wealth management head of investment strategy. i am sure you have a bit of whiplash regarding the data points. we will get those retail sales numbers. what do you make between the inflationary worries, but at the same time, potentially an improvement in the labor market? frederique: the ppi numbers showed that there was an increase in prices.

commodity prices are going up. we know there are continued chip shortages. all of that is showing up in higher inflation. we can see with cpi being higher on a month over month basis than the ppi, we can see that companies are able to pass on this price increase to consumers. therefore, the big concern during earnings season is that margins might take a hit. it is alleviated somewhat in the short-term. certainly, inflation in the short-term and even the medium term going to be quite high. in the medium-term, you have other pressures which have changed. in the medium-term, expect inflation to be higher than what we are used to and higher than what you would expect from an economy that still has some [

indiscernible] we don't think there is a regime change over the long-term. we think there are deflationary pressures which will weigh on inflation, demographics, the aging of the population, maturing of economies. we don't think it will be in the long-term a regime change. the fed is looking at other. it has said several times it is going to tolerate higher inflation. there is still 8 million -- jobs now. we think it will maintain its strategy and we could see the strength going on for a number of months. later this year, lang the groundwork, tapering -- laying the groundwork, tapering. annmarie: when you talk about a regime change, if this is

transitory, how do you define transitory? frederique: the number of months, you know, less than a year that we have this short-term, high inflation of 3.5, 4%. the medium-term, 2.5%, before returning to something which we are a bit more accustomed to longer-term. annmarie: you mentioned the labor market. interesting what happened yesterday, mcdonald's, amazon raising wages. is this showing that the market is working, that there is a demand for these jobs and they are increasing these wages to hopefully get workers back? frederique: they are -- there are reports of companies having difficulties finding workers, perhaps because the unemployment benefits are so generous. in order for this increase in wages to really have a big impact on margins, you would

have to see these increases on a sustained basis. we are watching the situation but we are less worried about it from a corporate margin point of view basis. annmarie: that was the next question. are you worried about this in terms of corporate margin? can you run us through a little bit of your investment strategy right now? yesterday, we saw yet again that migration from value to growth. what is happening right now, that rotation, with the economic data, is it solidifying the rotation? frederique: so, we have a biased view towards value at the moment and we would stick to that. we are approaching a point where economic growth is peaking. historically, when that happens, returns become a bit more modest, as sector outperformance is really driven about bond yields. we expect bond yields to go up, given the strength of the economy. a bond yield of about 2% by the

end of this year, perhaps 3% by the end of next year. in this environment, cyclicals, value is much better underpinned than growth stocks, so lo ng-duration stocks such as technology. some cyclicals already discount a reopening of the economy and are starting to look at little bit pricey, there are still some pockets of opportunity in financials. steeper yield curves and higher yields is good for their bottom line. we would focus on these areas of cyclicality where there is still some value. we are, however, [indiscernible] in portfolios for some growth stocks. so, the companies which are developing the technologies to tackle the challenges that are

apparent at the moment. be it access to health care, access to water. these companies will be underpinned by long cyclical growth. now would be a good opportunity to get strategic positions. annmarie: frederique carrier, rbc wealth management head of investment strategy, stays with us. that's get a recap of your first word news. >> the situation between israel and hamas has escalated overnight. israel ground forces are shelling gaza amid more rockets from the region. the nation is also calling up reserve trips. more than 100 palestinians and seven israelis have been killed. hundreds of buildings across gaza are damaged or in ruins. bitcoin is hovering around $50,000 after more criticism from tesla's elon musk.

he says he supports other digital coins but is signaling bitcoin is environmentally unsustainable. in a separate suite, he says he is working with the developers of dogecoin to make transactions more efficient. former u.k. prime minister david cameron is defending his intensive lobbying for the now collapsed greensill capital. during nearly four hours of interrogation by two parliamentary committees, cameron denied he was motivated by a big greensill paycheck. investigations are underway whether the government did the prime minister any special favors. 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. annmarie: thanks so much. annabelle droulers in hong kong. president biden hails what he caused a great milestone as public health officials say fully vaccinated americans can stop wearing masks. but in the u.k., a little bit more of an anxious feeling on

what's going on with variant from india. there's a divergence across the transatlantic. that's coming up next. this is bloomberg. ♪

