dani: good morning.

this is "bloomberg daybreak: europe". i'm dani burger in london and these are the stories that set your agenda. donald trump is to be charged with allegedly paying hush money to a born star and could be arraigned as early as tuesday his lawyer says. the 45th president calls the action political persecution. it's inflation day, key prints on both sides of the atlantic will offer clues on the path of interest rates. global stock set for a second straight quarterly gain. china's recovery gains momentum. congratulations, you have made it to the end of the week, the end of the month, and the end of the quarter. if there is one piece of data or chart which shows us where we have been and are going, it is money market funds. $5.2 trillion is the amount that has been poured into these as the fear over the bank run put

investors into money market funds, investing into cash-like instruments. not only does this encapsulate what happened during the bank run and the fear among people, but if this is sticky, this is a risk to the economy. this is more tightening if there is less money sitting with banks, dis-incentivizing lending from the banking sector. janet yellen talked about this saturday saying if there is any place where the vulnerability of the system runs and fire sales could happen, it is money market funds. that is the risk that is set up into the next quarter. when it comes to the month end action, and of the day so far, not that exciting, just some windowdressing perhaps on march 31. s&p 500 futures moving higher for the totality of the month, they have gained put 2.5 percent. impervious to fears over the economy and banking sector. front end yields for the month have fallen 75 basis points but

we are back above 4.1% this morning, some buying in the asia session. speaking of the asia session, really strong economic data out of china lifting asian equities. that was helping the bloomberg commodity index but those gains have petered out. let's get to your top stories and our reporters around the world. we will talk about donald trump trump being indicted, to the white house proposing to banking rules into china's economy keeping up momentum, and what to expect from the pce print later today. let's start with the donald trump news, he is expected to be arraigned as early as tuesday after his historic indictment. this is the first time in u.s. history that a former president has faced criminal charges. let's get over to bill faries who leads our national security and foreign policy team, what do we know at this point? >> we don't have specific details on the charges the president -- former president is going to face.

his lawyer told us that he will surrender himself on tuesday most likely to the court in new york. at that point, he is expected to be fingerprinted, have a mug shot taken. that he is most likely going to be released on his own recognizance with the secret service. at that point, will have a lot more information about the details of the charges. and perhaps a better sense of how long this will take to play out. but it is certain to take months, possibly years and bleed right into the 2024 election campaign. dani: in terms of what happens next, what does this mean for trump's campaign? >> president trump has long said that he believes there is a deep state of democrats and opponents seeking to undercut his career, his political future. this will play right into those hands.

among his core supporters, they will see it as the kind of warning shot they have long expected. the big question as we head into the gop primaries and the 2024 election, how does this affect the views of more moderate republicans, some independent voters who helped trump win in 2016? and helped joe biden win in 2020? it is too early to say but the president's strongest allies are saying this shows the legal system has been weaponized against him. dani: bill, thank you bill faries on trump's indictment. the biden administration is urging regulators to tighten rules for midsized u.s. banks. let's get to nabila ahmed on this. what are the changes being discussed to the current regulation? >> as you say, we're talking about tougher regulations for those midsized banks. that is banks with assets between 100 and $250 billion.

silicon valley bank fell into this category. the white house is talking about reinstating regulations that were brought in under dodd-frank but were peeled back by the trump administration. the list of changes we're talking about includes reinstating rules around liquidity requirements, better stress testing, and the so-called living wills where banks have to submit plans detailing how they could be wound down without transmitting stress to the rest of the financial system. then calling for things like annual stress testing, and tougher supervision to ensure banks can withstand rising interest rates. the white house has these measures don't require congressional approval. but it will be up to regulators to implement them. it's quite unclear whether they will go ahead and do that. dani: we also got some data late in the u.s. yesterday about the

fed's emergency loans to banks, and what those figures look like. it looks like bank started to reduce their borrowing from this backstop. >> that's right, dani. it shows that things are getting worse, and maybe getting a little better. u.s. bank borrowing fell from $164 billion, to $153 billion in the week through wednesday. it shows that efforts by policymakers to stem the contagion and contain bank collapses we have seen lately is starting to work. obviously, there is a long way to play out and a lot of uncertainty. but good signs at the moment. dani: thank you very much, we're looking for those good signs these days, nabila ahmed. china's economy kept up its momentum in march, nonmanufacturing pmi soaring past expectations and now sitting at a 12-year high.

