yousef: these are the stories that are setting your agenda. china reports the lowest new covid cases since march. new stimulus measures outlined. stocks and futures climb after wall street posts its best week since november 2020. u.s. cash markets closed for more real day. you nations fail to agree on a new energy sanction pack age against russia. welcome to the program. manus is covering another part of the day. dani burger is out on holiday, so they left me to take over the

reins. i will try not to break anything. we are seeing a little bit of a break in equity futures at the moment on the s&p 500. a similar story for the euro stoxx futures. basically china easing curves. stock bonds have seen the biggest inflows with buyers coming back. they talk about a quadruple remy of rising discount rates, key club location -- key globalization points, and crowding with the muscle memory of making a dip buy needing to fade. i want to get to important metrics as we look to the rest of the day. u.s. treasury futures the story where we are on course for the first month gains since october. a little bit of upside with the dollar fading dust at thaad. brent crude getting past $120 a

barrel. we are on course for a six monthly gain on tuesday, the best run in more than a decade with these additional eu curbs around the corner. one more board on lithium and nickel. those are some of the battery metals. goldman sachs is saying a new bull market might start in the second half of this decade. let's get out to people who are much closer buy in time and space. that is our reporter covering the china easing covid restrictions. zoe sinead vice is on the global inflation angle. let's start with china because the countries tried to boost its economy by easing some of the strictest virus controls in beijing and shanghai as the outbreak eases. at the same time, support measures in a china's financial

hub are being unveiled. for more information, we are joined by our shanghai bureau chief charlie zhu. give us a sense of what it is like on the ground and what kind of guidance that government is giving. >> the caseload pressure has been easing, as you mentioned. china reported the fewest new cases in three months, and that is encouraging the authorities to ease some of the strictest virus controls. more people are being allowed to go back to work. but the reality on the ground in shanghai is a lot of people, including myself, are still confined to our residential compounds. we are not allowed to go out freely. to do that, you have to abide to the neighborhood committee shall apply to the neighborhood committee, get a pass, and they well review it and give it to you on a case-by-case basis. there is no freedom yet.

but the government has said maybe by the end of next month, there will be more easing coming. yousef: i can't even begin to imagine what that is like. thank you for giving us a bit of a glimpse of that. charlie zhu, our shanghai bureau chief. speaking of china, stocks are climbing. i mentioned this at the beginning of the show. the latest moves in more perspective, we go to juliette saly. what stood out to you? juliette: this reopening theme and optimism that we will see looser restrictions in china giving a boost to asian equities. the regional benchmark index at a one month high. it is on track for a monthly high with one day left. that would be its first monthly gain for the year. there are some indicators there could be upside coming through from the sci 300.

we had a guest last week saying they think it is risky to be underweight equities. they are turning bullish on the china story though they are cautious on the tech picture. the hang seng getting a boost. the offshore you want outperforming the dollar, partly to do with the loosening restrictions in china. a little bit of month end bond and, lifting the currency. we still have the global growth concerns, and that is overseas funds. we saw the most outflows since 2008 with around $63 million of shares this year. the biggest exodus in taiwan is very tech heavy with around $28 billion of funds leaving the market since the beginning of the year. yousef: that is a truly awesome chart.

that is juliette saly in singapore. leaders are gathering for the first day of the european union summit in brussels with the latest sanctions package stalled. hungary is to blame again. so far, they are refusing to back a compromise deal on russian oil supplies. maria tadeo is on all this. what is the hold up and what could other european leaders offer that could help get this across the line? maria: yes, use of, it is a good question because it has been a month since the head of the european commission put on the table this oil ban. it seems like a never ending story. gradually, it has been watered down even further. nonetheless, as you eluded, the issue continues to be hungary. it is victor or been and that fierce resistance to this oil on embargo. they say that the exception for

hungary would be needed, a pipeline exception for russian oil needed for their economy in order to prevent what they feel could be enormous detrimental damage to their economy. today, there will be another technical meeting which i believe is about to start at 9:30 in the morning. they are hoping that perhaps they can work some of the details to get this deal through the finish line, and they are in the day there will be a european later summit, hoping to infuse political momentum into this. as i mentioned before, we are looking at a very watered down package. this has done a lot of damage to the credibility of the european institutions. we have seen the european union is so slow to act. yousef: the pressure is on. maria, please keep us up-to-date with that. that is maria tadeo in brussels. let's stay with europe. i am looking at these major economies and basically they are set to report a record price rise this week.

