>> good morning this is bloomberg daybreak europe. these are the stories that set your agenda. recession on the horizon. jeffrey gundlach warns a downturn is just months away but stocks climb as fears of banking sector contingent uses. crypto crackdown. the u.s. issues binance and it ceo calling the exchanges compliance efforts a sham. bitcoin slides. reforms delayed. benjamin netanyahu puts a controversial judicial overhaul on hold saying he does not want israel torn to shreds after unprecedented protests. the banking stress has been relaxing further. it can only be described as a macro sigh of relief. yields move higher by 26 basis points at one point yesterday. we are getting some selling --

buying rather coming back in but at this point yesterday, 24 hours ago, the 2-year yields was 3.7%. something has changed but perhaps not enough to make up for what we have seen over the past. is there more of this relief trade to come? one thing that has not bounced back is a dollar. sterling is a strongest versus the dollar in two months. cannot continue? we heard from andrew bailey yesterday saying rates will not go back to the pre-financial crisis era. does that mean we are near the end of a hiking cycle? can sterling rally much more from here? s&p futures continued to be pegged around that 4000 level mark. earnings are the next shoe to drop. nymex crude a calm level after a while day yesterday. we will get into that tomorrow any moment. it rallied by percent yesterday. let's talk about that story and others and get to reporters from around the world. we will have the latest on the banking fears which have been using to the biggest rally in oil prices since october and

u.s. authorities are suing the binance ceo in the portal -- political turmoil in israel. a congressional hearing scheduled for today, they will talk -- make a pledge that regulators will make all necessary action to ensure americans deposits will be safe. let's get to valerie tytel. valerie, finally we have the same tune coming from biden and powell another treasury. valerie: we did hear remarks from all of the three speakers that will be testifying today. nellie liang whose undersecretary for domestic finance, her prepared remarks emphasized how important regional banks are to the u.s. financial system. she will possibly try to restore confidence after janet yellen's miss communication and missteps last week. we also got some prepared remarks from the feds of michael barr who is a chair for supervision. it hinted about the expansion of regulation and possibly new stress test, different liquidity

rules, and an analysis of the role that social media played in these banking run speculations. then lastly, the fbi feature and has prepared remarks yesterday, he said that signature bank lost 20% of their deposits in a matter of hours, and they were just minutes away from missing the feds wire room closing for the weekend on that friday. he's said that svb's 10 largest deposits held $13 billion. dani: a textbook case of mismanagement is what mr. barr said. a pretty strong words there. elsewhere in the markets, yields coming in a little bit higher by 26 basis points yesterday. banking shares were able to get a bed. are markets assuming that the banking wobbles are over it? valerie: definitely a risk on tone and the markets yesterday, a sense of optimism. even over the last two sessions,

the intraday swing and materials has risen 45 basis points going from pricing in a total pause for the fed in may 2 now and even odds of a hike. we had the two-year auction last night, which hailed pretty decently showing that possibly all the shorts have been wiped out in front and and positioning has maybe been cleared out. some are rolling their eyes at the recent optimism. we heard from goldman overnight who rose as expectations and the odds of the u.s. recession and jeffrey gundlach on cnbc said he expects a contraction in u.s. growth within months and the fed to be cutting rates in the later half of this year. we all know how painful bear market rallies have been in the past year. perhaps we are set up for one within these heavily discounted banking stocks. dani: everyone getting punished every day it feels like. that is bloomberg's valerie tytel. i mentioned the big rally in oil, the biggest since october. the driver behind it, a

disruption to supply from turkiye that added to the easing concerns over the banking crisis that allowed oil to rally. let's get over to our energy reporter stephen. tie these two narratives together for me, the banking crisis and the turkish oil story. stephen: the turkish oil story, there is that dispute between turkiye and one of the autonomous states and iraq about shipping 400,000 barrels a day from a turkish port. that is not happening now. they tightening supply the markets. that was one of the bullish factors pushing prices up. at the same time, silicon valley bank being purchased reduced those fears yesterday that there would be a wider banking contagion and that perhaps the worst is behind us. both of those together are providing a up picture for oil. we are little steady today after such a big surge yesterday that you highlighted.

