dani: this is "bloomberg daybreak: europe," i am dani burger in london alongside manus cranny in dubai viewed -- dubai. manus: broad dollar strength pushes the euro one-to-one with the dollar. the worst is yet to come. a chief says the global energy crisis may not have peaked viewed -- may not have peaked viewed with surging prices set to continue. >> i believe we have not seen the worst of it yet. this is affecting the entire world. manus: twitter tanks. the losses mount, over $3

billion in market value. elon musk backs away from the deal to buy the company into legal battle ensues. it is rampant. one is the dollar and one is the euro. you decide. good morning. dani: good morning. you definitely see energy jitters throughout the market and also concerns of covid, and on top of that, some cpi housecleaning. probably the worst cap secret in the market right now -- worst kept secret in the market right now. this is all rippling through markets this morning. mse i asia-pacific down 1.5%. tech continues to selloff, concerned not just about demand. europe, i know you will dig into the euro in a moment. for the s&p 500, it was crushed yesterday on the lowest volume of 2022. that shows you how much liquidity has been a problem beyond just stocks.

asset classes in general facing that problem. we have heard microsoft worn last week that the strong dollar could hurt them. we are looking at nasdaq futures underperforming. microsoft says they trimmed less than 1% of the workforce. they say it's not because of the global angst, but an update to strategy ahead of earnings. even so, with the dollar morning, we are starting to brace for potential downside in the earnings season. manus: don't forget, you've got job cuts, twitter on a job freeze. this is a mounting narrative to the euro parity, and it could go further. citi says they have correlated to the prices of gas in europe, a hard landing in europe, you could trade down to 95 on an explosion in gas prices. we'll crumbles by 1.76% this morning. -- oil crumbles by 1.76% this

morning. there's a concern about a china slow down. cutting the lungs to the lowest levels on the oil market. citi say focus on nord stream one, yes it is off stream right now, but will it ever come back? that is the biggest risk to recession to europe and the future. two year yields, one person says why are yields so low given where we are with growth and inflation combined at around 10%? again, it is down to the fed speak, be careful what you do, versus we could have another jumbo hike. dani: let's get to some of the top stories with reporters around the world. we have the latest on euro-dollar parity, and we will dive deeper into the global energy crisis. manus: annabelle has the latest

update on the asian trades and the latest on the legal battle with elon musk. where do we kick it off? parity? dani: it is all about parity. the euro is edging so close to one-to-one with the dollar. recession fears have put a bid back into the dollar and this is a level we last saw 20 years ago. it is that dollar strength pairing -- playing into it, it is a haven play. we have a stronger than expected jobs report as investors look ahead to u.s. cpi tomorrow. let's get to ruth carson. we are on the cusp right now. walk us through the macro playbook that has traders putting on euro parity trades right now. ruth: an incredible move when you think about it. the euro sliding about 12% against the dollar this year. investors are saying there is plenty of room to fall further and we will bet on it. it comes down to the policy

divergent story, the federal reserve raising interest rates aggressively while russia's invasion of ukraine has damaged the outlook for growth in the euro zone. that is leaving the ecb in a very difficult spot when it comes to raising rates and investors are definitely betting on it. ing sees a worst case scenario for the euro. deutsche bank is going further. everyone talking about dollar-yen, and how much is

baked into the dollar and if it has room to run even further. let's look at how the bloomberg dollar index is trading right now. it is edging toward an all-time high, even higher than when the pandemic hit two years ago and everyone was battling every thing else. it comes down to the cocktail of the fed hiking aggressively and the rush to havens as people fret about the recession. how does this play out in markets? take the capital markets, they are saying 145 for dollar-yen, soap continue buying the dollar. deutsche bank say 95 to the euro, well below parity. in this part of the world, some say 65 u.s. to the aussie dollar. all our long bets right now. manus: numero with the call in terms of the slowdown. thank you, ruth, keeping the

dream alive on parity against the dollar. the global squeeze is on and the energy supply triggered crippling shortages, power and fuel prices surging, which could get worse. that is according to the head of the international energy agency. >> i believe we might not have seen the worst of it yet. this is affecting the entire world. manus: let's get to berlin and our bureau chief. a warning from the iaea chief. germany the epicenter of our concerns, nord stream goes off-line for maintenance, handed a lifeline by the canadians. where are we in the crisis right now, should we prepare for a doomsday scenario? birgit: nobody really knows what will happen after the maintenance work, and this is the problem.