♪ >> and today, with the cdc's guidance in terms of the relaxation of mask requirements, we think it's again going to be a big catalyst for growth and actually being able to put the number of people in our parks that we are more accustomed to. so it's very, very positive. our future bookings are looking really great. at walt disney world, they are already back up to fiscal year 2019 levels.

annmarie: the view from disney ceo bob chapek after the u.s. government set fully vaccinated americans can dish their masks -- ditch their masks. president biden welcomed the new cdc guidelines, called the vaccination rollout a historical milestone. >> this reclamation -- recommendation holds true whether inside or outside. it's a great day made possible by the extraordinary success we have had at vaccinated so many americans so quickly. annmarie: in the u.k., prime minister boris johnson sounded a cautious tone. cases of the strain from india have risen from 520 to more than 1300 over the past week. p.m. johnson: we are anxious about it. it has been spreading. we want to make sure that we take all the prudential, all the

cautious steps now that we could take. so, there are meetings going on today to consider exactly what we need to. there is a range of things we could do. annmarie: let's get to sam fazeli from bloomberg intelligence. cdc coming out with a milestone on mask wearing. does science support this? sam: good morning. yes. the evidence suggests that when everybody is vaccinated, my understanding is that what they have suggested, if you are vaccinated and indoors, you don't need to wear a mask. the amount of virus in your nasal passages, in your mouth, etc., is lower, so the risk of passing a virus from one person to another should be lower, assuming nobody has any of these new super variants that are running around. annmarie: what do we know so far

about the vaccine efficacy on the super variants, like the one prime minister boris is worried about from india? sam: not a huge amount. what we have to do is basically in for information from the bits and pieces of data that we have. i have done that in a note that is going out in a couple of hours. it suggests that the [ indiscernible] version of this virus that was like what we used to call the variant first found in india, now this is a variant on that variant. we know that vaccine-induced immunity works against that form. we don't know how good it is against this on. we just need more data. there is anecdotal evidence that suggests that vaccines should be at least preventing severe disease, if not the actual infection. annmarie: sam fazeli, look forward to that no coming out. sam fazeli, bloomberg intelligence, thanks for joining

us. a little bit of a divergence when it comes to the recovery. frederique carrier is still with us. you say the recovery is there at last, but wrinkles on the horizon. would you call it prime minister boris johnson causes anxiousness -- calls this anxiousness and potentially all things on the table because of the indian variants, would you call that a risk to the market? frederique: yes, i would, not only for the u.k., but for everywhere. if we don't have certainty that vaccines protect against that completely, that could unwind the confidence that developed markets have at the moment thanks to their vaccine rollout. for the

more u.k. specific wrinkles. so, the relationship between the u.k. and eu, there are tensions there. we are not hearing much about brexit. there is some real issues there, particularly with respect to the agricultural sector. tensions mean that things might become more difficult. there is the issue of equivalence that is enabling the u.k. to -- to the eu. because of tensions, the eu might take a much harder stance, which could impact the growth of the u.k. this is something that will -- for the foreseeable future. finally, the fact that the chancellor has stolen to start balancing the books. there is already the phrase -- freeze, higher corporate taxes

in 2023, so this would be an additional burden on businesses. all of these things make for a perhaps more complicated outlook , so a bit more in the long term. it is something that needs to be thought about, nevertheless. we have a market rate on u.k. equities, we recognize that equities here are very cheap. you can get some well-run international companies at a cheap discount. there is some real -- to equities and it's worth having a position. annmarie: u.k. equities are very cheap. but the pound also has been slowly ticking higher. what is the final entry point to get into u.k. equities if we do see a strengthening pound? frederique: so, we are not sure that this strengthening is going to last.

we would look for some weakness due to the flareup of some of these issues as an entry position, clearly a higher pound is a bit of a headwind for exporters. annmarie: you mentioned a potential another scottish referendum. this will be a huge story in the united kingdom, especially on the heels of the election that we saw. when do you start penciling in a potential referendum? frederique: so, we think it is a story for next year. the hurdles to scotland leaving the u.k. are very high. they have to be granted the possibility to hold a referendum and they have to win this referendum. at the moment, it is really 50-50. so, again, it's noise, uncomfortable noise, but we will

