dani: good morning everyone from european headquarters. i am dani burger, this is

daybreak europe. here are today's top stories. president biden reaches a bipartisan infrastructure deal worth over half $1 trillion. treasuries are slipping. wall street biggest lenders easily clear the stress test, setting the stage for a buyback and dividends. eu leaders reject calls to hold phone talks with vladimir putin. likely angela merkel's final summit. in morning on this friday morning, it is the end of the week. we have made their, and what a way to end the week. we just had the american cash equity session and on all highs s&p, nasdaq 100, nasdaq composite at a new high. that enthusiasm over the infrastructure package coming out of washington and the economic gains we see from them

carrying over into today's asia session. asia pacific index is higher. american futures, it is those industrials, those cyclical sensitive stocks that are leading the pack so far this morning. dow futures are up .4%. doubt barely changed. we are looking at a weaker dollar spot. bonds barely react. we will be talking to dickie hodges tonight. all of the banks easily clearing the fed's stress test. there will now be free from buybacks put in place last year. let's put it our finance reporter. now that we have these result out, what can shareholders expect? >> it was a pretty stress-free

test for the banks. shareholders are getting ready for a buyback bonanza. there is talk that the top six banks alone could be handing out more than 140 billion dollars in payouts. rumor that last year, dividends and buybacks were capped because of the pandemic. is time for shareholders to come out and feast. banks will start to let people know monday afternoon how much exactly the payouts will be. dani: how much variety? are you expecting in that? -- how much variety are we expecting in that? some look weaker than others. >> this test was brought in after the credit crisis, it is to measure how banks can withstand extremely volatile situations. this year's test looked at a situation where unemployment could hit almost 11% and share markets down 15%. in that scenario, the fed found that all 23 of the banks would

have more than that necessary capital required. morgan stanley did the best out of the big u.s. banks. on the other end, goldman sachs and wells fargo. dani: if we are talking about stress, one of the big points of stress among the big banks has been arcade ghosts. we learned overnight that they are looking at collapses there. what have we heard so far? >> the big u.s. banks have already lost $10 billion from this saga. we note that what happened are that banks provided leverage to archegos to take outside bets, when those bets soured, banks had to quickly come in and unwind those position. what happened behind the scenes of unwinding those trades is what that doj is looking at. it is going to be the antitrust

division asking the banks questions about what conversations went on, what happened in terms of when they decided to dump the stocks, how that was done. we know that some of the banks had questions prior to the unwinding to see if they could do it in an orderly fashion. a lot of shareholders did get burned, some of the shares never recovered, things like viacom, cbs, discovering. dani: it is amazing, archegos the collapse happened years ago. thank you so much. our bloomberg finance reporter. sticking with what happening in the u.s., joe biden's determination to forge a bipartisan infrastructure deal is paying off as a group of senators reached agreement on a $579 billion plan. let's get the details with derek wallbank.

how likely this is deal they are discussing going to be the final deal and pass congress? pres. biden: i will stand by and talk to you all. derek: reflecting that. there are a lot of hurdles in the way here. the problem that we are talking about between saying, this is the framework of the deal is that progressives have learned a trick from the -- and are now saying, if you want to move this all the way, this bipartisan deal, you also need to be on board for a reconciliation passage -- package to try and put through some of their priorities. what you have now, is you have the left of the party and the center of the party trying to figure out how to dance off both of these things. mitch mcconnell, on this demand,

has said that this would be a very bad decision by the white house, encourage them not to go that way. they're still kind of a delicate little dance to do here in terms of how to get this through. it certainly is a positive sign and we saw markets run with that. dani: bloomberg's derek wallbank. thank you so much. let us pick up where derek left off. we have seen markets reflect the enthusiasm of the infrastructure deal. cyclicals took off yesterday, anything that touched industrials, shrugging off disappointing data from the u.s. and shrugging off that we are getting from the fed. here is what bank of america told us yesterday, don't be a chicken. by energy, by financials. go for the gusto, go for that reflation place.