bloomberg estimates that eurozone inflation will tick up 7.8% in may. higher inflation playing a major role in ecb discussions ahead of their crucial policy decision next week. zoe schneeweiss joins us with more. what will madame lagarde be looking for in the next few days? what will help set the tone? zoe: that's right. we get inflation readings for the major euro area economies and the major euro area itself today and tomorrow. today, we have spain and germany, tomorrow france and italy, and culminating in the euro zone itself. last month, they were at 7.4. in may, it is predicted to touch 7.8%. another new record. in of way, we have had a record this entire year. we still do not think we have reached the peak.

why is this important? a week ago, christine lagarde said in a blog post a very clear roadmap of what will happen next. that means the june meeting, which is over a week away on june 9. there, they will agree to ned bond -- end bond buying. in september, there will be rate hikes. christine lagarde's roadmap hinted strongly there would be two 25 basis point rate hikes. that means that by the end of september we would be back to -- we would be exiting negative interest rate policy. however, there are few policymakers who have been pushing for bigger rate hikes. that could give them ammunition. yousef: a lot of numbers to get through. thank you for giving us a preview of that. let's stay with the previous because powell has got a dilemma.

at least, that is what mohamed el-erian says. he says that they could tighten too much or not tighten enough. we will talk martin applications next. plus, don't miss our interview with ite ceo, china's netflix streamer moving profitability over market share. that is at 6:20 london time. this is bloomberg. ♪

>> i think the fed is going to have to decide between two policy mistakes. one that brakes too hard in with a recession or tap the brakes in a stop and go pattern and risk having inflation well into 2023. yousef: that is bloomberg

opinion columnist mohamed el-erian. this is the fed is set to start shrinking its balance sheet later this week. in europe, something that is not shrinking is the inflation rate. we spoke a little bit about that earlier. another record cpi expected tomorrow. kristin kopf is the head of fixed-income. christian, let's get your reaction on the comment from mohamed el-erian. tighten too much or don't tighten enough, which is the most likely outcome? >> they are facing a very difficult setting. a very robust u.s. economy, households are in great shape, a lot of liquidity on the corporate side, and interest rate sensitivity may have declined. that all calls for rate hikes. at the same time, we have a global slowdown. at the end of the day, we may end up hiking too much. i think the fed is in a very comfortable situation because it can hike rates briskly and reverse hikes like they did in

2018 and 2019. i really don't see it as much of a problem as mohamed el-erian does. yousef: those are two scenarios, but if you had to pick one that is your base case, which one do you think the fed is going to lean towards? >> the fed i think will be towards the hawkish side because they have to work on their credibility in keeping inflation under control. nobody on the board wants to go down in history as the central banker who ended a 40 year streak. i think they will lean on the hawkish side. we will see a lot of rate hikes here, probably 200 basis points in 2022, 200 more basis points in 2022. if we do go into a slow down they can reverse that. we have seen it before. if you look at what the fed's comprising, we see a rise in rates until 2023, but then we

see a decline again, and i think that is fair. yousef: let's use that as the backdrop for some of your conviction calls because the treasury market is looking at its first monthly gain since about november. are we going to see another meaningful move up in u.s. treasury yields? not just in a stabilization, but in a defined range bound. period? >> i am in the range bound group. i think we have reached a new equilibrium. equities earlier this year, and all numbers were in the green. we have had gains on equities. it is largely driven by fixed income markets. it seems to have stabilized. we will get some headwinds from the quantitative tightening that

will start over the summer, but most of that should be priced in as well. i am in the range bound camp on fixed income markets. yousef: looking at currency speculators, they remain long the dollar. though the greenback is giving back a little bit of its outperformance over the last couple of weeks, we are still up in excess about 6% this year. how is that going to change as we get through the summer, do you think? >> i think we will have a more balanced development in the dollar. we are still in the camp of those who see euro-dollar touch parity at some point this year. the fed will likely hike points by 200 basis points until the end of 2022. the ecb is bound to hike rates as well, as you heard from your frankfurt correspondent, but they will hike by no more than 100 basis points until the end of 2022. the interest-rate differential should further move in favor of the dollar. we could see some dollar strength against the euro.

