manus: a very good morning from bloomberg's headquarters in frankfurt. i am manus cranny with dani burger alongside me at london hq. it is "bloomberg daybreak: europe." the stories that set the agenda. facebook plunges as user growth stalls for the first quarter. global stock rebound hits a wall with nasdaq futures plunging. boe is set to leave the ecb in

the desk by lifting rates and signaling more may be on the way. we are in london and frankfurt. plus, peak earnings results from europe's biggest companies -- the results are rolling in. we speak with plenty more. welcome to daybreak. i am in frankfurt. dani is in london. good morning. dani: roche numbers breaking. 19.8 is where we find ourselves. the estimate had been for 20.4 earnings per share. i should say that sales look like they have beaten expectations for the fourth order. the numbers missing are the fourth quarter sales. the estimate had been for 15.6, not enough to make up for the whole year. they are targeting the core eps

in that range going forward so again, the core of the eps is indeed a miss and we will be talking about that on the european market open. the roche ceo on those earnings, interviews at 7:30 a.m. london time. manus: it will be an interesting news conference for christine lagarde. ing says she has to communicate patience over panic because the market is baying for rate hikes. how do they thread the needle as she faces the highest inflation on record? this is a tough one to navigate. the market is pricing for a july rate hike. we know this lady does not turn very easily. let's see what christine lagarde

has to say. is she returning? dani: what soothing words might she give to this market that is pricing in 20 basis points by year-end? it feels like awkward timing given we have those inflation numbers yesterday. that surprise to the upside, more than 5%. that is a little bit awkward. manus: 28 percent of that number is on energy. the core number did dip. let me show you what is going on with the two year yield because this is when it becomes a little bit more spirited. since the fomc put on a team basis points, you are looking at a reappraisal of real yield in germany, up by 16 basis points since the start of the year. hsbc have a big note on the longer end. that is from -50 so -52 -30 but

they say that this market is unreasonably hawkish. dani: it has been cut in half for europe since september. it's not all about bonds. tech is also the big story. nasdaq futures declining quite heavily after the miss yesterday, missing on user growth as well as sales outlook. the stat, $200 billion in market value are said to be wiped if it holds its losses overnight, more than netflix's entire market cap. nasdaq futures are seeming to spur more haven moves in general. the dollar stronger this morning as well and we had been bitcoin decline in sympathy with tech trying to fight against those declines, manus. manus: bitcoin is a born fighter.

to ing on the numbers, let's go through that. net income is lighter than estimated. that is below the estimate of $1.08 billion. we have $141 million in restructuring costs for ing. loan loss provision rises by over 120 more than we expected. 346 million. the net interest income comes in pretty much in line. let's get to the chief financial officer. he joins us as usual with his numbers. thank you so much for being with us this morning. first impression, lighter on the net income expenses. loan loss provisions are rising. i want to delve into why have you missed on the estimate and why are loan losses rising? what is going on under the hood? >> good morning.

nice to be on the show. if we look at the results, the consensus is a little bit diverging. i think a full-year view of our results, we are quite pleased. our income is very resilient. our costs including some of those are flat. it is well below the cycle estimate. we are actually quite pleased with the results we have achieved in 2021. dani: on loan loss provisions, on those coming in higher than estimated, why have those raised more than what many on the street were expecting? >> first of all, if you look at our nonperforming loan ratio, it is stable at 1.5%.

one of the best nonperforming loan ratios. we have added additional provisioning to take into account what we see in terms of rising inflation, rising interest rate that could have an impact on our most vulnerable part of our customer base in the retail space and the whole tales that wholesale space. manus: that is all about confidence. you mentioned the capital position, under 17%. what plans for buyback in the first half of this year or are you going to be cautious on a buyback question --buyback? find a narrative. tanate: it's part of our results. we have declared the final dividend payment for 2021. we already announced that share buyback in october which is running at 1.7 billion euros. that runs into the end of april,

the beginning of may, and we are in constructive dialogue with our regulators about possible additional capital management actions and we have not made up our mind yet but i think given the healthy capital buffers that we had, the discussion with our regulators about returns, they are good. dani: what size might we expect when it comes to the capital returns to shareholders? tanate: we have not really made up our mind. we are having this conversation with regulators so no decisions made on any further action. manus: -- dani: alright. go ahead, manus. you. manus: just one of those moments of pause. where are you going to drive growth for the business?

