dani: good morning, this is

"bloomberg daybreak: europe". with the stories that set your agenda. downshifting gains support, current fad voted back -- tax on the ropes, amazon and microsoft began cutting 20,000 jobs as the industry faces the post-covid reckoning. plus, the world economic forum continues in davos. christine lagarde due to speak. that good mood music that has been powering the market to start this year, it has finally stopped. it was bad retail data in the u.s., a consecutive quarter of declines and producer data, which was also very weak. these all the harm marks, perhaps, of a recession. -- hallmarks of a recession. this is the effect of the fed's

aggressiveness. what is the market reaction? to i bonds. we are seeing yet another day of declining yields in the u.s. but really globally. really down by about four basis points. at what point are yields no longer attractive? will we face a big barrier on 3%? the new york fed's favorite measure for recessions, is the most inverted since the 1980's. those red flags of a recession. australia, those yields also dropping as well. we are also seeing a pullback in rate hike expectations in australia as well. many have crude, stocks, all of them falling as well. these big global talks of recession is taking center stage at the world economic forum. let's get to our daybreak coanchor. how are you holding up in vos? manus: i am grand. it is a bit cold.

in the meantime, larry summers has proclaimed that the prospects for the global economy are bright. i was just listening to you run through the market, the gold standard for data for larry sommer is eci. the silver data will be the atlanta data. the consensus is growing. the ferocity of slowdown, seems to be start recession. there will be a real slowdown. jet fuel demand is 50% below where it was at pre-covid for china. the ceo began his station talking about the optimism around china. that was the most pressing factor in every conversation that we have had. on banking through to real companies on the production side. when it comes to one of the big asset owners who, of course, are not going to be filling the whole of liquidity.

the pivot for someone i talk to will be towards china. >> i expect for 2023 a strong recovery. i think we thing the signs already. i think it is an interesting economy with a lot of opportunities. any large country like this i think for sure, it will be very interesting. manus: today, we get to talk to one of those companies exclusively on bloomberg from my region. they really make the stuff that makes the whole world tick. let's see what they have to say about the global real. morgan stanley ceo, bank of america ceo join the team. they will maybe be able to add value to the liquidity drain. the liquidity gap, and what they are doing to pull drawbridge and drive what we so often look at.

dani: good morning to you. they make chemicals, it is literally in everything. so fascinating to see. manus cranny there at the world economic forum in davos. he will be joining throughout. among some of those interviews, we will be speaking to the ceos of morgan stanley and bank of america. let's get to the other top stories and our reporters from around the world. we are covering the weak u.s. retail data and what it means. and then wescott is looking at the surprise resignation of new zealand prime minister. plus, on the latest on credit suisse. the comments follow data showing

u.s. retail fell alongside week producer price indexes. joining us is an and. this soft data has us thinking that a soft landing is becoming impossible. how does it play into the fed's thinking? enda: that is certainly confirming a really strong consumer story is coming off in the u.s.. the weakest in here. weakest across the board. discounting over to holiday season, raise up to the consumer story and the u.s. is softening. slowing ppi suggests slowing upstream inflation pressers. that is all pointing to a slowing u.s. economy, that is why we did have those comments, as you mentioned, making the point that the fed is in a position where they can slow down the pace of rate hikes. importantly, they didn't signal they were ready for a pause.

they are still talking about raising rates. we also had jim bullard out yesterday, the fed needs the push into restrictive territory and make sure they get the job finished. it seems to be confirming that slowdown in the u.s. economy. on the other hand, even though the fed is talking about slowing the pace of rate hikes, they are saying they are not finished yet and interest-rate still going up. dani: even though the market starts to bet a lower terminal rate, we are now below 4.8%. thank you so much as always. new zealand's prime minister just sent out she is stepping down. it is a shock to the country. >> this summer, i had hoped to find a way to prepare not just for another year, but in other two. -- another two. i have not been able to do it.

