>> the governing council will

stay the course in raising interest rates significantly, at a steady pace, and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to our 2% medium-term target. dani: good morning. happy friday. this is bloomberg daybreak: europe. as we await the u.s. jobs report, the ecb says to expect another hike next month. the bank of england governor warns the u.k. has a long way to go in the fight against inflation. >> i'm not saying there will be no more rises. frankly, it is too uncertain at the moment. 3 silicon valley shivers. underwhelming earnings from apple and amazon drive global stocks lower. adding to evidence the economic

slowdown is throttling demand. shares of adani enterprises sink 35% in the biggest ever intraday decline with half the group's value wiped out since last week's hindenburg report. there is the data there. it's a tonal shift from the central banks. perhaps they say they have further to go but they didn't really push back against the race -- rate cuts that are being priced in. we get another day of a monster rally for bonds. yields were down by 20 basis points. it continues in australia. three year yield goes down by 14 basis points. the 10 year yield lower by two basis points. the fact that we didn't get an overly hawkish ecb, the fact that we had a bank of england governor talk about the fact that inflation has turned the corner, the fact that the markets are pricing in a peak

rate scenario from both the ecb and the boe means that the dollar was able to rally, two days worth is what we are seeing now. the euro is stronger. all these central banks backing off. we saw a big rally intact -- in tech. that's taking it on the nose this morning. nasdaq futures down 1.4% after disappointing earnings. i should note, meda did not qualify as that group of big tech that had disappointing earnings. one of its biggest rallies in decades thanks to the year of efficiency for meta-. let's get to top stories. the deepening adani stockmarket route. what we can expect from the jobs report later today. let's start with adani and half of the groups market cap erased. it's shares are poised for a

record drop in this specifically -- specific session. another day of selling. what's the latest? what's the risk that we will get some sort of contagion that spreads to other areas? >> as you pointed out, we've seen continuous declines in the adani group company shares through the course of this morning. this despite some expecting that there might be stemming to that decline. the implications of some of those surveillance measures is to curb speculative trading. when those stocks were on a rapid rise over the course of the last three years, similar surveillance measures were imposed it -- on them but they don't seem to be helping today. a variety of different stories in the works here with regards to adani.

globally, financial institutions are wanting to see how global indices deal with adani's stock inclusions. whether they are likely to review them and referring to msci. we are waiting to see if there is any news that emanates from there. yesterday, an adani group company met with certain payments that has given some respite to many of its international bonds. that could be temporary. a situation to watch very closely. banks and financial institutions across the world are reviewing their exposure to adani including here in england to see if there are any red flags that go through. and if they need to be cautious about repayments over the course of the next several weeks and months. dani: you mentioned perhaps some of the attempted curbs again speculation. what about further reaction from the government? could we see modi step in to offer support? menaka:

that seems unlikely given what we've seen happen over the last few days. opposition leaders have been attempting to raise this issue. we saw parliament adjourned for a second time as opposition leaders sought to bring the issue to table and the government refused to address it. we've had a couple of ministers speak to bloomberg over the course of the last two days and their reaction showed -- shrugged off the last systemic or economic impact of this adani episode. they seem to suggest as if it is something going on with the private sector entity but it's unlikely to have large economic or systemic impact. those are the only words we've gotten from the indian government so far. the regulators have also been silent. as of yet, we haven't heard from any of these parties but we are watching closely. dani: now let's talk tech. tech shares slid after apple,

amazon, alphabet reported downbeat earnings. the results show an economic slowdown that is throttling demand for electronics, e-commerce, cloud computing, and digital advertising. i'm sad manus isn't here this morning because earlier this week, i said to him, it would be earnings that stopped the tech rally. i just wanted to take a victory lap. given that, should we have seen apple's revenue drop coming? aggi: we will have to tell manus that that was the take away. it was the earnings. when it comes to apple, it is something that we should have seen coming. we've seen that they've said now that they are not immune to the economic headwinds that we are seeing across the market. to look at apple specifically, we are seeing a company that has had to already point out that