we are quite bullish on a number of currencies, which got hammered earlier this year. there is a great amount of stability and interest rates. they could recover. yousef: we have got major news from china this morning on the front of some of these covid policies, at least physical restrictions beginning to show signs of easing. it is still early days by any stretch of the imagination. but is this a time to get back into some of the china investment plays? what are you telling clients as they gather for ideas in the next hour? >> my response to the question whether it is time to get back into the themes is a resounding no. i think we not only have the covid induced problems in china, but there is also a big year of political transition as the party gets ready for its 100th anniversary in the autumn and we will have the party conference in the autumn as well, which will decide on the new prime minister in china. as you know, there is a big

fight going on right now between president xi and prime minister lee about the successors of the standing committee. three new members will be nominated by the end of this year, most likely over the summer. it is a year a big political turmoil. most of the policies xi implemented are under scrutiny. we have a big slowdown and lots of political infighting. we really don't want to get into this now, so we are staying clear of china for the time being. yousef: i go to your background where we are hearing birds chirping on a quiet monday morning in frankfurt. but that kind of is a bit of a red herring for the reality of the discussions, the heated discussions, at the ecb. willie that any commitment -- will be get any forward guidance, the cost pressures that will materialize that will fan those flames? >> that is a very good question,

the question of forward guidance, which has been abandoned by the ecb over the last couple months. i think the path now is pretty clear. we will get 25 basis point rate hikes in july, another 25 basis points in september, then likely more rate hikes to the end of the year. what is all this going to do in the periphery? what is all this going to do to the spreads of european corporates remains to be seen. it is a big move that we are about to witness here. i could give you my personal view on monetary policy here in the euro area. i think we are facing a number of overlapping challenges in the euro area. we have the decarbonization. we need to make big efforts to decarbonizing. we require investments in a big chip factory being built in germany. and we have russia. three major shocks, three major negative supply shocks, and all

of those called for massive investments in order to jack up supply and get us back to a situation where inflation can calm down. these well they be possible when we have stable, long-term deals. the ecb will have to do something to give us guidance on that. yousef: strong views there. we really appreciate that. it is a key part of the program. that is christian kopf, the head of fixed income and fx at union investment. juliette saly has your headlines. juliette: euro nations have failed to agree on a revised package of sanctions over moscow's invasion of ukraine ahead of a leaders summit in brussels. hungary is refusing to back a compromise, despite proposals aimed at ensuring oil supplies. eu officials say a deal is still possible in the coming days. ukraine's president bilotta ms. zelenskyy visited -- volodymyr zelenskyy visited troops this

weekend. it was his first publicly known trip out of the kyiv area since the invasion. he handed out awards to soldiers and was briefed on the operational situation. ukraine officials say more than 30% of residential buildings in kharkiv have been damaged by russian attacks. civil servants in the u.k. have reportedly warned the government that around 6 million households could face power cuts this winter. the times newspaper cites guidance that electricity would be rationed by the start of next year if russia further cuts gas applies to the eu. u.k. energy secretary last week urged the national grid to find a deal that would keep some cold side power plants running this winter. 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. yousef? yousef: thank you very much for that. that is juliette saly in singapore. let's get you a snapshot of what

is around the corner. china's netflix style video stream or ite says it is moving to profitize. don't miss the interview. this is bloomberg. ♪

>> seeking market growth should not be a strategic priority anymore because this industry has developed into a relatively mature one that has a slower growth stage. >> iqiyi in november 2020 raised prices, then raised prices again in december of last year. how much room do you see to raise prices again additionally? >> the price hike potential still exists. whether we will raise the price this year, we will see how

markets react. we don't have a clear plan yet. >> where do you see revenue going the rest of the air and where do you see the economy going the rest of the year? >> for the second quarter, almost entire shanghai's under lockdown. for those who understand advertisement industry, half of china's brand advertising is based in shanghai. we will see bigger negative impact in the second quarter. in my opinion, q2 is the bottom. at the end of q2, which is the current stage, we will see gradually recovering. the third and fourth quarter will see growth. >> you expect the impact from the regulatory environment to moderate, to become less noticeable going forward? >> last year, there was regulatory scrutiny. we are not afraid of regulation, but the transition period is painful.

let's say regulation was this wave last year and then it changed. it is that transition that is painful. >> back in 2020, there were reports that alibaba and tencent were interested in buying stakes in iqiyi. is that still something that is possible? >> this is a rumor. we have never had any conversations with tencent and alibaba about investing in iqiyi investment banks. some people ora media did ask my opinion. my response is it is not possible. >> at the end of march, the fcc placed iqiyi on the list of companies that could be delisted because of the auditing dispute between the u.s. and china. at the time, iqiyi said it was working on solutions to protect its stakeholders. how is that process going, and how likely do you think a delisting could be? >> i hope the dialogue between

china and the u.s. will make some progress to protect the issue. at the same time, we are looking at other opportunities to reduce the risk. we are looking at technical issues for hong kong listings. there is no specific timetable yet. >> give us a picture of what the economy is looking like. what does consumption look like in china? >> the service iqiyi is providing is very special. it is a low spending online entertainment industry. our business is not highly correlated with the economy. yousef: that was the ceo of china's netflix style video streamer iqiyi. gong yu speaking with bloomberg. let's give you a bit of an overview of where we are in markets. this is the state of play on the s&p 500. anywhere called higher by 0.6%. the china curbs beginning to ease.

