♪ >> good morning from bloomberg's middle east headquarters in dubai. annmarie hordern alongside me in new york. it is "bloomberg daybreak: europe." inflation concerns send stocks lower as attention shows to the fomc. bitcoin follows the downward trend after a fresh morning from the pboc. france gets back to business

with non-essential stores and entertainment venues opening for the first time in over six weeks. a leadership shakeup at gpm -- jpm puts two women in the key role and pole position eventually to succeed jamie dimon. we are also waiting for the fomc minutes. 6:00 a.m. at home in london. how important are these fomc minutes? they will not include the jobs shot, the depth charts from cpi. these minutes will reflect a 27 and 28 of april. as we go into this fomc, two- year inflation expectations are breaking relative to guild to a record high -- yield to a record high. good morning. annmarie: it's very true. are these minutes just going to be a snooze fest? because the disappointing payroll are already baked in.

still too early to talk about tapering. they will be monitoring the data. it's the bank of america fund managers survey you and i have been talking about all morning. 69% of those investors see growth, they see inflation very, very bullish. it's a record high. this is clearly the debate taking place on wall street right now. manus: we are not quite at stagflation yet, are we? this survey does not show that. it doesn't show this capitulation -- does show this capitulation. covid concerns runs down to number four. mark matthews was with me from julius baer. 60% of india, they hope, will have a double shot vaccine by the end of the year. how are the markets? annmarie: very poor this morning, this wednesday morning. it is red across the screen, across asia and european equity futures. a little bit of that risk appetite that inflation concern

taking a bite out of that. today, we will get the fomc minutes. tomorrow, we hear from christine lagarde. when you see a 1.22 handle and you have the recovery taking place in europe, at what moment does this start to hurt potentially the european experts? we will hear from madame lagarde and philip lane on that. bitcoin down under 10% -- down 10%. we are under $40,000. a huge wipeout. what's going on this morning at least, it does not come from elon musk, but it comes from beijing. the pboc taking to wechat, making sure that chinese consumers know that you cannot purchase items with a digital token. manus: breaking below that 200 day moving average. there is no contagion impact, i challenge that. we have a guest. it is berenberg senior economist kallum pickering and he says

this is his quote, even beyond the next two years, we expect the -- to return to a pre-lehman normal. as well as a less depressed central bank rate and bond yields. to the moon. here is kallum pickering. good morning to you. two year breakeven expectations at a 15 year high. the breadth between that and nominal is at a record. how high are these yields going to break? good morning, mr. pickering. kallum: good morning. significantly higher. in my view, this needs to happen soon. central banks are keeping bond yields artificially low relative to what are now very realistic expectations for strong economic growth that will be sustainable and sustained higher inflation. the longer that gap goes on and the bigger it grows, the more

pain for the correction when it eventually happens. it may be sensible for a few central banks around the world to start signaling that the normalization could come. i have been slightly encouraged by the bank of england, which seems to have taken the first step towards sending that signal . the buildings are still standing in the u.k., everything seems to be fine. if the fed and the ecb is smart, maybe they start to send similar signals. annmarie: bank of canada as well, i think was the first one out of the gate with that. what camp are you in? are you in the transitory, inflation is going to be short-term? are you in the this is here to stay? kallum: this is here to stay. we will get a strong cyclical recovery, which is fueled by pent-up consumer demand around the advanced world. then, there is an additional leg that comes from the strong policy stimulus. that will create a lot of excess

demand, especially in the u.s. the third is deglobalization coupled with shortages of labor due to aging populations and probably continued strong domestic demand growth. that should push core inflation rates higher. in the u.s. and u.k., i think it's a reasonable guess by the middle of the decade core inflation will be trending around 2.5%, 3%. eventually, central bank's will have to admit that they are too backward looking in their assessment of inflation and then start to react to the growing risks. manus: one could argue that there is that possible complacency at the fed. you talk about 2.5% to 3%. we have looked at the bank of america survey. there is peak bullishness there. what is the tolerance level in risk markets? what can we bear. can we bear 2.5% without unseating the equity rally and let's say the progress rally -- pro risk rally?

