manus: good morning from our middle east headquarters in dubai. this is "bloomberg daybreak: europe" with me, manus cranny and annmarie hordern. stocks are in positive territory but investors keep an eye on the virus. japan's economy stalls. this year's wtf meeting is off.

bitcoin will be pressured for weeks amid musk-induced mayhem. this as michael berry makes a big bet against tesla. joe biden else that is ready prime minister he supports a cease-fire between israel and hamas, a big change in tone. 6:00 a.m. in london, 9:00 a.m. in dubai. it is about the virus, and you can tell the globe is bifurcated by this virus. implosion in the economy of japan, a double-dip recession, and the u.k. fighting the indian strain. this is the manifestation of a world divided by a virus, and the question is, where are we in the evolution or the quelling of that virus? annmarie: i think it is what we

have been saying this entire pandemic, as if the world takes two steps forward and one step back. depending on where you are, you are either waking up with fresh restrictions like in singapore or japan, tokyo, especially, or you are waking up and can get a vaccine this week in the united kingdom, because they are trying to battle the variant from india. they are opening up to 35 and older. in the united states, joe biden will send more authorized vaccines around the world in june. depending on where you are in the world the pens on how you are fighting the pandemic. it is a precarious situation. manus: the conversation i just had with the head of dubai airports, 30% of business coming into dubai is closed. india, south africa, singapore. for as long as those hubs come under pressure from covid, the

flow into the rest of the world is stymied. stocks this morning, they seem immune to this covid variant story at the moment. annmarie: the positive news, vaccination programs in some parts of the world like the united states, the u.k. in europe picking up speed. we have asian equities, european equity futures, u.s. futures in the green. also, we have an uptick in brent pushing to $70 per barrel. this goes to what is happening in the united states, they are flying. that fuel demand is pushing into the fuel price. the weaker dollar is helping brent. fmoc minutes tomorrow, richard clarida the saying not yet time to talk about tapering. but any hint on what the fed thinks about inflation given the data we saw last week, we will

see that in those minutes potentially. joining us to discuss this now is paul markham, portfolio manager of global equity, newton investment management. let's start with the virus's potential concerns that we see the markets shrugging off. why do you think this is, and are they wrong? paul: the problem with markets -- [indiscernible] in the back of investors minds, there will be a couple things which could derail strengthen markets. one is that the virus can come back in different mutations, or the geographical differences like you described in india and singapore, tokyo, etc. but at some stage governments will have to roll the stimulus packages they have in place.

those could weigh on markets at some stage. that is difficult to ascertain. manus: i was caught up with aberdeen, and the point was we are in this euphoric state and equity markets at the moment. we are not really prepared for downside. you say we are at a crossroad in equity markets in regard to cyclical trade. talk me whether you think we are at a peak, and what the amoebae crossroads? paul: we are at a stage where the market is giving cyclical sectors a head start in regards to what they are earning in those spaces. we had a 12 year period with growth for a long time. we are at a crossroads because the market will need to see some progression to justify that valuation.

it will start to see some recovery for that. by the end of this year there may be moments when cyclical trade, we may see reversion -- it will not be a straight line. that is not to say values for cyclical stocks cannot rally again, but i think the market will want to see evidence. annmarie: what about the potential recovery trade in europe? what are you eyeing? paul: we have seen so many false starts and much-publicized issues around the rollout of the vaccines. that was a difficult time for the european union. as we go through the year, the rollout is starting to happen in a better way. the economic recovery follows that and drives european stocks. the only problem, you may have

to be involved in sectors that may not be the most beneficial in terms of the way they are organized. [indiscernible] traditional retailers do not work the way they used to because of e-commerce. mid-caps may do better than cyclical large caps. it is domestics that will have to work. manus: the other point that you make is japan. i'm drawn to this call you have that it lags because of covid concerns, and we see those rolling markdowns. you talk about high corporate cash levels. is this one of the best value opportunities for you? paul: it does feel that japan

and this rotation should do well. it is unfortunate for japanese markets that we have this lag and covid wave come through. it is not as bad as waves and other parts of the world, but after a period where japan was largely spared the worst of the pandemic is starting to come through. [indiscernible] i think the key -- multiples are so low that buybacks make a lot of sense. what we are looking out for our companies supporting share prices by buying back their stock and bringing the cash balances. it will come at a time when the market will need some support. manus: stay with us.