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>> this is "bloomberg daybreak: europe." i am yousef gamal el-din in dubai. china reports the fewest covid cases since march. they outlined new measures for stimulus. markets go risk on. wall street posted its best week since november of 2020. u.s. cash markets are closed for memorial day. embargo stalemate. e.u. nations failed to agree to a new energy sanctions package against russia. the summit of leaders kicks off today. let's get to the market action because liquidity is lighter and you have holidays in place like

the united states where it is a moral bull -- memorial day. it is helping support sentiment. it was one of the trifecta of risks. dip buyers coming back a little bit. called higher by 1.3% on the nasdaq futures even though bank of america does warn of more tech losses. you have rising discount rates and crowding and those are some of the key hurdles to get through. i want to talk about some of the other assets on a different board, looking at the treasury market on course for its first monthly gain since november and we have made jobs data we are looking ahead to. the impaired liquidity will make everything a little bit more complicated than usual. the dollar just comes off by .5% and the brent crude on fire, for a six monthly gain as we get through tuesday and that will be the best run in more than a decade with some of these

additional e.u. curves coming through. i'm looking at lithium, nickel, and cobalt. yes, these are the battery metals and goldman sachs in a new note and this is one of the most read articles on the terminal, is saying the bull market is finished come out the window, no longer after a 500% rally in lithium. they also add that the next market might stir in the second half. what i'm going to wait around for is this week's mliv survey because that is focused on the chinese economy. look at what investors anticipate from the nations covid zero policy and its impact on some of the markets. we asked a number of our guests about their outlook for china. >> i like china. >> there is a wide margin of safety. >> they will start one of the biggest fiscal impulses in human history. >> we turned the corner in terms of policy action and that should

be supportive for markets. >> there's possibility that they reopen and that they stimulate the economy. >> it is a part of the world where you will see economic activity resume more quickly. >> attractive, long-term growth drivers. we will be cautious and prudent in this environment but our op -- we are optimistic about china as a country. >> we are expect them to increase our exposure in china. >> i can see a deepening of relationships into china. yousef: wonderful series of voices to kind of lay the groundwork for a bit of a deeper discussion on the survey. we are joined by mark cudmore, our pockets five managing editor so what exactly made the headlines for you? bang: -- mark: good morning. there is a survey that was watch more nuanced than normally where

we either get a clear bullish or bearish signal. overall, there is a lot of negativity about china and they expected the negative impact around the rest of the world and they expect payment to import inflation and get a negative growth impact but ultimately, what was really interesting is that 55% of responses actually expected increased exposure over the next 12 months even though they are not particularly positive and that reflects that the world is generally underinvested in chinese equities. when you break it down, it was almost 60%, about 400 of the responses were professional market participants. part of this is that people do expect the tech calm down that has been the prominent driver of negativity. 72% said that yes, they expect it to soften and that is why they feel that there are positive catalysts out there and i'm going to show one other issue is of course the covid situation and the majority of people don't think that covid zero will be ended. 66% think that covid zero policy will not be explicitly ended this year in china.

kind of the easing of the situation. overall, there is a lot of negativity on china. people feel they have to buy. it's too discounted. yousef: great catching up. mark cudmore. let's bring in michelle, ceo of -- you said you reduce your exposure to china. can you give us a bit of perspective as to -- 90% to 10% or 60% to 40%. how radical a drawdown have you recommended? >> as a firm, we invest in fixed income and assets in europe and asia so china has not been a huge exposure for us. less than 20% of our global exposure. in the last few months, we have decided to reduce our exposure

because of the uncertainty faced by the vast restructuring of most property developers and the increased uncertainty faced by -- the process will be taking longer than we were expecting in the first place. yousef: most of the interest this morning from our global audience is on the details about the restrictions easing somewhat when it comes to covid policies in china. shanghai in particular. what is it going to take to get you back interested? is it a valuation story? is it a political uncertainty story? or is it a bit of everything? michel: it is a little bit of everything. we have seen the first time with the government implementing a number of measures to try and bring back some liquidity into the real estate market, but we