kallum: the movement to higher bond yields and its impact on markets will not be smooth. central banks are confident in the underlying economic story if we just get a garden-variety equity market correction. i think central banks would like to stand on the sidelines and let it run a little. we may have to fend for ourselves for a while. but in a world where growth is stronger, where we get more inflation, and remember, equities give you a good claim on future revenues that are inflation-adjusted, accounting for that. equity markets can be fine. i would just remind everyone, since the middle of last year, economic data has consistently come in above expectations in the advanced world. it seems to me that that more than the stimulus is driving markets higher. even in a higher inflation environment, we expect economic data, that is a real gdp growth, real earnings, wages to consistently beat to the upside so that plenty of economic

argument for markets to shift higher. annmarie: one thing that i was struck by in the bank of america survey was that only in march, one of the biggest fears was of taper tantrum. now, the biggest fear is that the fed is not moving quick enough. is that trip by inflation? if so, -- driven by inflation? if so, why? isn't it too soon to flip on a dime about the biggest tail risk? kallum: that's the way the fed is thinking about it. a lot of this is currently base affects. if markets are skittish, they are prone to wild swings. i would not be surprised if two weeks from now, we are worried about a taper tantrum. bond yields have moved sideways the last few weeks. if we start to see higher inflation present to bond yields and equity market analyst start panicking that their discount rates are not high enough in their revenue models, then markets may start to fret more

significantly about the taper tantrum. i think it's going to come, i just think we are not there yet. manus: i think you have been on this show too often. you are throwing around terms like a garden-variety correction. what's the scale of a garden-variety correction? is it 10%? is it more? kallum: no, it's around that. it's a quick pull back, 10%. even if they don't publicly admit it, central bankers will be quietly pleased by the fact that some of the hrat is being taken out of -- heat is being taken out of equity markets. a little garden-variety correction every few years is not too bad. a significant financial crash down the road could create genuine economic risks. it reminds central bankers that you look at risks in two directions. annmarie: you are using very british phrases.

kallum pickering, berenberg senior economist, stays with us this morning. a recap of your first word news with annabelle droulers. >> thanks. russia is dialing back reports of a major breakthrough on the nuclear deal with iran. a senior diplomat says that while significant progress is been made, unresolved issues still remain. it was earlier quoted by the bbc as saying an important announcement could be made today, but later said more time was needed to finalize the agreement. fighting between israel and hamas is continuing. the death toll is now at at least 217 people in the gaza strip and 12 in israel. diplomatic efforts to stop the conflict are also intensifying. israel's channel 12 reports that hamas has agreed to an egyptian proposal for a cease-fire that would start thursday morning, but there has been no response yet from israel. the world's top vaccine maker says it sees export delays until the end of the year.

the institute of india says it is struggling to supply some country, currently overwhelmed by the pandemic. it hopes to start delivering vaccines to poorer nations through the covax schema by the end of the year. it is a major setback for the nations who were relying on the shots. 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. manus? manus: thank you very much. coming up on the show, restrictions eased across france with the reopening of restaurants and cafés. we will give you the details from paris. this is bloomberg. ♪

♪ >> do we think what is most likely with inflation, which we

put in the report, we think could go above target a bit. [indiscernible] do we think it will come back towards target or not? manus: that was andrew bailey, the bank of england governor, giving his outlook on inflation before the house of lords economic affairs committee. let's shift gears and locations to france, where covid restrictions are big relaxed further today. restaurants and cafés are reopening for outdoor service, alongside nonessential shops. a nights curfew is being pushed back to 9:00 p.m. from 7:00 p.m. let's get to paris. our reporter is on the ground. what exactly do these changes mean for life, society, for you and the family? >> it is really a symbol of the french -- coming back today. cafés in paris and across france

have been reopened. whether or not you can enjoy again on the terrace outside. of course, restaurants and cafés are hoping the weather will help, even though the covid restrictions are still in place, with social distancing with 50% capacity and a 9:00 p.m. curfew. and of course, some restaurants and cafés do not have outdoor spaces, but it is still a major step forward towards the reopening of france. nonessential shops, but also cultural venues and events will also reopen today, with limited capacity. so, museums, such as the louvre, will be reopen again. also, cinemas, casinos, all of these places really making the french opening again. france remains cautiously

optimistic because at least 30 cases of the indian variant have been detected in the country over the past few weeks. but it is still a major step towards coming back to normal life in france. annmarie: macron later on today will be showing his face at the french cap. politically, is all of this going to help him? >> it is definitely going to help with just one year before the presidential elections. one poll shows the pandemic legacy will be key in terms of defense against the far-right week candidate -- far right wing candidate. if you look at this graphic, you can see that. even though most polls still predict they will be in a and -- they will be neck and neck.