paul markham, portfolio manager of global equity, newton investment management is our guest this morning. let's get your first word news. >> president biden told prime minister netanyahu that he will support a cease-fire between israel and hamas. it is a shift in the u.s. approach after days of criticism for not taking a stronger stance . it adds to pressure to end the violence that has killed at least 220 people, mostly palestinians living in the gaza strip. italy plans to phase out a curfew and restart they economy as covid 19 cases go down and the vaccination program steps up. if infections keep declining, rome wants to remove the curfew on june 23. on sunday the number of deaths in italy fell to 93, the first day below 100 since october.

elon musk has lost his spot is the second richest man in the world. a drop in tesla shares has pushed him down. musk held the top spot as recently as march. it is currently filled by jeff bezos worth $190 billion. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: just ahead, we have a look at the biggest hedge fund managers and how they spent their cash in the first three months of the year. financials were a key sector. coming up, next. this is bloomberg. ♪

>> we will be spending more than netflix. right now between us, we are spending $20 billion a year on content, and we expect to spend more than that. together right now we have almost 100 million subscribers, and neither one of us have deployed aggressively outside the u.s. we are differentiating in a meaningful way in the u.s. with the extraordinary ip that john and his team have built. it is a differentiated and compelling offering. manus: that was the discovery ceo on his plans for content spending in the next year, and the group signing that megadeal under many names. the story was a bloomberg's group.

it gives us a glimpse into the moves by major hedge funds during the first quarter of 2021. reddit field trading, remember that? archegos $10 billion of loss and counting. i could give you a rollcall call of what happened, but tech positions were dropped by on average 8%. some major funds dropped their exposure by 13%. did you trim any tech exposure at all in the first quarter, or are you about to? paul: yes, we did take some out. we did not take out the amount you mentioned. the rise in inflation environments tends to negatively impact long-duration equities

that depend on low interest rates. also the geopolitical question marks around the u.s. tech ceos talking about chips. all of those weighed on our positions. annmarie: staying somewhat inditex theme, alibaba fell out of favor with a number of hedge funds. do you expect this trend to continue when you look at chinese tech given the clampdown we are seeing in that space? paul: it is a big question because the problem here is investors find it difficult to understand what can happen next in regards to government action we have seen in china. if we looked at it a different way and said the government wanted to raise taxes, the case in the u.s., investors can bring an estimate of what the new tax

rate will be, put that into their models and adjust valuations accordingly. the difficulty is in many ways our things and political nature that are hard to quantify. they may give investors more visibility about what is to come next. [indiscernible] manus: we spend a lot of time talking to various people about the commodity super cycle. in the past quarter it was commodities that superseded everything else. commodities were the absolute alpha this quarter. will that continue, and how do you play exposure to that? vicariously, through equity, or directly through commodity exposure itself? paul: the second part of your

question [indiscernible] the ability to buy cyclicals, for example, is quite popular as well. we felt the commodity super cycle was unlikely. from here on in, there will be strong demand from the structure build out from china, but not a one-way street that it was before. companies that become more focused on tree cash flow is instructive. it is a really good place to be. i think it will be a one-way street. annmarie: we are not in a super

cycle, so what does this mean for your inflation expectations? paul: we do think there is the possibility of a two state story regarding inflation. one is that the treasury market will likely see yields continue to rise. really the inflation story behind that is likely to be of interest in the demand that we see. [indiscernible] government sponsorship of wages and furlough schemes -- that also we will start to see the reality of a new world come into play. talking about tourism, it will take a while to get to the airport, and when you get to your destination it may not

necessarily be open. consumer behavior starting to change could put a lid on inflation, we may see something lower going into 2022. manus: i'm bruised by covid tests and bruised financially. i'm one of the lucky ones who gets to travel. you talk about slightly higher rates. one thing i was drawn to this morning was j.p. morgan's treasury survey short positioned -- what really caught my eye was this survey we have done. the pain threshold for the economy is going upward. the asset owners do not think the economy will be hit until rates hit 2.5%. what would 2.25% on government bonds due to the equity market? paul: [indiscernible]

we would like to see performance on those longer assets such as tech. if it is a slow wind up which is not dramatic, some of the more value related areas -- [indiscernible] let's say it is something where we are now. it will likely be negative for most equity assets because most of these are leveraged to a world with rates much lower. we are use to a lower rate environment. i think the pace and where we go from here -- if it lurches up, that will be trouble for the

markets. annmarie: whether inflation is transitory or sustained, it will hurt equity markets. thank you so much for your time this morning, paul markham, portfolio manager of global equity, newton investment management. joe biden calls prime minister netanyahu to tell him he public supports a cease-fire in gaza, this amid mounting pressure on the u.s. president to shift his stance. coming up, next. this is bloomberg. ♪

