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yields climb after hawkish signals from the latest fed minutes firm bets on a july hike. u.s. treasury secretary janet yellen arrives in beijing for talks aimed at easing economic tensions and reopening communication between the two biggest economies. meta-aims at twitter with the launch of instagram's threads. good morning, welcome to thursday. if you are just waking up to those fed minutes, i'll take you through the market reverberations. the main conclusion was the division between policymakers. that june pause not so unanimous and it looks like more hikes are in the pipeline. the hawkishness weighing on investor sentiment. two-year yields sneaking up to 5%. for percent i should say, the 10-year flirting with four -- 4%. u.s. equity futures pointing to a lower opening this morning as

investors await jobs data ahead of the crucial nonfarm payrolls tomorrow. you have janet yellen in paging, the question is will she make the situation better before she leaves on sunday? speaking of asia, sentiment has failed over to the asian session. the hang seng is being declines, traders just restarted after the lunch break. it is day two of the opec meeting in vienna. we've seen oil flipping into the red. possibly a dollar movement late yesterday u.s. and iran tried to seize two oil tankers near the persian gulf. we will get more on that with manus cranny shortly. let's see how asian markets are faring in reaction to those fed minutes with yousef gamal el-din now. asian equities selling off for a second day? >> lazy, part of this is the higher yields/fed minutes story, the other part is around sino

ocean group, one of the china state property players and potential woes on that front. you have thought about a year and a half ago that a lot of struggles were a thing of the past but they have not been sorted out. the piecemeal approach from policymakers is giving investors a lot to think about. it's a selloff across the board that is hitting banks. these are other major indexes. msci china down 2.4%. the losses on the hang seng down we .1%. tech involved in that brought-based decline, down 2.4%. as we think about the way forward in terms of yields, australian bonds in focus. those are getting a readjustment as the market reassesses the judgment that the rba pause was a dovish moment. underscores quite a bit under global peril. we might not be done with

interest rate hikes and there has been a staccato approach to policy. the aussie two-year at 4.2. they look at the chart, this tells the story of the pboc. it is something they communicated in the commentary. they made it clear that they are going to be involved, supportive and they are going to micromanage the dollar-china equation. what they did in the end was they leaned in by as much as 360 bips stronger than the average estimate. the china weakness rippling through the rest of asia. lizzy: thank to yousef gamal el-din. let's dig deeper into those stories with our morning roundtable. i'm joined by derek wallbank and bloomberg's jill disis as well. let's start with fed minutes. it's interesting how divided

policymakers were on the direction of rates, and how tenuous the agreement to pause in june was, given that it was framed as unanimous. it looks like the fomc reckons more tightening will be needed given the resilience of the economy. listen to it fed president john williams. >> we can take some time, and assess and collect more information and be able to act. knowing that we communicated through our projections that we don't think we're done based on what we know. lizzy: so jail, what stood out to you from these minutes? jill: i think you nailed it there. it's that idea of division within the fomc on what exactly to pause, went to hike again. you are right, jay powell framed this publicly as a unanimous decision to hold rates last month before revisiting this month. he has said multiple times that july would be a live meeting.

the big takeaway is it seems almost certain we will see another interest rate hike this month. ultimately this speaks to how difficult it's been for the fed to navigate this year. looking through all the data, trying to piece together how they navigate. raising rates while inflation remained sticky. many economists believe we're in a restrictive range. if you're on the fomc and trying to figure out how you move forward, it makes sense that there would be a little debate. if we still need to raise rates, how are we going to do that it is that division follow by the certainty that you will see another hike this month is the biggest take away. lizzy: derek, how would more hikes change the landscape politically? there was a great piece on the terminal about joe biden's obsession with the middle class. derek: if you haven't read this piece, go read it right

now. the big takeaway, you will find out a neat little fact that says more than $2 trillion in wealth held by the middle class has been eliminated since the fed started hiking. that's part of the two-way squeeze. on the one hand the fed is impacting borrowing costs. on the other hand is inflation, particularly in consumables that people rely upon. that squeeze is going to be particularly big, because the biggest question you have in any political vote in the united states, and a lot of other countries as well, is how do you feel you are doing economically? do you feel you are better than you are doing four years ago? go met with the data says, the biggest thing when you are talking about a political landscape, is that people don't necessarily feel it in that middle class. and that contains a lot of swing voters in key states joe biden