it could be cut back completely, or it could go back to full speed. everybody is planning for the worst-case scenario, and that is basically that the energy will not flow. that would have an adverse effect on consumers and companies. let's assume gas is going to be cut back. companies will not be able to produce anymore. germany has always said in order to fill the russian gap, one would need three or four years and that obviously cannot be done in a few months. the economy minister has appealed to the european union, to european partners, to basically show solidarity. that means in a short time, short notice, that european nations will need to set up -- step up their energy production as well. dani: thank you very much.

recession fears also playing out in asia. stocks slumping across the board. let's go to annabelle droulers, standing by. annabelle: mimicking a lot of the moves in the u.s. session overnight. tech heavy indexes, korea and taiwan, most correlated with the u.s., slumping with the decline in the nasdaq, more 2% drop. we are also very thin in asia. the other factor that is important is the continuing covid outbreak in china. the csi 300 just back from the lunch break. a lot of expectation we will see further stimulus moving forward, also seeing it reflected in credit data. just had credit numbers out overnight as well and we saw a huge jump in aggregate financing. we can see where most of that was in record corporate debt issuance as well as household loans. those are the bars in purple and

orange some concerns that perhaps not all of the liquidity is being funneled back into the economy. this is what we saw in the money supply, that also spiked to a level we haven't seen since 2016. that indicates along with the jump we saw, in undiscounted bills, even though there's a lot of supply in loans, it's not necessarily being picked up by the corporates. manus: you've got one of the big chinese tv makers slumping -- ev makers slumping. what is driving the drop? annabelle: earlier what we had in hong kong was a 20.4% stake in the company in the clearing system. what is interesting is not only a huge block trade but the exact same stake of berkshire hathaway. a lot of concerns that berkshire hathaway could preparing to

liquidate its position. on the back of that, the share reaction. we did get some response from security times, they are saying the byd stake remains unchanged. were not seeing that reflected in improvement in trading momentum. across the board, mostly declines for the ev players this afternoon. there's a lot of concern that the sector is becoming overvalued. we have seen significant government support for it, but still perhaps a little too frothy in that sector. manus: some will say that elon has had that sector to himself too long. good to have you with us this week, annabelle droulers in hong kong. one of the big bruising's of yesterday's session, twitter shares tumbled in new york after elon musk walked away from a $44 billion deal to buy the company. that sets the scene for a disruptive legal battle, to say the least.

tim is with us from bloomberg opinion. it was the bots what done him in. it looks like elon's complaint might have merit. the bot problem. is it enough to scuttle the deal? tim: i'm of the opinion, i've looked into the way twitter functions and builds bots, i have built a twitter bot and run it, and i think twitter has a lot of transparency into how much bots they have on the system. if they are lying about it, that would be supremely stupid to do. i don't think they are lying about it. it comes down to whether musk wants to trust them and if they even agree on what the term bot means. at the end of the day i don't think it is enough to scuttle the deal, i think it is a negotiating tactic. is it material or adverse? these questions will be duped out in the delaware court of chancery.

i don't think it has merit, but that will be up to other people to decide. dani: tim, thank you. plenty of data to mind when it comes to twitter and the bot problem. let's look at some of the key things participants will be watching out for today. the world's largest economy in focus, we will get the latest from germany's expectations, and cpi from portugal at 11:00 a.m. u.k. time. manus: than the hungarian central bank has a rate decision at 1:00 p.m. andrew bailey will discuss the economic landscape at an event run by the monetary and fiscal institutions in london. also, talking about tax cuts and they are hoping the tory party premiership rallies. we will see if that times with governor bailey. dani: that is the focus.