20,000,001st doses target -- 20 million first doses target was met in may. it has been helped by a series of news recently, including the assassination of two police officers. and also these letters from retired military generals, who said that france was at risk of an insurrection. he has been using this event, saying france lacks security and she wants to be the law & order candidate. she has even managed to recruit an almost normal candidate in order to lead the campaign for the regional elections in june. all of these things are trying to make the party, the far right wing party, look more normal. there was this foundation index

called the demonization index showing an increasing acceptance by the french public of the far right wing. annmarie: thank you. just outside marseille, but her heart and mind in paris. kallum pickering, berenberg's senior economist, still with us. your above trend undergrowth forecast -- you are above trend undergrowth forecast for the united states and europe. kallum: the growth in the near term will be driven by reopening. it is happening later in the you can much later in the u.s.. europe is an export oriented region. if you are optimistic about the global growth story, you would get optimistic about europe. synchronized global growth, germany, france, europe had a really good couple of years so we are expecting that story to replace. strong demand from china, recovery in the u.k., the

european continent should benefit a lot. manus: to what extent -- a german top court rejecting the bid to enforce the pspp ruling, how significant is that given the context of the toolkit? a lot of policymakers talk about the toolkit and availability of the toolkit, how important is it? kallum: i think it is a potential downside risk. one of the reasons why markets can be hesitant about the euro zone is from the bureaucratic point of view, there are lots of hurdles that you need to get over to really drive policy stimulus. we certainly see that on the fiscal side. it is also true on the monetary policy side. this does not apply in the more centralized states of the u.k. and u.s., where the government and central bank can basically just act on mandates. in europe, we always have to worry, well, we have some promise for this stimulus.

will it actually come through? on the monetary policy side, the biggest hawk in the germans, that is now off the table. we look forward to the ecb aggressively supporting liquidity in credit markets and that should help governments that continue to borrow to stimulate. overall, i think they are just making a comparison here between the state of the euro zone today versus the state of the euro zone in the wake of the lehman financial crisis, when actually from a fiscal point of view, the eurozone was becoming very austere and hawkish. the ecb was behind the fed and the bank of england to stimulate. this time, not to the scale that the u.s. is but both the central bank in the euro zone and governments are working in synchronicity in order to stimulate this recovery. it provides some insurance against downside risk. annmarie: a guest yesterday was

talking about there is no inflation risk. how much is inflation risk in europe being exported from the united states? kallum: we need to keep an eye on bond markets a little that the likes of the french and german bond market does not follow u.s. treasuries, and to a certain extent, gilts, too much. the eurozone suffered a lot less inflation in the last decade. i am not consistently above the central bank's 2% target. the ecb still has some work to do before it can start to consider where its exit strategy may begin and how that may enfold. from the ecb's point of view, let's get inflation expectations above 2%, let's close some of those output gaps, which are still high in countries like france and italy. at that point, i think you can start thinking about tapering. you are right to highlight the risk that the ecb will be watching for signs that its bond

markets could follow some of the others in the advanced world, where there is more inflation. a couple of months ago, the ecb stepped up purchases in order to drive away the gap between the bond yields that were shifting higher in the u.s. and those in germany, france, and italy. manus: ok, thank you very much. we are just showing the european stock markets, down over 1% as we speak right now. it is a global concern and angst. kallum pickering, bloomberg senior economist --berenberg senior economist. elon musk's tweets will not drive bitcoin prices down but it is the fresh lime 20 from china that is adding to the headache for the crypto bulls. are we moving into a new paradigm in bitcoin? this is bloomberg. ♪

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annmarie: good morning. 6:24 in london. i am annmarie hordern in new york, manus cranny into bite. let's take a quick look at where we trade this tuesday morning. asia is lower -- wednesday morning. asia is lower, s&p 500 futures are lower. european equity futures, euro stoxx 50 done more than 1%. we are seeing all of these concerns taking a bite out of global equities as we look ahead to those fomc minutes. bitcoin below $40,000. the cryptocurrency has slumped as much as 11% this morning, now just none 8%. this comes as china, the pboc reiterating that it cannot be used as a form of payment. let's bring in dani burger. bitcoin this morning really a tough ride. is this run-of-the-mill volatility? dani: we have seen this in bitcoin before.