i think the economy is going to surprise to the upside. gusto is what we have seen in the market. let's get the view from our guest host, dickie hodges head of nomura asset management. thank you for joining us. are you in with servetus here? are you all in on inflation trade? dickie: certainly. the inflation trade will come through. last time i was on the show i talked about targets reaching all-time highs. i talked about the reasons why the last two years. yes, we are in a stage where america is opening in the global economy is turning to move forward again, it is all about timing when it comes to the reflation, inflation, a possible interest rate rises. dani: here we are on the back of all-time highs in equity markets. the reaction in the bond market

has been pretty muted to this infrastructure plan, what accounts for the difference? dickie: i think is difficult for bond yields to move meaningfully higher, on the back end, longer-term yields to require where they're being supported by both the banking sector themselves. the amount of deposits and liquidity that is there, supported from the central bank, even though we are expecting something news later in the summer months about tapering of quantitative easing. when you have the supportive measures in the amount of debt undertaken, i don't think bond yields could move higher. dani: what if we got a larger infrastructure package out of washington, of course it is about $.5 trillion now, could we get that taken off if something very large comes out of d.c.? dickie: first and foremost, .5

million -- $.5 trillion a significantly less than i was expecting. when i am taking into account, everything from investing globally and certainly investing in u.s. dollar assets. materially less than what i was expecting, to be honest. dani: do think that that kind of reflects some of the reaction we have seen, outside of the equity space? do think in general this is a disappointing number to the market? dickie: for bond investors, i doubt it is a disappointing number at all. for me it means that it is very much contained. it is reflective, as you suggested, in bond yields. 1.5% on 10 year yields is at the bottom of the range, it struggles to move higher. when you have instances more historically, this year, of 10 year yields moving above 2%, it

is a buying opportunity. it is all tied into the amount of deposits and liquidity that is in the system. as i was saying, it is very difficult, this is positive news, even in the light of inflation. we are in a world where we accept that interest rates will not move higher at some point. we are trying to guess at what point that is. we are not in a world where interest points are moving lower. we are all in the inflation train, the favorite word of the hour is transitory. we are hearing this in nearly every central bank with regards to policy-setting. dani: every time we hear that transitory word, it feels like we get more movement into risk assets, which is something we heard talked about earlier in the week. at what point does that transitory language because the fed to try and take some froth

out of the market? dickie: the fed reserve and all central banks have demonstrated they are trying to support asset classes. if you look at 2018 when the federal reserve [indiscernible] accelerated and raise interest rates, the froth out of the market that the s&p was down 21%. i think the fed are very cognizant of this issue and the fact of the matter is, if anything, they will try and take a measured approach to raising interest rates. even if they start raising interest rates student the markets anticipating, i think that likelihood is one or two early rate rises to get us back to a position, the starting position of where we were before the lockdowns came in, and then we will take a look from there. from this perspective, if we move to .5% or .75%,

[indiscernible] if they move up, it makes it an attractive level. dani: it deafly is interesting and jarring to see the difference that we had in the 10 year reaction, the bond market reaction last week versus this week. you will stick with us, that is dickie hodges of nomura asset management. let's get you first word news. >> eu leaders have rejected an appeal from germany and france to hold formal talks with russian president vladimir putin. it handed merkel a rare public defeat of what could be her final european summit as chancellor. in a heated debate, dutch p.m. challenge hungry to leave the european union as the spac of lbgtq rights deepened.

one person is dead with almost 100 people unaccounted for after the collapse of a 12 story residential building in florida. because of the collapse, affecting about half of the 130 units remains unclear. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thank you so much. coming up, the bank of england on speculation that a surgeon inflation will boost rates. that is next. this is bloomberg. ♪

dani: welcome back everyone to bloomberg daybreak. i am dani burger here in london.

a warning against premature tightening, the bank of england is pushing back against speculation that a surging u.k. inflation means it is preparing to boost interest rates. the economy still need support to recover from the pandemic. they poised to maintain monetary stimulus. a bloomberg economic reporter joins us now. why is that be will be so convinced here that these price pleasures will be transitory? lizzy: the main takeaway is that the bank sees them hitting above the 2% target, above would saw in may last month. it does move the dial in a more hawkish direction. it does expect this spike to be temporary. that was a big question we had before yesterday, will it last? the answer being a resounding, no. the warning against premature