they've been having real issues especially when it comes to supply chains and their reliance on china within that supply chain. essentially, without being able to bring products to market in the u.s. and in europe for their consumers ahead of the holiday season, they saw a significant drop in revenues for a quarter that is incredibly crucial to the company as people buy their products over the christmas holiday time. dani: talk to me about the two other starting tech names. alphabet and amazon also crushed after hours. what happened with those earnings? aggi: the big takeaway with both of these companies is that they've both been pushing for efficiency. both of these companies have said that they've gone these job cuts. to take away from alphabets, you are seeing a concern about their digital revenue. when it comes to amazon, yes people flock to amazon for

cheaper deals. it's also part of a consumer sentiment story. if there's an issue around the consumer sentiment, that will be impacting a company that still has a huge portion in the retail business. as they shift towards the cloud and they focus on a wf we saw that there was a slowdown in that sector as well. it seems that big tech isn't immune to broader macroeconomic headwinds. dani: thank you so much and thanks for humoring my gloating. to the central banks. the u.s. job report is due later today and it is likely to show a moderation in hiring. speck tatian's of continued tightness in the labor market. that could push the fed to stay the course while the market goes the other direction. let's get more from our markets reporter valerie ty tell. we have all the big central-bank decisions in the can. what kind of reaction could we expect from the payroll today? valerie: i'm exhausted by this

week. let me take you through what consensus estimates are. we are expecting 100 89,000 jobs added in the last month. the unemployment rate taking higher but note the down tick last month was a surprise. my eye is going straight to these average hourly earnings number. it's expected to moderate to 4.3. let me take you through why i'm interested in this. average hourly earnings as well as the employment cost index are measures of wage inflation which we've seen falling recently without any clear cracks in the labor market. this is telling me that the soft landing party might be arriving soon. throw out the textbooks. maybe the phillips curve doesn't exist in practice. the labor market has been on denying the tight. jobless have been below 200,000 now for three straight weeks. they are at a nine-month low. does this wage growth continue to moderate? we also hear from mary daly

tonight. she speaks at 7:30 p.m. next line i will be listening to if he says anything about this type are -- tight labor market. does she repeat that the fed funds rate needs to go above 5%? she called for that just weeks ago. has her mind changed? dani: with one chart, you've completely destroyed the work of some poor economist who studies the phillips curve day in and day out. great stuff as always. you are almost to the weekend valerie. you are almost there. let's take a look at some of the key things we will be watching out for today alongside that jobs report. new pmi's from across europe throughout this morning. that will include italy and spain. then the focus will switch to the u.s.. 1:30 u.k. time is when we will get that update on the strength of the american labor market with the jobs report. 3:00, economic data. finally in the world of geopolitics, the eu ukraine

summit is taking place in kyiv. ukraine's bid to join the european union. coming up first on this program, global bonds rally. traders may be ignoring the central banks inflation warnings. not seeing a big enough pushback. instead, focusing on potential easing to come. we discuss that next. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. only smart bed in the world that actively cools, warms, and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number.

>> i would not be surprised if he -- see the fed cut rates this year. one of the other reasons that we are very focused on this message that the bigger risk is deflation. it's also a very big opportunity. when we look at deflation, there's good deflation and bad deflation. the bad deflation is caused by demand destruction. dani: kathy woods, ceo of arc investment there. credit where credit is due. this isn't a new call. this is something she's been saying on bloomberg tv since august of last year. instead of cathie wood changing her tone, it's maybe a market that has changed its tone to price in this bond market. it's happening across sovereign debt.