let's bring in sofia horta e costa in hong kong. we kind of lost track in europe over the china reopening story given everything that is going on. but this economy is strong. how much of that is priced in at this moment? >> get morning dan a. you hit it right there. it really has become an under the radar given all the distractions we have had this quarter. but the reopening story is a lot better than people have thought, not just economists but also markets. we're seeing a little reaction today on shore and in hong kong, but not the exuberance. people still need more evidence that the recovery is sustainable. a key out of today's report was that it points to recovery in domestic demand. this is the important thing to watch out for because we all know that global demand is under strain. the u.s. and european economies are incredibly important for chinese exports, so china can't rely on that anymore and needs

to pump up consumption and spending within its borders. that seems to be working. premier li qiang spoke this week and set activity in march is improving. he also said there is improving confidence amongst the business sector. jack ma reappeared this week, and alibaba and jd tapping the primary market looking to get funding. it's been a good week for news out of china. whether the world will start to pay attention, let's see. there may be a domestic bias in europe when everything in the banking sector is distracting you, but there's a very positive momentum story out of china certainly. dani: i'm with you. we in europe need to be paying more attention, so thank you for helping us do that. looking ahead to send u.s. eco-data, pce core inflation is

expected to decelerate to 2.4% in february, and we will get inflation figures in europe grade we have the ecb's governor speaking at the moment saying continue to rate increases will be needed on inflation. some very clear words. we also heard from fed speakers yesterday. all of this was bring in dan moss. we know pce is the fed's favorite target, and it is still way above target and is likely to remain so after tonight's numbers. why does the market pricing in cuts? >> people have been talking for some months now about be approaching fed pause. depending on your projections we're one meeting away from that, maybe two at the maximum. historically, when there has been a pause, it has tended to indicate the end of the cycle, though no one says that at the time.

throw in the likely slackening force on the economy of the recent dramas in the banking sector, and this seems tailor-made for at least a long suspension of hikes. it's not that much of an extrapolation to say if hikes are suspended for a while, what comes after that? it's a legitimate question. that puts this pce measure very much in the frame this evening. dani: we will look out for it. dan moss they are. coming up on the program, global stocks are riding on a wave of optimism to end the first quarter. but is that optimism warranted? we will discuss the market next. this is bloomberg. ♪

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>> is going to take us a while before we fully understand are there more losses out there? what's unclear right now is how much of the banking stresses of the past few weeks is leading to a sustained credit crunch, which will then slow down u.s. economy? dani: minneapolis fed president neel kashkari speaking about the impact of the collapse of silicon valley bank. as investors prepared to close out a very volatile first quarter. one that has seen stocks rise. let's get to mads pedersen human edge investment technology cio

and founder. the score is on the door, the front end this month has fallen 75 basis points, u.s. equities have rallied to .5% to the point where michael burry is congratulating debt buyers, i know it is not --in the aftermath of all of this, what is most mispriced as we head to april? mads: high yield is still suffering from what happens. that is a buyers opportunity. if you look at the fixed income space, we have a repricing. government bonds now are very volatile at the moment of course but they are not so far from fair value. but the spread has widened and the possibility of the fed over tightening is probably over now, which is devastating for credit, so the most mispriced of traditional asset classes is probably european and u.s. high-yield. dani: i presume you are buying at this moment then.