one thing to remember about the banking crisis is if there was contagion or widespread and other banks were to fall, overall, any sort of crisis economic or not would have a reduction in demand for oil. with both of those out of the way, there is a risk on appetite and folks are coming back into oil but you have to remember what the fed does. if they continue to hike rates to the rest of the year and we see a recession later this year, globally that could reduce oil demand as well. have to keep an eye on china and is there demand going to bounce back and when? that is basically on the mind of all traders at the moment. dani: that is bloomberg's stephen in singapore. u.s. regulators have accused binance and its ceo of routine the breaking derivative rules. in an allegation which the chief executive has called unexpected and disappointing. let's bring in our crypto reporter. it take me through the price

action after we learned of this news. >> the price as of now is holding steady but weaker. when the u.s. action was yesterday announced, bitcoin felt by 4.5%. after that it has been steady but crypto markets are pretty jittery and weak as of the moment because they are worried about ramifications of this move going ahead and how it really pans out for the sector. dani: after the demise of ftx, binance and cz became the biggest player in town. what does this mean? what are the applications for other crypto players? suvashree: very true, and exactly, binance is the largest, the world's largest cryptocurrency exchange. it is the one-stop shopping mall for all kind of crypto products. it connects every part of the

corner of crypto universe. the impact is only as of now visible in the market but once this case progresses, we will see how it impacts other counterparties, for example, market makers. liquidity providers on the exchange. we saw in ftx is case and it quickly moved out of the exchange. it was a big outflow at that time. binance, this is another concern whether they will be outflows and that could be another ripple impact on the other parts of the world like the banks, traditional finance, payment organizations and networks or even the crypto world and lenders and stakeholders. it is a large web to be honest. binance has the strong $50 million of customer but it can withstand some outflows.

we will watch of the u.s. regulation pans out for binance going ahead. dani: in a blog post the complaint from that the ftc had been complete we citation of facts and we don't agree with the characterization of many of the issues alleged in the complaint. they are fighting back against that cftc complaint. thank you so much. prime minister of israel benjamin netanyahu said he will delay a controversial plan for the jewett -- judiciary after strikes and protests paired he is now seeking a compromise with opponents of the bill. >> when there is an opportunity to avoid civil war through dialogue, i as prime minister a.m. taking a timeout for dialogue. i give a real opportunity for real dialogue. we insist on the need to bring about the necessary corrections in the legal system and we are

given an opportunity to achieve a broad consensus. this is a very worthy goal. dani: those statements from benjamin netanyahu file nationwide protests on monday. let's get over to simone foxman. what has been the reaction to netanyahu's pause? simone: honestly, i think there has been quite a sigh of relief here from people on most sides of the aisle in terms of israeli politics because what was happening yesterday it seemed like things are spinning out of control. we saw the economy shut down and flights canceled at the major airport. after the union went on strike and affected 800,000 workers. we saw hundreds of thousands of people in the streets and we even saw some threats of violence a potentially between the supporters of the judicial reform plan and protesters against it as well as arab

israelis and palestinian folks as well. we were on a precipice here but this is a pause to the judicial reform lands to wait until after passover and the knesset comes back for the spring session after april 30. it is not an end to these plans overall. we have not seen politicians be willing to compromise on much and of course netanyahu's right-wing coalition partners do not want him to back down. they threatened to leave the coalition if he did. very much a large open question here, but for those of us sitting on the edge of our seats yesterday watching this play out in israel and for the united states which has been highly critical of the judicial reform plans, everyone is able to step back and he where things go. dani: simone, thank you so much. that is bloomberg's simone foxman. coming up, goldman raises his expectations of a u.s. recession in the next 12 months to 35%. this does not aggressive fed