not dismiss this issue. many people have focused on the fact that the s7p does not have -- snp does not have itself the majority to push through an independent referendum. it can team up with the green party in order to achieve its aim. annmarie: what does all this mean for the boe? we did see traders bring rate forecasts forward. frederique: so, we think england already started its tapering. there will be more of that. and depending on the strength of the economy, which is really surprising at the moment, we could see some action perhaps sooner than what we would have expected a few months back. annmarie: frederique carrier, thanks so much for spending your friday morning with us. rbc wealth managementhead of investments tragic. israel continues to pound gaza with air strikes and artillery, as hamas militants fire rockets in the territory deep into

israel. an update on what is going on there, next. this is bloomberg. ♪

♪ annmarie: good morning. this is "bloomberg daybreak: europe." i am annmarie hordern in new york. israel has fired artillery and mountain more airstrikes into gaza, as hamas militants launch rockets deep into israel. over 100 people have been killed in gaza and seven in israel since hostilities began five days ago. we are joined now by bluebird' international executive --s bloomberg's international executive editor. how are ground troops now being

involved in all this? >> that's right. initially, there was the suggestion that ground troops had gone into the gaza strip. there is a combination of aircraft, tank, and artillery fire coming into gaza, another very heavy barrage overnight from the israeli side. there is a possibility that ground troops could go in. the military says they have been authorized to call up another 9000 reserves. that would include a possible ground invasion that currently they are not doing. there has been a pretty big barrage of artillery fire into gaza overnight. at the same time, of course, rocket fire coming back from hamas the other week. annmarie: inside israel itself, the violence does not show signs of slowing down either. what do we know about inside israel? >> in some ways, that's potentially more worried. even if you get to the point of

a cease-fire, how do you get people to stop fighting in the way that they are industries? , in israel you got very -- they are industries -- in the streets? in israel, you've got very bad communal strife. there are shootings, synagogues being burnt, peopling attacked. getting that to stop could be. the harder thing. annmarie: there's going to be another another un security council meeting. does a -- there's been an envoy to libya pointed, but not an envoy to israel. there's is not even an ambassador to israel. why? >> sometimes, the biden appointments have been pretty slow together. joe biden has had some pretty big priorities elsewhere. he's been dealing with russia, he's been dealing with china. he's been trying to get the iranian nuclear deal back to the

table and grappling with a huge crisis at home with the pandemic. some of these appointments have been slowed down and he perhaps did not see the israeli thing as an immediate priority until it did the. annmarie: what does this mean for the -- until it did blowup. annmarie: what does this mean for the abraham accords? >> there's a sense of anxiety amongst all the parties not to have this. that's what we are seeing between israel and the arab states. that will potentially bring enormous dividends to everybody in the region, including economically and with trade investment. there is a strong interest to not have that happen. what could happen is that the implementation of the accords could slow down. so the opening up we are seeing on that could slow down as a result. you do see a strong desire to make sure that the actual records themselves are preserved. -- accords themselves are

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♪ annmarie: good morning. i am annmarie hordern. this is "bloomberg daybreak: europe." stocks in the green after signs of strengthening u.s. labor market, even as above forecast producer prices reinforce concerns over rising inflation. the cdc says fully vaccinated americans can ditch masks in most settings, a big step for the president and his battle to be the virus and open the economy. conflict between israel and gaza as guides, with now a fifth day

-- escalates, with now a fifth day of hostilities. the un security council schedules another emergency meeting. good friday morning. it is green on the screen. what a week it was, a volatile week, so congratulations for getting through it. it's going to be another big one today in terms of data. we are going to have retail sales. what is the strength of the u.s. consumer? why are we seeing green on the screen? yesterday, we had a drop in jobless claims, even though we had higher expectation on the ppi print. we saw migration from growth into value. that is tempering, at least for now, some of those inflation concerns cooling-off. s&p 500 index, nasdaq last night snapping a three-days of losses. we are in the green, alongside european equity futures. 30 year treasury yield, what are we seeing? there we are. 2.37%.