so today, i am announcing, that i will not be seeking reelection. and that my term as prime minister will conclude no later than the seventh of february. dani: touching statement there. let's get to then wescott. -- ben. she was a progressive female leader, something we rarely see among the worlds, country's top leaders. what was her popularity at home? what drove her to this resignation? ben: you are exactly right. she was at apac in the end of 2020 two. she received a rockstar welcome from the national leaders assembled there. but back home, it was a different story. her disapproval rating had been rising, it was not the highest since she won a record

reelection just a couple of years ago. at the same time, her party was falling behind, the conservative opposition. it was not looking strong for her upcoming election. so, has that played into her thinking? it isn't very clear. what we do know is that no one is putting is up to replace her, possibly making a dying outlook for her party at the upcoming vote. dani: thank you very much. the most read story so far of the day. jacinda ardern announcing her registration. let's talk about the corporate world. in and microsoft are laying off tens of thousands of workers. part of a wider job cut that is hitting the tech industry right now. firms are slashing costs. there is a fear of economic slowdown. microsoft notified 10,000 workers that they will lose their job this quarter, after amazon started sending emails to staff in the u.s., canada, and

costa rica. they are among 18,000 people whose roles will be closed. both company said the measures were necessary to offset slowing sales and a possible recession that has made consumers more cautious. elsewhere, when it comes to corporate pay, credit suisse will pay its senior bankers an upfront cash award this year. executives are attempting to incentivizing staff to stick with the troubled lender as it goes with a broad restructuring. we have bloomberg's swiss banking reporter. it does feel like we hear story after story about x banker from credit suisse leaves to go somewhere else. how much of that was behind the reasoning of credit suisse reintroducing this compensation and work system? myriam: you are absolutely right. it is a way to make sure the bank retains its key staff and key bankers.

it has been a measure that was introduced first last year. we have seen many departures, senior departures, in 2022. and the bank is still undergoing this revamp. it was key to ensure that staff were incentivized to stay and motivated in a way. it was just one more way for the bank to retain key staff. dani: you so much, great work, great scoop from you and the team on credit suisse. staying on banking news, bloomberg understands that citigroup is raising compensation for its junior investment bankers. as much as 15%. perhaps, they are standing alone in that. it is not all good news on wall street. bank of america has started telling executives to pause hiring, except for the most

vital positions. they are trying to keep a lid on costs, and preparing for a possible economic downturn. this goes back to macro picture. will we start to see this showing up in jobs? previously, it was just confined to the tech space. we will be speaking to the chief executive of hong kong's public transport operator as hong kong list -- lifts even more covid restrictions. this is bloomberg. ♪

dani: corporate leaders at the world economic forum in davos have been discussing the future of the global economy and how they are going to do business in this was pandemic world. it is something real happening in hong kong and china. let's check in with haslinda.

haslinda: good morning. with me is ceo of hong kong public transport operator. mtr is one of the most profitable, one of the richest transport companies in the world with a global footprint including where you are in the u.k., australia, as well as sweden. has great exposure. a good company to be talking about, the outlook for hong kong, as well as china read good to have you with us. jacob: the reopened -- haslinda: how quickly do you expect economic activity? jacob: we are excited with the reopening, especially traveling across the boundary. we are only talking about a week after the reopening, we already see a large amount of movement. we open our high-speed rail service last weekend. the presales of tickets, tickets

sold out within two hours. tremendous response. haslinda: what kind of pace are you anticipating in the next six months or so? and how quickly do you think that will help hong kong make an exit from a recession? jacob: we are coordinating supporting the authorities in an orderly reopening of the boundary and travel across the boundary. just to give you an example, three days ago, we opened the high-speed rail service. in order to support the reopening, we were only selling 10,000 tickets per day for the cross boundary movement. within a few days after opening, because a popular demand, we are increasing that to 20,000. if that pace continues, we will be recovering very quickly. haslinda: what are the numbers

in cities? jacob: we operate in three cities. in mainland china. all of them are seeing a recovery patronage and more importantly, recovery of economic activities. haslinda: mpr is sometimes said to be a property company. how is that looking? jacob: we are really a railway company. we work with the property sectors. the idea is based on what we call the real property model. the basic concept is the railway investment is a very high investment return on itself. it has tremendous external economic value. land-use, enabling more and more efficient economic activities and so on. the model is to bring and capture some of these external economic values back into the railway. haslinda: how much demand has there been since the reopening?