tightening, overall, the rhetoric has not changed very much. the bank said before and set again, it is not going to tighten policy until there is clear evidence of a sustained rise in inflation. markets are convinced the bank will sit tight, i would say yes. the yield curve has been pretty steady. if markets are really convinced the 10 year yield would have risen, it has not. dani: as you said, it may be slightly hawkish but not as hawkish that we got from the fed. does that factor into the boe? this at give them the green light to be more hawkish they want to? lizzy: i would say the bank has been very sanguine compared to this tighten global anxiety. the central banks in the czech republic have already started raising borrowing costs. in terms of the u.k., i think we need to look to august, maybe

even november for when there is clear data, especially on unemployment and what will happen went banks will give a more concrete signal of what is to come. dani: one of the big people featured in yesterday decision was andy haldane, he is gone, what does that mean for the boe? lizzy: we do not know who is going to replace him as chief economist, but we do know that -- will take over. they think she will be a dove, but that is a dove for a dove. whoever comes to replace hald ane, it will be hard to be more hawkish than him. dani: it will be interesting to see who that is. lizzy burden there, thank you so much. let's get back to dickie hodges from nomura asset management.

we just heard from lizzy saying that the boe is looking at that yield curve, what you do with this? dickie: you have got to see the hard evidence come through as she suggested. we will not get that towards the end of the year. the fact of the matter is that it will be dictated by what happens in the u.s. treasury yield curve. it will dictate the level of yields globally. the deal with the market will be affected by this. we have seen it pushback from the central bank. it is very interesting how they talk about playing with inflation or the dangers of inflation. the fact of the matter is, we will see wage inflation around 5%. i believe it will peak higher.

it might as well be transitory. the risk is not whether it comes back to the 3% but if it is transitory and comes back to 2.5% or higher. bond markets are trying to grapple with this, not -- what does transitory mean? this it means we are going back to targets that were pre-pandemic and lockdown? or does it mean we will beat without a structured shift to a higher rate of inflation than we have before? i think we are higher with inflation that we have had accepted in february at the beginning of 2020, prior to the pandemic. until this point, until the u.s. goes into their strategy, the guilt curve will be dictated in the level will be dictated by

whatever the u.s. treasury yields talk. dani: sanguine for now, do you have a sense when you're speaking to investors, how concerning inflation is to them? is this a topic that frequently comes up in your call with clients? dickie: i would say that 99% is around the level of inflation, the appropriate level of yields both long and short-term yields. were to generate returns. in an environment that is strapped to the level of income that meets the demands, it means that we are looking for every increasing sources and better opportunities. if you're looking for opportunities, this explains why high-yield markets, both ineffective yield, spreads to tighten sovereign debt are running at these historically low levels. people are searching for an opportunity that is not there,

aside from higher-yielding asset classes, emerging markets, which i think are a positive outlook for this. equally, this is expressed in curbs. we have to ask yourself is all investors should, where will inflation be in two years time and where will bond yields be into years time? that is the most important question we need to get right. dani: i think high yields spread at 200 basis points, the highest since 2007. the highest in the market. that is all we have time for. thank you so much. we will have to get you back to talk more about that soon. dickie:, nomura asset management head of asset management and return fixed income. coming up, the rebalancing act. meme mania makes this year a little different. we'll have the details, next. this is bloomberg. ♪

>> meme stock mania has been all the rage in 2021 enough some are wondering if they will bring more volatility to the reconstitution of the ftse russell indexes. the rebalancing takes place after the close friday, june 25 ended as high a volume day as medics -- index managers rush to match their portfolios to the constitution of the indexes. meme stocks are front and center because of the runoff of the likes of gamestop, mc and others. it turns out that not all memes were up equally at the right time. the cutoff state -- date for those to be included was may 7. gamestop carried one of the largest mark get caps -- market caps. having soared 300%. for fellow meme stock, amc, not

so much. it will likely stay put. other likely candidates to move up our caesars entertainment and tenant national gaming which had large market caps as well on may 7. as for whether the reconstitution will bring more volatility, many traders and analysts think not. this has to do with that less than 1% of any stock within the russell 2000 which means that no one stock has any influence. while the 2021 reconstitution of the ftse russell may not prove to be a big volatility event, it will likely be a high volume event as usual. meme stocks moved or not. dani: amc missing out on the rebalance. looking ahead to the rebalancing indexes. interesting timing given that we just had a warning about the mother of all crashes when it

comes to all the retail type trading stocks. when it comes to crypto, that has been a big warning as well. this get a price check on crypto. we did get some headlines overnight about citigroup now (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot.

pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

dani: good morning everyone from bloomberg's european headquarters. we are in the city of london, i

am dani burger in this is bloomberg daybreak: europe. here are the top stories. president biden reaches a bipartisan infrastructure deal worth over $.5 trillion. enthusiasm on wall street. new records as treasury slid. payouts are hoyt, wall street's lenders easily cleared the fed's stress test. setting precedents for buybacks and dividends. eu leaders reject calls to hold formal talks with vladimir putin, a rare public defeat for angela merkel in what was likely her final summit. happy friday everyone. it is the end of the week. we are looking at an equity market in the u.s. that has hit all-time highs, with looking at the s&p 500 index, the nasdaq, enthusiasm paring over to today's morning session so far. this is about more economic growth with a bipartisan deal being reached in washington. at least close to being reached.

asia-pacific is up .8%. those industrial stocks in the dow are continuing to be the leader in premarket trading in the u.s. we look at the dollar that is softer, it is not very much so risk on tone. bank of america says go in with gusto, seeing that so far. bond market, very unreactive here. dickie hodges our previous guest saying this is already priced in and maybe there were expectations of a bigger deal out of washington. let us be clear, the gains that we are seeing on wall street, the breath is extremely narrow. as pointed out, this is one of the most narrow breads -- breadths we have seen. that means the momentum is not there. it is being led by cyclicals. let us continue and stay with

the theme of recovery and as we are getting out of the pandemic, one of the major themes of course is dealing with supply chains and sourcing components. earlier this week, wait times for semiconductors hit a record 18 weeks. let us bring in shanella rajanayagam hsbc economist. thank you for joining. in your most recent research, you talk about the advent of just in time manufacturing which is so key here to white manufactures could not keep up with demand when we saw those supply crunches. what exactly is the just in time model and how much can we blame for the issues in supply chain? shanella: happy friday to you, too. it was initially pioneered over 60 years ago. it aims to cut down on excess inventory. they hold just the amount of

parts and components that they need, this helps to minimize cost, eliminate waste and to improve efficiency. of course, just in time manufacturing requires on seamless transportation of components around the world between buyers and sellers and that has been disrupted by the pandemic. it is namely those industries like auto and electronics that have felt the brunt of the supply chain disruptions. dani: so if you are one of these firms and you have just in time manufacturing, you do not have a lot of stuff piled, -- a lot of stockpiles, do you change your model in the last year? shanella: the effectiveness has been crushed by the pandemic, it has prompted some companies to hold more stocks going forward. perhaps they will shift towards just in case manufacturing. hp, they are stockpiling

critical computer parts. preparing for high levels of inventory. even the pioneer of just-in-time manufacturing has been stockpiling their products. i do not think this will be the end of just-in-time manufacturing, it will be costly for businesses. there is the risk they will be left with excessive pile one should demand normalize this. dani: so it is costly, this that mean for people who are moving away from this model that we might be heading towards peak margin in manufacturing? shanella: yes, that is right. it is costly. i think it remains to be seen to what extent producers continue to bear the brunt of this once

it is passed on to consumers. the disruption is temporary and there should be some normalization as lockdown restrictions start to lift. there is a rotation of consumer spending away from goods and into services. given the lay of the land at the moment, it will stay until the end of this year. dani: part of the thinking here, we talk about inflation nonstop, as our last guest was saying it is 99% of the conversations he has with his investors, are there any structural shifts here to deal with the just-in-time manufacturing to move away with it? as you say, it gets passed on the consumer, could this be a big factor in global inflation? shanella: yes, i still view it as very much temporary. even if producers are looking to hold excess stocks, it will not be a permanent phenomenon. there are various strategies

they may be taking to mitigate future trade shocks. they could be looking to near shore, diversify markets, or even integration to produce the rest of the quarter in the future. dani: do regulators need to step in our have there been any hints that they are going to step in? shanella: not so much. governments have announced various policies to incentivize local production in wake of the pandemic and that will have implications for trade flows. at the state, it seems to be temporary and remains to be seen how the rebalancing plays out to the course of this year. dani: interesting. thank you so much. that isn, hsbc -- shanella rajanayagam, hsbc. coming up, we speak to oscar to buck for dr. post.