it is sort of the nature of the cryptocurrency. i would argue what's different this time during this big drop is that you have so much more involvement, especially from institutional managers. a product was launched where you can trade bitcoin, ethereum against yen, for example. you have these catalysts. another reason it is notable is just this extreme downside momentum that we are getting. bitcoin, this is a level we have been looking out for, and it has now reached its 200 day moving average, so trading below $40,000. it's about $100 below that 200 day moving average. the reason this is problematic is because this momentum signal is so important for bitcoin. how are you supposed to trade fundamentals when it comes to bitcoin? you cannot really. technical analysis, though maybe not my favorite for a lot of markets, it is something people pay attention to and used to trade bitcoin because of that lack of other drivers. manus: good to see you this morning.

the question i have gotten my mind is, what's the contagion risk for other markets from bitcoin? everybody sang there is none, there is none. i have heard that before. bank of america, we've got this survey we have been touching on throughout the morning, i love this, it's quit coin, not bitcoin. it's a crowded trade. >> i kind of agree with you on that contagion point. if we are at a point where more people are trading bitcoin, there's more institutional players and that diversification is when you get spillover into other markets. we have certainly seen not just bitcoin, but a theory him, all the really -- ethereum, all the really popular cryptocurrencies falling. this is the bank of america survey you mentioned. long bitcoin, the most troubling. this is not the first time that bitcoin has topped the most traded survey. i would almost argue that long bitcoin being a crowded trade is not necessarily a bad thing.

it's that momentum that bitcoin thrives off of. manus: contrarian trade. thank you very much. dani burger with all the news and views on the going. the eyes are on the fed -- on bitcoin. the eyes are on the

annmarie: good morning from bloomberg headquarters in new york. this is "bloomberg daybreak: europe." inflation concerns since stock lowers as attention shifts to fomc minutes today. france gets back to business with non-essential stores and entertainment venues opening for the first time in more than six weeks. a leadership shakeup at jp

morgan puts two women in a key role in pole positions to eventually succeed jamie dimon. manus, very good morning to you. 6:30 a.m. in the city of london. markets this morning are moving to the downside over inflation concern and whether or not the fomc minutes will give us any sense and importantly concerns about inflation, all the data shocks occurred after the april fomc meeting. it seems to be the same tune coming out of the fed. manus: absolutely. the question is, or markets pricing this route and inflations to your expectation, relative to yields? that is at a record. you take that and you take tips

at a record negative. some expect yields despite higher in the near term, but will get back to pre-lehman type inflationary scenarios. annmarie: and whether or not what the fed thinks, is front and center of investors minds. the survey, 69% of investors say they see growth. one of the biggest tail risk was taper tantrum's in 2013. now it's the fed not acting quick enough to catch up to inflation worries. manus: a flash on the markets, equity markets are lower and they have progressively move lower through the past 30 minutes since we've been on air. bank of america survey, the

market is unambiguously bullish. were not at stagflation yet. were seeing signs of peak optimism is bitcoin is furiously moving lower, down 9%. the chinese basically saying you cannot use crypto tokens anymore. bitcoin doesn't -- the dollar bouncing off a three year low and the kiwi moving aggressively higher this morning. that usually is a big lag in the u.s. market. let's talk about the markets, because we've been waiting for the opportunity to see what's in the minutes from the fed's april meeting. michelle, what do you reckon the

hints from the fed are going to be? annmarie called it a snooze fest. is it? michelle: it's hard to get too excited about minutes in any context at any time, but right now, of course we want to watch for inflation, that will take center stage again. keep in mind the minutes or reflection of the official conversations from three weeks ago. it does give us a window on their thinking. we will have to read between the lines and compare to what we've heard recently. we want expect to see any surprises around their views that it's transitory and will not immediately affect policy. one thing the fed will increasingly be pressured on is a discussion of what transitory means in terms of timelines. it's not been entirely clear if

it runs out at the end of this year or the start of 2022 are later. loretta saying she expects higher inflation this year, above 2%, before it within ees. some saying inflation could reach 2.5% this year and next year. so there is a little bit of differing in terms of the timeline. we will see the board's thinking about the state of the u.s. economy before the surprisingly weak jobs report for april that some at the fed believe it suggested another reason to remain cautious. will look for language from the labor market whether the unemployment insurance might be keeping some on the sidelines is merited. that debate will continue in the weeks ahead. annmarie: when you look through

the prism of those latest data points, the disappointing jobs, the surging concerns on inflation, what upcoming data points do we need to see? michelle: of course the jobs report is a big center of debate , when some are saying there are seasonal quirks around amazon jobs and the light, we will be looking closely at the next jobs report which is just a couple of weeks away now, so that will be another one to keep on the calendar. we will see with tomorrow's weekly jobs claim report, those in the labor market will be key. in the meantime, more inflation data. we will also get a hint on consumer expectations of inflation in the conference board's reading in their report