the auction was not so hot yesterday. brent crude this morning, $66, .98. some parts of the world still dealing with the virus. this is an inflation story. inflation concerns are biting into commodities, like crude. prime minister boris johnson talking about the anxiousness the government feels one talking about the variant from india. what does this mean for the reopening of the economy? could this derail that reopening? what a week it was. let's recap the volatile u.s. economic data. stocks got a boost yesterday, jobless claims fell more than expected in april, but we also got more inflationary pressures. ppi, prices paid to u.s. producers, rose more than forecast, adding to signs of price increases being passed on to american consumers. forecasters have been wrongfooted left and right. on wednesday, we got one of

the highest cpi readings in years. estimates missed the mark by some distance. the big debate is whether inflation will be sustained and what action the fed should take. fed governor christopher waller has branded "temporary," thing accommodative monetary policy has an important role to play. joining us now is paul donovan, ubs wealth management global chief economist. what's up with inflation this year? tell us. paul: well, that's a fairly simple story. inflation story at least at the moment has nothing to do with this year, it's altered with last year. what we are seeing at the moment is a low oil price in the second quarter of 2020. when i am thinking about the future, i tend not to look back 12 months. it is not particularly helpful. once we get through these base affects, we are likely to see the inflation pressures coming down.

we still don't have spare capacity in the u.s. economy. one thing that's been remarkable about this particular episode is of course that we have not really lost capacity. the number of businesses in the united states today is larger than it was 12 months ago. now, when do you have an economic downturn and you can say we end up coming out with more businesses than when we started? that happened this time. we are in an environment where there is competition, capacity. we are going to be coming into a fairly modest inflation environment in the second half of the year. annmarie: you agree with the fed that is transitory -- that it is transitory. why do you think the fed will start talking about potentially tapering, paul? paul: well, i would argue that the taper story is not really

driven by inflation. monetary policy, the fed funds rate, that's focused on inflation. tapering is a bit more complex. when we are looking at tapering, we are talking about liquidity injections, and that's tied to economic growth as much as it is to inflation. and of course, what we are seeing is economic growth is continually doing better than expected, and the various u.s. statistical agencies are constantly revising up past numbers. so, the downturn was not as bad as first thought, and the data is doing better than expected. and so, in that situation, i think that we will hear more about tapering over the next couple of quarters. i think it's quite plausible that the fed tapers towards the end of this year. the bank of canada is already tapering. the bank of england is sort of halfheartedly joined team taper. the fed itself has scaled back bond purchases in the last month

or so without just making a song and dance about. annmarie: do you think this is a global phenomenon when it comes to inflation, even though you do think it is transitory? is it something being exported by china, the u.s. and basically everywhere? frederique: no, it's -- paul: no, it's not, in the sense of being exported. export prices are not showing a huge amount of pressure. normally, when we are seeing these inflation pressures, it's for highly localized reasons or the oil price. oil is a global phenomenon. the low oil price last year hit everybody. the normal oil price this year affects everybody, so that's a global phenomenon, but it's not being exported by anyone as such, just a global commodity market. you look at the u.s., why does the fact that a secondhand car in the unites states has increased dramatically in price? does that affect my cost of living here in the united kingdom? it does not. i am sorry to say, i have no

desire to buy an american suv. i am perfectly happy with my british land rover. i will not be worried about the fact that a secondhand car in iowa is 20% more expensive. annmarie: you have nice taste in cars. i want to move on to what's going on as well when it comes to the labor economy in the united states. yesterday, jobless claims came in better than what was expected, but obviously, you saw the payrolls number last week was absolutely dismal. do you think those supplemental unemployment benefits are holding people back from rejoining the labor market? paul: well, short answer is no, and the long answer is no. if you look at the payrolls data, the fast-growing areas of payrolls are the lower pay jobs. these are the jobs that are likely to be affected by an extra $300 in on a plumbing benefits. if you feel -- in on employment

benefits -- unemployment benefits. the lower income categories is where we are seeing real strength. the higher income categories is where you saw somewhat slower job creation. the payrolls number was really not that dismal. we had well over one million jobs being created last month in the united states. when you do the adjustment, it comes down. we have been through a traumatic economic expense and i am not intact -- experience and i am not entirely convinced that the seasonable adjustment process is able to cope with that. we may be getting -- we may not be getting it full sense of what's going on because we are trying to treat the labor market as if it's normal. annmarie: yesterday, we had mcdonald's and amazon talk about wage increases. chipotle is already doing this. do you think that wage inflation can be passed on? paul: we are not actually seeing