rate cuts. we will discuss that and much more next. this is bloomberg. ♪

dani: the yield curve was flatter yesterday. some of this move was reversed but still the month trend holds. this is what it. this is a two tenths yield per. the monthly move 49 basis points steeper in the month of march. it went from over 1% negative 242 basis points negative. our next guest says his behavior is still consistent with defense not to. that is michael metcalfe head of macro strategy at state street global markets. this is not panic. talk me through your thinking because a kind of looks like a little bit of panic. dani: the one thing in

environments like this is markets can be liquid. the readings you get from prices and prices of bonds and equities can be exaggerated. when i say that we are in an environment where it is defense and not panic is because we are looking at actual investments behavior. dani: is it still time for defense? michael: yeah, i think right now today it looks little bit at her and we do think we are through the worst of the banking crisis or now. things are not going to get worse but the economic environment is incredibly challenging. that is the reason why. the market has priced in rate cuts but for those rate cuts to be realized, we need some more bad outcomes to come. i would not chase risk right now. dani: was is not something breaking enough? do something need to break even more for there to be that bad outcome? michael: look, credit conditions were already tightening and they will tighten further. obviously, inflation is still a

problem. we get more inflation data this week and it's really important that that pc print on friday it shows that the .6 that we got encore pc in january was a one off. dani: one of the things that feels like a driver of the 2-year yields is the deposit outflow story. you get outflows into money market funds and assets soaring past 5 trillion is a chart we have here. do you have any idea of how sticky the money market funds are and what that means for the front end of the curve? the assets in this going to short duration cash instruments. michael: i think the chart partly answers the question. these bouts of defensive behavior like we saw during the pandemic can last for a couple weeks. certainly, the inflows of the money market funds at this level don't typically persist for long. bouts of risk aversion are short-lived because we get a positive response.

arguably already we've already had the policy response and we need to wait for sentiment normalized are there. dani: looking at the 2-year yields at 3.9%, does that raise further? how much of the unwind in the past weeks are you expecting? michael: i think if we are right and the banking crisis is contained here, especially the two years out, this is an inflation call. in inflation has looked sticky and it's unclear to us that some of the rate cuts that are embedded in the two-year yield can be delivered. dani: one of the other risks has gotten a lot of notice has been commercial real estate. a lot of this didn't surface around the banking sector because mid side banks are more exposed to commercial realty. are you worried at all? michael: in terms of us having a tightening in lending standards and also the risk of recession has not gone away, then

commercial real estate in terms of vulnerability to rates and the exposure to the regional banks that are doing most of the lending, then yes, that is clearly going to be a pressure point if a recession comes. dani: does turn into a resolve and see issue -- solvency issue? michael: i don't think so. the regional banks have an important to the lending sector but given what is in place, the banking crisis is contained. dani: one of the other outcomes of the past weeks was looking at the ecb and the boe saying they look a heck of a lot more hawkish than the fed. can that narrative and door if a banking crisis is contained -- and door if a banking crisis isn't contained? michael: the fed has held the line and the timing of the meeting was such that they needed to be cautious. if the banking crisis is contained they will be more hawkish again especially if inflation is sticky.

it needs to be in particular. the euro zone inflation looks sticky and they will keep pushing the line. credit to the central banks for doing what they did that week of the banking crisis, the panic. they held the line and that is going to turn out to be the right thing. dani: andrew bailey it yesterday and of course he has testimony later today it was talking about this idea that they won't go back to pre-financial crisis levels. is it the right time to be talking like that? 10.4% was the last print on u.k. inflation. what cap can they go? is that the right line to be taking? michael: i think he has taken a sensible middle line which is saying to market don't panic, don't rice into much in terms of rate hikes. the key thing in the u.k. that interests me is the medium-term inflation expectations both for consumer and market look to be under control. as long as the inflation anchor is not really getting tugged

which i don't think it is in the u.k., it's fairly sensible to say things like that to keep the market calm. dani: he can just wait then, maybe not a full on pause but something that looks like a pause and see with the effects of tightening are? michael: disinflation is still coming. it is just a question of how quick it is. dani: inflation ramped up quickly. can disinflation happen as quickly? michael: i think that was a hope. the data suggest that is not going to be as fast as we hoped. disinflation is still coming. dani: if we are still looking into defensive plays at this moment until we get more clarity , where is the defensive play for you? i ask this because on the bench at j.p. morgan talk about the fact that he likes tech right now as a defensive play. we saw this over the past two weeks. does that make sense to you? michael: it kind of does.

