dani: good morning, this is "bloomberg daybreak: europe."

recession risks. the many annapolis fed president -- minneapolis fed president says turmoil is pushing the u.s. closer to a downturn. traders brace for another bumpy week. first citizens has acquired silicon valley bank. at the same time, credit suisse with a probe in the run-up to its collapse. plus, mass protests in israel. the prime minister fires his defense minister for controversial reforms. silicon valley bank is being sold to first citizens, the north carolina bank. these lines making -- breaking moments ago. they are acquiring all of the loans and deposits. 119 billion dollars worth of deposits as of march 10. they also had 160 $7 billion of

total assets. first citizens will be taking all of that on. we know the fdic had been talking to potential suitors and they've been trying to solve this. finally they have accepted a bid. let's bring in our finance editor. looking over some of the latest lines, all the loans and deposits, what do you make of the sale? russell: i think this is a significant milestone in the banking turmoil in the u.s.. it's only been two weeks that the fbi see seized the bank and now it is -- fdic seized the bank and now it is in other hands. i think officials are focusing on other banks like first republic bank and we reported over the weekend that they are potentially taking steps to give support to banks like first republic by expanding a learning

facility. it is a significant milestone but by no means the end of the crisis. dani: good point. just to further the press release, it is 17 former branches of silicon valley bank. if you are waking up today, it will open as first citizens bank and trust company. finally a purchaser. russell, you say the fear is not over yet. perhaps this will inject some home in the market. equities moving higher. neel kashkari has also said the turmoil has increased the risk of a recession. what is he most concerned about? russell: basically he is concerned about a credit crunch and the risk a credit crunch could slow the economy. he is not saying there's any policy impacts at this point, it's still a month away from the next policy meeting, but he is

concerned there could be a slowdown in bank lending that could reduce the need for more aggressive rate increases. interesting comments coming from kashkari, who has been quite an inflation hawk so far. market observers and participants are looking closely for comments by the likes of kashkari to see if there's any way the banking crisis will shift their outlook on interest rate policy going forward. we still got a month to go, and a lot could happen. everyone is hanging on every policymaker's words and there will be policymakers speaking this week. dani: if anything this sale shows how fast things can move, just two weeks after the f dic seized silicon valley bank. russell, thank you. silicon valley bank has been sold to first citizens bank. they will be assuming all of their deposits and loans. $167 billion worth of total

assets is where the fdic is pinning this acquisition. let's talk about european valley -- european banks. the crisis is not ending there. credit suisse facing a possible probe and is a plenary action over how top managers ran the bank when it went through its collapse and takeover. that's according to switzerland's banking regulator and reported by us was paper. let's get to jp barnett. credit suisse is being sorted into ubs but what does this mean for them? jp: we had another probe last week about credit suisse and ubs being involved, probably avoiding sanctions with the russians. this is not good. it is a megamerger in terms of operations. the last thing you want to have is some side story about

concerns or disciplinary actions from the regulator. you want to have this gone away pretty soon. also interesting to me, everybody was wondering, why the urgency with the merger? we learned now the regulator was pretty unhappy with how credit suisse was being run the last couple of months. this story explains a little bit of why there was an urgency because it seems like the regulator was angry about the credit suisse management for a while now. dani: and what is happening at deutsche bank? starting on friday, a steep selloff. citigroup describing it as a rational. what do you make of it? jp: it was a brutal move for deutsche bank, especially across all european banks. to me, this is an earnings story, earnings corrections. everyone was long on banks, pretty heavy with how banks were positioned with rising rates and the notion we have a soft landing, that central banks are

in control of inflation. this narrative has been turned upside down and now we have to talk about rates going lower in the year, we have to talk about lower loan growth, we have to talk about that banks may be have to pay up to make clients happy. investors are repricing that into banking stocks. dani: wow. certainly some volatility. we will be talking with a guest later in the program, interested in what he has to say about this volatility. jp, thank you. elsewhere, thousands of israelis have taken to the streets to protest after benjamin netanyahu fired his defense minister. joining us is our israel bureau chief. we are looking at some shocking images right now of protests taking place over the weekend. what is the latest? ethan: yes, you are right.

overnight at around 9:00 p.m. last night israel time, the prime minister issued a one sentence statement saying he was firing the defense minister. he'd done that because 24 hours earlier, the defense minister had gone on tv while the prime minister was in london and said this signature legislation about reducing the power of the supreme court should be halted for now for the coming weeks because it was so divisive that it was becoming a security threat to the state of israel with iran and the west bank and other things. his firing was seen as almost a last straw for many people who had been upset about this legislation and who fear that netanyahu is doing this for personal reasons and as a power grab. the streets were burning last night, many hours. you could not drive on the large parts of the highway. we are seeing people talking about hunger strikes today.