you talk about the risks, from inflation and interest rate rises. where are you going to deliver the most growth in this year with that backdrop? tanate: what we saw coming out of q4 is that there is an acceleration in terms of loan growth both in retail and wholesale banking. we also saw that the whole omicron situation, the lockdown that we saw in november, december in europe has not had an impact macro economically or at the company level with our customer base. we are guiding the market towards a 3% to 4% loan growth. we see strong growth in poland and romania, for example, and we see healthy loan growth across the board and all of our franchises. that is where the growth is coming from. the most important things france in terms of driving add additional growth is the fact

that we have accumulated an additional .5 million primary customers and that has been the biggest driver in terms of franchise activities for us at the moment. dani: when it comes to eastern europe and growth, what exposure if any do you have to ukraine -russia tensions? tanate: yes, i think if you look at our exposure to russia, it is limited, less than 1% of our loan growth. having said that, we have been involved in russia for 30 years so we know the market very well, we know customers very well and we think that whatever the tensions are, we are ready to work with our customers in that market to have a say in whatever comes next in that particular part of the world. manus: one other pretty volatile rocky part of the world is

turkey. between currency and interest rate policy, it has been a tough run. is it still going to be an integral part for you in terms of a high-growth strategy or would you consider exiting turkey? tanate: we have been managing in turkey for over a decade so we know that market well. we have seen growth ambitions in turkey and our exposure in turkey is a little more than 1% of our total exposure in terms of the loan portfolio so we take the wait and see situation. we are positive about what our teams are doing in turkey in terms of maintaining the franchise but it is not something that we saw on too much given the political situation there. dani: thank you for joining us on your earnings. that is the chief financial officer at ing. juliette saly joins us in singapore. juliette: president biden says

his decision to send more troops to europe is consistent with what he discussed with vladimir putin. see u.s. is posting 2000 extra soldiers to poland and germany while 1000 based in germany will be deployed in romania. russia says the move is unjustified and disruptive. new zealand is set to start using border restrictions at the end of february for the first time since it shot them near the beginning of the pandemic in 2020. the border will be open to vaccinated new zealanders and some critical workers coming from australia. in south africa, one of the country's top scientists says ba.2 is spreading rapidly although it does not appear to cause more severe disease. shares sank in that late trade after falling short on its forecast for monthly active users and paid subscribers in the fourth quarter. the company did not provide a reason for the shortfall or

whether a boycott is impacting its business. the streaming service it did beat full-year estimates with india, indonesia, and latin america driving growth in the most recent quarter. global news, 24 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 juliette saly in singapore. coming up, we will stick with the banking sector. a bank ceo joins us for an earnings brief. dani: we have plenty more conversations to, and we will be speaking with the ceo's after 6:30 london time. everything from energy to industrials. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." i am dani burger in london with manus cranny in frankfurt. nordea bank revealed profits to boost profitability and efficiency after the nordic region's biggest lender reported fourth-quarter earnings that beat estimates. joining us as the president and ceo of nordea bank. thank you so much for joining us. you boosted your dividends but you did stop short of announcing a new round of by box -- buybacks. should you get that permission, what level of buybacks would you be targeting? frank: good morning. yes. we have announced our q4 today. it was a strong quarter and it has been a strong year as well. it has led to a strong result. the outcome of this is an increase in our dividends to our shareholders and then a decision to continue of course with our

buybacks. we also informed the market that we have submitted an application for a follow-on buybacks. what to come back to -- when we have the approval, it was a significant amount. manus: significant buybacks on the cards. frank, good morning. it is minutes in frankfurt. you have an excess capital of 10 billion euros. you have a 2 billion euro program running at the moment. could a special dividend be also considered? frank: the way we look at it is we have basic -- we are following our capital dividend policy. we are one of the best capitalized banks in europe. and what to use dividends -- we want to use dividends as the main tool. and to distribute any excess capital, the intention is to use

buybacks. that has been the plan for the last 2.5 years and now we have kicked it off. you should see buybacks as an integral tool of the way we manage our capital banks. dani: frank, so as we have been discussing, you have also upped your profit targets return on equity to more than 13% by 2025. previously, it had been more than 10%. what needs to change? what needs to be the focus in order to reach those targets? frank: that is correct. we have announced our new financial target for 2025 and it is a return on equity at 13%. the previous target and targets we have met one year ahead of schedule was above 10. it is a quite elevated figure. we have firm plans for our