it embeds the view on rates so we will be more traditional on things like healthcare and traditional defensive sectors like that. the challenge with tech is they kneel over yields and we are not sure that is sustainable. dani: thanks so much. michael metcalfe, head of macro strategy at state street global. coming up, we will discussing boe governor inter alia leasing rates will remain below the highs of the financial crisis. more on that next. this is bloomberg. ♪

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dani: as investigators navigate the banking turmoil, ecb's executive board member schnabel is pushing for explicit wording on rate hikes and this month's decision. as one central bank get more

hawkish, perhaps another one backs off. boe governor intervale the says the u.k. rates will probably remain below the highs that were seen before the -- financial crisis. >> we have a strong macro prudential policy regime in this country. the banks and financial policy committee is on the case in terms of security -- securing financial stability which is important for monetary policy. we can focus on our job on returning inflation to target. dani: let's bring in bloomberg's leigh-ann gerrans for more. is this the boe saying we are near the end? leigh-ann: it might be. they are not saying but hinting. that seems to be something that happens cared last night, andrew bailey was talking at the london school of economics and as we got there most in upbeat sentiment when it comes to the hiking cycle we have seen here which has been the quickest in three decades. it is really not close to what they wanted to beat which is 2%. last week, we saw a quarter of a

point hike. what is interesting is bailey echoed what he said last week at the central bank meeting when they did hike rates to 4.25%. he did hint that this could be the end. once again, last night he did that and also said that it remains resilient here in the u.k., the banking system. i guess we saw that after the collapse of the u.s. arm -- the u.k. arm of svb here and it was quickly brought out by hsbc. dani: it's important to differentiate that the pulling back in rhetoric is not because of the banking crisis because it is contained. the worse outcome with they purchased for one pound of svb u.k.. what were bailey's takeaways for the banking crisis if not for the u.k. economy itself? leigh-ann: yesterday when he was giving the speech at the lse, he spoke about the global shocks that we have seen when it comes

to the economy, the war in ukraine, raising energy prices and lots of different stuff that he commented on. he did say a lot of this is contained and things seem to be improving in the u.k., even energy prices are getting cheaper which has been something that we have seen affect the economy in the u.k.. also houses, people have been struggling to pay their bills. it seems like things are starting to realign somewhat from the comments we got. he brought up social media and said that bank regulators are now having to deal with this digital age that we are living in because the run on the banks was so quick in light of what happened. he said this was so different northern rock when we saw all those big cues outside the bank. word got around on social media and before we knew it on march 10, depositors will pulling their money out of svb. dani: i did not do this but i

probably could have pulled out all of my money for my bank just in the short time you were talking. leigh-ann: i'm glad you got lots to pull out. dani: i don't and maybe that's why it could happen so quickly. [laughter] leigh-ann gerrans there. the boe governor and deputy dave ramsden and had a prudential regulatory authority exam was will be testifying to the treasury committee following the collapse of svb. we will touch on the things that lian was discussing. you can follow that life go on the terminal at 9:45 a.m. u.k. time. while disney announces the first round of an expected 7000 job cuts. 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

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dani: good morning, this is "bloomberg daybreak europe". these are the stories that set your agenda. recession on the horizon, jeffrey warns a downturn is just months away. stocks climb on fears of banking sector contagion. crypto crackdown, the u.s. finance ceo calling the exchanges compliance efforts a sham. bitcoin slides. plus, reforms delayed, benjamin netanyahu puts a controversial judicial overhaul on holds saying he doesn't want israel torn to shreds after unprecedented protests. a reversal, a macro sigh of relief that may be the banking crisis is contained. support from the u.s. government and now yellen, powell, all singing the same tune when it comes to making sure american deposits are safe and protected. yields coming in a little bit

this morning, that follows a rally in yields of about 20 basis points. equities are looking stronger, we stay around the 4000 level despite goldman sachs warning of increased odds of a recession. sterling continues to have a bid. andrew bailey is talking about the fact that rates will go back to precrisis levels. finally, nymex crude, a big rally yesterday. banking fears easing some a --, it has come down. let's talk about deck -- tech. first round of 7000 job cuts. the move is a key part of a $5.5 million dating strive it announced in february. the wall street journal reports that disney has cut a division that was developing metaverse energies. joining us is alex. i have to be transparent, i didn't even realize that disney was working on a metaverse strategy.