you know what the focus is for us, it is all about parity. we will talk more about it coming up. we are at 1.0007, so close at these levels. manus: it is almost kissing that level of parity. citi have done the analytics, if gas prices spike, you are looking at 95 on this. hard landing in europe, 5% lower according to goldman sachs. we will keep you abreast as we come back on the other side of the break right here on bloomberg. ♪

manus: it is "daybreak: europe." manus cranny in dubai and dani burger in london. we can smell parity, we are

almost there. the euro-dollar trade this morning just about one to one with the dollar. let's get to our guest, a portfolio manager at pine bridge investment. my favorite line of the morning is citigroup going all in on shorting the euro. is there a danger with the coming consensus? the correlation with energy prices, the higher gas prices go, the deeper below parity we go. are you all in? would you call all in ongoing short the euro? good morning. >> good morning. actually we've been quite irish on the euro and polish on the dollar for some time. -- bearish on the euro and bullish on the dollar for some time. this has to do with monetary policy. that would be a key factor and it has driven the euro-dollar to this. the other key factor is the strength of the euro zone economy, especially if you see gas prices continue to rise and

the impact of the ukraine/russia conflict on the euro zone. that's where we are seeing the brunt of it. if you are asking whether could see a recession in europe versus the u.s., the likelihood is much higher in the euro zone, especially with these gas prices. dani: you are the perfect person for us to have on today given your rich history helming fx strategy for many firms. when you're looking at what the euro is doing today it almost seems like a guarantee we will hit parity, but where does it go from here given the environment you are describing? how much further could it possibly sink versus the dollar. mary: as recessionary fears grow there could be an impact where euro-dollar gets even lower. that's what we are seeing. there are concerns about china and another locked down, and how does that affect growth, how does that affect supply chain concerns?

obviously the concern and where we are seeing most of the flows is going to the dollar for that safe haven aspect of the dollar. from that end, we could see parity very easily. manus: ok, just on that, i think we have gotten a wee bit ahead of ourselves. we popped up a strap -- euro has not made it to parity just yet, i will probably be defied in a moment. we decided to front run ourselves on that, so an apology to our viewers on that, when it comes, we will bring it to you. you talk about policy divergence and it is interesting you have caustic saying we can take another jumbo hike -- caustic saying we can take another jumbo hike. what is the consequence? is it good news that they crack on, get another 75 basis points

under the belt? are you a supporter of 75 at the next fed meeting? mary: the key focus for the fed is to anchor inflation expectations before they have an even worse problem to handle. 75 basis point of a rate hike from the fed is considered already priced in, we would not rule it out and we think the fed will deliver something like 75 basis points because at the end of the day, the fed has been behind the curve for some time. we are talking more about transitory inflation for a long time before they move to see inflation a little more sticky this time around. that said, they're going to have to move and move aggressively if need be to anchor inflation expectations. dani: we have seen inflation expectations at least when it comes to what breakevens are pricing the move down, and

perhaps that coincides with yields moving lower. but the whole back in breakevens, is that an error for the market to be pricing in? that we are underpricing the inflationary pressures from the inflationary shock? have markets gone too far? mary: we are of the view that inflation is starting to peak. if you look at some of the aspects of core inflation, it has shown signs of correcting. the key thing is, we don't expect it to be -- he expected to remain high. the fed has the mandate to anchor inflation expectations as long as it remains high. i think a lot of the market pricing, the key focus is not inflation but more about recessionary concerns. in our view, that's what the market is pricing in more and more of. manus: you talk about downgrades to come, very similar to wilson at morgan stanley.