that will be at 8:30 a.m. u.k. time. now let's get to first word news. >> more than half a million residents in sydney will go into lockdown for at least a week as australia races to control an outbreak of the delta variant of the coronavirus. meanwhile, the u.s. and president biden has warned that the more trans visible -- transmissible virgin -- version is the most common in the country. the u.k. adds billerica islands to its green travelers. rules will be relaxed later in the summer for some countries. chancellor angela merkel urge the rest of the you to follow germany in restricting britain and other countries with high rates of the delta variant. u.k. court of appeal has ruled that deliveroo writers are

self-employed. after huber lost a similar case over -- earlier this year. they rely on workers and drew criticism to a disappointing ipo in march. nike shares have soared after the company predicted that revenue this fiscal year will surpass $15 billion for the first time. benefiting from rebounding growth in north america. nike is gaining momentum as sports leagues and events resume and the u.s. and europe. its direct to consumer strategy is paying off. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thank you. annabelle droulers. coming up, crushing jack ma, we will discuss the winners from beijing's crackdown on the internet monopolies.

this is bloomberg. ♪

dani: welcome back to bloomberg daybreak. i am dani burger and london. eu leaders have rejected an appeal from germany and france to hold formal talks with russian president vladimir putin. this is handing angela merkel a rare public defeat at what could be her final eu summit as chancellor. let's get to bloomberg's maria tadeo who is in brussels keep an eye for us on the story. how big of a blow is this for angela merkel? maria: in terms of angela merkel, the germans and the french themselves headset, this could be something that we

should explore, vladimir putin just had a meeting with president biden, there is no denying, we need to get the sanctions on but we need to have a communication channel open with vladimir putin. they did not get that, the vast majority of european leaders felt the timing of this was off. they felt that it contradicted the wording from a similar summit that happened just a few weeks ago here after the plane was hijacked. in terms of angela merkel, she said she was disappointed by the outcome, you have to factor in that angela merkel was facing an election, she is on her way out. many other european leaders are looking at their domestic audience. they care about that more at this point. in terms of this being the final summit, i have to say there's already speculation that we may have not seen the last of angela merkel. we could see angela merkel as a

caretaker prime minister back in brussels in september or october. dani: another big topic of discussion is a virus. what would the discussion look like there, how will european leaders discuss containing a new wave? maria: it is the top priority for many in the countries that are represented in this meeting. we did have some new and encouraging data from the head of the commission yesterday who said that by next week, 60% of all adults will have at least one dose. this takes us very close to our goal which was herd immunity by july. there are real concerns about the delta variant. we know that european authorities believe this will be the predominant strain in the european union. this is creating tensions among european leaders. some believe they still need to open and manage the spread, but

still continue to reopen. others like angela merkel who are much more cautious and say, we should not be taking any visitors from countries like that united kingdom into europe, we need to prevent a new wave. dani: the other thorny issue or tension was the anti-lbgtq law, they suggested hungry should leave the eu if they do not like it. how real are these tensions? maria: a lot of the times, we say this is the optics of drama that comes with european politics. this is what makes brussels brussels. i would say, do not underestimate the

leader turn on orban in a meeting i am told was very heated and emotional. there is a major rift that is opening between that democracies in european union and countries like hungry. they are moving in different ways. it is hard to see how you reconcile the two under the umbrella, to the extent of at what point how do you tell him, if you do not subscribe to european values, why do not just leave? dani: thank you very much, maria tadeo. we will speak later with the irish france minister -- irish finance minister to get his views on the recovery. do not miss that conversation, it will be at 9:30 a.m. london time. get to the bloomberg big tape. eight months since jack ma pushed against beijing. they promptly squash ants plan for a blockbuster ipo. and has lost some $70 billion in value since then, now his fintech rivals may be next to come under pressure.

joining us to discuss this is lulu chang, who leads investing. what are the latest developments at at that we are now starting to heal -- here -- ant that we are now starting to hear? lulu: regularly updating them on the status and business. we also have been told by our contacts that they have discussed a government representative and senior executive ranks to keep tabs on the company, although those processions are ongoing. also, it seems that the company, right now for some time, it is reported that they will have discussions with those companies instead of a data company that could require these operations to share the data that they collect from users in those discussions seem to be in development right now.