will need to win if he wants to win an election. lizzy: u.s. treasury secretary janet yellen is touching down in china in the coming hours. her goal is to find areas of common economic ground. the irony is her visit comes exactly five years after the trump administration imposed tariffs on the first wave of chinese goods. tariffs joe biden hasn't botched, despite yellen's criticism. the backdrop has been days of tit-for-tat trade shots fired in both directions. can yellen follow through on this policy of defending u.s. national security without tethering china economically? jill: this is such a difficult job that yellen and any u.s. official visiting china trying to smooth things over has. we saw that with antony blinken secretary of state visiting last month. these economies realize that this is some giant economic iron

curtain that she can completely separate from each other. we have seen that unfold the past several years because of the softening of language around this. the u.s. driving home this idea of decoupling to now resolve in that language to talking about de-risking and preserving open lines of communication. at the same time, both the u.s. and china have emphasized the need for national security and how to safeguard their technology. we have seen that with export controls the u.s. has thrown down. earlier this week, china has imposed new restrictions on key metals they have been sending to the u.s. and europe. this is a difficult balance that yellen has to walk. especially as she is coming in now into beijing, first time the treasury secretary has visited in some time. in addition to this tricky

geopolitical situation, you're also getting prolonged facetime with some of these officials for the first time since the pandemic. lizzy: from trade wars to social media battles. we know twitter has faced technical glitches, content moderation problems, no shortage of controversy since elon musk bought the slight last year. mark zuckerberg is seizing the moment to launch a rival textbased service, threads, that lets users port over followers from instagram. this is meta's response to twitter. that is the chief officer chris coxe's words, not mine, but could this kill twitter? derek: it is common knowledge that twitter is having a bit of a moment. cometh the moment, cometh mark zuckerberg trying to put something in that is another big product launch over the last

one. they're all in on the metaverse has been criticized somewhat widely but this one is off to a favorable reaction. zuckerberg said on threads that it had more than 5 million sign-ups already. spoiler alert, and fun fact, that is the first threads-based headline on your terminal. remember where you are so you'll remember where you were for that one. we will see if this will take twitter down. we are a long way off of that. it is a bit of a jungle in the app. it is not extremely clear what you are seeing and why you are seeing it. there has been user complains about that already so far. in terms of sign-up, this is the first real twitter arrival that comes with a built-in sign-up process. it's tremendously easy for the millions and millions of instagram folks to port over

their data, and get some followers quickly. that start up a game changer compared to earlier rivals that have come and gone. lizzy: cometh the man, or maybe spider-man if you saw mark zuckerberg's first rate in 11 years last night. it is 7:00 a.m. u.k. time, we will get german factory orders. they rose at the start of the year but saw a double-digit plunge in march. that suggests the sector will continue dragging on growth, despite the fading energy crisis and improving supply chains. at 1:30 p.m. we get u.s. jobless claims. they are excited to serve for the week that ended on the first of july, potentially marking a new high. that will be following by u.s. jolts data at 3:00 p.m. london time. the job openings and labor turnover survey. that is expected to reflect how softening of the labor market has come primarily from a decline in access demand for

labor, the pace has slowed over the past few months. and both of these data points are merely a preview to tomorrow's grand finale, the key jobs data. we hear from dallas fed president lorie logan on the policy challenges for central banks. i hope she has enough time to cover that long list. expect her to underscore the hawkish mood, and as a voting member of the fomc those comments will be closely follow. how could the jobs numbers move the dial for the fed the next couple of days? jill: as is made clear in the fed minutes, as john williams the new york fed president pointed out, data is key to a lot of the calculus the fed is considering. they are going to be looking at a lot of that. i will point out another interesting bit from the fomc minutes was that there are a few fed officials saying some of the labor -- this payroll data in

particular might be showing weakness in the labor market. we have seen that in the labor department's household survey. there is data that suggests that robust payroll data is not necessarily explaining how this gradual cooling is unfolding. fed officials are going to be looking at that, but it is a lot different data points they will be considering as they move forward. lizzy: thank you to bloomberg's derek wallbank and jill disis for that roundup. for more top stories, head to the daybreak newsletter on the terminal. new york fed president john williams echoing the need for more hikes. we have the british chamber of commerce survey showing fewer u.k. firms expecting to boost prices. later the boe decision-maker panel for june will give an update on inflation expectations. finally, they write that poland is holding rates steady at it central bank decision, keeping them at 6.75%.