is there not some fear that spreads will and if we're concerned about a worsening economic condition? and at a time where we don't truly know the full impact of tightening from the banking chaos we saw? mads: that's true. there is always a chance. there is a reason they used to be called junk bonds, that is what they are. that is worth remembering. if we look back three months or six months, we were afraid the fed will not be aware of how much tightening and how much they are damaging. if we look at our algorithms for credit conditions, they are coming down very significantly. as we look at the comments we had just before from the fed, you can see they are not aware. so there is an awareness of the damage. so when we do get it, i expect spreads will be kept in control. the easiest way to see this is with investment grade market continue to function, and if it continues to function it is easier for the high-yield market

to function, as long as the market functions and spreads aren't allowed to widen, then things are positive. that's what we have seen this week, and that's what i expect to continue to see in the coming weeks. dani: i was going to say, it's kind of a sad state of affairs when we have to caveat everything with if the market functions, because it has not been. look at the treasury market alone, the volumes, the hedges, the lack of liquidity has been remarkable. i wonder when you think about positioning specifically, because these vicious moves really punished hedge funds, like one which fell 32%. these macro funds which had shorts in this market. is the positioning cleaned up at this point given what we have seen over the past month? mads: i don't think it's cleaned up but it is a lot cleaner exactly because of what you are saying. we are seeing the hedge funds because they make it to the headlines. but we can see that a lot of

systematic models have changed positioning. a lot of people have been moving out of risk. we can see those flows. in that sense, we have been through a large cleaning process and that is good for the market. now is everything fairly priced? probably not. we'll volatility go away, probably not but this is how the market works and we are in a much better position now when things have been realized. we even had the ecb talking about implicit tightening from the credit side, which they didn't talk about in their statements at the press conference but it later came out . it's a healthy debate and that's a healthy price because the fed does not have to tighten so long, that's clear to everyone. dani: but are they going to have to cut 70 basis points like this market is saying? mads: i year ago, they thought they were going to peak at around 250, 350, now we're at almost double that.

so, they do the best they can with their dot plot. but if we are 75 basis points down in a year, that would be extremely normal. you have a very hard tightening cycle and then you have to ease it back. it is almost so normal that it is suspicious that it is priced. we will be very happy if the economy's development allows us to only hike 75 basis point, that would be a very calm year. dani: i am craving normalcy right now. for someone who lives for the drama, this is a rare thing for me but i need the normalcy. when it comes to tech, it feels like a bit of a head scratcher when we have earnings estimates for this year coming down some 4%. virgin orbit can't get funding, they are having to suspend

operations. disney is making cuts, netflix is making cuts yet the index has rallied some 17%. help me make sense of this, mads. mads: we're back to the discount factor. it felt growth company has a lot of growth in the next 20 years and you lower the discount factor, it is not version that has lifted the market is the large tech companies. they don't have a lot of credit risk, but they have to live with the price of money, and the discount factor is well expressed by the 10 and 15-year government bond. the discount factor has come down tremendously because all the tightening happening in the u.s. at the moment is now happening in the housing market, and in the big cap and small-cap market is where people are having funding issues. that's why there is a reason for

the price because you discount, it is pretty classical. you even learned that at university. not so many things we learned that we can use later on. dani: just some simple math, good to get a refresher. before i let you go, i have to ask about china. we were talking about it in the break. we had strong pmi's come through, how hard we have to go to price in the china recovery story if we can finally have u.s. banking and european banking drama peter out from the headlines? mads: let see about that, but it at least has been a good week for switzerland. in china, you saw the manufacturing pmi number is strong. we need the full economy to get going, that's another two or three months probably. it's a very positive story. now we know that in this current cycle, they can be seen as

coming back to the stage and having aspirations. alibaba is almost classical as a conglomerate. this is been a very good week for china. now we see it in the pmi's. but china is coming back, that's a positive factor probably in the global economy. that is a positive development. but obviously, the current development is not a strong. we need more to happen. we need liquidity being pumped out to get traction. dani: once it does, we could obviously be living in this world where american and european growth is slowing down. maybe even a recession. we go from asking the question, is china uninvestable to is china the only thing to nest in