dani: if that is the story for jack ma and aunt, what about other fintech companies? lulu: the same level of scrutiny that has been applied to ant is now applied to smaller companies. it has been reported that companies have asked to set up a financial holding company which will be regulated more like a bank. they also summoned 13 countries and told them there fintech operations will fall under greater scrutiny and those that meet certain requirements will also have to set up financial holding companies. dani: is anyone going to be benefiting from this at all? lulu: i think the state banks see this is a great opportunity to step in and fill the gap that the fintech companies have retreated from. for example, a record $30

billion was invested last year in financial technology. i think they see, the largest bank is hiring a record number of people. the rachel banking lender shareholder prices have soared and they are really stepping in with customers and assets for retail management. dani: paint for us the picture of what we will be seeing from regulators going forward. is it more of the same, will they be more strict, what is the market expecting? lulu: right now, will people are expecting is that these regulations will stay. it is not a momentary thing work regulators are heading, i think this will be the new norm, scrutiny that we will see on fintech companies. i think the leeway that these

tech companies have enjoyed for two decades, i think that will fade away and these companies will be held to a titer bar going forward. dani: thank you for staying on top of this, that is lulu chang who leads investing for bluebird muse. u.s. senator klobuchar spoke with bloomberg about the need for regulating fate -- big tech. >> if there is no competition, these companies are allowed to become these monopolistic dominant providers. in the case of at&t, no one wanted to destroy at&t, they want to make sure that new competitors can develop, they brought long-distance rates down, we got the cell market to go from one week cell phone that

fit into a briefcase to where we are today. i think we need to look at it the same way. there are situations where you have companies that dominate so that they can literally tell people who want to advertise on them, and the case of google or facebook, look, i am sorry, we are going to charge you for that. we just had a big story about apple and google and found out that they are charging spotify or match.com 30% of their revenues that come in, but they do not charge it to other big companies, they get to pick. i do not think how -- that is how a competitive marketplace works. i love capitalism, they always believe that you need to put some guards around it. when it comes to ensuring that capitalism works. emily: your approach would strengthen across industries. the house is taking a more specific approach targeted at a handful of that tech companies

that we are talking about. he said you plan to introduce smaller bills as well, specifically, we introduce a companion bill to the representatives proposals? >> yes, we are looking at all of those. they have already put forth companion bills on my proposal including the merger fees which has passed through the committee and we expect that it will pass through the house, because it is already passed to the senate, that is over 100 billion dollars to agencies to hire lawyers to take on the world's biggest companies. i am seriously in discussion with republicans about a number of their proposals. i think you will see companion bills, they may not be identical but very similar. i command representative cicilline for what he has done. i also need, -- belief --

believer that we need to look at other industries too. even though we are a small group, we do not believe there is a monopoly on good ideas when we are dealing with monopolies. we have been very good including senator buck and senator lee. findings will be have common ground, that means tech specific bills, but also means broader bills. dani: you have to love a gordon gekko wall street name check. that was bloomberg's emily chang speaking with senator klobuchar. of next week keep a look on the markets. so far, futures are moving higher. this is bloomberg. ♪

dani: happy friday. let's take a look at the stories that we will be following for the end of this week.

this morning, at the eu summit in brussels, leaders will be discussing the economic challenges, we were just talking to maria tadeo about that. we also have antony blinken continuing his european tour. he will be in paris today will he will be meeting with the president. later today, a host of fed speakers. we have a virtual summit on economic resilience and a discussion on financial stability. also, president biden will be inviting the afghan president to the white house. of course, those fed speakers means there is more chance for dissidents, more chance for disagreement and a chance to confuse the market. to be clear, what we have been concentrating on over the past 24 hours is the infrastructure bill. half a billion dollars plan to

come out of wall street. , coming out of d.c., of course. we saw american equities hit all-time highs. so far this morning, it does look like the enthusiasm is caring over to the asian session. the dow is still strong, up 3700 points. really giving us the idea that it will be cyclicals that benefit from this trade. we do have a weaker dollar and ate mostly flat pond market. that is it for daybreak cure. the european open is up next. this is bloomberg. ♪ (announcer) back pain hurts,

and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

anna: good morning. welcome to bloomberg markets. i am anna edwards. mark cudmore