financial target for 2020 five and we are determined to deliver on the target just as we have delivered on our previous targets. i would like to come back to -- when we host our capital markets day on february 17. manus: perhaps you can give us a little bit of a sense of what some of those levers will be. are you prepared to exit the markets? are you preparing to downsize the bank in any way, to take costs out? frank: it will be the idea we have building for the last couple of two or three years and that is to grow our income and have a strong focus on costs and increase the operational efficiency while we are working also with our capital base and

our capital efficiency. we will continue to be a focused bank and we believe we have quite a big upside. dani: given your sensitivity to rates, are you expecting central banks to act more aggressively? frank: it is a very difficult question to answer. many uncertainties. inflation is clearly picking up in the euro zone and we do see the nordics as well. we believe we will see an elevated inflation for a while and we also believe we will come down somewhat in the following years. and exactly what that will do

with the interest rates in a for countries and in the euro zone is hard to say. we should as a society prepare for higher interest rates in europe. that is my assessment. manus: i suppose it depends as to what you think. it is about the economy getting stronger with higher rates. we have a story from last week. maybe you can help us with nordea asset management which cut holdings on russian government bonds due to the ukrainian crisis. are you taking any material action on the asset management side to reduce your exposure on the banking side, to reduce your exposure to russia? frank: i cannot go into more details but we have a firm strategy and policy and what you see now in this regard as a management is acting on their

policy and what we have told the market we will do so that is what you see. manus: ok, so no material guidance on russian exposure, just before we let you go. frank: in regards to russia, we are not having any material exposure. we have a very small business over there which we have. it is a decision that was taken two years ago. we are nordic focused. but the exposure of the bank is very small. manus: frank, thank you very much for clearing that up. that is the ceo, frank vang-jensen, president and ceo at nordea. user growth sparking the selloff. shares plummet 22 percent. we will bring you the story on bloomberg. ♪

manus: from frankfurt an london, it's daybreak. dani burger in london. let's turn our attention to tech shares. facebook and spotify both plummeted in late trade. disappointing numbers. i have not been on facebook in a a while. quite a serious tank of 20% on this stock. what are the headwinds? dani: thank you. i have not been on facebook for a a while. 2.9 billion average monthly users. it has been stagnant for the last three quarters.

another headwind. we saw this with youtube from alphabets earnings yesterday. facebook's version of tiktok is a main growth area. mark zuckerberg -- they are really the key demographic for that. a big glass for the full year 2021. over $10 billion. the metaverse and virtual reality, that is where investors see the growth going forward so perhaps we can look past that. his personal wealth tumbled over $24 billion as a result of the move that we saw in after hours trading. basically, facebook cannot automatically take data anymore. apple asks permission. sheryl sandberg says small

and medium-size businesses, targeted advertising is imperative and that has been a real headwind. dani: tiktok competition can't be that big considering manus does not have a tiktok and that should be our barometer for these things. manus, when are you going to get a tiktok? come on, the world wants to know. manus: i cannot compete with cnn. and max forrester. he has 20 million people following him. dani: i think you can. let's get back to the tech earnings and quickly. it has been a turbulent week. can they turn things around? laura: i think they can because it's all about the pivot. there has been controversy with joe rogan. as supported revenue contribute -- ad-supported revenue has impressed investors because of this move to podcasts helping to bring new users onto the platform. it tumbled because of the outlook for the first quarter

which missed estimates. but not detrimental overall. dani: thank you for that update and thank you for fueling manus to get a tiktok as well. coming up, we will be speaking to a ceo on the latest earnings from the

dani: good morning from bloomberg's european headquarters. 6:30 a.m. in the city of london. i am dani burger with manus cranny from frankfurt. this is "bloomberg daybreak: europe." here is what you need to know. facebook parent plunges as user growth stalls for the first time ever. the global stock rebound hits a wall with nasdaq futures plunging. policy split. the boe said to leave the ecb and the desk by lifting rates

and signaling more to come. we are in london and frankfurt. peak earnings. results from europe's biggest companies keep on coming. we have just spoken to ing and we will be speaking to shel and roche and plenty more later. earnings coming in fast. manus: this is ground zero for everybody's outlook for 2022 on the chips. the total profit beat for the first quarter. the total segment profit, 717 million. the estimate was for 605. revenue, 3.16. comfortably beating the estimate. there was a shortage in terms of production. there is water shortages in taiwan. this is a market which is restricted and constricted and it's playing out in autos, playing out in all the major industry players that we talked to so in terms of a revenue for

the chipmaker, better than estimated. the margins are expanding. 22.7% from an estimate of 20.4%. you are looking at a marginal uplift in the margins and a comfortable beach on the top line as well. manus: nothing -- dani: nothing to save us from the tech wreck. i want to show us what is happening in futures. down 2% this morning. overall markets slumping off the back of the earnings disappointed. this is the stat i have for us this morning. $200 billion in market value wiped out from facebook, at least what it is projecting post-market, bigger than netflix's total value at current prices. that is paying for this market, mattis. manus: you saw monster withdrawals from sp y and qqq.