-- invest in? mads: no, we don't. we'd like global equities, we buy u.s. equities, some european equities, they are all benefiting china having a positive development this year. we don't have to invest in china to be invested in china's recovery, so that's not necessary. also very important is that in terms of growth coming back and recession in europe, europe doesn't need to get much weaker. if the market looks six months forward, germany is not going to be in a stronger position than it is right now. if we move six months forward, we will be through the bottom in the earnings recession. in six months, we will be past that. so this is also helping calm the situation. and you don't need to buy china to benefit from chinese growth. you can, but you can also buy global equities. dani: buy a little louis vuitton

and luxury goods, that certainly will get you there. i'm afraid that's all we have time for. enjoy the rest of your weekend. mads pedersen, human edge investment technology cio and founder. while headline inflation has declined, underlying prices remain sticky. all eyes go to the march euro area inflation prints do later today. this is bloomberg. ♪

dani: it's another big day for european economic data. we will be focused on euro area inflation print for march due later this morning. let's bring in maria tadeo in brussels. we had germany and spain data. what can we expect today? maria: dani, good morning. today we're expecting data from

italy, france and as you say, the big reveal, european data for inflation, euro area cpi for march that is due at 11:00 a.m., that is that :00 a.m. u.k. time. if you look at the data yesterday from both germany and sweden, that's a preview potentially of what may be to come today. we will see headline inflation come down. as soon as energy prices go down, headline inflation follows. the problem, and this is a very fascinating intellectual debate, but obviously headed for the european central bank, when you look at the details, core inflation is actually rather sticky. there is a mismatch between the headline inflation and core inflation. you can look at this superficially and say, headline inflation is coming down, the european central bank has a mandate of close to 2%. that could be good news but the problem is, we know they are

looking at core inflation. so that stays sticky. there you are, they still should continue to tighten. the timing is also interesting because we have a decision in may. it is understood that the banks will continue to hike, the question is by how much and what is the sequence going forward? dani: certainly have central bankers talking this morning that they still need to fight inflation and raise rates. maria, thank you so much. maria tadeo getting back to her bread and butter on european inflation figures. we are live at the ambrosetti forum with the chief u.s. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts...

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dani: good morning.

this is bloomberg daybreak: europe. i'm dani burger in london. these are the stories that set your agenda. donald trump is to be charged with allegedly paying hush money to a porn star and could be arraigned as early as tuesday, his lawyers say. he called the action political persecution. inflation day. key prince will offer clues on the future path of interest rates. global stocks climb before the reports set for a second straight quarterly gain. china's economic recovery gathers momentum, as manufacturing services and construction topping forecasts in march. i was just asking mads peterson about the rally in tech. the strong quarter, the strong month. he pointed to the fact that discount rates have come down, so just in terms of math, that helps. and in six months of now, we will be through the worst of an earnings recession.

but we have to get to the earnings recession first. will we see it? bloomberg intelligence dug up this data. during covid, it was all about job cuts, but what happens out of covid? it is about the labor shortage. this has been reflected in the jobs data. the fed needs to keep hiking. over the past month, we start to get a slow drip of earning before the floodgates open. it switched and we are hearing more companies talk about job cuts instead of labor shortages. how long, if it does, will that take to show up in more of the macro data and potentially mean that the fed has done its job and can slow down? in terms of the markets, it is the month-end. a little bit of windowdressing going on this morning with u.s. equities on pace to gain 2.5% for the month. yields come in.