>> by the end of june, we will taken delivery of enough vaccines to protect everyone in the united states, the united states will share at least 20 million doses and extra supply

with other countries. annmarie: president biden pledging to share 20 million doses of u.s. authorized covid-19 vaccines to foreign nations by the end of june, the first time in and in the administration where doses could have been used domestically. a big change in the stance of the vaccine. biden also shifting the approach to the conflict between israel and hamas in gaza, telling prime minister netanyahu in a phone call yesterday that the u.s. supports an immediate cease-fire. we are joined by bloomberg's international executive editor. is that u.s.-israel stance hardening? this does seem to be a shift, and why the shift? >> it is interesting because president biden did tell the israeli prime minister he supports a cease-fire. that is not strongly calling for a cease-fire, which is something other nations have been

urging the u.s. to do. the u.s. has been engaged behind the scenes, and diplomatic efforts to defuse the situation. the stakeholders in the middle east across north africa and so on, that publicly at least the administration has been careful in the remarks, saying israel has the right to defend itself, and then to minette yahoo!'s -- benjamin netanyahu's reaction did not appear to be a overreaction. it will take a few days here to continue to work to degrade hamas. after that he needs to start winding down. he needs to start looking toward a cease-fire with hamas. they are not quite there yet. manus: there is still ongoing conflict for israel.

what are they most worried about in this conflict? rosalind: they are worried about the ability of hamas to keep going. they have had three conclusive or so far, and with this one they want to degrade the ability of hamas to keep coming. that is their main concern. they are looking at how this might play out across the region. another volley of rockets were fired last night from lebanon toward israel, the second time in the past week. it is a reminder that no one can afford to let this conflict continue to spiral. there is the broader framework at stake for israel in terms with the abraham accords and the

trade investment that will open up in that region. in a worst-case scenario, those accords would collapse entirely. we are some way away from that, but the lebanon rockets are a reminder to benjamin netanyahu that there are many things at stake. manus: antony blinken goes on around of calls. thank you to the bloomberg international executive editor giving us the latest on the conflict. the impact of covid-19 in the virus is ripping through various economies, japan's economy is shrinking. restrictions are hitting double-dip recessions. as we were saying, the u.s. is sending vaccines abroad. for the moment the equity market is leaning into some of the other positive narratives.

asia up 1.5%. annmarie: u.s. and european equity futures are in the green, leaning into the vaccine programs, and those economies that are reopening. ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling.

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annmarie: good morning. i'm annmarie hordern. manus cranny is live from dubai. investors keep an eye on the virus. japan's economy stalls. in this year's world economic forum is off as the u.k. battles the india virus. mike novogratz says bitcoin will be pressured for weeks. as michael murray makes his own big bet against tesla.

joe biden tells the israeli prime minister he supports a cease-fire between israel and hamas. a big change in tone. manus, very good morning to you. the markets are leaning into the good news and that is the u.s. ascending additional 20 million doses of vaccine abroad. it is the first time the u.s. has recorded the lowest number of new covid infection since the early days of the pandemic. i have the good news this morning. what is the bad news? manus: the counter to that is what is happening with japan. the confirmation of a double-dip recession. in these sort of moments where everybody focuses -- the physical gathering in singapore into that end, you try to balance that with it is time to get back to normal, easing the mask restrictions. i just caught up with paul griffiths who runs one of the busiest hubs in the world.