the slowdown means the bank can start cutting rates before the end of the year to 6.5%. all that and more on today's daybreak newsletter which terminal subscribers can find at dayb . a treasury selloff takes the 10-year yield to its highest since march as traders digest fed minutes. more market reaction next. this is bloomberg. ♪ 76% of 23andme health customers surveyed reported taking healthier actions. more exercise. eating healthier. and simply getting more sleep. because they know health isn't just a future state.

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>> if we replay this discussion from one year ago, i think it would be the same, which is the fed is uncertain about the future and worried about inflation so they will raise rates. not sure about the pace. we now know what it was then. and here we are again.

employment is still strong. we're worried about a recession. katie is talking about an inverted yield curve, happy birthday to the yield curve. it is uncertainty all over again. there is recession coming but we're one year into this. >> door at the start of a new fiscal year. how are you position through the end of last year, and how are you position for this new fiscal year? >> it really was a challenge. we started last year a little defensive. in the summertime we had a nice rally. then the market bottomed out in the fall. and then we saw a rally in the last six months. to answer your question, we have been slightly underweight. we have a little bit underperformed our underlying benchmark. with that said, we're still

almost 45-50% in stocks. both u.s. and non-u.s. stocks did great last year, it is a bull market. u.s. stocks were up almost 19% last year. as you talk, it is the largest growth tech stocks that were of the most, but stocks were up. so we did okay but not smashingly. i expect an upper single-digit kind of year, and looking forward the best we can hope for is a single-digit year. lizzy: that was the cio of holsters speaking to bloomberg about the state of the u.s. economy. bloomberg mliv strategist mark cranfield joins us to tell us about u.s. treasury yields, as traders digest those latest fed minutes. mark: from a trader's point of view, they look at those minutes and go, that was a pretty

reluctant pause by the federal reserve. it sounds as though there was internal politicking going on and they compromised and decided not to raise rates. even though the wording, their outlook, jerome powell especially last week in europe, everything is pointing towards at least two more rate hikes in this series. they will get back on track in july. and probably again in september. the only thing that can stop the fed now from going ahead with two more hikes is the cpi data next week. if there is a surprising miss on the downside, which is not the base case -- the projections for next week are that core cpi will still be a 5% handle -- which is way too high. above the headline inflation level which is quite unusual. core at 5% is way too high from the fed's point of view, unless we get a huge miss below that the fed will go ahead with a rate hike. that fed speakers next week will

reinforce the same message that jerome powell has been going on about. inflation still needs to be beaten, and there is more work to do. that's why you are seeing treasury yields pretty high. 4%, 10-year will happen pretty soon. lizzy: we have logan later as well. we have seen the equity selloff worsening across asia. chinese stocks posting their worst day since january, what is behind that mark? mark: there seems to be a few bulls in the air here. the banking sector, particularly towards lending for chinese regions, the property sector once again is under a cloud. these are old things that are coming back again. just a general frustration that traders have been feeling about stimulus not coming through from china. there has been to some time that the chinese leaders are on the verge of giving more stimulus to the chinese economy. the data has been persistently weak.

all those things coming together, and yet there is no sign that the chinese leadership is in any hurry to do anything about it. just people getting fed up with not seeing progress on that front. it is not being supportive, higher yields in the u.s. assumes american markets come back on their holiday, all those things weighing together. it was already fairly fragile, particularly the hong kong side of the market. today people will decide i have had enough of this and i just want to get to the sidelines. there is a few technical points involving the hang seng index. you don't need too much selling and everybody starts to turn bearish. one small factor can trigger a pretty significant selloff. at one stage the hang seng down 3%, that's a pretty big day. lizzy: tell us about the divergence between the dollar and rising yields.