they have fallen about 75 basis points. the msci asia-pacific gaining on the back of strong data. fed officials continued to stress the need for lower inflation even as they keep a close watch on the fallout from the silicon valley bank. speaking at a conference in washington, susan collins echoed that same sentiment. >> i currently anticipate some modest additional policy tightening and then holding through the end of the year. of course, i will be carefully watching a range of indicators including data on inflation, spending, labor markets, and financial condition. dani: the confusing mess of the macro environment is the conversation in italy and francine lacqua is there with a guest. francine? >> thank you so much. we are starting strong. not only because we are on lake como and it is not raining, but

because we have ellen zentner, the u.s. chief economist from morgan stanley, to kick us off. thank you for joining us. >> it is a great morning. >> we are talking about a possible credit crunch. this is the real concern out there that the bank in crisis will lead to less lending and something ugly happening. >> think less lending is exactly what we are in store for. credit conditions were already deteriorating in the fourth quarter of last year. we so growth in commercial industrial loans really start to fall off. this is that extra push that now the loan growth is going to be slowing even more in the u.s. and it has taken the growth forecast down. if it is going to be slower flow of credit, growth is going to be hit. >> at the same time, the fed may be relieved. >> i don't know if i will say relieved because right now they are trying to plug possibly a

sinking boat with macro prudential tools, but it does do some of your job for you. because that is slowing the economy, that is what the fed has been trying to do. slower loan growth means slower job growth, just less resilience in the economy. it means that we are probably close to done with the hiking cycle. and what they need to make sure is that the credit crunch, so that credit just stops, that that does not happen. >> what can they do to make sure that doesn't happen and if there is a confluence it makes the fed's job that much harder? >> what they have done first is instilled confidence in the banking system, that we have unlimited policies with our lending facilities and working in conjunction with the fbi see in the treasury to store up deposits, key flows happening,

and keep investor concerns about the health of banking at bay. so far, that has been working, but you always have to worry about what evil lurks around the corner. with financial plumbing, you just don't know. but the regional and small banks in the u.s. are extraordinarily important. that is where we have seen that interest margin compression hit early on. these banks were bleeding profit starting last year. it is no surprise that the speed at which the fed was moving has made deposit flows extremely uncertain for the smaller banks and that is something we are having to deal with now. it is that lag effect of monetary policy. >> do you worry about something else breaking? interest rates coupled with mismanagement on the bank front, do you worry about shadow banking? are there other parts of the economy we should be vigilant on? >> i think shadow banking is always a concern. one problem it is in the

shadows. it is difficult to understand the size of it. investors are right to be concerned about commercial real estate folios -- portfolios. it is not that this is a crisis repeat. we are not at that size. but it is another stress on regional banks that have large commercial real estate portfolios on top of large mortgage portfolios, where there is a lot of lending at low rates and for commercial real estate it is coming due to be rolled over. you might have a sort of random report of a large office property owner just turning in the keys. that can start to snowball with concerns about what other losing properties are out there that the banks might have to absorb onto their balance sheets? it is the building up of the lack monetary policy impact from such an aggressive pace of

hiking and why the fed has to remain vigilant in following these pockets of the economy. >> the market is convinced the fed will cut rates quite aggressively this year. you are pushing back against that. >> i pushback against that. the fed doesn't think they will start cutting until 2024. that is also our view, early 2024. if you draw uncertainty bands around that, is it unthinkable they could cut before then? it is not. they could cut this year. is it a little too early to assume they would be cutting as early as june and climbing -- cutting aggressively? yes. >> there has always been a bit of a bias in the markets that basically says -- >> i think they will go very slowly this year.

it doesn't mean there's more to do. we do have a resilient household sector. the corporate sector, we do have rollovers in cre that has to happen this year. the bulk of the rollover of the debt doesn't occur until 2006, 2007. >> when we take a look at what does slower credit growth mean, we find that the cumulative impacts our greatest in 2023 and 2024. we think that is where in looking at our analysis, investors are surprised it takes that long for slower loan growth to flow through into the economy. it is not like we just hit a wall overnight and the fed immediately starts cutting. i do still think they will do one more hike in may. 25 basis points. >> this is something that we weren't foreseeing a few months ago, we weren't enforcing much

18 months ago, but the fact that ecb is still at hiking cycle given complexities in the region compared to the fed that could be one and done. >> it is quite unusual we are just about at the end of the hiking cycle in the u.s. and the ecb has more room to go. some of that could be will more started earlier and more aggressively, but our economy -- where is the ecb has come in with upside surprises on growth this year. we are about to hit a good deal of downward surprises on the data. that could be some of the differential. >> ellen, thank you for joining us. i'm going to hand it back to you in london and we will have plenty more from the lake, throughout the day. dani: can't wait to hear more of those great conversations and honestly just a look at lake como. it is a really nice view and still rainy inside london. francine lacqua there. coming up throughout the day, francine will bring us

interviews from chernobyl io discussing the amber said he forum. let's now get to the first word news. that is sam ntn. >> finland has cleared the last obstacle to joining nato after turkey's parliament voted unanimously to approve its membership. all 30 members have now ratified finland's bid to join the defense alliance launched after russia's invasion of ukraine. sweden's bid remains opposed by turkey and hungary. the u.k. is to join and 11 nation into pacific free-trade bloc becoming the first new member since its creation. . it includes australia, japan, and canada. they hope it will boost economic growth. the u.k.'s own projections show that it will only grow gdp by 0.08% per year.

the white house is pressing regulators to tighten laws for midsize u.s. banks, calling for a of liquidity requirements for lenders of assets between $150 billion and $250 -- $250 billion and stress tests. janet yellen said the looser laws may have contributed to the recent bank failures. china's economic recovery gathered pace in march with manufacturing continue to expand and services picking up strongly. the official nonmanufacturing pmi surged to the highest level since 2011. the manufacturing gauge eased to 51.9, but remained above the 50 mark. that signals expansion from the previous month. global news powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

dani: thank you very much. coming up, we will have the latest for you on donald trump's indictment. becoming the first former u.s. president to face a criminal charge's. this is bloomberg. ♪ introducing the new sleep number climate360 smart bed. the 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.

dani: donald trump could be arraigned as early as tuesday on charges related to hush money payments to porn star stormy daniels. he will be the first former president to face criminal charges in a case because criminal persecution -- political persecution.

what do we know at this point? >> we are still waiting for details on the specific arches former president trump will face and that will help determine what the potential consequences would be if he is found guilty, but we do know from his own lawyer he is expected to surrender himself on tuesday or as early as tuesday to a court in new york. that means he would be fingerprinted, he would have a mug shot taken, he would probably have a court appearance, his first chance to say whether he understands the charges against him, and he would probably be released on his own. and from there the case could probably take months or years dragging into the 2024 election. dani: we know the historical element of this come about beyond that, what is the significance of it? >> well, it's a big shakeup to the race.

the president has long complained that there is a deep state of democrats and political operatives out to get him. this will be seen as a vindication for him and his core supporters. he will probably rally his base with this. the big question will be how to some of those republicans closer to the center, how to those independent voters who came to his side in 2016, but who went to joe biden's side of war in 2020, how did they react? did they agree that he's being politically persecuted or does it remind them of some of the drama they were looking to leave behind? dani: even beyond this, there is more drama for,, considering he is facing other legal action. >> there are almost half a dozen other investigations looming over his head. there is the case about whether he interfered in the results of the presidential election in

georgia. there is a lawsuit by the new york attorney general against him and his children over whether they inflated the value of their properties and company and then there is a couple more cases out there related to the elections, the january 6 protests at the u.s. capitol. this could be the first of several indictment he faces and it's going to be a complicated case, but it's definitely shaking up what had already been seen as a to mulch race for the presidency in 2024. dani: bill, thank you very much. let's get to the bloomberg business flash with samuel. sam? >> tesla said looking to build a battery plant. tesla discussed plans with the world's largest ev battery maker and the white house in recent days. we are told the company wants a

similar deal to the one agreed by ford with catl building a factory in michigan owned by the u.s. carmaker. china's biggest state owned banks have delivered profit gains after boozing lending -- boosting lending following strict covid zero policies. icbc was the only major fell short of estimates. bloomberg sources say banks are working to prepare for the first timeshare sale. the logistics arm is currently valued at more than $20 billion. the move paves the way for the first of alibaba's six business units to go public. that is your bloomberg is this flash. dani: coming up, virgin orbit loses its wings. the satellite launch provider ceases operations after failing

to find funding. that is next. this is bloomberg. ♪

dani: virgin orbit, the satellite launch company tied to richard ranson, is ceasing operations indefinitely. the firm is giving into pressures that have paralyzed many emerging technologies. let's bring in alex webb. this is one of these companies that in 2021 or whenever launched really encapsulated this huge run-up in tech and spac vehicles. what does it tell us now if they are ceasing operations and can't get funding? >> basically, you have to have a product that works these days. they might have had a product at

some stage, they don't right now. the launched models very much flying a plane assize you can and then you launch a rocket up into the atmosphere. the last when they did, it failed. there are plenty of other options for that. spacex is a prime example. lots of those options. dani: the tragedy as it was supposed to be the first orbital launch from british soil three at is this then a varied version of virgin orbit's story. it is this question of finding funding and the struggle some tech companies are having doing so. >> ultimately it is a virgin specific story.

it is now valued at just north of $100 million. it has really seen its share price plummet. it speaks to it as a hardware company, not a scalable is a software company. it doesn't really have a working product just yet. in the midst of this, this is britain's ambitions in space. oneweb's another communications satellite fighter who has bailed out by the government. it is now basically a french company. dani: i'm so tempted to make a joke about how there is only oneweb that i'd knowledge and it is alex webb. [laughter] it's friday, we are getting weird. netflix restructuring its film group. what is behind that decision? >> there is an element of cost cutting. they're going to make fewer smaller and medium-sized films. they have big banner films to bring in the audience, all quiet

on the western front and thing, and then you have a lot of action in mostly tv series that convince people to stick around. netflix is building out its ad business. the way they have said is they will play before and after shows and films. therefore you can chose many ads per hour. you can't get an out in the middle. if you have a half hour or hour long or 40 minute tv show. it makes sense to tamp back on the film business in order to generate more ad revenue. dani: i know i love to macro things out. tech has had a good month. it has had a good run as banking crisis fears about the economy have unfolded elsewhere. do you think there is a harsh reality that investors might face in earnings season or are the gains going to prove to be lasting? >> it is definitely worth differentiating between publicly

traded tech stocks in the private market. i think what you can say is that because a lot of tech companies set of aggressively hired during the course of the pandemic, that means may be they have been slightly earlier movers when it comes to job cuts. you are seeing other industries, medical devices for instance, financial companies, looking at the space and going, do we have too much headcount? that is partly because it is aggressively cutting jobs. it is also talking about the metaverse. these things make a difference. there is also a mid-level of tech companies. we tend to think about them monster make a cap. there is a second tier not doing quite as well. dani: alex, thank you very much. covering a lot for us. let's take a look at some of the things we will be watching out for today. 10:00 a.m. u.k. time, the euro

area cpi reading for march. 1:30, data from the u.s. that will include pce personal income. 3:00 p.m., university of michigan consumer sentiment survey. a survey which has been able to sway the fed to hike more. also, ecb president christine lagarde gives a keynote speech in florence. plus, the ambrosetti forum gets underway. francine lacqua is there for us with interviews like mohamed el-erian and some other people. i should point out we will also hear from john williams from the fed. that is it for bloomberg daybreak: europe. bloomberg markets is up next. this is bloomberg. ♪

anna: good mor.