there is a decent possibility the prime minister will in fact announce there will be a halt to we are seeing, that is what is being rumored. dani: ethan, thank you. that is our israel bureau chief in tel aviv. is it finally more calm to come to the market? we have a buyer for svb, it is first citizens, they will assume all deposits and loans. this coming from the fdic. you can see a boost to european markets this morning, up 1%. that is after they fell dramatically friday off the back of concerns over deutsche bank. meanwhile, we are looking at asia stocks and those are falling after poor industrial data out of china overnight, perhaps the only drama we had after a more calm weekend. at the same time, we are looking at seen opec falling -- xunopec

falling. is it finally time for calm in this market or are investors bracing for another week of turmoil? currency markets show demand for haven bids increasing. we will talk about it next. this is bloomberg. ♪

dani: according to the ft, there are concerns raised about a london-based hedge from after an outsized bet on u.s. government bonds backfired. joining us for more is our markets reporter. valerie, it's got to be dramatic if the sec has gotten involved valerie: the extent of the ft

report, it was brought up in a call with u.k. regulators, specifically related to margin calls. this was around their treasury positioning. it has been noted that this was not on the right side of the massive treasury rally we had in march and that rapid de-risking led to worsening liquidity in the u.s. fixed income market and u.s. regulators are keeping an eye, concerned about more rapid de-risking that could possibly lead to liquidity worsening. on screen, this is a chart of the front end rate vol spike in march. this led to substantial losses. march really left hedge funds as a smoldering crater. millennium, exodus, all in the press recently about licking their wounds with losses. even adding -- adam levinsohn's

fund was shuttered the last week. it brings the bigger picture to your question, especially talking about db. is all of this just de-risking of positioning or worries over deutsche bank's balance sheet? a lot of the move in march could be seen as a massive de-risking of positioning rather than fundamental worries. dani: it feels like this is a market delivering the maximum pain to the maximum investors. especially when you think of everyone short bonds last year. thank you, valerie. let's get to our guest. there is a lot i want to ask about what i want to start with what valerie was talking about, the destruction to hedge funds on treasury positions. how much do you think this market volatility is just about positioning, is a story of decisioning rather than fundamentals? tatiana: i think there is a

story about positioning going on and i think that's been quite extreme with some of our participants. there's also a lot of uncertainty at the moment and a lot of market sentiment and market sentiment is always a difficult environment for people who try to trade on fundamentals and keep a clear mind on things. i think that is the other problem we have at the moment. a lot of sentiment and a lot of emotions. dani: let's talk about sentiment changes. we learned moments ago that first citizens from raleigh, north carolina, will be buying all of the deposits and loans from as vb. finally, the fdic has found a buyer after seizing svb. does this change anything for you? tatiana: i think that's good news.

this will have -- this will help restore confidence, especially for investors i think in the recent period, they feared the financial system was going to disrupt or we would have serious problems. i think the svb solution is a solution we could have had in the first place, had there been more time for them. i think the rapid speed in which svb bank or the credit suisse crisis had to be solved, they let it to first place solutions that were not the best, now they will be resolved in a better way. dani: how much of this move can you bet against? i am specifically thinking of what happened in front and

yields. seeing them drop esther medically as they did, seeing cuts priced into the market to the group -- the degree they are. how much of that move do you want to fight back against? tatiana: i am in the lucky position that i don't have to fight back against anything. but what i fear is happening at the moment is we have this very strong bet on central banks doing something and i think traders should beware. central banks have two very large objectives in the first is price stability and the second is stability of the financial system. they need to keep also their credibility when it comes to price stability. from that perspective, i would be very cool expecting -- very careful expecting too much. people are talking about in the summer, we will see the first cuts. i wouldn't be so certain about that and put a big bet on this.