30% of their business is closed from india. not able to fly in the u.k. without a quarantine. these are the idiosyncratic things that change the face of business. the world is undoubtedly bifurcated, to choose a word not for markets but covid. annmarie: i know you are very eager to learn about whether or not the uae will come off that amber list getting into the u.k. of the u.k. right now, at least from the tone, the signaling that is coming from whether it is mr. hancock or boris johnson, there is this worry about that variant of india to spread. what they are trying to do is get as many vaccinations out there before they start to continue to ease whether or not adding some of these countries on the list, but also ease their restrictions within the country. manus: we will get some good news with the u.k., possibly going into amber list next week.

and then the roadmap to green. taiwan is the alpha of the asian market reprieve, up by over 5%. asian stocks are trading higher this morning. s&p futures up by .3%. people have shaved their tech exposure and pivoted into some of the banks. now was not the time to taper. you take that along with american airlines ramping up their rosters. that adds momentum which ends in the frenzy around brent, maybe $70 a barrel. the u.k., europe and the united states travels more versus the india close down, shut down. the 10 year government bond yield is 1.64%. the question we need to ask ourselves more broadly is whether inflation expectations turned from a ratchet to the highest in 10 years to something more self fulfilling. let's reset because a year ago,

the pandemic ravaged country after country, consumers were panic buying. everything from toilet paper to water and canned goods. today, desperately companies are trying to corporate wording, which is pushing the supply chains to the brink of collapse. the shortages are nearing the highest levels in modern memory. let's get a little bit more with the story. our chief asia economic respondent to set the agenda, great to have you with us. what is this supply crunch about? last year, it was about us hoarding for the lockdown. this time, it is at a global corporate scale. >> well, it really is. we've spoken to a lot of companies and manufacturers. several of them are saying supply chains are upside down because they cannot meet global demand for the products. visit big surge in demand --

there is a big surge in demand as the economy tries to get moving again even though the pandemic is not open. it is putting the pressure on manufacturers. they are struggling to get the kind of raw materials and the components that they needed to meet demand and they are seeing prices surge across the board to come over whether it is for copper or iron ore, semiconductors. they are dealing with this mix of price hikes, shortages of goods. and then they've had to deal with weather events. they've had to deal with the blockage of the suez canal at one point. you put it all together, this and result has been this massive push happening on supply chains, not just china and east test asia but -- east asia but it is a global story. annmarie: one ceo in your story -- great piece -- what does this mean for companies and the world economy?

enda: the big question i think that everyone is asking is will this fuel global inflation? we are in an environment where everybody is abating the price will take off. the question is will these prices flow through to factories to hike their prices for global customers? manufacturers i have spoken with make the point they have seen price volatility before, but the breadth love increases is something they had not experienced from commodities through to the full gamut of input components that they need. they in turn are talking to their customers about -- manus: we seem to have a momentary glitch with enda. the big story is all about the core of the conversation you and i have every day which is about whether this spike in inflation is transitory or coming for a longer stay. annmarie: certainly.

it doesn't matter what it is. lumber, corn, oil, coffee, it has all been up on a tear. from the depths of the pandemic, up some 80% of the bloomberg commodity index. is this a pause potential he? are we going to stay at these levels? is acceleration going to continue? where is the need for inflation? is it transitory or something to worry about for longer? we want to get a recap. the first word news with annabelle. hi. >> thanks. president biden says the u.s. will share at least 20 million doses of authorized covid-19 vaccines to foreign nations by the end of june. it will be the first time the white house released doses abroad that could have been used domestically. it is on top of 60 million doses of the astrazeneca vaccine that has not been approved for u.s. use. after devastating india's biggest cities, coronavirus is

now hitting rural parts of the country. many of the villages have no way to fight the virus. some have no health care facilities, no doctors and no oxygen. some citizens feel like they have been left by the government despite the pandemic alone. many believe the scale of the crisis is much bigger than the official number suggests. half a dozen senior bankers at credit suisse have left the firm in recent weeks. it is the latest in a rout of defections following the implosion of archegos capital management. the swiss bank the biggest loser, writing down $4.7 billion. it slashed the money set aside for bonuses to limit the financial hit. global news24 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? manus: thank you very much. as many countries begin reopening and returning to international travel, it's more

of a possibility than ever. but from pcr test to vaccine passports, it is likely going to be very different than a year-and-a-half ago. i spoke with the emirates chairman to get his thoughts on the coming summer season. >> the timeline always is left to an external government. they are the one who are really slow. to us, it will always be no time as we used to. we have more than 150 aircraft on our surface. we have some of our 80-80's en route. we are trying to push more and more but the government to open with the new protocol. manus: getting back to pre-covid demand levels, michael o'leary