i want to show you what one curve did yesterday. it was the belly of the german curve that was off like a rocket. 22 basis point lower. this is a catch-up to the story that's been playing out in the u.s. since that cpi report around november of last year. let me show you the treasury curve over the past few months. it's the same exact story. the belly of the curve. it's getting this tremendous bid . if you look at the five year yield, that's just under 3.5%. it's worth noting that the five year started out at 4% to start this year. let's try to make sense of it all. joining us now is christian,. we are all sounding a bit more like cathie wood these days. what do you make of all this, of this massive rally in bonds after all the central-bank decisions this week? christian: it's tough for me to

link this massive rally in bonds with what the central banks of said. the message conveyed was not that dovish. i think the ecb is still in for 3.25%. the fed will likely also do another rate hike or two of 25 basis points each. it makes you wonder, why have markets rallied so hard on the back of those comments? it has to do with positioning. a lot of people made good money last year. they've started to believe their own story of a continuously hawkish central bank. we didn't get very hawkish rhetoric. that was enough for the bond market to rally over the course of the week. dani: where is the pain trade now? christian: i think the pain trade is still for yields lower. you want -- have to watch out. how much lower can they really

go? we are expecting 3.25% overnight rate in the euro area over the course of 2023. the curve is severely inverted. i think it can only invert so much further. for the time being, there's a little bit of scope here i suppose for yields to come down. our call is not so much on the overall level of yields. we are moving away from those payout rates. more of a relative value positioning. we think were inflation in the euro area will remain much more sticky than in the u.s.. the ecb is set to height rates by a total of 100 when he five basis points over the course of 2020 three. most of it in the first quarter of the year. the fed will hike rates by a total of 50 basis points this year. the interest rates differentials moving in favor of the euro. it will be a tightening of the spread between tenure u.s. bonds and euro area bonds. dani: i do wonder, perhaps most

of this reaction has been because of positioning. i wonder if directionally it makes sense that bonds are falling considering we had a powell who did not pushback against tightening -- loosening financial conditions, but also opened the door to cuts as well. we also have a tonal shift from andrew bailey, saying inflation has turned a corner. you have lagarde putting a lot of caveats on her 50 basis point hike for next month. are these not central be -- bankers were opening the door to not just downshifting but the end of a rate hike cycle? christian: absolutely. there is a change in tone. if you listen carefully to the press conference that chairman powell gave after the fed meeting on wednesday, he was asked what would have to happen for him to cut rates during 2023. he said, the fed is expecting an inflation rate of 3.5%. if it works, they would be open

to cutting rates. lagarde, i don't think she question at all that there would be another rate hike in march. she was careful not to pre-commit be in -- beyond march. there's a bit of a change in tone here. there's a bit of uncertainty about the inflationary outlook. we have to acknowledge that. unknowable -- number of central bank out there are calling for disinflation going into the year. most investors are expecting a stubbornly high level of inflation and a very hawkish central bank. that's behind us. the buzz word is disinflation. dani: given that, what sort of data would we need to see come from markets to really shake things up here? central-bank pot -- talk isn't doing it. what are you looking out for? what will get this market to back off some of the cuts its pricing in?

christian: yes. it will be quite important. whether we will see a decline in growth, also an average of all the earnings. i think that's the most important number to watch for now. headline inflation will be coming down because of the energy prices. then we just have to see how core inflation continues to move over the next couple of months. these are the main indicators. dani: i want to go back to one thing you said just a moment ago. you were talking about the rate differential between europe and the u.s.. some of that coming in. in reaction to the ecb that wasn't as hawkish maybe or maybe just the positioning, what have you. we have seen the dollar weaken or rather the euro weaken versus the dollar today and yesterday.

would you want to fade that trend? would you want to belong euro here? christian: that's right. the euro has given back one big figure. we want to save that. the euro has further upside here. in december, i sent my target was 110. now it's 115. the dynamics are really improving and the euro area because we don't have to pay as much for energy going forward. i think the ecb will hike more than the fed. also, one factor that plays in favor of the euro is, there is an ongoing factor of rotation in the equity market. you've seen the earnings numbers. we speak against tech stocks. the interest rate is pointing the other way. overall, i expect over the course of 2023 a rotation out of tech and into value. we should be tuned into those