monster withdrawals. there is a line here worth just pausing for a second to think about this. you and i debated about reducing the balance sheet. inflation, aggressive rate hikes maybury -- may breed an ugly qt. they may short-circuit all the ideal scenarios for the balance sheet. we have yet to even begin saying what that really means for these markets. dani: let me put these two ideas of what you are describing and negative tech earnings. already, the move to tighter policy is bad for long-duration assets, especially tech. if earnings are not living up to expectations, where do you hide out? does techno longer become popular? were talking about richard ross who said he bought every single

dip for the past two years. he thinks that the current environment sets up for an s&p 500 at 3800. that is 17% below where we currently are. manus: the other thing is, you know, the differential between active qt, passive qt, but i will give you a new one. he has it defined as being a beautiful qt. a cozy home. we have to find out what a beautiful qt it looks like. let's have a quick swipe at the data. equities, the carry through from the spotify story is irking the equity story. the euro stoxx 50 barely down .5% because we have less gargantuan tech representation. you had the banks report this morning as well so that will play into some of the euro stoxx 50.

the jobs number tomorrow, that's a pretty ugly number yesterday. how important will be jobs number be? what we saw in the oil market, we are still on for seven weeks of gains. opec adds back 400,000 barrels and ubs joins the $100 per barrel club. we just had bob mcnally. he is a mess on the upside because he sees bigger services coming to bear later in the year. let's see how that meltdown played out for the singapore and asian market session. juliette saly has that. no, she will get us up to speed with the first word news. she is multitalented, juliette saly. juliette: i am. i am here with the first word this time. president biden says his decision to send more troops to europe is consistent with what he discussed with vladimir putin. the u.s. is posting 2000 extra soldiers to poland and germany. 1000 in germany will be deployed

in romania. russia says the move is unjustified and destructive. u.k.'s energy regulator is likely to announce the biggest increase in household gas and electricity bills on record today. the new price cap, the maximum companies can charge consumers, is set to rise by 50% from april, reflecting wholesale prices. that would take energy bills to 1900 pounds per year. donald trump is ramping up his political activity ahead of the midterm elections in november. he has announced plans to speak at the conservative political action conference again this year. this comes after the former president stepped up campaign style rallies with events in arizona and texas recently. while comp shares slipped in late trading after efforts to expand beyond its main business were hampered by chip shortages in the latest quarter. the biggest maker of semiconductors for smartphones reported sales and profits that easily topped analyst estimates.

the company fell short of projections in certain categories including chips for cars. spotify shares sank in late trade after falling short on its forecast for monthly active users and paid subscribers in the first quarter. the company did not provide a reason for the shortfall or whether a recent artist boycott is impacting its business. the streaming service did beautiful year estimates for 2021 with india, indonesia, and latin america driving growth in the most recent quarter. global news, 24 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. juliette saly in singapore. coming up, the ceo on the earnings and the austrian oil and chemicals group. plus its involvement in contentious nord stream 2 pipeline. the interview on the way. this is bloomberg. ♪

dani: -- manus: manus: it is "bloomberg daybreak: europe." i am manus cranny in frankfurt. dani burger in london. fourth quarter operating ebitda met the average estimates. let's see whether rosengrant can do a little bit more than average. he is the ceo. great to have you with us. margins, 13.1 percent, comfortable beach. operating ebitda at a nice beat. we have the data. the markets will want to know about your e mobility listing during the second quarter. what response have you had from institutional investors? what could this listing be worth? good morning. >> good morning.

thank you for having me. yes, i will be happy to talk about e mobility. it is a great business for us, improving, growing dramatically. while positioned in the market. heading for the ipo hopefully during the second quarter. we are talking to investors but i think we are pretty much on track to have a successful ipo. dani: let me stay on the tv. you have made a couple perches as -- purchases as of late. you also bought a controlling stake in in charge energy as well. are you looking at more acquisitions in the ed space currently? >> yes, the whole ipo id for this is to create the so-called growth platform for that business.