dani: one of the other things that stood out to me in your notes is about the euro, saying you remain skeptical on the euro. the ecb at the same time seems like the last hawk left. you have christine lagarde talking about their steadfast results fighting inflation above all else. considering that the fed has taken may a different tone, why wouldn't you want to bet on the euro right now? tatiana: i think in particular because europe has a lot of issues it never really solved from an economic point of view. they have not gone away overnight. just because now, for the moment, the ecb is sounding a little more hawkish than the fed to me doesn't remain at the end of the day they will be more hawkish. look at this mountain of public debt many countries in the european monetary union have. i think it will be difficult for the ecb to remain more hawkish

than the fed for a long time, particularly once the economic reality is catching up with them. i think it's a difficult situation, and how they communicate, but i wouldn't bet too much on the ecb. dani: what stops the ecb from being as hawkish as they say they want to be? tatiana: simply that you have a lot of public debt outstanding in a number of economies and it's very difficult for -- we have it in the eu, keep going on this hawkish past. the ecb wants europe to survive. it will be difficult for that. dani: in terms of other big market moves to start this year, one of the things that has been surprising and gone against market positioning is the extent

to which has survived all of this. we came into the year with tech being in the position, you didn't want to take, assuming we will still have higher interest rates. can you assume that tech continues to be the leader right now? tatiana: what's happening at the moment is investors are putting their money into very big tech stocks. they think it is some sort of flight to quality, since they've also seen a lot of volatility in markets and so on. but what we should not underestimate is the fed will finesse it, and a stock is related to the prospect of earnings, the value of the business at the end of the day. these businesses have not become more valuable overnight. while this can be a short-term phenomenon where people kind of put their money into those stocks, and the moment when

volatility comes down again, and particularly on the short-term side of rates, i think investors will regret that trade. there is no reason to jump on those stocks as they did the last couple of weeks. this might trigger a painful version. dani: i love how you put flight to quality in scare quotes. if you want actual quality, where do you find it in this market? what is safe? tech is overpriced, we are worried about earnings. where is the quality? tatiana: we should first think about what kind of business is a business not extremely exposed to the cycle and consumers potentially consuming less, and having less money in their

pocket, and economic downturn. for sure, in that space, more defensive sectors and defensive names you can find like in the utility sector and consumer discretionary. these are names that will be less exposed to that. big tech is going to be extremely sensitive to all kinds of consumers cutting down on spending behaviors. what i would recommend is to look for diversification and try to stay away from risk off situations we've seen building in the last 10 years or so. dani: diversification still the name of the game. great to talk with you. coming up, back to business. the london metal exchange resumes trading after more than a year after its nickel crisis. we will get the latest. this is bloomberg. ♪

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dani: nickel contracts at the london metal exchange have finally returned to regular trading hours. it marks a crucial step in an effort to repair the market after last year's unprecedented turmoil. let's bring in our industrial commodities reporter. martin, back up and running. what led us to this point? martin: that's right, up and running. no particular fireworks this morning. no problems. trading volumes very muted, some 350 tons or so traded by around mid day, which is very low compared to overall volumes it normally trades even over the past few months. this is kind of a symbolic step i think for the london metal

exchange to get to some kind of normality for the nickel contract after the drama the past year. there was that short squeeze in march last year that caused prices to spike 250% in a matter of 24 hours. and that spread all sorts of consequences from lawsuits to lower liquidity, to questions about whether liquidity could support trading in nickel and whether rivals would be appearing. it is a small step forward. dani: to that point, is this the step forward that starts to repair the damage? how far away are they from that point? martin: i think most people in the market would say they are very far away from that point. the reason why the contracts were suspended is because a lot

of the price action during that massive spike last year happened during asian hours. i think there's caution about reopening during our hours here. there's a lot more that needs to be done. other recent things have knocked confidence in the market. you may have seen last week there was a big story we were running about bags of allegedly nickel in warehouses turns out to be bags of stone. that was unrelated to this nickel squeeze it speaks to the lack of confidence overall in the market. dani: martin, thank you. that is martin ritchie with lme running again. some lines on alibaba, moving higher, erasing losses, up 3% after the south china morning post has reported jack ma has

been seen in china visiting a private school. jack ma has all but disappeared from public life in 2020 when he criticized chinese regulators in a speech in shanghai. the fact he has been seen, according to the south china morning post, is injecting confidence into shares. they had fallen about 1.8% this morning, now up nearly 3.5%. coming up, we will talk geopolitics after president putin said russia is preparing to station tactical nuclear weapons in belarus.

dani: good morning, this is "bloomberg daybreak: europe." these are the stories that set your agenda. recession risks.

the minneapolis fed residences recent vanke turmoil is pushing the u.s. closer to a downturn. futures climb as traders brace for another bumpy week. sold -- first citizens has acquired silicon valley bank. in europe, credit suisse may face a probe over its management in the run-up to its collapse. plus, mass protests in israel. the prime minister fires his defense minister for criticizing controversial judicial reforms, sparking another bout of unrest. are we finally at a place where more comb can come into the market? now that silicon valley bank has a buyer, it is first citizens. fdic reporting that about 30 minutes ago. 150 $7 billion worth of assets is what the purchase is good $119 billion in total deposits -- purchase is.