i'm curious where you think the most vulnerable areas to downgrade our -- downgrade are. where is the most vulnerable to this dollar rally and downgrade? mary: you know, in general, we've seen a lot of earnings commentary discussing the fact that many companies cannot pass on these costs to consumers. for instance, we saw one of the companies more focused on the retail sector. in general we think rings downgrades will come probably more broad-based than anything else. that's why we have been transitioning more to companies that can withstand some of these price pressures, what we define as u.s. quality. those type of companies that have strong balance sheets, high r.o.e., and strong pricing

power. these are the kind of things we think can withstand the environment ahead, especially with inflation remaining high. dani: this is my favorite, manus knows i love a fun fact, the past five sessions, a net 500 downgrades for earnings. it's only happened four other times since the financial crisis. to the dollar point manus was mentioning, wilson has been talking about as well, are you worried about big multinational u.s.-based firms and the pressure they will face from fx headwinds? mary: of course it will depend on the company. it is company specific, not even sector specific. in terms of how they manage the dollar. every company has to manage it in their own way. the key challenges really about how to manage a stronger dollar

environment, how to manage inflationary trends, which we expect, especially with inflation remaining high. that will be the key challenge for companies in what we define as our intermediate term horizon, the next nine days of the month. dani: thank you for joining us, mary. coming up, the iea chief says the global energy crisis may not have peaked. we will discuss with our guest. this is bloomberg. ♪

dani: it is "bloomberg daybreak: europe." bill ackman has told investors in the largest ever blank check company that he is returning

their $4 billion after failing to find a merger deal. the billionaire investor says the efforts to find a target were thwarted in part by the unexpected recovery of capital markets during the pandemic. we spoke with someone yesterday that said there was a lot of froth in the market, it has declined, perhaps the fact that ackman is returning funds as to the idea that the bubble has been pricked. manus: absolutely, the fun fact you latched onto the we were chatting about, the number of companies that have gone public via spac's is down 65% so far this year. we will keep an eye on euro-dollar, trading at 1.00 14 this moment. millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction.

that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. -hi, i'm smokey bear and i made an assistant to help you out. because only you can prevent wildfires. -hey assistant smokey bear, call me papa bear because i'm "grrr-illing" up dinner. haha, do you get it? -yes. good job. -so, what should i do with all of these coals? -don't just toss them out. put them in a metal container because those embers can start a wildfire. -i understand, the stakes are high. assistant smokey vo: ha-ha, ha-ha. -see, smokey think's im funny!

manus: this is "bloomberg daybreak: europe," i am manus cranny into by and dani burger in london with the stories that set your agenda. dani: broad dollar strength pushes the euro to one to one with the greenback amidst deepening recession fears. the iea chief says the global energy crisis may not have peaked, with crippling fuel shortages and surging prices set to continue. >> i believe we may not have seen the worst of it yet. this is affecting the entire world. dani: twitter tanks. the social media giant loses over $3 billion of market value with elon musk walking away from a deal to buy the company. a legal battle looms. we are slipping ever so closer to euro-dollar parity. pick your poison, the eu gas

crisis or the cpi bracing on what is likely to be 8.8% year-over-year. manus: you have a rampant dollar, whether it is against the yen, whether it is against the aussie and citi have run the numbers and correlated it to gas prices in europe. the risk is russian gas is a switch zero, the euro switches down to 95. that is the consensus. this morning, we have 1.0005. we have bounced from that low. the question according to goldman sachs, will it be another 5% lower on a severe downside scenario? dani: yeah, and of course some pointing out that most of the selling is around the european open so brace yourself the next hour or so. we've been discussing a big weight on the euro has been the

global squeeze on energy surprised -- energy supplies that have sent power and fuel prices surging and it could get worse, according to the international energy agency. >> the world has never witnessed such a major energy crisis in terms of its depth and complexity. it is interwoven by many factors, including geopolitics. and i believe we might not have seen the worst of it yet. this is affecting the entire world. dani: joining us now is head of commodities at s&p dow jones indices. do you agree that the worst is yet to come? >> if you look at the european