european assets. one more thing. nobody talks about the war anymore. the european economy is weathering that shock well. dani: it is a really good point in terms of how that narrative seems to have faded. still a very important and consequential thing happening. before i let you go, i want to ask about japan. any day now, we are expecting to hear about who the new bank of japan governor will be. they said the announcement will come early february. how are you positioning ahead of a potential change at the boj leadership? christian: yeah. we were short jgb futures respecting rates rising in japan. that has happened. we think that the new governor of the bank of japan will exercise caution. we don't expect the bank of japan to change the yield cap anytime soon. we think there is no massive trade right now in the japanese

rates market. on the yen, i think the unmoved already. we are more focused really on the emerging market currencies and euro-dollar. dani: ok. thank you so much. really fantastic to have you on the program this morning after an insane week. no one we would rather talk to about it. coming up, the eu and u.k. are set to pile more sanctions on russian oil products. will it have any effect on moscow's actions in ukraine? >> this is bloomberg. ♪

dani: this weekend sees the eu and u.k. ramp-up sanctions on russia over its invasion of ukraine. bloomberg's oliver crook has the story.

♪ christian: for years, russian refineries have been the eu's biggest supplier. no longer. new penalties plus curbs on crude could cost the tremblant $280 million a day. on top of that, russia significantly cutting x -- gas exports to europe. this would otherwise help vladimir putin fund his war in ukraine. market watchers are concerned about price volatility. who will step into plug the gap and will there be enough? help could come from the middle east especially from countries bordering the mediterranean. the u.s. has stepped up shipments. china could be boosting supplies as well. for now, the markets are calm and buyers in asia could step in. the real test will come once the latest restrictions kick in. ♪ dani: oliver crook reporting ahead of those changes coming

this weekend. let's take a quick look on your market as we head to the half-hour mark. it continues to be the bond market rally that's the biggest mover this morning. it was a really remarkable moving european sovereign debt yesterday. germany, u.k., belly of the curve, yields lower by 20 basis points. that continues in aussie bonds this morning. australian 10 year yield is falling by 16 basis points. we were talking to christian, who says it's positioning because of so much of the market has been short bonds given what happened last year. coming up, we continue to talk about central banks. that's next. th

? the governing -- >> the

governing council will stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to our 2% medium-term target. dani: good morning. you made it to the end of the week. happy friday. these are the stories that set your agenda. as we await the u.s. jobs report, the ecb says to respect another half-point hike next month. the bank of england governor warns the u.k. has a long way to go in the fight against inflation. >> i'm not saying there will be no more rises. it's too uncertain at the moment. dani: silicon valley shivers. underwhelming earnings from apple, amazon, and alphabet drive global stocks lower, adding to evidence of an

economic slowdown that is throttling demand. shares of adani enterprises sink as much as 35% in the biggest ever intraday decline with half the group's value wiped out since last week's hindenburg report. earnings coming in fast and fixed periods to know if he one of the latest report. they are seeing their full year in the low single-digit business. elsewhere looks like a mess for a lot of these figures coming from so novy. r&d expenses were higher. $1.8 billion. the estimate had been 1.7 so they had to spend more. margins also lower. net product sales are also in line. dividend verse share slightly higher. it seems that their spend, their cost, their margins is where it's coming a bit weaker. we will be speaking to the so novy ceo at 9:30 a.m. u.k. time.

now to the rest of this market. the bond rally continues. it was led by europe yesterday after the ecb and boe decision. the curve moving 20 basis points lower. aussie bonds are moving 16 basis points when it comes to the 10 year yield. i have the three year year -- yield for you. the 10 year yield in the u.s. is moving lower by about 1.5 basis points. the dollar rallied back into news for a second day. there you go. there are your markets. we can't forget how poorly tech is doing this morning. nasdaq futures are down 1.5% after ugly earnings. meta with really strong earnings yesterday. the year of efficiency is what mark zuckerberg calls it. let's get back to the big story. the bank of england voted to raise interest rates by 50 basis points. that means the u.k. benchmark