mark: it is not helping the dollar as much as in other periods. there was an escalation from last year through march this year. as soon as treasuries, especially the two-year yield which is closely linked to the foreign exchange market, as they are rising in the united states the dollar was gradually getting strong on the back of that. bloomberg has its own spot index that has been tracking rising yields pretty well. that relationship appears to be breaking down. it started about a month ago, a bit of divergence. the underlying factors, a few currencies particularly the pound and canadian dollar are outperforming. the yuan is still weak, but canada and the euro are on a bit of a tear. that means the bloomberg dollar index is not rising in line with the u.s. dollar. as soon as we start to see fed speakers talking about an end to the cycle. maybe giving us some idea of when they think easing could happen, that divergence could

they get much bigger. you'll see a large selloff in the u.s. dollar. if you watch the bloomberg dollar index, you could see signs of losing traction with where yields are going up. it will be a good indicator at how the mood in the market is changing against the u.s. dollar. lizzy: i'm sure you'll keep a close eye on that for us. thanks to mliv strategist mark cranfield. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe". it isn't just the fed that is looking more hawkish. it's also the bank of england. we hear from j.p. morgan yesterday that they see rates

going as high as 7% in the u.k. to cool red hot inflation. traders the a 55% chance of the peak by march, that is his central case, but it is notable that a scenario like this is being floated in the mainstream. in parliament yesterday, wadwani who is an economic advisor to jeremy hunt blamed dovish language around previous hikes for inflation getting to where it is now. keeping an eye on that commentary in the u.k. now in corporate news. bank of america has joined rivals in raising its quarterly dividends after passing the fed's stress test. that's while the lender said it had started a dialogue with the central bank to understand differences in test results. bank of america says it will raise payouts from $.22 a share to $.24. the u.s. is reported to have

stopped the radiant forces from seizing two oil tankers near the strait of hormuz yesterday. a spokesman said shots were fired, but did not cause casualties or damage. the ships backed off after the u.s. responded to distress signals from the area. iranian state tv denied the claims. fed divisions over the june rate hike pause. we will get more. this is bloomberg. ♪ (jennifer) the reason why golo customers have such long term success is because we focus on real foods in the right balance so you get the results you want. when i tell people how easy it was for me to lose weight on golo, they don't believe me. they don't believe i can eat real food and lose this much weight. the release supplement makes losing weight easy. release sets you up for successful weight loss because it supports your blood sugar levels between meals so you aren't hungry or fatigued. after i started taking release, the weight just started falling off. since starting golo and taking release, i've gone from a size 12 to a 4.

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lizzy: good morning, this is "bloomberg daybreak: europe". i'm lizzy burden in london, these are the stories waking you up. hong kong shares leave declines

bio global equities, and bond yields climb after hawkish signals from the fed minutes firm up bets on a flight hike. u.s. treasury secretary janet yellen arrives in beijing today for talks aimed at using economic tensions and reopening communication channels. plus, meta takes aim at twitter with the launch of instagram threads, but not so far in the european union. good morning and welcome to thursday. if you are just getting up to speed on fed minutes, let me take you through how they have affected markets. you have seen exposure of the division on the fomc side that the central bank wasn't as unanimous as we thought in june. it looks like more hikes are in the pipeline. let hawkishness weighing on sentiment this morning. the yield on two-year treasuries craving to 5%, the 10-year flirting with 4%, and u.s. equity futures pointing to a lower opening as traders look

ahead to jobs data ahead of the all-important nonfarm payrolls tomorrow. you also have u.s. treasury secretary janet yellen in beijing from 9:30 u.k. time. will she make relations better before she leaves on sunday? you have had asian shares following wall street lower with hang seng leading declines. it is day two of the opec meeting. oil flipped into the red, we will be getting more from vienna with manus cranny shortly. first, for more on how asian markets are faring, let's talk to bloomberg's yousef gamal el-din. asian equity selling off for a second day? yousef: this is partly to do with what we got from the fed minutes, and what that means for yields around the world. the other part is from the property woes coming through from sino ocean trip, a china property player, feeding into a selloff across other sectors as well. thanks getting hit hard.