$119 billion in total deposits. you have shares moving lower in the asia trade. a lot of that is dominated by china and specifically industrial data coming out weaker. also some poor earnings from sin a pack -- sinopec. jack ma has been spotted in china. we also saw deutsche bank tumble dramatically on friday. over news you normally perceived as a good thing, that they would be buying back debt this market is so fragile and it underscores the fragility of it. do you want to be buying the euro? our guest told us she would not want to be buying the euro. she is not positive the ecb could live up to its hawkish rhetoric. finally, selling coming back to the front end of the curve and remember this thing was at 5% two weeks before this drama started. the front end of the curve making big moves.

president putin says russia is preparing to station tactical nuclear weapons neighboring belarus. let's get to bill faries in singapore. why is putin doing this now? bill: it comes at an interesting time. we are coming out of the winter. russia has tried but failed to make much progress on the ground and president putin has said he is calling up 400,000 people to join the military. these are not draftees, but he's trying to hire 400,000 contractors. because the war has not gone that well, as he had hoped, over the winter. this gives him a little forward momentum to say i'm going to forward deploy some tactical nuclear weapons in belarus. it doesn't change his ability to hit the ukraine battlefield but it does raise tensions and give him may a sense of momentum that he can show to domestic supporters back in russia.

dani: what has been the reaction of the u.s. and its allies? bill: it is interesting, you've seen a little bit of the divide. european union has expressed concern about the move, saying it is an escalation and can only lead to higher tensions. the u.s. has basically taken a step back and said it sees no reason to change its nuclear posture. ukraine has come forward and called for an emergency session of the un security council and that will be an opportunity for all the nations involved, including russia and china as well, to talk about the plan and status of the war. dani: ok. bill, thank you for the update. president biden says he is confident u.s. regional banks are in good shape and doesn't foresee any major crisis on the horizon. his comments downplay lingering

fears of broader financial turmoil. >> i think we've done a pretty good job good people's savings are secure and even those the on the $250,000 of fdic, the american taxpayer is not going to have to pay a penny. the banks are in good shape. what is going on in europe is not a direct consequence of what is going on in the united states. dani: joining us is the executive director for economic and country risk at s&p global. great to speak with you. perhaps some good news for regulators this morning with the posits and loans from svb sold to first citizens bit -- first citizens. does this take some of the pressure off of regulators? lindsay: thank you for having me on. we are certainly starting the week uncertainty but that is nothing new. looking ahead for the week, the

treasury department, the fed, will be looking to continue the message we saw from president biden, reassuring around the health of the economy and particularly the banking sector. we had the fed raise rates just last week, reassuring that staying the course on that front is the direction of travel. to your point, the fed's weekly deposit rate last week showed a significant drop in deposits, particularly for smaller institutions, moving to larger institutions, and that's where the concerns lie, that we are moving out of the realm of fundamentals and into the realm of intangibles, public confidence, market confidence. dani: one thing that won't instill that much confidence is the minneapolis fed president speaking over the weekend. i want to quickly play you what he had to say. >> what is unclear for us is how much of these banking stressors

are leading to a widespread credit crunch and then that credit crunch, as you said, would slow down the economy. this is something we are monitoring very closely. dani: as you mentioned, it's about market sentiment at this moment and general sentiment. where we stand in terms of fears of recession. is this a fear you have? is it a fear throughout the market and just everyday consumers? lindsay: despite the recent banking uncertainties and financial headwinds, we continue to expect, and we heard it last week with the fmo see statement, the fed remains committed to bringing down inflation. the latest numbers, still at 6%, down from 9% last june, but far off from 2%. from the fed perspective we expect one further tightening. should the economic numbers you are highlighting suggest there has been downward pressure on economic growth, we could see

that could substitute for one or more of those additional rate hikes, but the market has seemingly priced in 100 basis point cut by january 2024. those are the sort of divergent signals we are watching. dani: bringing it back to politics, biden less concerned maybe about a banking crisis but the market paid a lot of close attention to janet yellen, who had a tough week of first talking about the fact it would not be a blanket guarantee on uninsured deposits and later in the week using stronger language in terms of making sure there are some guarantees on those deposits. can the treasury or executive branch make any unilateral action around this or do they need the support of congress? lindsay: as you say, in testimony last week before congress, yellen sought to reassure about a healthy economy and she said tools used at these