next week after the university of michigan survey that had very high marks in that regard. and housing is still an important area to watch. it has been red hot and a great example of the supply shortages both at home and with the materials to make them with lumber prices soaring. fed officials said it's not a worry around financial stability but you have to think with these reports coming up on prices, new-home sales and mortgage applications, if they come in superstrong, whether they might be talking more seriously about that potentially being a market of overheating. manus: if you go back to walmart results, it's how much of the stimulus checks that have been spent. it would appear that trajectory has risen from march into april. that could be one of the alphas that moves -- rolls over more quickly than we think.

michelle: that's another pressure point. we've been hearing from companies about the soaring prices. that point about stimulus running out or consumers being less enthusiastic about shopping than they were maybe a month ago. we will be watching for signs of that as well. consumer appetite to purchase, another thing we might get hints about in that conference board report. annmarie: michelle, thanks so much for joining us. we're looking forward to the fomc minutes coming out later today. bitcoin has slumped 11% this morning. they are erasing all the gains since that fuel jump on february 8. just over a month ago, from 65 k. manus: a variety people talking about $2.5 trillion of wealth

backed up in bitcoin. we need to understand whether what the chinese came out with last night, whether it's a flesh wound or a more brutal mortal wound on bitcoin. i still put it to you that there are consequences of an implosion in the bitcoin market. i say it will have a ripple effect on risk markets. annmarie: dani agrees with you. she was mentioning, we are seeing, to your point, at least today, risk assets taking a little bit of a leg lower across asia and european and u.s. equity futures. bitcoin at the moment down more than 9%. we will keep an eye on this story. here is a recap of your first word news with annabelle droulers. >> prime minister boris johnson is fleshing out plans to level up the u.k..

he wants to spend 830 million pounds on transforming local town centers. he plans to shift 3000 civil service jobs out of london by 2025. johnson says he wants to seize the opportunity to build back better from the pandemic. president biden is planning a two-week delay for ban on new investments with certain chinese companies. sources tell bloomberg officials are drafting guidance to clarify the trump era policy that confused wall street. the main question is over how the china investment ban applies to subsidiaries. the biden administration wants to give consumers -- rebates for buying electric vehicles. the aim is to help the u.s. compete against china and building the next generation of cars. the white house kleiman advisor said president biden is looking to invest more than 100 $70 billion. >> the president is concerned

that china is far ahead of us in the electric vehicle market and instead of producing technology in the future, we are importing them from somewhere else. it is time for that to shift around. >> 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. manus: thank you very much, annabelle droulers. the president mulling republican proposers to amend his infrastructure bill to pastor congress. biden's team met yesterday to discuss the latest counter offer. we caught up with the global sex senior investment strategist to get her take. >> i believe that we need to look at what the money is going for. if we are talking about, for example, and i'm just making

this up, $2.5 trillion over 18-20 year period, which is what the civil engineers did. i don't think that's inflationary, for a couple of reasons. number one because is not being spent all at once, and number two, it's an investment in the future. you have to distinguish from spending that is spinning for spending sake versus spending to invest in the future. that includes infrastructure and research for sure, and education belongs in that category too. this is not a new concept. abraham lincoln who was perhaps the first infrastructure president, believed strongly that you need to invest in colleges, engineering schools, and you needed to invest in young people who could move the nation forward. it was that sort of investment in the 1860's during the middle of the civil war that really set

the united states up to become a leading nation by the beginning of the following century. >> i have to get your sense of what's happening in particularly equity markets. what is your sense of valuations right now? just for me stability point of view, do you think were getting a little frothy or? >> valuations clearly are at high percentiles related to history. the only valuation that are not are things like equity risk premium and so on that key off inflation. you've done such a great job discussing the fact that inflation interest rates are on the way up. i think we have to recognize that returns overall in the u.s. equity market from this point will be very modest and perhaps volatile compared to what we've enjoyed, especially over the last 12-15 months. i think there is a rotation going on, investors are looking

at where earnings growth will be coming from. and what appeals to me, quite frankly, is that investors are acting like investors again. there's less emphasis on momentum and more emphasis on relative valuation. which of the companies that have the strongest cash flow growth and are investing that cash flow for longer-term purposes, including capex, including basic research. those are the companies that will be leadership companies next. annmarie: we got to bring it back to bitcoin, it's getting absolutely pummeled this morning, erasing all the gains it made since the tesla fuel jump on february 8. what mike nova grad said a few -- two days ago, that he thought there would be consolidation of 4-6 weeks.