that happen so far. and what we are talking about here is again quite a complicated situation. we are seeing wage increases absolutely, but we also seeing moe productivity -- more productivity. a lot of firms have become more efficient during the pandemic. so, that's going to be a future. the automation that we have seen -- feature. the automation that we have seen in food restaurants, take away so on and so forth, the fact that you can have an app on your phone to order a cheeseburger and fries, that sort of thing is shifting demand for labor. and means we've got efficiency alongside higher wage costs. those two things can cancel each other out when it comes to the price impact for consumers. we are not particularly seeing these price increases coming through at the moment. the number of goods that are

rising in price at the moment is extremely small and unites states. most goods are rising -- small in the united states. most goods are rising by a normal amount when it comes to inflation. annmarie: i want to get your take on what the cdc yesterday -- said yesterday. do think this is a turning point for more of a pickup in the u.s. economy? paul: i don't think that itself is want to necessarily be a turning point. i think it is a signal that the turning point that is already happening. because we have seen in 2020 fear was one of the main constraints on economic activity. rather than the virus itself, it was fear of the virus that did economic damage -- virus that did economic damage. fear has dissipated. removing the masks is symptomatic of that. removing the masks is sort of part of this process. we are shifting to a period

where people want to have fun. we have been seeing that in some of the price data and other indicators. people are going to shift to surface sector spending -- service sector spending. in the united states, people will spend on things that pass the instagram test. you're only going to spend money if you can post about it on instagram afterwards. annmarie: i have to get your take on bitcoin. we are below 50,000 this morning. do you think this is a buying opportunity? paul: it's a speculative asset, it's not even an asset, at speculative. if you want to gamble, go out and gamble. i think there are finer ways -- funner. ways to do this speculative, annmarie: annmarie: according to paul donovan. have a lovely get. we are going to stick does have a lovely weekend. we are going to -- have a lovely weekend. we are going to stick with

piquant -- with bitcoin. that's next. this is bloomberg. ♪

♪ >> the crypto economy is taking off. coinbase as a platform is taking advantage of that opportunity. it is just really cool to see this wave of activity, not only from retail users, but also from institutions. what i think you are seeing here is that there is just a lot more credibility in the space.

we have really high-quality institutions who want to participate, who see the opportunity and are jumping on board. >> you've been a public company for a few weeks now, huge debut, but there's been a lot of volatility in the crypto space in general since then, but also in coinbase shares. what is it like being a public company and what do you make of that volatility? >> welcome to crypto. it is a feature, not a bug, in many ways i think. we are operating as a company internally for so long, will use to this. this does not faze us. you're looking for long-term opportunity. you kind of buckle up and go for it. annmarie: you are not providing much financial guidance. why is that? do you see a time when you might provide more guidance? >> it goes exactly to your last question, emily.

this is a new technology shift, much in the same way the internet changed people's lives fundamentally. with this tectonic technology shift, you are going to see volatility. we are not going to play that game of short-term management. we are playing a long-term game. i cannot foresee us doing the guidance think. this whole industry and our company has such an incredible opportunity and we are not going to think about it in that type of a quarterly weight. we are going to -- poorly way -- quarterly way. >> you cite the market uncertainty as part of the reason for limited guidance. what are the biggest questions for you when you look at the market ahead? >> it's about, how do we create the most user-friendly experience? in many ways, i use the analogy

of the old mobile phones that had these clunky, clunky interfaces. we are in kind of that phase of crypto, so we have to make it more usable, more accessible. we have to have more regulatory certainty for certain folks to get off the sidelines and participate. we are seeing so much participation now, we feel like there is just a great opportunity ahead of us. >> elon musk>> just abruptly announced that tesla will stop accepting bitcoin as a form of payment. crypto markets losing hundreds of millions of dollars just on the back of the tweet. what is your take on that? is there something wrong with that picture? >> there is so many misconceptions i think about the space. i think there is something like 75% miners are using renewable energy to mine. i welcome elon and brilliant minds like him feeding these

dialogues. it drives forward more sustainable innovation. when they do that, that's a way that we are thriving more renewable energy -- driving more renewable energy. i do think that there are a lot of industries and devices that consume a lot more energy than bitcoin. you have to put things into perspective. christmas lights and dryers. we want to have these dialogues and we want elon to participate. annmarie: the president of coinbase on the future of cryptocurrencies. it has been a big week for bitcoin after elon musk stepped up his criticism of the virtual currency. bitcoin currently holding at just under $50,000. the tesla founder says fossil fuel use was a big concern for bitcoin's