rate is at 4%. andrew bailey warns inflation risk may persist despite offering some hope in his outlook. he spoke to francine lacqua after the decision. >> we don't have a view on the neutral rate which actually shapes our decision-making at the moment. you might say that's an interesting thing for me to say. the reason is that there is such uncertainty at the moment. in the landscape that we face. we've bought very big moving parts. very big shocks on the supply side. >> if you look at the mac -- market reaction, you hiked by 50 basis points. >> the market was expecting us to hit -- hiked by 50 basis points. i don't think they would've been surprised by that. the market focused on what we do next. they will have seen some change in our language. that's deliberate. that change is deliberate.

the way i would interpret it is to say, we are going to react to the information and the evidence that we see. we haven't preannounced an intention because we have reached that point. i think we have started to turn a corner. that's encouraging. there's a long way to go in there are a lot of risks. >> how soon will be singing a cut -- see a cut from the bank of england? >> we are not in the position to speculate on that at the moment. that's off somewhere in the future. >> not this year? >> we are not speculating when it is. i say in the future because rates go up and down in the long run. we have no dates in our speculation. >> we've heard a lot about the shocks the economy is facing. what is the prescription to fixes longer-term? >> there's a number of issues that come out of that obviously. some of those shocks are external. they really very sadly to the war in ukraine which was terrible.

we are seeing energy prices coming down rapidly. food commodity prices seem to have reached a level but it's not coming through yet in retail prices. obviously, that's important. europe has had a much better winter from the point of view of energy than people feared. that's important. then domestically, labor supply is the big issue i think. >> does getting closer to the eu change that? >> in the context of the eu? >> in the context of brexit. >> well i think what we identified is three big shocks that we can see. there's been covid, there's been energy, and there's been brexit. it's hard to separate them out. the judgment that we've reached on a tentative level is that we identified the would be shock to u.k. productivity from the reduced openness of the economy.

we thought that might emerge over a longer time. our latest evidence, it's going to emerge over a shorter time, possibly by the end of the forecast horizon. look forward to to three years. dani: the boe governor speaking there with bloomberg francine lacqua. the boe is just one of the three major central-bank decisions we had this week. let's dig through all of them. joining us now is:. the perfect data. thank you for joining us on this friday. we are just hearing from bailey but i want to play sound from a different central-bank chief and get your thoughts on it. i want to play what we heard from at -- madame lagarde yesterday. let's take a listen. >> we intend to raise interest rates by another 50 basis points at our next monetary policy meeting in march. and we will then evaluate the subsequent path of our monetary policy. our future policy rate decisions

will continue to be data-dependent and follow meeting by meeting approaches. dani: so in some 50 basis points next month but we are data-dependent. what you think of that? is it logical? >> it's a contradictory. central banks are either state contingent or time contingent. this is basically just raising interest rates by 100 basis points. the market expects that. it leaves the ecb open to downside surprises in the data. gives them protection against potential upside to inflation. but the big development over the last two months now is the initial shock from gas through the euro zone economy. it has been weaker than anticipated. broadly, that reflects the demand that -- that demand is higher.

at the start, it was the least worried of the major central banks. now maybe there's a risk that the ecb thinks we are moving too late. they have to be aggressive to compensate. dani: there's this irony about it. the ecb is the most worried. we heard a more sanguine bailey. yes, he said we are worried about inflation supplies as. there's upside risk there. we've turned the corner. how big of a tonal shift is that? >> i think we are getting line of sight on peak rates. in the u.k., the curve came down to 425 p great. i think that's fair. that gives us one more hike in march. we still don't know the likely impact of the tightening through last year. this is where i think the market just needs to be a little bit circumspect -- circumspect. the two major shocks are the global supply shock from gas and the central-bank reaction to that with tight monetary policy.