we see dramatic growth in the market. big demand for fast charging as well as normal charging. this ipo will generate some good cash which will invest in the business and continue to grow organically as well as through acquisitions so a big focus on growth. manus: i will push you a little bit more because everybody will want to know what kind of valuation. let me give it one more rope. what do you think this ipo will deliver for you? quantify. come on. >> i think we wait until it is the right time. there are a lot of people working on this today to find the right valuation for it. hopefully, they will have it at the beginning of the second quarter. we will see by that time but of course, it is a great business,

a world leader. even making good money. it is a great business. dani: not taking the bait. that may get to this quarters earnings in that case. in the statement, you wrote that we expect supply chain constraints to prevail in the near term. can i push you on a little more specificity with that? how steep do you see constraints and how do you define the near term? when does that pressure ease up? bjoern: we said that clearly going into q4 that the supply chain and semiconductor issues is more or less in all our businesses. i think we managed to go through this order better than we expected. we said 4% growth because of these constraints. we made a percent so that was good. i think the businesses are learning how to work through but you will know there are inflation, there are all

different kinds of constraints. everything from freight to components. we will see that in the beginning of the year but we also expect this to ease up during the year so there are good indications for that. manus: so things get a little bit easier. the world reopens. where do you expect the strongest growth for the business? which sector? 8.26 billion dollars, comfortably above the estimate. where was the strength and where will that evolve this year? bjoern: going into 2002, we are quite optimistic we will have a good market also this year. it has been extremely strong during 2021 and we probably expect it to continue but for us, with the huge orders on hand, 16.6 billion is the highest order on hand that i think we ever had. we need to have them delivered out during the year also so we will have a strong focus on

deliveries during 2022 and i believe it will be a good year. dani: a strong focus on deliveries but amid higher costs and higher energy, higher raw material costs us as well, how are you maintaining at this point? bjoern: during all of last year, we saw an inflation starting. commodity prices going up. more or less all component price increases. i think we have been quite successful in transforming this to the market which i think everybody is doing at the moment. i think the big question going forward, are we going to go into -- remain in the inflation world? is it going to go back? i think we are monitoring that well. we are well prepared to be able to handle inflation going forward. it is a different way of working

but i think we can manage it quite good which was proven during q4 and the previous year. manus: that inflation bears out. i have been spending a lot of time with the bank ceo's in terms of remuneration and wage pressure. particularly in the banking sector. on the industrial side and technology side, you are getting involved in this electric vehicle market and charging market. where is the hottest part of wages for you? what kind of pay rises are you giving? bjoern: i would say if you look at region, i think north america is probably the area where we see at the moment the highest inflation and also the most pressure on the wages. i mean, you need to keep your competencies in the group. with a big demand, we need to make sure our factories are operating with people so that has been the covid absence as

well as the pressure from wages. i think that they are working hard to keep the operation going. so far, it has been ok. we will continue to probably ease up somewhat during this year. dani: thank you so much for joining us this morning off the back of your earnings. that is bjoern rosengren, ceo of abb. omv reported beating analyst estimates as austria oil and gas companies are revenue increase on the back of higher prices. joining us now is the ceo. thank you so much for joining us this morning. we have the numbers but i want to start off on your fertilizer business. you finally pulled the trigger. however, the sale was less than many people expected. how much of an impact are you seeing from high european energy prices when it comes to valuations of things like your

fertilizer business that you just sold? >> thank you very much. we are very excited about the fourth quarter and 2022. it has been a record, as you said. concerning the fertilizer sales, you are correct. they sound very high prices this year and the weight on the results of that but for us, it was a clear strategic reaction. the fertilizer business continues to have a market area but we wanted to focus on developing our other chemicals and materials portfolio here and with that, we are happy to have received the offer. manus: obviously, energy markets have been hugely volatile on the product side, on natural gas in europe, and on the oil side, rocketing towards $90 and some calling it higher this morning. when it comes to the gas markets