banks could be used again. she left this open statement. that brings up the question of the will they, won't day -- they? that brings up the question of what more can be done. no biden biden administration is calling on congress to take a couple of steps, including looking at action around executives, for the regulation over executive behavior, and looking at sort of different moves around deposit caps, whether to lift those caps or actually remove them altogether. it seems at the moment that congress remains unsurprisingly divided. there hasn't been a position coalescing there. but it is something we are watching for and we expect will need to complement any further treasury action. dani: will there be house republican support?

when you think about where the pain has been concentrated, it is in the vc sector and potentially commercial real estate. it doesn't get to the heartland of america. will there be any action unless it is the bigger spillover effects? lindsay: bipartisanship on this issue, as i said, it hasn't coalesced, it is a fast-moving issue. so the last week, it certainly was more of a position that has been proposed by the democratic party. it is something to watch in the week ahead, where other vulnerabilities potentially lie that could bring on board for republican support. dani: lindsay, i'm afraid we have to end it there. you for joining us. lindsay newman from s&p global. let's get to your first word news with christine in dubai. christine: thousands of protesters have been on the

streets in israel overnight, including around benjamin netanyahu's homepage this after the prime minister fired his defense chief over a dramatic speech criticizing a plan to reduce the power of the supreme court. netanyahu's proposal has sharply divided israeli society and faced criticism from international allies. the chairman of the u.k. office for budget responsibility says leaving the european union had an impact on the british economy similar to the coronavirus pandemic. richard hughes told the bbc brexit will cut long-run output by 4%. he also says growth has been held back by declining productivity, a shrinking workforce and stagnant investment. australia's centerleft labor party has taken power in the most populous state of new south wales. it ends 12 years of liberal national rule and sealed a left-wing sweep across the country. there are reports that the labor

leader is the new prime minister of the state, which includes sydney. his party has taken at least 47 seats, giving it a majority in the state parliament. global news powered by more than 2700 journalists and analysts in more than 120 countries. i am christine burke. this is bloomberg. dani: thank you very much. coming up, silicon valley bank sold to first citizens. we will discuss next. this is bloomberg. ♪

dani: first citizens has agreed to buy most of said defendant -- citizen valley bank, taking on the loans and debts of the lender. it includes the assets at a discount.

earlier this month, two weeks ago, svb became the biggest u.s. lender to fail in more than a decade. joining us is the founder and ceo of optimas. what is your first reaction that svb has found a buyer? >> i was a bit surprised it was first citizens rather than a larger bank. i thought the big three would take it. it's not a huge surprise, regulators wanted a larger bank to take it over, but i thought it would be one of the really big ones like wells fargo or jp morgan. it gets the regulator off the hook, get the fdic off the hook and everybody is happy with the deal. dani: it's interesting you say that, at first glance, it might make more sense if it was a bigger bank to take this on. other not still nerves around

smaller banks and potentially banks like first citizens that would maybe not mean this is in the clear if this is the type of bank taking on these loans and deposits? octavio: i think you are right. right now it looks like the market is a peck of hyenas and they are trying to pick off the weakest bank or what they perceived to be the weakest bank. we've seen one bank after another in europe and the u.s. come under attack sequentially while they are looking for that week spot. the smaller banks i think are not in the clear yet. the largest ones i think are safe. the smaller and medium-sized banks in the u.s. and europe will come under some pressure i think, even the larger ones in europe are under pressure. dani: you have set me up for what i wanted to ask. before we got the lines about first citizens, deutsche bank, is this market so irrational to see deutsche bank a selloff to the extent it did on friday over

an announcement they will buy back some of their debt? octavio: usually buying back your debt is a positive sign. it is some strength so you will retire some more debt. usually that would be the opposite of what you would expect to happen, but the market can't settle on any news, good or bad. for many years, like credit suisse, deutsche bank was a weak person in european banking. but the last quarter was positive. they had a big increase in profitability, they got a return on equity. it looks like deutsche bank was on the mend but the market has decided otherwise. it's not based on any real news, just the perception that a bank might be insolvent if too many depositors take their money out. that's always true for banks large and small. in this case the market is forcing the issue more than anything else. dani: is it safe at this point to be owning european banks or is this a market you want to

stay on the sidelines until we get more confidence, more steady hands in the banking sector? octavio: i think there are two separate points. as a depositor, do you want to have deposits in this bank? the larger banks, that is pretty safe, the regulator make sure. it is a different story what happens with the shareholders and bondholders. credit suisse did not fare very well and that might be what is happening with deutsche bank, depending on how much pressure is put on the share prices and bond prices now. the short-sellers are pushing the stock down and i expect more action today on a deutsche bank and in the coming weeks as the market panics and pix on these perceived weaker bank stocks. dani: bof and last week said there was no direct risk to european banks, that there was a danger of a "contagion via

psychology of the markets." what would that look like to see a worsening european bank situation worse than now? contagion via psychology of the markets? octavio: there's always a risk of contagion via psychology for banking stocks because in a certain way, they have taken on deposits and went them out and they have a got the deposits anymore. in a certain way, all banks are insolvent and that's part of the business model and once in a while it will blow up in their face. we are seeing it with surprising regularity right now. it's a reflection that we've had a good period of interest rates for many years and they have raised suddenly and that will lead to some breakage and some banks and how their balance sheet is structured. that's what we are seeing unraveled. a shock to the system that the central banks have engineered in the u.s. and europe and that will have repercussions and that's what we are seeing unfolding. bank stocks under pressure as a result of that. dani: are you expecting morrill

-- more regulation to come out of all of this? octavio: regulators love more regulation. i thought they'd learned their lesson in 2008 and the years before that but every once in a while we have a banking panic or credit crunch. it seems to be inherent in the model and i don't think much more regulation will help. i don't think regulation helped credit suisse or svb or any of those banks avoid this. i think it's a reflection of what the central banks have done and i don't think more regulation will help. if you're taking deposits and making loans, you are dependent on interest rates. if that shifts every quickly, some business models will not work anymore. dani: certainly more changes to compute thank you for joining us this morning. founder and ceo of optimas. breaking lines from saudi national bank, the issued a

release saying their chairman has resigned. the chairman kicking off some of the issues with credit suisse. speaking to bloomberg, talking about not investing above the 10% regulatory threshold. i'm looking through the announcement. they aren't speaking about why the regulation -- resignation has taken place, only that it is taken place. the saudi bank chairman has resigned. coming up, france rocked by protests over emmanuel macron's pension reforms. we will look at the economic and political impact next. this is bloomberg. ♪

dani: protests continue to rage in paris over concerns about retirement age reforms. let's get over to our correspondent.

so far it doesn't seem like there are much signs of these protests abating. tara: absolutely not. tomorrow on tuesday will be the 10th national strike that has been called since january over these pension reforms. one must note the pension reform is now past. -- passed. but the way emmanuel macron did it gave new momentum to these strikes and there is a possibility that the 10th one tomorrow could be even worse than the other ones, meaning it will be transport chaos, trains, a fifth of all flights have been canceled from some of the parisian airports and surrounding areas. garbage collection is entering its 20th day, especially in paris, and i can say that yesterday after having toured one parisian district that hasn't benefited from some of

the emergency pickup and collection that has taken place in other parts of paris, the situation is absolutely unbearable. mountains of garbage that is stinking and leaking all over the place get so -- all over the place. so if anything it's getting worse. dani: what is the economic impact? tara: the economic impact is two-pronged. economists say france has been through many situations like this, extended strikes, and overall, it is a mere blip if nothing in terms of economic growth because especially with work from home, a lot of white-collar workers can stay home and not be impacted by the strikes. so that is not the worry. the worry is more now for the image of france. some of the jitters that if this

really goes on for even longer, the image of france as a safe and friendly investment environment could to some extent be harmed. i think investors won't make long-term decisions in terms of pulling out but as i said, there were huge protests and violent protests in 2019, there were extended strikes last summer because of inflation, and here we are with a new round over pension reform that has been going on since january and it is politically becoming very complicated for the president. dani: thank you very much. that is tara patel in paris. want to remind you of news that broke moments ago. the saudi national bank chairman has resigned. this is the same chairman who

when asked in a bloomberg interview if you would invest more in credit squeeze said -- credit suisse said absolutely. that was followed by the bank's stock plunging and being bought by another bank. so again, he is out as the chair. he has resigned amid the turmoil of credit suisse and $1 billion wiped out in their stake in credit suisse. this is bloomberg. ♪

anna: good morning, welcome to "bloomberg markets: europe". mark joins us from singapore to

take us through the market