they overlap but they are not simultaneous. what they see now is the impact of the gas shock which is less bad than expected. we may be in a calm time where the data looks ok and all of a sudden through spring and summer, where we start to learn what this tightening means, we see the data much worse. the risk is we price in lala land and markets. we need to remember two things. we are in a more inflationary environment. central banks will be more worried than -- about inflation than disinflation. we've raised interest rates quite a lot and the mountains are still standing. central banks will be more confident in lenient -- leaning against inflation pressures. the upside risks are still higher than the downside risks. dani: this comes back to the question that we've been trying to figure out since we started to see the signs of inflation slowing. is the phillips curve useful in this?

can we have the goldilocks of low employment and inflation coming down? >> so the phillips curve is an equilibrium relationship. it's not a trade-off. there's a logical error here that if we think weekly eight -- create more unemployment, we will bring inflation down. it tells you that certain types of economy, you will have this relationship between unemployment and inflation. the question is whether or not the phillips curve has shifted up. if it has, what that tells central banks is that they need a higher equilibrium unemployment rate to keep inflation at 2%. i don't see evidence that it has shifted up. what we need to see is basin fax -- effects of inflation come down significant leave this year. inflation expectations should remain well anchored. and then the modest recessions, still restrictive monetary policy. should bring inflation to

something like a desirable level. 3% is the new 2% in the environment so we need to get used to more inflation but we don't have to create a lot of it. dani: all the unemployment and job losses that we've seen feel very and a toddler at this point. we will get the jobs data later today. i wonder if we will see this tendency that once job losses start, they snowball. >> the job losses that we've usually associated with a recession are generally the result of the kind of recession that we are having. if we have a business cycle downturn where we've had a big run-up in output, we've over hired in parts of the economy, there's too much inventory, we've over borrow to invest in housing, then once those processes come to an end, you get the recession. all that employment needs to be taken away and then you get the big response in the end of limit rate. this time around, normal

business cycle dynamics, a very immature cycle hit with this big shock from gas. there's no reason why the balance sheet should see this big unemployment response. you will only get unemployment rising to the extent that output is falling. the evidence suggest that output is not falling as much as we thought. dani: that matches with what we've seen the job losses. it's in those areas that over did it. we are unfortunately out of time. there was no way to cover everything in such a short amount of time. thank you so much for joining us this morning. now let's get to some of our top stories with the first word news. simone foxman in delhi. >> the brutal stock route and adani group companies has continued today. $120 billion. more than half of their value has been erased since a short

seller report alleged accounting fraud. adani group dollar bonds rallied as they were in talks with creditors to prepay some loans. that's in a bid to restore confidence in his business empire. adani has denied the allegations which it says are bogus. bridgewater has named karen tambor as its third coaching investment officer. she is the first woman to hold the top investing job at the world's largest hedge fund. bridgewater is bulking up its management less than four months after its billionaire founder stepped down as one of the co-cios. the border between hong kong and mainland china will fully reopen next week for the first time in three years. china says it's canceling pre-arrival pcr tests and the daily quota for travel across the border. however, a 48 hour pre-arrival test will be required for visitors to hong kong who have

been overseas within seven days. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. dani: thanks so much. coming up, tech shares slide in late trading. apple, amazon, and also bet i'll downbeat earnings. we have more on those results, next. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. only smart bed in the world that actively cools, warms, and effortlessly responds to both of you. our smart sleepers get 28 minutes more restful sleep per night. proven quality sleep. only from sleep number. and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects.

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dani: apple, amazon, alphabet all reported downbeat earnings yesterday. here's the after hours look. it was the result of supply snacks, particularly in china. tim cook says the company is refining its supply chain. >> in terms of supply for this

quarter, i think we are in decent supply on most products. dani: let's get into the results a little bit deeper now. i can can trill joins us now. a busy week for you when it comes to tech earnings. let's go with the big picture here. how are these big tech names navigating some of the macro headwinds they've been facing? aggi: yes. at another point that tim point -- put made recently is during these warnings, to say that apple just like many other companies is not immune to things like inflation and the lingering effects of the covid pandemic. we are seeing that with apple, as a company that is essentially still feeling the effects of covid lockdowns in china which is a crucial part of their supply chain and trying to make sure that they are able to look forward to potentially dampening consumer sentiment.