this is a breakdown of indexes. the msci asia-pacific is down 1.3%. the real pain being felt, hang seng index. this chart tells the story of sino ocean ytuan notes triggering a 30-minute trading halt after jumping 20%. the moves are seen as some of the declines and building on that from earlier this week. from there i take you to australian bonds. because they yields are repricing there as well. lizzy: and what's the pboc doing? it looks like they have tried to reassure investors again by extending support for the yuan. also the flagship newspaper assuring investors that the authorities have enough ammo to stabilize the currency. kind of reeks of panic, doesn't it? yousef: initially this commentary tried to give reassurance that they would keep an eye out on things, and they

would micromanage if need be, and there is unlimited resources they can play with. what they did deliver is the yuan fixing of 7.2098, this is 360 pips stronger than the average estimate in a bloomberg survey. that is the largest gap since november. fixing limits to 2% on yuan notes on either side. a believe questions on what authorities are willing to do to contain growing property fears. this fixes currency fears but doesn't resolve the rest of the macro story. lizzy: thanks to bloomberg's yousef gamal el-din with that update on asian markets. now the latest fed minutes signal fed officials back a rate hike this month, but there were divisions over last month's pause. let's get more on that with fx strategist david kennedy. --finnerty. what were the main implications?

david: the take away was that the fed is hawkish. the market is not fully pricing that in. if you are looking at the probability of a rate hike this month, it is still 93%. the market still doesn't fully believe that the fed is going to hike this month. if you look the minutes and the dot plot combined, then williams afterward saying more work needs to be done, the fed for all its rhetoric has said basically we are going to hike this month. it would take a really bad payroll data tomorrow for them to turn from doing it. the fed is going more work needs to be done, we want to control inflation, and that's what we will do. as far as the fed is concerned, july is done and dusted and it will be a hike. lizzy: that's what the fed says, but the market is underestimating hikes at the july and september meetings. david: when you get to be second meeting, the fed dot plot says we are seeing two hikes this

year, and members including jerome powell have indicated so but again, the market doesn't want to believe them. market is pricing in september just a 10% increase of an extra second rate hike, in october it climbs to 36%. the market is looking for a be a skip, but jerome powell said last week we are prepared to do back to back rate hikes. the interesting thing about september is it is a bigger gap than normal between their interest-rate meetings. that means the fed will have two cpi data is, two core pce date as, and two payroll reports between july and september. we will have a decent amount of data, and if that signals that the labor market is tight and pce remains elevated, the fed can say we have warned you that we would go back to back and they could do it. the market is thinking now it is more october or the

november meeting. but that that is saying don't be surprised if it is september. lizzy: thank you to bloomberg's fx and rates strategist david finnerty with his eye out on all the eco-data out of the u.s.. janet yellen is looking to find areas of common economic ground when she visits china in a few hours. let's get to our asia and government correspondent in hong kong for the latest on what to expect. rebecca: hi, we're expecting janet yellen to touchdown in china's capital just a few hours. typically beijing does prefer these type of visits from commerce and trade kinds of lawmakers. seeing them as more able and agreeable when it comes to discussing and finding common ground. but we have two countries that have been working to find less common ground. and where they diverge, the big issue is china has just rolled

out of these new controls on two key metals for its defense industry and chipmaking. that will be at the forefront. meanwhile, the u.s. for its part is also mulling this executive order that will restrict u.s. outbound investment to china. two big obstacles when it comes to finding mutual agreement in terms of commerce and trade. there are a few low hanging fruits they might be able to find some kind of mutual areas on. one of those might be clement change, there has been discussion on both sides of resuming discussions about finding climate change targets. we may see discussion of debt relief, the u.s. has asked china to provide debt relief to countries it has led to. we have this ambient deal potentially in the offing -- zambia deal potentially on the offing. but it is a tense visit. the best we can say is the u.s.

is learning to find a better way to disagree with china. lizzy: a diplomatic dance. bloomberg's asia government and politics correspondent rebecca choong wilkins, thank you for taking us through it. now to a top story in the online space. instagram has unveiled threads, an app to can pete with twitter. users can move a red existing follower names from instagram, which has more than 2 billion users. european union users won't be able to download the app for now, as the company is still working out how data sharing will be regulated. let's take a look at a few of the key things markets are watching out for today. at 9:30 a.m. in london, we get u.k. construction pmi data, that's a preliminary print for june. this afternoon, the polish central bank is going to deliver its latest policy decision.

at 1:30 p.m., fresh u.s. jobless planes are published, and a short time later at 1:45 p.m. u.k. time, dallas fed president lorie logan is speaking at a central banking event. that comes after those fomc minutes released last night. at 3:00 p.m., we get more jobs data with the u.s. jolts numbers due out. coming up, we go live to vienna for the second day of opec's international seminar, where the world's biggest oil players are gathering. this is bloomberg. ♪

>> people sometimes ask, why

does saudi arabia have to do a voluntary cut? my answer is simple. we had to do it because there was another ask of the market, a more immediate expectation that opec-plus would need to do so. >> billions of people depend on our commodity oil for daily life. this is an inescapable reality that warrants respect. that is why opec pursues market stability. of course, as an industry we want to ensure that we have an emissions free future. harnessing technologies that can do this will be one of the predominant themes of the seminar. however oil is too central for life just to stop. lizzy: saudi energy minister and opec's secretary-general speaking at the eighth opec international seminar in vienna.

on the ground we have our manus cranny. let's get more on that opec+ meeting. the uae says it won't be making further voluntary production cuts at the present time. this after it saudi and russia both said they would reduce crude exports. over to you, manus, i know you've got a just for us? -- guest for us? manny: we have got amrita sen, founder of energy aspects alongside me. >> i try to run over, the night was lifelong. -- quite long. the clock is ticking that this will go into deficit in the second half of this year, how soon do we need to see proof? what is the proof of the deficit arising in the second half? amrita: have to see it in that inventory numbers. the doe numbers is the main focus of the market, but we get other high-frequency data. the last few weeks have shown

u.s. jobs growing. we are expecting to see that continue. i think chinese units will show it drop sharply in the numbers as well. manny: does the deepening deficit take us over $80, what is the price if there is real evidence of deficit? amrita: you are asking the question is if prices are acting just on fundamentals. there are two challenges. one, people haven't made money. there are funds that are down 50%. even if you have been bearish oil, you haven't made money because it has been so choppy. who will buy it? i worry for this year's price forecast is not that balances will be confident, demand is still strong, my worry is we don't have enough financial buyers in the market because they don't have dry powder. i'm sure it fundamentals really tightened, prices will go up. how much is a different question.

manus: why do you say demand is strong? i've had analyst after analyst to join me and say we're concerned the velocity of china hasn't been there. jet fuel demand isn't back to where it was before 2019. what are you seeing that is different? amrita: first and foremost, it depends on what they expected. we have been conservative on demand, we had 1.3, it is not tracking 1.6 for this year. a lot of people had to .5, and they have had to lower it. it depends on where you started. china is growing by 3 million barrels per day, what more does china need to do? we can never expect them to go back to 2019 that quickly. united and delta only added capacity from the u.s. last quarter. that's two years after reopening. it's not a china problem, as an airline capacity problem. we don't have chat going back to 2019 levels until 2024.

manus: the manufacturing recession is holding prices back. there is a global manufacturing recession, that impacts product, what is the most at risk product with that backdrop? amrita: it's vin diesel. that's why gasoline has outperformed diesel. back to your first question, why do you think demand is strong? have you seen what margins and cracks and spreads are doing? gasoline has roofed, diesel is extremely strong. product markets are telling us this is a demand problem. there is a bigger issue, we have had lots of finery outages, it is a crude problem. manus: already surprise that given two cuts of 2 million barrels into the russians are aboard, why do you think the reaction function has not been stronger? for is it we are respecting too much of a reaction function to those moves? amrita: you are fair to ask, because in the past this could have taken is up $10. it goes back to liquidity,

it is only algorithmic traders that are trading. the other issue genuinely is around the russian-linked skepticism around are they actually cutting? the saudi cuts, people are waiting for the draws to start. we believe russian exports will be down 400,000 in july alone and a bit more in august. manus: the russians came on board voluntarily? do you believe that? amrita: there were always talks in opec+. but i do think they are very serious, all jokes aside. it helps because domestic demand is rising in russia, we have had contacts till is agriculturally demand is strong therefore crude e-sports will come down. manus: exports down in july from -- amrita: versus may numbers.

manus: what about production? first take on that. amrita: they will have to cut production because if refineries are maxed out in july, producing everything that can, in august they can't raise further. they have maintenance as well. that always helps. i think the 400,000 cuts in july for the exports, you would see that in the market, and in august another round. manus: you talked about who is in the market. it is the shortest since 2017. is it a safe space to be short? if you're talking to hedge funds and saying boys and girls, it is time to review, is it safe to be short? amrita: if the draws of star, the correction is quite significant. i've been talking about this for two weeks now. because of the high interest rate, the cost of capital has gone up and overall we're going

towards lower four days of inventory cover, that leaves us susceptible to spikes. , saying go along just yet, but overall inventories are coming down and if that happens would you want to be short? manus: that's a clear message to anybody out there which is if you see the drawdown by russia, maybe my risk as to the upside. he was very grateful to the benevolence of the saudis doing that unilateral cut. what does it take for the iraqis -- m iraqis -- emiratis to join this unilateral cut? amrita: they have been working with two different sets of cuts. the ones that started from a. they have extended all of that until june. uae, kuwait, they have already done their bid. the saudi additional one million barrels. but it was voluntary. they are saying we will do

whatever is necessary to provide stability. saudi's lead from the front and russia joined in. i'm not expecting uae and kuwait to join in. menace: we look forward to your speech today on multilateralism? amrita: global cooperation. manus: from the hoffert palace, the first of the day. she is doing more steps per dave and i have ministry put in the last 24 hours. amrita sen, the founder of energy aspects. lizzy: thank you you to manus cranny at the opec meeting in vienna. plenty more ahead. this is bloomberg. ♪

lizzy: welcome back to "bloomberg daybreak: europe".

joining me now is bloomberg's tom mackenzie with a look at what's coming up on his show, markets today. tom: we start with his big called by j.p. morgan on the risks of 7% in terms of rates for the u.k. and a hard landing. we will talk to the cohead of investments at ccla on that call. but also unpack some of her views on which sector she is positioning in. also interesting to get her views on ai. she has a view on technology broadly, she doesn't necessarily think it is overrun. she will get her views on how to play the ai theme because she has got interesting insights. lizzy: it is important to say this is not j.p. morgan's base case, but it is interesting that the idea is floating around in a note from a mainstream bank. tom: it makes people nervous. lizzy: your a star of social media. you have this battle between

giants of social media. ,: threads coming out today. not in the european union for now. this is another brexit dividend arguably. in the u.k., we can access it. but it is that prospect of zuck against elon musk. it is interesting that mark zuckerberg went on twitter for the first time in 11 years with a playful tweet targeting elon musk. they got 5 million users within the first couple of hours, versus 300 million for putter. it will be fascinating to see how this plays out, and if this instagram and zuck powered platform will be able to take down twitter? lizzy: europe has got the ingredients to be the dominant continent. tom: we will be stress testing this with this. they have backed companies like spotify and klarna. i was speaking to a vc at the

founders forum a couple of weeks ago, and he said europe will be in a death spiral because of its regulatory framework. it's a different view from this vc's and we are pushing on why he thinks europe has the ingredients to start to challenge the u.s. and china. lizzy: thank you, tom will be back with anna edwards and mark cudmore in just a few minutes with their share "markets today," coming up any minute now great let's check on markets because there have been big reverberations after those fed minutes yesterday. the main conclusion from our guest this morning has been how divided the fomc is about the future path for rights. that june decision not as unanimous as jay powell might have suggested. and the hawkishness weighing on sentiment in markets. the yield on two-year treasuries inching towards 5%, u.s. equity futures pointing to a lower opening. we get more jobs data later, ahead of the main event, nonfarm payrolls tomorrow.

and the caution spilling over to the asian session with the hang seng leading declines. oil in the red, possibly a dollar move, we heard lots about that from manus cranny in vienna at the opec meeting. amrita sen underscoring the saudi message that they will do whatever it takes to get stability. we will keep up with all of that in the markets on "markets today ," coming up next. this is bloomberg. ♪ 76% of 23andme health customers surveyed eating healthier. and simply getting more sleep. because they know health isn't just a future state. health happens now. with over 150 personalized genetic reports from 23andme you can start your dna-powered health journey today.

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it's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> i am anna edwards live in london. >> the cash trade is less than an hour away here are the top headlines. hong kong shares lead declines by asia stocks and bond yields climb after ha