was with me this morning. he said we are going to need a vaccine passport and that will take over from the pcr. do you see that happening, vaccine passports? >> i think we are lucky if we talk about the uae. we did vaccinate 12 million doses have been given. that is really more than our population. i would say 105%. that is very positive. of course, we need some kind of protocol. whatever you would call it. passport, whatever name it is given, that will make people happy to see there is less work they have to do. manus: you support vaccine passports for protocols? >> yes. whatever it is called. there should be a procedure easy between government that you can enter any country or leave that country. manus: the u.k. is probably one

of your most important routes and yet we were not included on the green list. why was that? >> i think there was a bit of people who really pushed a lot because we were open. a lot of citizens and people came during the new year, enjoyed it here. in dubai, the restrictions, keeping our distance. forcing, everybody is wearing their masks. and also, they will see we took every measure to ensure the safety of our passengers and also our staff, on board and on the ground. manus: is the u.k. being

transparent enough on how you move from red to amber to green? >> i don't think so. it is very difficult to understand. you can see the number is really dropping down. the u.k. number is really dropping down. i think we need to look to see what exactly is happening. i think we have proved to the world also that the uae today is in the top three in terms of vaccinations. manus: has the u.k. told you what you need to deliver to them? >> of course. our official position in the u.k. government, they show the number that we are. manus: that was the emirates chairman. we caught up yesterday at the international travel show. a real event in a really big auditorium with real people. the u.k. lacks transparency, you saw it.

i caught up with paul griffiths who runs the by airport. paul was very candid. he's hopeful that we will maybe get off the red list next week. there's a lack of transparency. the issue is this -- paul griffiths this morning said he thinks we will go from red to amber, and that is the trajectory to green. so, it is going to be a long road before you and i are physically in the one studio, at the one time, and the one city simultaneously. annmarie: i am definitely looking forward to it, but i do think the u.k. is signaling a much more cautious tone given the fact they are fighting this variant from india. potentially this was not the case maybe a month ago. now they are signaling they are going to be a bit more cautious. i think it is the ceo of the dubai airport that will be a bit slower. you will go from red to amber, not shoot from red to green. quickly, you also learn something from emirates' new chair. i saw this video.

what did you learn? manus: yeah, it is called premier economy. when you turn right on a plane, some people only know what happens when you go left. that is you. i turn right. yeah, i do. i go economy. amazing seats. amazing product. i think it is going to be hard for virgin to keep up with that product when it hits the market. i think two have it at the moment. all about the french. my shameless plug. my twitter and my linkedin. you know my obsession. annmarie: i do know. coming up, something else i know you love to talk about. another plunge as elon musk stay skeptical on bitcoin. that story is next. this is bloomberg. ♪

>> bitcoin will be somewhere between $45,000 and $50,000 in the next chapter before he can build enough momentum and end the year higher. >> how concerned are you about the short-term volatility being introduced by elon musk? >> elon musk is an important figure in american business and certainly in the global retail. he's a bit of an icon. he was great for crypto when he was positive for bitcoin. he's got some issues. what he said was he worried as bitcoin used more and more electricity, which it will, it can have a negative impact on fuel commissions. that is true for every industry. i think you will see a response from this industry like you see a response from every industry to say, hey, in this gap of time

before all electricity is green energy which is seven, eight years away, we should do something to offset our footprint. that's banking, crypto, tech, industrial businesses. >> is it problematic that one of the hottest currencies is a joke, doge, and that elon musk who is this face of it all is essentially whipping people into that one and sort of multiplying the jokes? do have other influential people talking about other jokes. does it make it harder to put on, basically make the case this is a serious industry with a straight face? >> yes is the answer. i don't want to discredit the doge community or any of these communities. what you are seeing is a response against the monetary policy of the u.s. and the world, and the frustration people have had with the system. and this young generation has