need to see a lot more than that and what we are going to need to see is some restructuring patterns with our words in china in the middle of restructuring their obligations. we need them to be much more engaged with creditors and for them to be more engaged with creditors, they also need to have more visibility on the future of the market and are prices going to recover or not? clearly, there is a high connection with the macro picture and the covid situation because in the current environment, there's very little trust in the markets, in the future. homebuyers are not buying anything and if they are not buying anything, you can support liquidity measures but that is not really going to move the

needle. yousef: how contingent are chinese policymakers on what the fed does? they have to make sure there is a level of stability but let's not beat around the bush. the fed tightening and qt getting underway in the next few hours, that is going to create new waves of turmoil and domestic liquidity in china. michel: yes, absolutely. raising rates, you know, in asia , they are not going to make things easier because at the end of the day, as offshore creditors, you are raising their debt and because of that that being greater, it's not going to make your life easier. so it's one additional ingredient to making the future a lot more complicated for

chinese property developers. you know, more difficult. at the end of the day, it's about selling units and having access to financing. and changing covid policies that would have a much greater impact than rates in the u.s. yousef: in the last couple of weeks, bloomberg has reported on potentially growing divergences in policy ideas between the president and the premier in china. are you a believer in that kind of view? do you think that is a reflection of a deeper reality in china? what does that mean for asset allocation? michel: first, you know, we are very much a micro investor,

trying to stay away from the macro picture. so that question i'm not sure of. but clearly, when you have difficulties and you have problems, you have divergence of opinions and chinese developers are in a rough patch, a patch that is getting rougher and rougher. we have seen in the last 48 hours greenland, which is state owned and which we had all assumed was out of the woods, announcing they needed a debt exchange or otherwise they would not be able to pay in june, which took the market by surprise. yousef: from what you have said so far, the market seems to be underpricing some of the china risks. what is it going to take to reevaluate, readjust, and reflect? michel: we need to see both some

visibility on the macro side and with units restarting and we need to see a real -- and engagement to try to find a solution together. the difficulty is you do not have a real blueprint that one can follow. you are ready to leverage and you need to really find yourself in a situation where there is a common interest. there is a common interest to restructure businesses that are way overleveraged. yousef: thank you for pointing out sort of the nuances to some of the key angles in the financial landscape in china. michel lowy. let's get to the first word news with juliette saly in singapore. juliette: softbank's top

executives have seen deep cuts to their paychecks. the conglomerate recorded in historic low for its vision fund unit for the year to end march. ceeo she sound kept his -- masayoshi son kept his pay unchanged. a big drop following a record $20.5 billion loss. the u.s. corruption and market manipulation cases against glencore have shed light on the -- walked away as billionaires. authorities have not filed any charges in the sweeping cases against the firm but have identified two alleged perpetrators of corruption. they include an ex-global head of copper. they reached a preliminary deal with a lender for a single network fixed line project. the carrier signed a memorandum

of understanding. they will combine the telecom with a similar network. under the accord, telecom italia's activities will be split from its commercial activities. a big shakeup at agl with the ceo and chairman announcing they will set down -- step down. it follows the decision to scrap long-running plans after the proposal failed to win shareholder approval. mike cannon brookes holds an 11% stake and he publicly campaigned for this merger to be done. a -- top gun maverick tops the box office in ticket sales in the u.s. and canada. the movie gained theaters one of the biggest box office debuts since the start of the pandemic, a rare move for a non-superhero film but it is unlikely to be

released in china, diminishing its global return. 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. yousef. yousef: thank you, jules. that is juliette saly in singapore. here is what is coming up. the bull market in battery metals is over according to goldman sachs. we look at that story in the broader commodities space as well. this is bloomberg. ♪

yousef: this is "bloomberg daybreak: europe." i'm yousef gamal el-din in dubai. goldman sachs out with a new note, saying the price of cobalt, lithium, and nickel are

going to drop after investors wanting exposure to the green energy transition pile in too quickly. another landmark. china eases antivirus lockdowns and the e.u. works on a plan to ban imports of russian crude. stephen stapczynski, some of these metals had an anonymous rally with lithium and cobalt front and center. it's also going to take a long time for these to normalize, right? stephen: yes, absolutely. i think there was a lot of excitement when investors saw these surges in prices. there is an expectation that these three metals that you mentioned, cobalt, lithium, and nickel, will be key for the energy transition and will be boosted by demand for electric vehicles. that does not mean that the demand is here today.