alex: the metaverse is almost -- it was the next big thing in the way that crypto and web three was the next big thing. all of a sudden, people are realizing it is not may be quite as big as artificial intelligence, which has really exploded and has very clear and obvious and straightforward applications. all of these projects which partly seemed perhaps for investors to say, we are doing the next thing, don't you worry, it didn't succeed in turning up the share price and is an overhead for a project that probably isn't going to yield any results for a few years. dani: that is an interesting point you make, but generally investors have reacted well to job cuts to cost cuts, from disney. >> the thing that is fascinating with disney, early in the pandemic, we saw an activist investor come in and say, you need to be a growth stock.

disney was trading at about 19 times it forward earnings at a point when netflix was appointed -- trading at 50 hot times. it said we will double down on disney plus, and the share price soared as a ratio to forward earnings. it jumped to 80 times its forward earnings, overtaking netflix. what has happened since, people have less time to spend watching streaming services, both of those stocks have come down significantly and our training and they 20 to 25 times forward earning range. the thing they did before, investing in this lossmaking business worked for a time. now it is not, so they have to reevaluate and people they hired to administer some of those things unfortunately seem to be losing their jobs. 7000 jobs now going. it is a massive shift from something that did yield benefits but didn't seem to do so in the long term. dani: thank you very much, that

is alex webb. joining us now is richard windsor, founder of radio free mobile. it is interesting to see these lofty tech goals of the metaverse are now starting to reverse, now we are seeing layoffs. does this go further than just cost control? is this a clear strategy shift throughout the entirety of the tech space? richard: yes and no. if you look, there has been a general round of cost cuts. if you look at a lot of the companies that have done the cost cuts, you could very easily argue that they over hired in recent years when growth was prolific and they thought growth would continue to be. what you are seeing is a reset of that back to some degree of reality. other companies that didn't hire as aggressively are not making any cuts at all. dani: that is a really important

distinction. with those kinds of companies like meta who clearly had a huge metaverse ambition, given their name change, do we now reflect back on that and say, it was folly for them to have pumped in as much money to hire as many folks as they did, which they are now backing off of? richard: meta is not really backing off the metaverse at all. if you look at where the cuts are coming, they are actually coming in the social media business, the facebook and instagram. if you draw parallels to what twitter has been able to achieve and continue functioning, it is not difficult to make a case that was massively overstocked. if you look at meta's strategy, they have been hobbled to some degree by apple because meta didn't control the platform and it is absolutely determined by

the next generation that the problem won't be repeated, that is why they are continuing to invest hard in the metaverse. dani: meta has had a pretty good run. this month, it looks like a nearly 17% gain. cannot continue? how much further does this rally have to go? richard: it is all about fundamentals. when the stock was back at 90, i missed the turn, i was waiting for 70, because that would have put it about 10 times expectations. what has actually happened is the potential for the company to improve its earnings estimate going forward has continued to improve as the company continues to cut and as it becomes more and more obvious exactly just how much extra baggage that company was carrying. previously, mr. zuckerberg was