gas forward curve, which is massively repriced, it would suggest this is a prolonged issue. we know russia has very few economic cards left to play and energy and natural gas is one of them so it looks like we are in for a long struggle. manus: good to see you. we are looking at this through a number of different prisms from the fx risk, gas futures get to 200 euros per kilowatt hour, 250 euros per kilowatt hour. if russia weaponizes gas to the extreme, where can that take gas futures to in europe, in an extreme scenario? fiona: in an extreme scenario, you will see a very quick and significant demand response. it may be a response that is forced onto industrial players

by the government, who will be trying to keep the lights on for consumers. in that case, we could see significant price hikes well beyond potentially what we saw at the initial invasion back in march. dani: this is the thing, it is quite the binary outcome, either gaskets cut off or it doesn't. in such a market with a bimodal possibility, how do you position if you want to trade commodities right now? fiona: commodities player really important role in portfolios and we have seen that will he play out this year -- we have really seen that play out this year. they really are offering diversification. if you look across the asset classes this year, really only commodities have moved higher.

the s&p still up 30%. commodities are along play. it can be difficult to time the market but they will continue to have a really important role in a diversified portfolio. but timing can be really tricky. manus: absolutely. blackrock and different asset managers have been on the show with us and they have talked about this longer-term structural issues in commodities. but i might look at copper, trading 7500 last week and goldman talking about pessimism becoming sticky, demand pessimism looks sticky. when you read the china headlines on a daily basis, i know you can't consume everything on a daily basis -- do you think the demand outlook is becoming more pessimistic? is that more sticky? fiona: if dr. copper is trying to tell us something down 20% so far this year, having had a very

strong recovery as we came out of the pandemic, i think what the industrial metals markets are telling us is they want to see signs of stimulus in china. not just talk of stimulus in china. they are also reacting to the european energy crisis. making stuff is costing more and that will have an impact on the demand for industrial metals. dani: we are already looking at some of these metals, copper trading at the low it was during the pandemic. does that mean we have already priced in what it would look like for china to continue to see lockdowns? again, the price of copper, i'm looking at a november 2020 low. fiona: i think copper, as i said, is really reflecting the concern that we will see a prolonged shut down and we won't

see that stimulus come when the markets reopen. it really wants to see signs of the reopening. and i think more generally we are seeing some negative sentiment across all of the industrial space. manus: what is your worst fear? fiona: i think my worst fear is russia does turn the caps off --taps off. they have the option to continue to keep natural gas flowing to europe, but if they did decide to play that card, that is my worst fear, the implications of that across the global economy could be very significant and very swift. dani: we obviously are already dealing with a push higher in the commodity complex when it comes to inflation and that has translated into a political headache for many countries, the u.s. not least of which.

biden soon to visit saudi. we heard officials yesterday saying opec has room to raise production if biden can have a productive meeting. is that overly optimistic? fiona: the stats would tell you they don't have much room to increase production. i think there is likely some ability to pick production up slightly. even if all of those other opec countries increase production as far as they could and hit capacity, we are still not talking about being able to bring back what we lost from russia in oil production. we are still in a pretty difficult situation, even if the u.s. administration does convince the saudis to open the taps, as they say. manus: then it comes down to -- bobbing rally was saying -- bob mcnally was saying it is about

the sustainable maximum from aramco. i could have phoned you until told you not to buy gold last year because i stuck it into my retirement fund as an inflation hedge in hasn't worked. at a nine-month low. this is one of those tortured moments. why has it not worked as a robust inflation hedge? why, fiona, why? fiona: it has been a horrendous inflation hedge. manus: i know! fiona: the easy answer is the dollar, what you've been talking about this morning. the higher interest rate. i would also say maybe more generally, investors have started to move toward other sort of worst-case scenario assets. maybe that is not crypto given the moves we've seen in that

asset class, but i get the feeling that gold as a sort of end of the world asset, maybe we are starting to change our mind on that. manus: too late for me, fiona. too late for me, i have already taken a bath. fiona, thank you so much, dr. copper and gold. fiona boal. we are waiting for parity. you know what went through my mind when you were talking about the 500 downgrade we have from the analysts? they had to get it in before they went away. dani: i feel like the world is conspiring against you, hitting earnings, making sure you can have a good retirement portfolio with gold, what is going on? manus: i am tortured. euro -- the question is this, when, probably not if, it trades at party -- at parity, is the

market sufficiently short? does it cause a short covering rally? or, as fiona just pointed out, on energy prices, her worst fear would be russia turns off the taps of gas. dani: the worst fear is starting to get priced into the market, with the euro and what it is doing, fears it could sink even lower with parity. manus: i am getting messages asking what i am buying now. i don't trade anything. dani: contrary in. manus: on the money there. the race for the u.k. conservative leadership, the runners, the risks and the role call on bloomberg. ♪

manus: this is "daybreak: europe

" with manus cranny into by and dani burger in london. dani: it continues to be parity watch with the euro and dollar. one point -- 1.001 eight, slightly higher than when we start of show. some traders pointing out of my inbox that we get the most selling during the european open or around it, so potentially a symbolic high for hours to come. manus: you can see the dollar is rampant, up to tens of 1%, perhaps the most vigorous against the yen, down about a quarter of 1%. goldman sachs sees the euro trending down another 5%. citi has done the math, if gas gets cut off. dani: this screen is great, it shows how the euro-dollar is

great for stuff in general. let's get to u.k. politics. those against boris johnson have until 6:00 p.m. to get their name on the ballot. there have been pledges to cut taxes. jamie is our bloomberg u.k. reporter. -- joining me is our bloomberg u.k. reporter. lizzy: the conservative party is trying to whittle down the field to two candidates faster than normal because there is the rush to oust boris johnson from number 10, and it is concertina-ing the process. instead of needing eight mps, they need 20 p they hope that by shortening the process there aren't bitter divisions in the party. then they will have between the

21st of july and the fifth of september to lobby the grassroots membership. but of course while the list of candidates at the moment is ethnically diverse and gender diversity as well, it is just 0.4% of the population who will decide, 175,000 people, the members of the tory party estimated, and they are very male, wealthy, white and southern, so you might not end up with a diverse candidate as the list suggests. manus: it might come down to who's opinion the grassroots tories like, the tax rhetoric, listening yesterday on sky news that the backers of these people, it was very much about tax cuts. can they deliver those? lizzy: tax dominating the debate at this early stage. all of the other candidates seem to be trying to move away from this tax burden, the highest since the 1940's in britain

because of all of the pandemic spending. bloomberg has -- different tax pledges. one is promising the biggest tax cut, 40 billion pounds worth. by contrast, another is promising just 5 billion pounds of tax cuts. for some, that is seen as more responsible. really the question isn't just how or whether the tax cuts can be funded, it is whether there will be -- they will be inflationary and that comes down to which kinds of tax cuts are made. dani: just quickly, considering you not only just look at the politics but the overall economic picture as well, how does inflation into the boe factor in the current environment for the u.k.? lizzy: the bank of england has been expecting double-digit inflation by the false of the cost-of-living crisis only set to get worse. this is where the debate about tax cuts its hairy, because on the one hand, tax cuts could help ease the burden for normal

britans, but will they be personal tax cuts? however, they could add to the inflation problem depending on what taxes you cut. manus: and then you gotta cost-of-living crisis, that's one of the things that came across yesterday during the news conference with various people in terms of cutting corporate taxes as opposed to the cost-of-living crisis. let's see who they whittle it down to through the concertina effect. i will see you in the morning. we are waiting for parity, will it ever happen? 20 years ago was the last time you sought, we are talking about euro-dollar. there is a building narrative that if it breaks parity we could indeed go lower toward 95. dani: all about the strengthen the dollar beating up currencies

across the g10 space. cable down below 120 as we prepare for the hot cpi remain -- cpi reading tomorrow. twitter loses over $3 billion in market value after elon musk walked away from the deal to buy the company. this is bloomberg. ♪

dani: welcome back to "bloomberg daybreak: europe." twitter shares tumbled in new york yesterday after elon musk walked away from his $44 billion deal to buy the company and set the scene for a disruptive legal battle. joining us is tim a bloomberg opinion. you've punched the numbers and there is a lot of skepticism over elon musk's complaint. tell us what you found.

tim: i think the complaint that there are more than 5% of the accounts on twitter that are spambots does not really make sense to me. i don't know what data he has seen or what twitter has given him, but i have looked into the system. i actually have a twitter about myself and i know how they are built. twitter would be able to do a pretty good estimate how many bots they have on the system and they would be supremely stupid to lie about it. i don't think they are lying about it. there may be a bone of contention between musk and a twitter about what exactly is a bought -- that is pretty easily defined, what is a spambot maybe over for interpretation. overall, i think the complaint must has is not material or as big as he might make out. in my opinion, it is not enough to scuttle a deal. i think what we need to see is are they agreeing on the same definition or the same data? is musk hitting the data he says

he is not? i don't know what else twitter could give him. that will come out at the court of chancery in delaware because twitter has filed suit there to force the deal to go through. manus: i love the line in the store this morning, muska might get away with just paying $1 billion to walk away from the deal. who is losing the most? fools rush in, a huge influx into this stock. who has taken the bruising, institutions or retail? tim: i think both are taking a bruising but the lawyers are not, we can be sure of that. [laughter] one thing that is interesting, if you think about it, if he ends up having to pay $1 billion, that will probably go on the nonoperating level. ironically speaking, that could be twitter's largest ever annual profit if it goes through. [laughter] if something else goes through

where elon musk doesn't have to pay $1 billion but has to close the deal or something else in between, that would really affect the market cap of the company. $1 billion is nothing for elon musk and it doesn't matter. but for twitter, the board, they have to do their duty and get as much money from the sky as possible. that is their job. they will keep doing that. who is losing are the users and staff of the company, people are quitting because i don't want to work for elon musk. there's a lot of uncertainty and i don't like it's good for the company or the platform. is not really affecting users right now but i think if it drags on the quality of the product will not be able to be improved. i think overall twitter is a name's not winning from this. dani: tim, thank you very much. you can see his great piece on your terminal. manus, at least you are in passive funds and you can take a twitter bet in your retirement

fund. at least you are safe there, not safe perhaps and comes to the euro. we are continuing on euro parity watch, on .0015 is what we see on euro-dollar. manus: what is interesting is i live in a dollar peg so i am pegged to the united states dollar. that gives me a very different trade when i go home tomorrow. when i see you tomorrow, my sandwich and porridge will cost me a better value than a few weeks ago because essentially i am benchmarked to a dollar. if it trades a through here, where is the downside? goldman says downside on a severe recession, and don't forget this is what we just heard from our guest this morning, commodities, if russia turns off the taps, severe recession, and 95 to the euro. dani: what you are telling me is breakfast is on you when you're here. manus: you see, i am a very expensive date. [laughter] dani: yeah, fair enough.

manus: i just want a bowl of porridge. dani: humble as always. manus: humble as ever. [laughter] dani: we are looking at the euro fall and stocks falling. morgan stanley saying the strengthen the dollar is not just bad for those of us not pegged to the dollar, also bad for earnings. corporate profits under pressure because of this. manus: exactly. and omega warning that this could get a lot worse on stocks, something like 35 from the peak. i will see you in the morning with a good flight from dubai. i leave you from -- ♪