there has been this huge rush in investment similar to what you would see in equity investments where people think demand is here right now but it is not quite here and because of that, we are facing a bit of an oversupply over the next year into 2023. that is going to have some bearish elements to this market. we saw some record-breaking surges because of the war in ukraine which jammed up supply chains. goldman sachs says now we could see some declines. it is just for now it for the long term, they expect demand to prop up prices past 2024 and whatever supply glut that emerges over the next year or two will be erased later in this decade. the amount of supply in the market right now is a little too much, too soon. yousef: lithium is up about 500% over the last five years, but the situation in china is

shifting as well. i'm looking at brent crude lift about 50% since 2022. how is that likely to impact brent and wti from what we can tell in the data? stephen: you look at what is happening in china and there is obviously some bullish elements that could be emerging as china does open up. the government said they are going to open up some industrial parts of shanghai. they say the outbreak in beijing is under control. china is a massive consumer of energy and while prices are up significantly for the year, those games have been tapered because the chinese demand this appeared with beijing's assistance on zero covid. with that kind of disappearing, with the idea of that easing, if china comes back, you have the disruption from russia with potentially the european union banning imports of russian oil. all those things together could

create a bullish scenario where prices continue to rise and there is not enough supply to meet that demand. yousef: and then we are also looking at this potential deal around banning russian crude. talks are ongoing. all this back and forth. it really seems to be an uncomfortable environment for a fruitful discussion or any meaningful progress. what could we get as far as you can tell? stephen: you now, these talks have been going on for weeks. there was an expectation in the market that this would be a done deal but it is a difficult discussion because these countries in the european union, some of them don't really want to see the kind of deal that they are putting forward. they want some sort of exemption. parts of the european union want to give them an exemption but the fact of the matter is russian oil is key for a lot of these countries. they are facing higher inflation rate in removing russia from the equation.

it hurts their energy security. a deal will likely come. there's still something on the table. there could be something later this week. perhaps it is just crude shaped by vessel over the sea as opposed to pipeline crude. there is likely to be some sort of deal at least if the leaders of the e.u. are able to get their way. with hungary opposing it, there's going to be some jostling and it will be impossible -- be uncomfortable as they figure this out. yousef: that is bloomberg's stephen stapczynski. here is what is coming up on the show, from the markets to politics. we are in brussels next as e.u. leaders kick off two days of meetings with that russian oil band still a sticking point. we will take another look at the story. this is bloomberg. ♪

yousef: this is "bloomberg daybreak: europe." i am yousef gamal el-din dubai. leaders are gathering for the summit in brussels with the latest sanctions package stops. hungary is refusing to back the compromise to deal. let's get to maria tadeo. what could a middle ground deal look like? maria: yes, good morning. and you know, it is unclear because this thing has been on the table for a month. it is clearly not a good look for the european institutions. a huge hit to the credibility of the european commission. after four weeks, but are looking at is a very watered-down version of the initial draft that is not yet done and agreed to by the e.u. 27 leaders. viktor orban said there's no

point debating this, that it would only serve to showcase divisions in the e.u. but clearly, this issue of the oil ban, the lack of oil ban, dominates the agenda. the compromise in the proposal that has imploded perhaps is to allow the hungarians to continue to import on the pipeline. the issue is a say that is not enough. they also want to get exemptions on oil that is transported by vessel. all of this happening in the context of the war in ukraine at a meeting that is shaping up to be very intense. yousef: in terms of the chronology of events in the coming hours, what is going to be the headline moment where we might get a bit of progress or maybe even a breakthrough? maria: you know, that is a very good question because a lot of this, yes, we can talk about the politics but it's very technical. at 9:30 european time, we are looking at one hour, 30 minutes

from now, european investors will meet again, convene, and talk about the technicalities of this package, now delayed by almost four weeks. once that is completed, european leaders will finally arrive here in brussels. we are expecting that to happen around 3:00 p.m., but yousef, you know very well how the summit works. there is never an ending specific time so we could look at a very early night today or potentially going very late into the evening until tomorrow morning. yousef: a lot of promises. not a lot to show for it at the moment from some of these e.u. officials. maria tadeo in brussels throughout the morning. that's get to the market -- let's get to the market actions. accelerating gains to the upside. liquidity is lighter because of memorial day in the united states, but nonetheless, the easing of some of the china covid restrictions is helping support sentiment. many more ahead. this is bloomberg.

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