-- fill our efficiencies to be found, it could. on ap valuation basis, i wouldn't be inclined to chase it, the -- but if you are smart enough to buy it at 90, no necessary risk. dani: over 200, you probably can afford some gains there. looking at the tech sector overall, the past month during the banking turmoil, it was tech where investors hit out. that is the chart we have up right now, communication and tech, the biggest gainers month to date. looking at the macro picture, if some of those fears ease, will he get an unwind of this trade? richard: that -- you would see

something similar if you looked at commodities, if you looked at gold, you would see a similar place where people head out during that concern. i think for the tech sector, it is very macro dependent and it really comes to the position where, when a look at the federal reserve now, it looks to be in a bit of a vice, which is easing on one hand, but then again tightening interest rates on the other side to quell inflation. from the crisis we have seen, i would get the impression that the fed probably can't raise interest rates too much. i don't think it will be until the fed starts cutting again that the tech actor could really start to recover. certainly there is legs to go if we are now moving back into a onto tate of easing phase. the sector overall, i think it is more about the macro.

dani: we only have a few moments left, and i need to ask about tiktok. we had that trial yesterday. i love what you wrote in your notes, judge guilty before proceedings darted. it was really a very tough hearing. what can tiktok do at this point? if it is clear they are not going to satisfy lawmakers, what next? richard: i think that i would more describe it as a slaughter. the issue is that it is very clear that it was bipartisan and it was aggressive like i have not seen before. i think tiktok is left with two options. option number one is that china agrees to sell all of its shares in tiktok, it becomes owned by somebody else and becomes a non-chinese company. in that scenario, it survives.

in the other scenario, -- and beijing has good reason to decline and say, you are not selling tiktok. its policies around ip transfer from inside china to outside of china because tiktok uses the bytedance ai operatives, if china declines that, then effectively tiktok it's blocked. i suspect he would see the out really start to suffer with engagement and traction, a negative network effect and you would have snapped and meta platforms just waiting in the wings to hoover up all that usage. dani: richard, thank you so much for joining us. richard windsor, founder of radio free mobile. let's get to the first word news. christine: police in the u.s. say the suspect in a nashville school shooting had drawn a detailed map of the building before killing six people including 39-year-old children.

police shot dead the attacker who they have named as a 28-year-old former student who identified as transgender. following the tragedy president , biden again called on congress to ban assault weapons. saying that gun violence is ripping out the soul of the nation. the u.s. federal deposit insurance corporation has launched investigations into the conduct of managers at svb and signature bank to determine what led to their collapse. fdic chairman martin gruenberg told a senate committee that directors, officers, and other parties will be held accountable. the chairman of barclays has described recent allegations staley's relationship with jeffrey epstein. first update on the matter after staley left the bank. he quit after u.k. regulators found he had underplayed his relationship with the pedophile financier.

staley is charging those findings. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thank you very much. coming up, israel's benjamin netanyahu delays a controversial reform amid nationwide strikes. at the same time, unions began a 10th day of strikes over pension reforms. we will bring you the latest. this is bloomberg. ♪

dani: israeli prime minister says he will delay a controversial plan to weaken the judiciary after a day of unprecedented strikes and protests. he is now seeking a compromise

with opponents of the bill. israel and its economy was brought to a near standstill after those nationwide protests yesterday. let's get over to ethan in tel aviv. what is the mood now following netanyahu's announcement? ethan: there is a level of exhaustion. but there is also some skepticism on both sides. both sides are still unhappy about the situation. one side would like there to be no judicial overall, the other is insistent there needs to be. in theory, is the prime minister and political meter will meet at the presidents house in the coming days, or the representatives well, to start negotiating away some kind of compromise. it is not really clear that the demonstrations will stop. the strikes have stopped, certainly, and netanyahu's political popularity has taken a hit as well.

meanwhile, the shackle has lifted because the business community is unhappy with the plan and to see it delayed. dani: you mentioned there would be talks and potentially some sort of compromise. what could that look at? ethan: this is a fairly technical discussion. there are all these elements. there is no constitution here, the supreme court has taken on the role of judicial overview. the right considers it to have acted into activist away. they have started to impose more political power over the selection of judges. right now it is largely run by the judiciary itself. that is a question about what the relationship would be between the legislature and the supreme court. right now, the supreme court can declare a law unconstitutional. the overhaul would include the ability of a simple majority to say, that is no longer valid.