, less start there. how is natural gas demand in europe given the level of volatility we are seeing? alfred: we saw prices towards the end of last year really beating and with these high prices, additional lng imports were attractive to europe and that led to the price is coming down from that peak level but we are still at extremely high levels as you point out. this is a supply demand issue where we have seen demand rocketing back in 2021 and continuing to be higher. at the same time, continuous demand is there. the weather is on the warm side so that this is helping. but it will continue to be a

tight situation in the next couple of months. dani: of course, the elephant in the room is russia tensions adding to that concern for that volatility in energy prices as well. considering the issues of geopolitics between russia and the rest of europe, do you see a fundamental change or realignment of relationships between russia and europe when it comes to energy? alfred: i think as we look at the whole new energy transition and climate change actions, natural gas will be an important source of energy for europe in the next couple of years to calm and it is very important that we have a diversified source of supplies and distribution channels. anything like this will happen but we also need to understand that we heavily depend in europe on imports from russia. manus: you are probably one of

the most important ceo's to speak to for nord stream 2 as we live in this crisis between russia, germany, ukraine, europe, and the united states of america. you have a stake in nord stream 2. do you think it will be certified? if it is delayed, are you duty-bound to take provisions for your stake in nord stream 2? alfred: we provided a loan to nord stream 2. we have received in quarter three and quarter four some payments against this loan but what is outstanding, as you point out, the nord stream 2 in switzerland, they are working on getting registered as an independent transmission operator and that is a regular process that they have to do to

meet regulations in europe and they are working with an independent authority to make this happen. this will take time that is necessary but it is a process that is an ongoing legal process. dani: alfred, do you see nord stream 2 getting certified? do you believe that that is what is going to happen? alfred: i think we'll have to wait. as you point out, there is geopolitics. we will leave that to politicians and diplomats to work on it at the same time, there is a technical process that needs to happen, that nord stream 2 needs to do together. manus: ok, alfred. the ceo of omv, alfred stern.

to the bank of england, the central bank delivering an historic back-to-back rate hike today. let's get to lizzy burden. she joins us in regards to the outlook. good to have you with us. back-to-back rate hike. is it on the cards? done deal? what do you reckon? >> it has been quiet here since the december decision with its first pandemic hike. policymakers have done very little to correct the expectations of economists and markets. we will get another hike today. it will be the first back-to-back increase since 2004 so we will be listening out for hints about how fast and how far it will tighten across the year. bloomberg economics sees rates. markets see them at 1% by june

and that is the level where officials that they will start active quantitative tightening. where will the clues come? we will be listening to the governor's remarks at the press conference and for our very own francine later in the day. that could signal that the bank is wary of hiking too soon because the short-term hits consumers. that could signal that we can expect further tightening. dani: speaking of that today, the energy regulator is said to announce how much of an increase households might face on their energy bills. given what you are describing for the cost of living crisis, how likely is that to affect the boe's decision? >> we asked the bank of england yesterday whether officials were aware of what they were going to say before the things took place

this weekend it was not confirmed either way but we were expecting to find out how much household energy bills will rise. analysts are expecting the cut to lift by 50% so that would take the average cost of energy for a household at 2000 pounds and that will have a major impact on the cost-of-living because it will coincide with a planned payroll tax increase in april and this is where the spotlight falls back onto the treasury because there is very little that rate hikes can do about it in the short-term. as one bank of england official put it to us, the burden on the bank of england compared to that on the treasury's diddly squat. -- treasury is diddly squat. manus: i was just about to do the same which is topped out in front of the ecb. lizzy burden in front of the bank of england. thank you very much.

i am in frankfurt. it's all about the ecb. let's check the futures prices. is about -- it is about a reappraisal of big tech and where matters fit into that. the nasdaq down over 2% at this juncture. dani: they said they saw some of the inflationary pressures for those who buy advertisements mentioned that they were spending less so it does feel that often in earnings, this can be used as a catchall. we did not hear that from google but it is having an effect on overall markets given how big of an exposure the indices have to facebook and other tech giants. manus: so you saw this by the depth question for equity traders is whether they sell the day. the ecb -- in the very short and for the two-year paper, barnstorming ahead. the highest inflation on record is the backdrop to christine

lagarde. i am off to the ecb. dani: i hope you have your jacket and scarf and maybe some hand warmers as well. we will be following closely with that coverage. bloomberg markets europe is up next. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: europe." i am anna edwards in london. mark cudmore joins us from singapore to take us through all of the market action this hour. the cash trade is less than one hour away. facebook's parent plunges as user growth stalls for the first time ever. spotify also crumbles after spotty results. the bank of england is set to leave the ecb in the best