right now where it 39 k handle on bitcoin. manus: some will step in and say it's a value opportunity. 75% say it's a bubble. it's his worst day so far this year. down 14.5% at the moment. keep an eye own coinbase when it opens later today. it's a crypto collision today. how will it spread and deliver? annmarie: a shakeup is right at the bank. two women coming to the front as likely contenders to jamie dimon's throne, following the management shuffle yesterday. the details, next. this is bloomberg. ♪

annmarie: good morning, this is "bloomberg daybreak: europe." two women are moving ahead of the pack in the race to succeed jamie dimon at the helm of jp mormon -- jp morgan. they are seen as strong contenders following yesterday's leadership overhaul. joining us is our asian finance reporter in sydney. we have two women at the top of the succession race. what do we know about them? >> as you say, they've just been appointed to lead the consumer and community business that generates about $50 billion in revenue last year. marion late, longtime cfo at the bank must seen as a long-time successor to jamie dimon. she's been at the bank for 22 years and has been running the consumer lending business that

generates about a quarter of the bank's revenues. on the other hand, jennifer has been at the bank for 27 years. lately she's been working on the consumer business. she jumped to the consumer business from investment banking in 2010. manus: what we want to understand is whether jamie dimon is any closer to the exit. he hasn't really shown any great impetus to run out onto wall street and say bye-bye. >> absolutely, and that is the big question. he's always had a stock answer when people have asked if he was leaving. he's always said it will be another five years. he is absolutely a rockstar ceo. he's the only one remaining from the credit crisis era and he help navigate that really well. j.p. morgan chase has quadrupled

under his watch. you can understand the bank saying it will be a significant amount of time before he steps down. but he is 65, so perhaps the clock is finally taking on the last five years. annmarie: what struck me as the timing of this. next week all these executives will go down and testify to congress. how significant is this move across the entire industry? >> wall street has been playing catch-up for a long time on gender diversity and gender equality. this is a very big move from j.p. morgan, it's america's biggest bank, if it does end up appointing a female ceo. they won't be the first, we've had citigroup named their first female ceo, but it will be seen as a very big move on wall street. manus: he's been at the bank 14.4 years.

great reporting there. annmarie: but every time you ask jamie dimon when he's going to retire or step down, he says in five years. manus: i think sometimes you say when are they going to go, they just give you a stare, that look. maybe it's time to give somebody else a chance. coming up, the latest drive to cut costs for cbs. -- at ubs. initiative on job cuts. this is bloomberg. ♪

manus: this is "bloomberg

daybreak: europe." ubs attempts to save a billion dollars over the next three years. the ceo making the cuts in the first year on the job. most of the cuts we expect to see in switzerland where as many as 700 jobs are expected to be axed. 700 jobs, most of them in switzerland. how big a piece of news is this? >> this is pretty big for his first year. we are seeing a couple dozen coming out of wealth management, the bulk of it as you said, 700 will -- up to 700 will be in switzerland but we are expecting to see some of that come out of

other regions as well. it is a big announcement, but not huge compared to some of the others. the caveat here is that a lot of it will come out of the banks corporate cost center itches the engine room where a lot of these support ops sit. that's a key area they want to digitize. it might not necessarily be the bankers at the front. annmarie: what is the goal of this and how does it play into the new strategic plans? >> costs have been a perennial headache at ubs. it operates at a higher cost based in many of its competitors. he went through a lot of restructuring and job cuts, so it makes sense for hamers to start there, but it is low hanging fruit to cut costs. digital might be the key, but so far we don't have that many details beyond an expected

savings of $1 billion over three years. annmarie: thanks so much for joining us, our swiss banking editor on the latest job cuts coming out of ubs. before we handed off, what is going on with bitcoin this morning? down 9%. erasing all the gains elon musk made with that tesla enthused tweets, now we are down big time. manus: we are indeed, 40% from its record high. the question is, the pboc making the announcement that digital tokens no longer can be used, is that a flesh wound or a moral and brutal attack on bitcoin? the most crowded trade, how

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anna: good morning. welcome to the european out in -- the european open. i am live in london. mark cudmore joins me to take us through the market action. here are your top headlines. stocks slide amid inflation concerns as attention shifts to today's fed minutes. bitcoin follows a downward trend after a fresh morning from the pboc. france gets back to business with