future. didn't mr. musk know about the fossil fuel worries and energy use when it relates to bitcoin? does this mean that potentially other crypto's like ethereum, litecoin, we could see them get a little bit more speed? >> well, so this is the downside of i guess designating elon musk as your respective crypto god, right. there are a lot of bitcoin maximalist that would look at musk and say he is a super genius, he knows everything that's going on and he really likes piquant -- bitcoin. there was some tension when he started promoting does going -- dogecoin. a lot of the bitcoin maximalist got upset. now, they are really angry. and a lot of them are trying to sort out their own feelings

towards iran. on -- elon. they saw him as a guide preaching the bitcoin gospel. it now seems clear that either he does not understand, in their view, what bitcoin means for the environment or he disagrees with them entirely. either of those scenarios are not very good for the bitcoin proponents. annmarie: is there a way for bitcoin -- that bitcoin can be done more efficient? >> yes, so you mentioned this idea other coins getting up to speed. the important thing about bitcoin is that it relies on this mechanism mentioned injured previous interview -- mentioned in your previous interview. this is where you need huge computers that are mining the actual cryptocurrencies. a lot of the competitive advantage that you get in that space is just from the lowest electricity cost available. you have big mining companies out there who are using c

oal-firepower that is not environmentally fronted. we have other cryptocurrencies that rely on a truth of state concept, notably ethereum. the problem with bitcoin is because it is so decentralized, because it does not have effective leadership, it was never designed to have effective leadership, making that transition is going to be very difficult. i think a lot of people are quite down on the concept of bitcoin fixing the aspect of the code. in that sense, you're starting to see some people say that, well, maybe bitcoin ends up being the aol of the cryptocurrency space but the next thing is going to be google. maybe it's a theory and, something like -- maybe it's ethereum, something like that, but we are waiting to see. annmarie: just ahead, prime minister boris johnson says he

is anxious about the spread of a new variant in the u.k. could this derail the plant reopening? the latest on what -- planned reopening? the latest on what is going on in england next this is bloomberg. -- england next. this is bloomberg. ♪

♪ >> we are anxious about it. it has been spreading. we want to make sure that we take all the prudential, all the cautious steps now that we could take, so there are meetings going on today to consider exactly what we need to do. there's a range of things that we could. we are really nothing out. annmarie: boris johnson on has anxiety over the indian variant of covid-19. the u.k. may now accelerate its vaccine program.

it plans to reopen into hospitality. joining us to discuss is denenberg. it's déjà vu -- dani burger. it's déjà vu from what happened -- of what happened in september. as he setting the groundwork for more restrictions? >> he is at least thing to the public, all options are on the table. he also said that there is no data that suggests that they couldn't go ahead with plans for things to reopen on monday. it brings into question, what's going to happen to that june 21 deadline, when they are set to remove some of that social distancing? what happens to international travel? the roadmap could be different. it's a tough time because the monday reopening means that we are likely to see more spread of virus but at the same time, politically, it's going to be tricky for him. his own party does not want to see the roadmap reverse, essentially.

annmarie: another fine line he needs to walk, as we have seen throughout the entire pandemic. what could this mean for the corporate and economic impacts on all this? >> certainly, we have seen in the past with a lot of these lockdowns that it's really the surprise or uncertainty factor that tends to hit companies hard, because there is a cost of preparing to reopen. at the same time, this past earnings season, we heard u.k. company after u.k. company talk about the easing of restrictions feeding into their forward forecast, be it greggs, whose shares rallied. cineworld talking about how it will have a negative impact on their financial performance and will likely need to raise more liquid. burberry, they used in their fiscal year 2022 forecast, this easing of restrictions. it certainly could hit corporations. annmarie: thanks so much.

that's it for bloomberg daybreak: europe. the european open i next. european equity futures higher this morning. u.s. retail sales at 1:30 london time, 8:30 new york time. happy friday from new york city. this is bloomberg. ♪ ♪ ♪

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anna: good morning. welcome to "bloomberg markets: european open." mark cudmore joins me in singapore to take us through the market action. the cash trade is less than an hour away. here are your top headlines. the u.s. says that fully vaccinated americans can ditch masks in most settings. in the u.k., prime minister boris johnson says he is concerned about the spread of a very, while