said we can bend together and create our own way of investing. some of it is frivolous and i think will end in tears. we try to steer our clients away from projects we don't think have long-term sustainability. but, it proves something that communities can bend together. the world has gone very tribal and that is not necessarily a good thing. if you go on crypto twitter, you realize how tribal it has gotten. one of my buddies makes a negative doge, and he's got six death threats. that is not good. let's not miss the forest through the trees. underneath it all, there's a huge revolution going on by serious people. annmarie: galaxy digital ceo mike novogratz, taking the long view on the future of digital currencies. bitcoin continuing its volatile week, losing about a quarter of its value in the past seven days alone. it comes after elon musk blasted

investors with a series of tweets questioning the environmental impacts of bitcoin mining. with us is eric lam. now that we've had a bit of time to digest basically this about-face, this u-turn from elon musk. what do analysts see for the outlook of bitcoin? eric: to approach that question, you look at it from two perspectives. first from the traditional side. this brings up the recurring questions of his bitcoin's use sustainable is a hedge against inflation, risk? given the journey we've all gone on over the past week, and we have seen that return to volatility, there is some pause now. the fact that this market has so much noise and it. the tweets of one person, albeit a very important person in business, has such profound effect on price, that does give mainstream investors a little more pause on this industry.

within the industry, i think it is once again the view of we have seen it before, we will see this again. bitcoin has had these roller coaster rides of volatility in the past and this may be another blip for bitcoin. if you have been around since 2017, if you have been around even before that, bitcoin jumped up and down to even greater magnitude than what we have seen. this is almost old hat at this point. they are looking at it as do we still believe in this asset? yes, then we are going to keep moving on. manus: yeah, every day elon musk talks about it, it will stay in the zeitgeist and beyond. eric, thank you very much. the very latest on volatility and the controversy around bitcoin. this is bloomberg. ♪

manus: this is daybreak: europe. i'm manus cranny with annmarie hordern. it was supposed to be the safe place to hold the world economic forum. now the organizers have canceled the annual gathering in singapore. juliette saly has the details. talk us through the latest news flow. juliette: yeah, hi. just three weeks ago, our own reporting was saying singapore was the best place to be to whether the pandemic, so how quickly things have changed due to the pickup of covid cases. that is what authorities are concerned. within a matter of hours, the world economic forum pulling out of singapore, canceling its meeting, citing tragic circumstances unfolding. saying they will reassess when they hold this meeting normally held in davos until next year. the location to be determined based on assessment of the situation later this summer. daily virus cases, excluding

india, which we know is concerning has been rising in parts of asia. taiwan, singapore as well. 21 cases yesterday. that was enough for hong kong to label singapore a high risk area. they also canceled the travel bubble, singapore and hong kong, which was scheduled for may 26. now, in fact, not only are we not going to have quarantine free travel between the two cities. if you are flying between the cities, you will face 21 days quarantine. just showing you how quickly things have changed in asia. annmarie: in new york, and really shows to me the divergence we are seeing between east and the west. where in singapore and parts of asia on the vaccination front. the united states is about to ship 20 million doses. juliette: this is the think, a lot of these asian nations did not have as much virus as we know as parts of the u.s. and parts of europe, i should say. they kind of relied on the fact

there was very low transmission. therefore, the vaccine rates are not what you would see across other parts of the world. in singapore, 55 doses administered out of 100 people. that is about 1/5 of the population. bloomberg opinion puts it should the country with one of the highest per capita incomes be aiming higher? singapore has a way to go. and that these covid zero nations that have relied on zero transmission rather than picking up vaccinations says striving for perfection may end up being the deepest flaw when it comes to global reopening. annmarie: it is interesting when you see any sort of uptick in singapore. they really do take the reins and shut down the city. juliette saly, thank you for joining us. manus, what we are seeing across the markets this morning as they are leaning not into the worries of asia, but what is happening in the u.k., europe and the u.s. that is the pickup and vaccinations. manus: absolutely.

the rollout of vaccinations. it picks up with bifurcation in terms of markets from the virus. it is east versus the west. these vaccines are what ultimately drive in the optimism in these markets. the european market open is next. what a beautiful day. ♪

♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network.

♪ anna: welcome to bloomberg markets: the european open. i'm anna edwards. mark cudmore joins me to take us through all the market action. just less than an hour away and hear your top headlines. stocks climbed despite concerns over the pandemic. japan's economy shrinks and this year's world economic forum meeting is off. mike novogratz tells bloomberg bitcoin will be pressured for weeks among elon