this crucial holiday didn't have these new products that they usually rely on to sell to consumers. that's a big concern for the company. when we look at alphabet, it's a question of div zero -- digital ad spend. search spending is down. that's a big concern because that's also part of this bigger macroeconomic headwind concern, if people are spending less on advertising, it's because they have to pull back in various different sectors. that's the same with amazon. we are seeing that yes, a place where you can buy goods cheaply is appealing during an economic downturn but we saw a slowing in their crucial business, the aws cloud computing services. all of these companies are essentially saying, we had a great time during the pandemic, now we are going to have to retrench and make ourselves more efficient in order to seek out that longer-term goals. dani: i was really struck by

looking at mark zuckerberg. meta had this massive rally yesterday, calling it the year of efficiently. i wonder how we now think about these companies long-term strategy, given all of what you've just described. aggi: it set the tone for what investors wanted to hear when they said that they would be committing to efficiency. that's also the case for alphabet and i amazon. when we look at their longer-term strategy, they are trying to see the ways in which they can secure profitability going forward. for alphabet, it seems that they are wanting to make big bets on ai as well, to make sure that they are able to be competitive in that space against microsoft. they are researching in those areas but they may have to bring those products to market much earlier because of microsoft's recent agreement with open ai. with amazon, it's a question of

what they are able to do in order to gain that market share of digital advertising away from alphabet. if you look at the squeeze consumer space, amazon focuses job cuts on that area of their retail space, that traditional amazon business. when it comes to pushing for their continued strength in cloud computing, that's a key focus for amazon. also, seeing what they can do in terms of taking that market share of digital advertising through their products like amazon prime. dani: it's been such an interesting story. great work on the european tech earnings this week. i really recommend everyone go out there and read her work. coming up, we focus on adani. more than $100 billion market wipeout and how it's shaking investor sentiment in india as a whole. that's next. this is bloomberg.

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>> it's all about that. it's companies and its associates heavily in debt. that is what scared us away. in addition, we concentrate on small companies. dani: maven mobius capital founding partner edging away from adani's heirs on that sale reversal. let's dig into those troubles because adani's crisis is shaking investor faith in india. that's the subject of today's big take story. you can read that on your terminal. the hindenburg attack on the conglomerate raises bigger questions about india's credibility for global investors. joining us now to discuss this is -- get how will this saga

push investors to reassess the way that they look at india? >> that's a very good question. just a few months ago, china was closed and india was the toast of the international fraternity. all of that is changing very quickly. to put that into perspective, nearly $2 billion have flowed out of india's stock market in the past few days since the hindenburg ripple came out. the banks, insurance companies, not to speak of the adani groups , have all been hit very hard. now what we have to look into is that india still remains very much investment focus for a lot of investors like mark mobius said. you have to take things in india into the broader conduct -- context. there are two steps that most foreign investors face and that's an issue that's going to crop up.

there will be questions raised about transparency, corporate governance, bureaucracy. all those questions will be put forth to india. the ease of business especially and those are the questions that need to be answered and will have to be answered in the next few days especially from the adani group who have to make a concerted effort to answer these questions especially for bond investors, given that those bonds are trading at distressed levels. dani: coming into all of this, we knew that the prime minister had these ambitions to building a more self-reliant india. what does this mean for all of those? anirban: that's definitely a very typical one there. since modi came to power in 2014, adani has become the poster child of his administration especially in the private sector. be at airports, roads, the entire infrastructure gamut. now he has tied his entire

fortunes to mr. modi's ambition to make india more and more reliant. what this means is that the government has been very quiet of late about mr. adani's fortunes. dani: all right. i think we might have lost some sound from him. our mumbai bureau chief, thank you so much for joining us. walking us through the adani saga as we look at those shares. continuing on bloomberg tv, we talked to the ceo of caixabank. this is bloomberg. ♪

anna: good morning, welcome to