what has been the impact on prices? jacob: seen fluctuations in property prices. but we believe a large amount of the market is actually supported by visitors, business, and leisure. in terms of property prices, we have buyers from the mainland, from international people who want to move to hong kong to do business, and so on. with both the international border and the border maine, we will i think see a stabilization. haslinda: what is the growth you are anticipating in terms of demand? once that is not, what is sustainable growth? jacob: it would not be right for me to give you specific numbers. what we can see is that our local domestic patronage has gone back to something like 90%

of pre-covid levels. but, property activities, including shopping malls and so on, they are not yet back to the pre-covid level. the first step is to resume to that level. and then we will see growth. haslinda: you have a global footprint, exposure in the u.k., estrella, and sweden. how is growth there? how do you expect growth to be impacted by expectations of the slowdown in the global economy? jacob: interestingly, in our international market, we have seen some probably permanent shift in patronage. we no longer have so many people going in to work, i assume it is because of the working from home arrangements taking root. we do see more evenly spread patronage over the day. that is actually a healthier arrangement for railway.

don't just serve the two peaks, you serve passengers throughout the day. we have seen recovery, i guess the rest of the world has recovered earlier. now, of course, the immediate risk is the potential economic downturn because of high inflation and high interest rates. they're hoping that the situation will pass soon so that we can get back to normal. haslinda: thank you so much for being with me. of hong kong mtr. he is ceo at the company. dani: thank you so much, a great conversation, really fascinating to see how folks are preparing to get back to normal. more to, from the forum in davos. we will be speaking with the chief executive, goldman sachs international -- first, coming

out, blackstone ceo says parts of the american economy are still going strong. we will bring you his outlook and thoughts on the fed as these markets to new to selloff. that's next. this is bloomberg. ♪

dani: despite higher interest rates, parts of the american economy are still going strong, they are gaining much from post-pandemic spending, especially in travel and leisure. that is the view of steve schwarzman, who sat down with david westin at the world economic or davos. stephen: i think we are obviously fighting higher interest rates, but we are doing it from the perspective of an economy that is being quite good shape. one of the reasons for that is

an outcome of the pandemic. and during the pandemic -- every country's government didn't figure out was the 90% who kept being employed would end up having way more money after the pandemic. because of their cost structure collapsed. they didn't go to movies, they didn't leave their homes, they didn't travel, they didn't buy expensive close. that $2.5 trillion of extra money was in the banking system. they have been spending that money. that has been keeping the economy performing better than people expected. they have spent about half of it. whether they spend the rest of it, whether they save it, that is an extra stimulus if you will. that has kept the u.s. economy

moving ahead pretty well. the fed, of course, is trying to do something with inflation. and, they have to. assuming they really want to get it overly down to 2%. they have been very aggressive, moving. the question is, how much effect does not have? we are starting to see the economy slow down a little. particularly in interest sensitive areas. one would think it would have had more impact, but it hasn't yet. the reason we have developed almost a two part economy. interest sensitive areas like housing, new house construction is down 19%. usually in a recession, it goes down 35%.

so you can see how far we are away from the bottom. it has affected wall street and markets, because when you raise interest rates, very high from a percentage of where you started, it will have adverse incomes. the other parts of the economy that frankly are still extremely strong, they are raising interest -- the raising interest rates haven't affected them yet. stuff like travel, airlines, can't even cope with the volumes. resort hotels after the pandemic were so grateful that nothing worse happened to them that they just want to celebrate and live life. dani: that is the blackstone ceo there. he sees positives in this economy, it is a bond market that is waving red flag. it is out with warnings,

especially if you look at the new york fed recession indicator. they use the three-month month 10 year yield curve, that is its most inverted since the 1980's. we have seen a very voracious appetite for bonds. a twenty-year auction yesterday that also had a lot of demand as well. this recession warning is clear and abrupt. let's get to the other stories with the first word news. simone: good morning. the tou thao energy ceo is urging french motorist's not to panic by fuel ahead of strakes over government plan to overhaul pensions. diesel and petrol deliveries are set to be paused as part of a 24 hour walk out across france today. he strikes are expected to disrupt everything from energy production to manufacturing as labor unions protest resident macron's plan to increase the retirement age. new zealand's prime minister

said she is stepping down in a surprise resignation ahead of a general election later this year. our dern, who was the world's youngest female leader says she no longer has the energy or inspiration to seek a third term. the ruling label party will her -- hold a first round of voting for a new leader on sunday. coming up, tree capital management says we have gotten too comfortable with low interest rates. we bring you that exclusive interview, next. this is bloomberg. ♪ these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming.

more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today.

dani: good morning, this is "bloomberg daybreak: europe". downshifting gains support, two current fed voters moderating the pace of rate hikes as u.s. data disappoints read sox point mostly lower as bond yields decline. tech on the ropes, amazon and microsoft began cutting 20,000 jobs as the industry faces a post-covid reckoning. " the world economic forum continues in davos with ecb president due to speak. we will speak with top guests including andrea orcel. there is this iron need to hearing from these world leaders expressed optimism that there will be a soft landing or mild recession versus the market action and data we have seen over the past 24 hours. it was producer data in the u.s., all of that has markets pointing towards not a soft landing, something of a more

severe recession. it has folks fleeing into bonds. u.s. 10 year yields continue to decline. they are now starting to approach the 3% level. meanwhile, we are seeing that selloff low -- go global in australia. they also had some soft data out in their region, in the form of jobs. it is that global demand story. if there is a recession, why would you be buying oil? extruded is falling by one point 3%. the s&p 500 in the cash session fell more than 1%. finally, you have stocks and bonds dancing to the same tune, that is recession concern. yields move lower, stocks going off as well. corporate bonds have had a very stellar start to the year. folks have been fleeing in to etf read oaktree capital management co-chair howard, believes that financial markets could be the middle of the sea

change not seen in 50 years. sitting down with remain -- romain, -- >> with the appearance of inflation and increasing of rates to try to stamp out the inflation, things have gotten harder i imagine people today saying, when are we going back to normal? like it was of an years ago? the important thing to know, that wasn't normal. that was the best of times. my own belief is we are not going back there. we are now in an environment of more normal circumstances and we are going to roughly stay this way. let us mac what do we go back to at all? it sounds like everything new is new. never really a reversion to where we were in the past. howard: that is what ac changes create a complete transformation , not just a minor cyclical

fluctuation. look, the business world, the economic world, is not supposed to be easy. not supposed to be easy to make money. not supposed to be easy for companies with bad business models to stay in business. i think we go back to a period in which we have moderate interest rates, moderate availability of capital, moderate default rate, and so forth. all of it will feel much less accommodating than the last 14 years. romain: people trying to figure out what that new rate is. when was the last time that you can remember that we had a stable and resistant neutral rate? howard: depends on your definition of stable. i think that the fed became activist with the arrival of alan greenspan in the mid-1990's. i think that people started to

talk about the arrival of the greenspan port, there was a problem in the economy, the fed will just court in some liquidity. and they frequently did, including y2k and other real and imaginary crises. the arrival of the bursting of the tnt bundle. i would say that is 25 years that we haven't had what i call a free market in money. romaine: what gives you the confidence that they will move in a different direction there they were not necessarily cow tail to the market? i am applying common sense. you can't always count on common sense, but, the events of recent years tell me that it is not great to have interest rates at zero. zero interest rates are really an emergency measure. somebody gets a heart attack,

you give them a shot of adrenaline. it works. that doesn't mean you start your day with a shot of adrenaline every day. we had rates at zero for seven years. and by the way, by the time, 2016 through 2018 rolled around, people said, shouldn't rates be little higher so that if we have an recession, the fed can cut rate? if rates are zero or one quarter or one half, you can't do that. i think that is an important reason why rates shouldn't be positive. if you want to fight inflation and kill off inflationary psychology, you need a positive, real fed funds rate. it has to exceed the rate of inflation. dani:'s, cochair of oaktree capital management speaking exclusively with romaine bostick. he also said that he sees an end

to the junk-bond rally. it has been the best start for bond returns. that is helping fuel a bonanza by companies and governments around the world, more than half $1 trillion. let's get to the man behind the data, bloomberg's chief correspondent, garfield. this is so fascinating, considering how dour things were at the end of last year. what has driven investors back into fixed income this time around? garfield: a couple of things. one is the dire 2022 that you mentioned gave us something that bonds have not had for a very long time, yields, yields that are attractive to enough that investors say, we have the end of negative rates, we don't have negative yielding bonds, where investors are paying to play, they are getting paid. that is one very important thing. the other is those rate hikes

globally, are putting the global economy into a funk. we have seen the potential for recessions, certainly for a strong slowdown you have the chance for capital gains now on those bonds, as well as the potential that they will do well at a time when equities won't. as economies move into slowdowns and recessions, earnings are likely to come off, that will hurt bonds. interestingly, your junk bonds aren't doing as well on a return basis. they are struggling. although, so far not struggling too badly because they held up quite well last year on a spread basis. so, there is some concern that spread will widen out. they have been traveling well enough that they still look better to many investors, for example, equities. dani: of course, last year, investment grades suffered from rate hikes because of that

duration would have played into the favor of junk bonds. what does it mean for this market if we do get, as folks believe, that you will get a fed terminal rate below 5% and start to cut, and you already have fed officials talking about downshifting. what happens to the duration play in that type of environment? garfield: the duration play would still take something of a backseat while the initial part of that is going on. you would see the classic highest-quality government bonds , medium quality investment grade, and then junk bonds. that would be the performance. as you actually get to rate cuts, that is when you would start to see government bonds underperform, especially we have to remember that the fed has been saying it will still pursue tightening, so reducing the side of its balance sheet, that hurts

government bonds. you would see the potential for junk bonds to come roaring back if you do move towards rate cut and you do get a sense that those rate cuts are going to help the economy. then that duration play comes into effect. dani: can you break this down for me. after bank earnings, we get them starting to issue a bunch of bonds. how has that differed this time around? garfield: banks have been less active partly because a lot of banks are actually very worried about the outlooks and looking to cut back on the workforces, investment banks in particular. also, we are seeing the housing sector slowdown. that is starting to have an impact. you also have some of the traditional sectors that you would look to for safety, utilities, for example, looking a little bit less safe because

of climate change, which means that it is an uncertain environment about whether utilities can meet demand, whether those higher power prices are going to lead to regulators getting involved. there is a lot of nuance out there about some of the sectors that normally have been the leaders. be that as it may, we are still seeing this extremely strong issuance from use. another area where they have be very active was the tech sector. the tech sector is also going through job cuts and also looking at a different environment now that rates are higher. dani: the story of tech this year feels absolutely so different than two years ago, really interesting stuff, great story. coming up, the chief suspect of

the eu drivers handle has agreed to work with authorities. we will have an update and interview with the eu parliament president. that's next. this is bloomberg. ♪

dani: belgian officials say a former member of the european parliament has agreed to work with them in exchange for reduced jail time. they have been rocking brussels with allegations officials may have been to influenced eu policymaking for years. maria spoke about the scandal with eu parliament president, robert. maria: what is going on at the european parliament? as it often happens, it comes

down to money. the problem here is that this is not the good kind of money. instead, a blockbuster police investigation has revealed what seems to be a complex web of corruption, money laundering, and bribes being paid out to members of the european parliament. not just anyone, it goes all the way up to the vice president or maybe i should correct myself and say, former vice president, because she has been replaced from that job after the allegations came out. the big question is, is it a one-off or fundamentally the issue here is that the european parliament has a systemic corruption problem? that is the question i put to the head of the european parliament. >> this is an institution who needs to be reformed. whoever is in this house being tempted to do that will know that the measures we are putting in place are ones that will deter.

maria: the questions going forward are two fold. who is going to fix this mess, and who was going to take the blame for it? there has been an important twist in this saga. antonio, send -- said to be one of the masterminds behind us, has cut a plea deal with the belgian authorities in which he says he is willing to collaborate on everything, disclose all the information that he has in exchange for what is understood to be a lesser jail sentence. the other question is, when you talk about money laundering or you talk about bribery, cash in bags, who paid for it? documents connect to qatar and to a lesser extent, morocco. they deny the allegations. qatar says it denies it in the strongest possible terms and is willing to challenge it. to some extent, the damage has been done. the scandal is already known across europe as "quatargate".

the final word belongs to the build injustice in terms of who paid what to who? if that is for the legal side of things. what about the political implications of this whole thing? for an inter-station -- institution for a european parliament which prides itself on being the voice because its members get elected directly through the european elections, this has created reputational damage, but also, cast a shadow on its legitimacy. what happens when you have been caught in the midst of it? it feels pretty rough. roberta: it was like somebody punched me in the stomach. when i was asked to seal offices in the parliament to even start to receive information about what had been happening for many years, when i was asked to be president and search for another

member, those are things i would never have expected to do when i was elected. it was something that i put in as part of my responsibility. maria: a punch to the stomach, it might not be the last one. more may be to come. dani: maria there in conversation with roberta. it's get to the bloomberg business flash. we have simone foxman. simone: thanks. the tou thao energy ceo is urging french motorists not to panic but will ahead of strengths over a government plan to overhaul pensions. easel and patrol deliveries are said to be paused as part of a 24 hour walk out. the strikes are expected to disrupt everything from energy production to manufacturing as labor unions protest president macron's plan to increase the

retirement age. microsoft and amazon have begun cutting a total of 28,000 jobs. part of a post-pandemic reckoning for the tech industry. microsoft has started notifying some of the 10,000 workers that will lose their jobs this quarter. the 18,000 job losses at amazon represent about 6% of the online giants workforce. both companies say the cuts are needed to offset slowing sales. crypto firm genesis is said to be preparing for a bankruptcy filing as soon as this week. the cryptocurrency lending unit of digital currency group has been negotiating with creditor group amid a liquidity crunch. in november, genesis suspended withdrawals after crypto exchange ftx, where genesis held some of its funds, went bust. company representatives didn't immediately respond to requests for, it. english football clubs have cemented their and as the leading revenue generators in

europe. manchester city took the number one spot in the annual muddy league for a second year running, with five more ink clubs. revenue up 13% last year was boosted by a sharp increase in commercial income. liverpool and manchester united i. twitter's revenue in the fourth quarter reportedly dropped about 35%. tech news outlook says the social media companies global sales and marketing chief gave the forecast in a staff meeting. the report says one factor hurting the platforms ad revenue was fake accounts under the initial twitter blue obstruction offering. that is your bloomberg business--. dani: thanks so much. coming up, it has been 24 hours after the boj to stay put on policy. could they be the next soft target for the bond bullies? we will bring you the analysis

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dani: let's take a look at some of the events we will be following today. ecb president will be participating at a panel in the world economic forum. at 12:30 p.m., the ecb will publish the count of its december policy meeting read then followed by the u.s. initial jobless claims. then it is a whole lot of monetary policy speak. we will get ecb is isabel and fed president. we will hear from two of the most influential fomc members. both of them speak tonight while they talk about a downshift while they change their tone.

to monetary policy, i still remain on the boj. the yen slid yesterday, perking up today. this all happened after the boj decided to maintain its policy despite widespread speculation, its ultra low rate policy in the high inflation environment. looking ahead, some strategist do believe the boj could become a soft target for bond bullies after the governor kuroda's term ends in april. joining us is david finnerty. it seemed like kuroda was trying to play this role yesterday of, can i convert more believers into my viewpoint that we are staying things easy, what we did wasn't about tightening policy. it does it does seem like he didn't really. it still seems like a lot of folks are still ready for the boj to capitulate. david: as far as most of the

market is concerned, it is just a matter of time. it is not an if it is when. some people thinking the first half this year, some people thinking the second. certainly the majority of investors think it is going to happen. more than likely it will happen after there is a new governor. however the governor is, market forces will dictate that they have to get rid of yield curve control policies. we are seeing the end back under pressure, some of that is because u.s. yields are pushing lower. that is also the sentiment of late they have use this rally to reenter short positions, because they think it is just a matter of time before the bank of japan capitulate and gives out on its yield curve policy. dani: it is interesting to hear that people are shorting jgb's. one of the narratives is, can you even trade this market,

given that the boj owns more than half of it? liquidity is so bad, what does it actually look like to try to make those bets right now? david: certainly liquidity is not great. there have been days when the market hasn't traded at all over the last few months. liquidity is not great. there is some liquidity in there. the general sentiment at the moment is to sell these bonds because they think markets will go lower. of course futures. however the market wants to do it, the market has to look one way or another positioning for the bond yields to go higher and also for dollar-yen to move lower on the back of this movement. dani: thank you so much. that is david giving us the day two look after the boj decision to not move it has been fascinating it has been said

when you expect the boj to move, they won't. yields are pushing lower in japan, but they are pushing lower basically everywhere. we are in this environment where the world is really ready, or seems to be preparing for a recession. yield curves day extremely inverted read the new york fed measure is this one, three month versus 10 year yield curve. it is the most inverted since the 1980's. although an academic says we are more used to the yield curve now so perhaps they are better prepared for recession. stay with us, we will have a lot more engaging in or new the -- interviews from the world economic forum. this is bloomberg. ♪

anna: