dani: happy friday.

this is "bloomberg daybreak: europe". i'm dani burger in london. manus cranny is in dubai with the stories that set your agenda. manus: senate clears the debt ceiling bill, removing the risk of u.s. default and sending the measure to president biden for his signature. risk on resumes, global equities rally amid speculation the fed will hold off on hiking rates this month. oil gains before this weekend's oil plus -- opec+ meeting. goldman sachs warns trading revenue will be down more than 25% on economic headwinds. bank of america sees a flattish quarter. no big bonuses in ib, but there is a more malevolent issue, bill dudley channeling his inner clash, "should i stay or should i go," the fed will skip into june. dani: that famous clash song.

or should we go on break until we understand with the economy is doing, that's how it went right? manus: don't worry, i won't give you a rendition. actually this is why looked like back in the 1980's. dani: did you have that hat? manus: i will take the one with the hat. [laughter] dani: i can see it now. i can see you in vienna in that outfit covering opec. i can envision it perfectly. manus: the more serious aspect -- if we can get a serious aspect to it -- find your inner calm --well the jobs report shift the narrative in any way? the market is going for 190, but it could shift the dial. dani: whisper number, is something closer to 250, which

would not make it very capable. i love what bob elliott says, powell is enamored with a soft landing and because of that he is consistently behind the curve. manus: joe and rita dudley's -- go and read dudley's piece. every time since world war ii. enough of that. how are your markets? dani: parker talking about a skip got excited. that was yesterday, but the follow-through reaction in bond markets and this consistent love of tech markets has brought us this. a hong kong tech index that is almost up 5%. china-listed stocks in hong kong have been doing poorly, they were down 20% from the peak. but look at the buying frenzy coming into the market. . if the fed skips, are they just enforcing this buy the dip mentality?

hong kong stocks are up, s&p futures are up 0.2%. nasdaq futures up 0.25%. meta are done slashing 10,000 jobs, now those left are being asked to come back to the office three days a week. the hits keep coming. manus: they do indeed. there could be more tough news item banks. the bar to hike is high. you will have a gush of bonds and bills issued by the treasury. we don't know what that does to the bond market. yields creeping higher, the whisper number as you say is 250 out of 185 on the bloomberg. the dollar dips lower as we go in a pro-risk mood. and brent is down 3%, down 9% in may, does that set the table for an additional move by opec+? the saudi's are cutting 500,000 barrels. the russians are lagging. we don't want a fractured

meeting this week in vienna. unpacking my bags. i will stand outside the front door and tapped gently on the window and say please, can i come in. i will be standing outside harry ing anybody. gold the best week since april. we will go to vienna and being outside the building will not thwart my enthusiasm. dani: we have bruce einhorn on the debt ceiling finally clearing congress. and valerie tytel on those fed beds, and the jobs outlook for today. manus: the senate passed the legislation to suspend the u.s. debt ceiling, ending the drama that threatened the u.s. financial markets and the global system. the measure now goes to president biden for signature. let's get more with bruce einhorn. what makes this deal real?

what is the most important thing they need to know? bruce: perhaps the most important thing is that this deal suspends the debt ceiling all the way to 2025, so you're not going to have to think about it between now and then. as far as more short-term things, it freezes spending at 2023 levels for domestic spending in the u.s.. that doesn't include things like medicare, medicaid and social security, all the discretionary things that are not entitlements. it does lift defense spending 3% at the level of inflation. there are restrictions on food stamp recipients, other things republicans pushed for. it doesn't touch president biden's singular achievement such as the inflation reduction act, climate provisions and

things republicans wanted to get rid of. the drama was in the house, once it passed, it went to the senate. there were possibilities of this slowing down because it was possible that senators would propose amendments and debating those would take time, and you get closer to the deadline. they reached compromise, they voted on amendments really fast, so now it will go to the president for his signature. president biden will give a speech to the nation, to the u.s. today friday evening u.s. time, and we will be hearing more from him about the deal in that speech. dani: aren't you going to miss coming on every morning talking about the debt ceiling? just kidding. thank you so much. not a final time with us, but at least on this topic. bruce einhorn, thanks for running us. the latest data has seen the market lean further towards a

fed pause in june. equities rallied yesterday, two-year yields came in, fed chair parker added fuel to the fire. >> we shouldn't beat reacting meeting by meeting, that is not good policy. we need to look through a lot of that. these other forces that are happening with the revision on wages and so forth. get me to think it is time to at least hit the stop button for one meeting and see how it goes. dani: i didn't know there was a stop button at the fed. let's bring in valerie tytel. i wonder what it looks like, a big, red stop? harker moving markets, but what about the data, how does it confirm or push against a because? valerie: we had two inflation

gauges that came in soft. one was the key one labor costs which were revised substantially lower. the last print was 6.3%, it was revised to 4% yesterday, big revision. within the ism manufacturing, the prices paid component fell by nine points. this is a big shift in two big gauges showing that maybe there is hopes of a soft landing. we had inflation falling. within the ism manufacturing you had on employment component -- the unemployment component remaining strong. this gave optimism to the market yesterday. two-year yields fell for the third straight session, falling 20 basis points this week as we look forward to that fed pause in june. manus: it will be interesting where the flow goes after this, as we come off this debt ceiling angst, will money market funds get deployed into pro-risk

strategies. the whisper number is 250, the consensus is 190, we're at 185. how important is today's number to be sub-200? valerie: a lot of people are rolling their eyes saying i thought the fed was data-dependent get they are canceling in a pause before this month's payroll report and before the next cpi report. but today, the headline figure for payrolls is expected to moderate to 195k. we're expecting a slight tick up unemployment to 3.5%. the fed's year end unemployment rate is 4.5%. if we don't see that soon, it is unlikely we get to the target of 4.5%. this chart on screen shows how unexpectedly strong the labor market has held up. it has beaten the consensus call

for that headline payroll print for 13 straight months. it's a substantial record. and let's see if it makes it 14 today, if it beats that 195k estimate on the bloomberg terminal. dani: we also have the debt ceiling drama today. but just in terms of the technical outcome, because we know the treasury coffers are extremely low, what does it mean to refill those? valerie: that's the main worry for balance sheet people out there. as the treasury rebuilds the cash buffer, it will have to increase t-bill auction sizes, even long bill auction sizes are at risk to increase. that kind of liquidity draw from the system will be negative for risk assets. a lot of people say that actually the treasury running down its liquidity has offset a

lot of what qt has done in the first quarter of this year. with the treasury building its cash balance alongside qt running along, it poses worry that we could be headed for a substantial liquidity crunch. dani: such a good point because we have been talking about a pause, but we haven't talked about what will happen with qt if they're think. -- if they're thing. 7:45 a.m. u.k. time, we're going to have france industrial production figures for april. 1:30 p.m., the big one, non-farm payrolls data for may comes out. u.s. unemployment rate data is released with that nonfarm payrolls. manus: in the afternoon, we get the u.k.'s sovereign rating, and also the u.k. are set to have a set of train strikes today. the union bosses and ministers remain at odds over pay and

working conditions. coming up on the show, we hear from new york fed president bill dudley channeling his inner clash moment with his opinion piece. a june pause? dani: china manufacturing activity slumped in may. we will speak to evy hambro later this hour and a look ahead to the opec+ meeting in vienna this weekend. this is bloomberg. ♪

i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you are retired right? am i? ya! save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. only at sleep number.

>> they are going to take a pause because they want to see the effects of prior actions. but they characterize it as a skip because they think they will probably do more, and we will probably see that in the summary of economic projections. we will see one or two additional rate hikes penciled in for 2023. manus: former new york fed president bill dudley joining us now is tatjana greil castro, portfolio manager and cohead of public markets at muzinich. define a skip for me please, good morning. tatjana: the skip would suggest

they are saying, let's see how far we are, but i'm already anticipating we were wrong by not hiking. it implies quite a bit. i would be doubtful that that's the case. if it later turns out that they paused too early and the economy is going red hot and inflation is not coming down, then they would probably give it longer because if they have decided this is a time to wait, it will not be six weeks extra, it will give them the data point. so if it was the case that you skip and hike again, i would expect the hike to be later than july. but that is my view on dudley's

comment. dani: i wonder what you make of this comment from the ex-head of strategy at brightman howard who says are they willing to skip and further exacerbate inflation and reward debate in by the debt mentality -- buy the dip mentality, if they skip to the markets continue this rally which counteracts what the fed is ready to do? tatjana: there has been a strong rally over the last two days. when you look at where rates have gone over the last few months, they are still higher. actually u.s. rates have underperformed you would -- european rates significantly. there has been a shift higher at the same time. i wouldn't discount too much of the slowdown that can happen. and then, i think where we are

now is, a lot of monetary policy has taken a while. and it always takes a while to feed three or, it is probably not feeding through fully over the summer holidays it does look like there is a lot of demand for travel and services. probably less for goods but still a relatively strong economy. but that doesn't mean we're not sliding into this slowdown that is already ahead of us. well another rate hike do any good with regards to near-term decline of economic activity? or would that still take time anyway? to the extent i think we would all be hoping for a soft landing, that would be better than deep recession, if that is what you expect the fed to aim for, a soft landing, it makes sense to say we have done so

much in such a short period of time. usually it is a 25-point height. manus: if it is a soft landing in the united states of america, and bill dudley goes on to say, every time since world war i when unemployment has gone up by 1%, which is what we think the fed will need to deliver to reduce inflation. but in a mild recession scenario in the united states of america, where you want to be exposed to credit? tatjana: in a mild recession, then you definitely need some credit risk to outperform. when you look at how positioning is, it is very defensive. most people have taken off critics risk because they are concerned about recession. they are concerned that even if default rates are moderate, there would be a marked to market move that people want to

avoid. the positioning suggests that if there is a soft landing, you would be underway to risk, and most people would be underweight risk and therefore it would actually rally. dani: what kind of recession would be really bad for credit markets? i ask this because the covid selloff came and went and we didn't see defaults pickup. what kind of recession really starts to get is worried about the state of this credit market? tatjana: if interest rates stay very high, and there is a lot of companies that came to market a few years ago. in europe, the average yield was 2.5%, now a bb company needs a seven up to 9% coupon. that prices you out of the market because all of a sudden you have to go into double

digits just to print a single b, and the interest burden would be too high, meaning they would struggle to refinance. the market is not really open for them. that is the biggest worried, if interest rates stay very high and we see a week economic outlook, that means we have a lot of credit spread on top of already high interest rates, that the overall coupon becomes unaffordable. and the market is not open for singleb's, and that would lead to high default rates. manus: that's about a tactical restructuring of the market. one thing we're debating is the treasury has got to refill their coffers. they will do an emergency 15 billion today, some are expecting one trillion of t-bills to be issued in the near term. do we take that in stride? there is plenty of liquidity

that wants to get deployed on a technical basis. goal the refilling of coffers at the treasury present any market risk? tatjana: of course it can always. but as you pointed out, there is so much demand for short-dated bonds, and if they pay out for it which we have seen already. the very short end is offering the best carry in terms of yield, then there will be demand. how will that benefit the overall market? a lot of investors say, why would i take the risk, why would i care about buying duration if the carried is much less, if i can guarantee myself a certain return? so, it would be a crowding out of the risk market i would think. dani: thanks a lot for joining us. enjoy the rest of your weekend. tatjana greil castro, portfolio

manager and cohead of public markets at muzinich. coming up, manus and i find out whether ai is about to take our jobs. we hear from tom mackenzie's very own ai avatar next. this is bloomberg. ♪

>> joining us is a special, weird guest that is in fact my own digital avatar, digital tom. welcome to the show. ai tom: thank you, tom. it is a letter to be on bloomberg tv. i am a ai avatar designed to give information on a wide variety of topix. >> this is all very odd. what exactly are avatars? ai tom: digital avatars powered by generative ai are virtual

representatives of individuals that can mimic human behavior and interactions. they work by utilizing ai algorithms to analyze and learn from vast amounts of data, including facial expressions, gestures and speech patterns. this enables them to generate realistic and responsive virtual characters. >> so avatars aren't just gimmicks. what are the real world implications, i'm thinking across the economy and different industries, what is the impact likely to be? ai tom: they can revolutionize industries such as entertainment, gaming and virtual communication. avatars have the power to enhance user experiences, enabling immersive virtual interactions and personalized content. they can facilitate remote collaboration, telepresence and assist with customer service. tom: have to be downsides. one of the risks of this technology? ai tom: as ai becomes more pervasive, ethical concerns arise including issues related to bias and fairness,

transparency and explain ability of ai decision-making, data privacy and security and the potential to perpetuate existing social inequalities. manus: tom mackenzie joins us more with more on his digital avatar. what are the biggest issues, great piece. tom: two main concerns. one, deepfakes. the company behind this says they don't do deepfakes, this is original content not manipulating videos. the other is job displacement. i asked my avatar if you would take my job, he said not quite yet you still have charisma but they still this is -- they say this is potentially a 500

manus: this is bloomberg daybreak: europe. i'm manus cranny in dubai with dani burger in london on the stories that set your agenda. dani: the senate clears the debt bill, removing the risk of u.s. default sending the measure to president biden. risk on resumes, global equities rally amid speculation the fed will hold off hiking rates this month while oil gains before this weekend's opec-plus meeting. goldman sachs mourns trading revenue is down more than 25% as economic headwinds bill, while bank of america sees a flash quarter. those comments from patrick harker, we need to at least do a skip, they seem to have sent risk markets to the races. yields come in, a strong picture to start your friday trade. manus: there is mania in the tech world. nvidia up another 5% less time. we have just had tatjana greil,

dollar is flat, how much will the treasury issue, it could be a crowding out of risk, people gorged on the short end on treasury issuances, branch rises 0.5% but it has had a crushing week on this road to vienna, it is the anti-global zone according to eurasia, will they cut further at this opec+ meeting? ? brent up zero point 5%, and wti has had a brutal week. gold actually has had an interesting one, up 1.6%, the best week since april, so let's just keep an eye on those as we go to the jobs report today. dani: let me show you that tech rally, the follow-through in the asian session powered the u.s. yesterday. hong kong tech up more than 4.5%, at one point more than 5%. my favorite stats, paper losses

for folks who decided to short semiconductors topped $18 billion in 2023, maybe a reason to keep buying tech. let's talk about the hedge fund world. paid sabbaticals and huge signing bonuses are just some of the tools hedge funds are using to retain top traders. in this costly war for talent, it is clients who are footing the bill. it is the subject of today's big take, you can read that on your terminal. the author behind that joins us now for more. nishant, most read story on the terminal, such a fantastic piece. with this talent war, how does it compare to what we historically see with hedge funds? >> i haven't seen anything like that ever in my career covering the industry for the last seven years. i spoke to several people who have spent three decades more than that in the industry and they haven't seen it either. so what's really going on is

extraordinary. it is not only about the extent of payouts, but also the different ways hedge funds have innovated to pay their traders, for example sign-on bonuses. if you are drawing a platform, you will get a higher percentage of trading profits at the initial date of trading. for example, if you make $100 million, you may get 30% and your payouts normalizes to the usual 20%. these are extraordinary times and as he said, investors are happy to pay. manus: i can tell you most of them are setting up shop in abu dhabi and dubai. your staff you look at to a tax-free zone, that 30% turns to 100%. there is a great reason they are coming here. who is the ideal candidate? this market is on fire but i'm seeing lots of my older buddies do their last trade and move to dubai, it is the swansong trade,

how many are getting sign-on's? >> before i answer that question, if a trader bruce from new york to dubai, some platforms will pay for their relocation cost as well and pass it on to investors. so that is in the pass-through cost. here was the ideal candidate? really someone who can produce risk-adjusted return of 1.5 or more, who can run liquid strategies that can be liquidated quickly and invested quickly. low exposure to market swings. and someone who can ideally produce at least $20 million in profits. dani: i thought we were at a moment in the hedge fund industry, at least we were where investing is cheap, like at what hedge fund, they are expensive, wire are investors willing to pay for this? >>-realize this is the biggest

myth in the industry. dani:-perpetuating it. >> indexing is popular for producing reliable, stable returns and investors don't mind paying for that. look at some of these large multi-strategy hedge funds and compare them with the s&p 500, which is not the right comparison -- s&p 500 has produced 7% annualized return this century. if you look at the top platforms, their returns are in excess of 10%. this may not look great, but it comes with very low volatility. that's what investors like. there is space for these kinds of hedge funds in a portfolio. multi-strategy hedge funds let investors sleep well at night, and who doesn't like a good sleep? manus: nishant, you are right,

rest easy especially if you are fully hedged. it's on your terminal this morning. let's get your first word news from adrian wong. he's in hong kong. adrian: bloomberg learned that jamie dimon is to visit taiwan after wrapping up his trip to china. the stopoff by the jp morgan ceo comes at a time of heightened tensions between beijing and washington. lvmh ceo bernard arnault is the latest to announced plans to visit china as elon musk returns from his whirlwind tour of the country. rishi sunak's administration refused a demand to handover former prime minister boris johnson's whatsapp messages and pandemic diaries. the government's cabinet offices is filing a judicial review. the move sets of a legal battle

that risks amplifying accusations of a cover-up. the pentagon will buy sta rlink satellite terminal from elon musk for use by the ukrainian military. the u.s. has praise them in the war efforts, saying it is vital for the country's defense. global news powered by more than 2700 journalists and analysts in more than 120 countries. dani: thank you very much. coming up, china's manufacturing activity slumps further in may, causing a selloff in commodities. we will speak to evy hambro about his outlook. we look ahead to this weekend's opec+ meeting. this is bloomberg. ♪

manus: china's economic recovery weekend in may, raising fresh fears about the growth outlook. investors have since sold off commodities with copper plunging to a six-month low. evy hambro is the head of thematic investment at blackrock. good to see you this morning. i want you to tell me where you see the world, because i have got different opinions. china the lowest reading since 2022 slipping into a downward spiral, do you think we're going into a downward spiral, because that has a pervasive impact on how you begin the day. evy: manus, great to see you again and thank you for having me on the show. we're in a summer lull right now. when we look at northern hemisphere trading activity, if you look at the acronym of sell in may and aw it has played out over the last four to

five weeks. as we're building towards the autumn period, we will see markets which remain tight, because we have challenges around supply. demand has been weaker than expected over the last few months, and that might persist over the summer. when we start to think about that medium-term picture, the energy transition, the swapping of fossil fuels, and make huge growth in demand in the absence of supply growth. those things will drive up prices in the commodities space. dani: what is the likelihood be get demand growth, especially looking at the chinese market which the data keeps missing. copper in the deepest hole since 1994, can we work that supply without big-ticket infrastructure items from beijing? evy: one of the things that gives us confidence is the very low level of inventories in the

global system right now. if you are going into a week period of commodities demand which is prolonged, then the picture would be more concerning. today markets remain very tight. we have a balance between supply and demand that doesn't leave much spare capacity in the system. it is quite healthy to have a slowdown in demand because it creates that buffer which should smooth out volatility as we get supply shocks. which we always do. manus: she is showing her inner research. the deepest since 1994, i'm thinking where did you get that fact from? in terms of these markets, nickel, zinc, iron ore, you're looking at a real repricing. and the question is, do you see investors stepping in the

physical market? often with the oil market in dealing with the specs. in the physical markets, iron ore indistinct, what can you tell be market this morning about the activity on the physical side? evy: in the short term, the markets are always filled with an enormous amount of noise. the noise can be coming from currency moves, from short-term impacts like weather and strikes . it could be coming from data points are at economic activity which drive those signals which create that near-term volatility. but we're not focused on that, we're focused on the medium to long-term picture where the trend remains better than intact. in fact, it is growing at a faster rate. look at your own internal data from the new energy team where you are seeing faster rates of adoption around electric vehicles, faster rollout of charging infrastructure,

renewable energy and storage capacity. the hydrogen economy is moving forward at a better-than-expected rate. the transition is intact and that will drive commodity prices over the medium to long-term. dani: this is how much of a seasoned pro evy is, plugging bloomberg products during his appearance with us. to that point about the data, there is this bloomberg story earlier this month that i feel like didn't get enough attention. this idea that china is cutting off access to a lot of its internal data. one of the data providers can no longer be accessed by foreigners. will it get harder to understand what is happening in china, and thus its impact on the global commodity market and growth if we don't have been inside? evy: -- that insight? evy: in commodity markets, there is a greater understanding around the need and imbalances we're likely to face in a number of commodities over the coming years. that is raising concerns.

we have seen moves in africa to unblock some of these supply challenges around infrastructure investments made by the u.s. government. we're seeing moves from european governments to lock in supply of key commodities like lithium from other parts of the world where previously relationship seven necessarily existed. if we look in the rearview mirror, some of the focus around security of supply in relation to oil was very much a trend of the last few decades. as we look to the future, it will be security of supply around key metals that will be essential for the transition. manus: that security for supply certainly came up a number of times at the qatar economic forum last week. i'm getting ready to go to vienna. i still haven't had the invitation from the opec crew let me go into the meeting. but i will be there. i will be a force to be reckoned

with -- outside the building. but as we go into this meeting, the consensus seems to be that we need to become constructive the oil market. they are trying to frighten speculators but they have a fundamental oversupply issue. is that how i should think as i go on the plane to vienna? evy: oil obviously has a much greater exposure to short-term moves in demand and some of the metals. that consumption data plays every single day whereas the metals demand tends to be longer dated consumption around projects and so on. when you are thinking about the oil market there is lots of seasonal activity which can play out. so as we look at the picture today, we've got a long-term battle taking place which is an ever-growing presence of alternatives to fossil fuels that are taking market share in the energy space. and trying to navigate through that journey is one of the roles

opec probably sees for itself, how can it maximize value for the incumbent resources it has in the ground and extract that value during this period of transition? that's the key thing they are always focusing on when they talk about pricing and maximizing market share. dani: can you translate that into actual decisions? what is the outcome of that is the view they have in mind? evy: the outcome therefore would be that we start to see -- we have already seen it in the past -- opec is looking to create the maximum value. and the maximum value is getting doubtful himself production and making sure -- volumes of production. that means price cuts need to take place, then volume cuts need to take place then they will happen. it is just that journey they are focused on because everybody is aware that the alternatives to fossil fuels are growing in market share. we see that with data everything obey. dani: relate appreciate you --

really appreciate you waking up early. evy hambro global head of thematic and sector investing at blackrock. south africa is considering switching the location of the upcoming brics summit. it is facing a dilemma over an arrest warrant for russian president vladimir putin. that's next. this is bloomberg. ♪

dani: sources have told bloomberg that south africa is considering switching the venue of an upcoming summit of brics leaders to another country. the move would resolve a dilemma over whether to execute an international arrest warrant for vladimir putin. jennifer zabasajja joins us now from cape town. how serious is this consideration? jennifer: as you mentioned, it could potentially be a

resolution to this dispute. but it is not seriously being entertained, but our reporting suggests that potentially south africa is looking to countries such as china or mozambique to hold the summit in august but nothing as definitive. what we heard from south africa's foreign minister is that the plans are still to hold this event in johannesburg in august. this all stems from the dispute around whether or not south africa would execute this arrest warrant for russian president vladimir putin over this icc alleging arrest that they are seeking to obtain. right now what we're hearing from the government as they are still pursuing legal options. and planning to hold this event. but this will be significant considering south africa is a member of the icc and would need to execute this warrant.

manus: the sun has finally come up behind you, we can now see a resplendent cape town. it looks gorgeous in winter. we have often touched on the dollarization, the chinese paying for oil in renminbi, it was a topic at davos earlier this year. but this narrative around the brakes potentially creating their own currency has got a new lease of life has it? jennifer: what we're hearing at this point in time is that it is all proposals. but this has been floated before. at this point, what we're hearing from brics numbers is potentially the idea of creating a shared currency. not pegged to to anything else outside of physical assets. things like gold or oil. if you look at the member states that make up the brics, this could be significant. right now it is just a proposal, but if there are additional

member states added today, there is the friends of the brics summit in cape town with saudi arabia, argentina, kazakhstan and the uae -- this could potentially make another candidate that could go up against the dollar. as you mentioned, this has been discussed, and not necessarily something the u.s. will want to hear but at this point, still a proposal from the brics leaders. dani: these are still high-level discussions. what is actually happening on the ground to business leaders and executives you have been speaking with in cape town? what is your sense about the state of your politics right now. jennifer: they are not liking it is the best way to say it. yesterday we gathered a number of executives across south africa for an event talking to them about the state of the economy, which as you both know is not in the greatest state. the geopolitical tensions right now just add to what is already a lot of tension in the business

community and with the government. take a listen to what old mutual's ceo told me on thursday. >> the acess to agoa is critical to south africa's prospects in the short term. jennifer: he is talking about agoa, a critical trade pact for south africa with the u.s. if south africa continues to potentially cozy up to rush to -- russia and don't execute that warrant, they could put that trade pact at peril. the u.s. told me it is important to continue to nurture the relationship with china. it is significant to the chinese economy, so any recovery they could potentially see needs to be charted very carefully with the government. so iain is expressing concern

for the local community and foreign investors as we have been watching the rand slip over the past few weeks. manus: thanks a million. jens of assad in cape town. we come to the close of the week and some pretty tough news to swallow if you are on the investment banking side at goldman sachs. goldman have had multiple redundancies. we know there is speculation of a 250 senior bankers to go. a pretty risk off tone from clients. this is john waldron who spoke at the alliancebernstein conference yesterday. he said it feels like we will have a contractionary period for a period of time. this is hunkering down. but bankers can always see a truck coming towards them first. dani: maybe they want to head to make of america, not that it is much better. their ceo says we think we will

have a/quarter. -- flattish quarter. if goldman sachs is talking about 25% drops, maybe a flattish quarter is ok? manus: if you are a star trader you are probably ok. there is a whole community in zurich from credit suisse that will have to look elsewhere for their opportunities. it is progress, it is jobs day, what will the whisper number become 250, and if it is that maybe we get a hike. dani, good morning. dani: exactly. should we stay or should we go? the jobs number might tell us just that. manus: "should i stay or should i go now " that is the only time i have sung in making years on bloomberg. ♪

how can you sleep on such a firm setting? gab, mine is almost the same as yours. almost... just another word for not as good as mine. save 50% on the sleep number limited edition smart bed. plus, free home delivery when you add an adjustable base. only at sleep number. 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... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™.

when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block. hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network.

anna: good morning, welcome to "bloomberg mar