what could you imagine? there could be compromise about how you select judges, greater balance, and also that there would be required may a large majority to overturn a supreme court decision. dani: ethan, thank you very much, bloomberg's israel bureau chief in tel aviv. french unions are holding another day of nationwide strikes over presidents decision to push through unpopular pension reforms. pensions last week ended in chaos with hard-core fringes clashing with riot police. joining us is caroline who is in paris. what are we expecting today? caroline: it is a tense day of strikes since mid-january. the unions are hoping to do better and last thursday when you had 1.1 million protesters

in the streets across france. the protest last week actually turned violent on the sidelines. 150 police officers injured, some officers of mp's were also vandalized. today, the police chief in paris is expecting about 5000 police officers in the streets of paris trying to contain the violence, trying to contain those so-called black blocks who are far left groups, usually responsible for the violence on the sidelines. you can see some banks, others have already barricaded themselves ahead of the protest in paris which -- other than that, a lot of disruptions in the transport system and schools. about 30% of primary school teachers on strike.

the situation with the garbage is slightly improving in paris. just this morning i have seen it like two or three garbage trucks in the streets. there is a lot of backlog, but the situation is slightly improving on the garbage side. dani: i know this was a big worry of a lot of people. what might a resolution look like? caroline: it is a very tricky situation for emmanuel macron. you still have two thirds of the french opposed to the pension reform, and two thirds of the french still supporting these protests, despite all the violence that we have seen. a very tricky situation that emmanuel macron has met yesterday lunch with the prime minister and the heads of his very fragile majority. over the next few weeks, he plans to meet with the unions.

she has also promised to not use this decree in order to force a new reform through parliament without a vote except she said except for the budget. this hasn't really appease the situation. we will see how soon the amount of protesters showing up across the country. in the long term, this is clearly benefiting the extremes. very interesting poll over the weekend showing that if legislative elections were to be held today, the national rally and the far left wing would get about 26% of the votes. macron would only get 22. this is having long-term political implications. dani: thank you very much. carolyn cohen on in paris will have coverage for us.

future is still moving higher this morning, the makeup of what is leading us is interesting. it is a slight underperformance, but is an underperformance. that had been the haven bid, the safety amended turmoil. small cap futures are outperforming even more, up zero point -- one third of a percent. we'll yesterday, russell 2000 rally more than 2000. that is where the regional banks live. this is bloomberg. ♪

dani: let's get to your business flash. with that is christine burke in dubai. christine? christine: the commodity futures

trading commission has accused binance and its ceo of routinely breaking derivatives roles as the firm grew to be the largest crypto trading platform. the regulator ceo has called the cftc wall to unexpected -- lawsuit unexpected. disney has become the first round of what is expected to be 7000 job cuts. a key part of the $5.5 billion savings drive announced in february. the first group of employees will be notified over the next few days with a second round in april. ceo is facing the challenge of bringing profit it dreaming tv units which lost more than a billion dollars in the latest order. the head of the u.s. national's cybersecurity arm says tiktok is china's trojan horse and poses a long-term strategic cybersecurity concern.

rob joyce says the u.s. needs to monitor the apps parent company to avoid a security incident 5, 10, or 20 years down the line. tiktok says it poses no greater risk than other social media services. that is where bloomberg business flash. dani: thank you very much. the boe governor and the deputy governor and the head of prudential regulation authority will be testifying to the u.k. treasury committee today. that follows the collapse of svb. and bailey's comments yesterday that they will not hike to pre- great financial crisis levels. definitely want to keep your eye on. you can follow that, li bigo on your terminal. -- live go. 10:40, we will have an exclusive interview with ukraine's energy minister. also one to tune in with.

that is hermann, at 10:40. as we head to the end of the hour, the one trade that is sticking is dollar weakness. yet again another day of a dollar weaker. this is actually versus the canadian dollar, so keep that in mind. the yen is having a stronger day, but strategists are warning we are near month and. not as liquid in that market. some of the more risky currencies, the australian dollar, the new zealand dollar, those are also gaining in today's market. the euro is stronger versus the dollar as is sterling, near a two month high. that is it for us. market is up next. this is bloomberg. ♪

anna: