>> good friday morning, this is "bloomberg daybreak: europe." i am tom mackenzie. asian stocks in as japan drives toward a record well consumer rebound hopes ramp up in china. atlanta fed president raphael bostic which is back on red cuts amid mixed u.s. data. markets await u.s. producer prices do later today. president biden warns israel it must protective against as it readies an assault on the crowded city and gaza of rafah. switching focus to look at the reinsurance giant of swiss franc, four your return equity of 22.3% below estimates of 23.3%. we are looking for details on the dividend. we know as well the north atlantic hurricane season was

less destructive than had been expected, so we are looking at the top i net income, there it is, 3.2 one billion coming in slightly below estimates. net income for the full year coming in below targets. a little below the estimates from the street of 3.2 3 billion. those are the key lines coming through from the insurer, and we will be speaking to the executive later on markets today . return on equity, 22.3% versus estimates of 23.4%. full net income coming below the target a gauge of 3 billion slightly below street estimates. 3.21 billion and terms of net income for the business. let's check in on broader markets, it is been risk on across asia space, hstech, nikkei, and with the context of

that wall street and the s&p powered and punched back through a fresh record and yesterday -- on yesterday. europe, ftse 100 futures pointing to gains of .6 of 1%. comfortably above the 7600 mark for the ftse 100. with the context to points through a fresh record comfortable above the 5000 level for the s&p. banks and energy companies driving to gains. nasdaq getting a lived coming through from and in the u.s. up .1 of 1%. we are to comments from raphael bostic, slightly hawkish, and suggesting there is no rush to get a raise. retail sales coming in softer than expected. jobless claims pointing to a relatively resilient labor market. 4.25 on the u.s. 10 year.

euro-dollar and focus, we have been hearing from ecb officials. governing council member suggesting march should be in the cards when considering and pondering a cut. 107 on euro-dollar. francis suggesting it would be better to cut slightly earlier than wait too long and terms of easing policy. 150 on the japanese yen. sounding pretty dovish, the currency down .2 of 1%. brent, 82.82, flat even the gains of around 1.1% we saw a noel yesterday. let's cross over to asia and bring in avril hong standing by in singapore. the rally is pronounced. avril: it is absolutely pronounced. if you take a look at the regions equity benchmark, msci asia pacific headed for its highest close in 22 months and

on track for a for the weekly gain, best winning streak in about one year helped along today by the performance in its u.s. counterparts, but flipped the board, because it is also driven by china know your travel data that showed a surge in real trips, and this is raising optimism of a recovery and consumption, a pickup there. do not forget mainland markets reopen on monday. the markets in hong kong also driven by expectations of a rate cut from the pboc, the chinese central bank is said to renounce its one year medium-term lending facility on sunday, and expectations are for a 10 basis point reduction. we have also got developments out of the property sector. one of the distressed developers managing to get some reprieve as a liquidation petition failed, so that stock is rallying as are some of the builders listed in hong kong, so this is what is

behind the rally in the asia-pacific today along with what we are seeing in japan. tom? tom: we have to go back to 1989 to see the kind of levels we are seeing across the nikkei. they will get back to the record that came through the end of december in 1989 when i was knee-high to a grasshopper. avril: i think a lot of things were not quite there if you have to look back at 34 years ago. what we are seeing in the nikkei today is an interesting move, because we have been tracking it all week. it looked a whisker away from the all-time high of 38915 points, and we looked like we were within reach in the session but we are seeing markets digest comments from the boj governor, initially sending more dovish, and he talked about how they are

directive from negative rates if a price goal is reached, but if you take a look at his comments more recently in the past 1.5 hours, they sound a bit less dovish. he actually said japan will exit deflation, will not be in deflation anymore if the outlook is reached, so that cause the nikkei to pare those gains and move away from the record which it looked about reaching. we are seeing that also reflected in the bond space, bonds under pressure. the yen paring declines from early on in decision, investors digesting the words of ueda as well as what is to come on data from the u.s. economy. tom: avril hong, thank you very much with the detail coming through because the asian market session this friday. traders are looking past mixed u.s. economic data ahead of a reading of the producer prices today that will help define the fed's next steps.

the fed's raphael bostic says he is in a rush to cut rates. >> a durable labor market rally alongside muscular economic growth and resurgent business optimism would argue for continued patience in unwinding monetary policy restriction. you may ask what is declining inflation? well, on the surface, rapid deceleration would appear to offer a counter argument to leaving restriction in place much longer. as i noted, headline numbers on a 12 month, six month, and three-month basis are at or near the committee's 2% objective. tom: let's bring in jill disis. we have been scrutinizing these comments from fed officials. what did we are from bostic on that front end is concerns that we are not still sustainably back or headed back toward the 2% target?

jill: i think ultimately what bostic is saying is we might have seen a bit of an outlier in terms of how hot the january figure was, but ultimately what he is looking for are these data points that show we are sustainably heading toward 2%, and it sounds like he is not there yet. bostic for quite some time is made the gains were interest rate cuts later in the year. it was one month ago he was pricing and something for starting in the third quarter of this year. at that is quite a bit later than what markets were thinking even just a couple of weeks ago. i think he was reiterating that stance today, so ultimately his point is that when you look at other data indicators, i believe he cited a survey report out of the dallas fed as well as showing prices remain under pressure. we are just not there on that comfortable bath for him to step up and say it is time for the first rate cut. tom: yeah, auntie reminded us that he pencil didn't just two

cuts in 2024 in terms of dot plots and guidance there. when it comes to how markets have evolved in terms of their thinking around where the fed goes into what extent, where do we stand as things like? jill: at this point, we have actually seen a bit of an evolution on that front. if you recall way back in december even as powell and other policymakers were pushing back against something as soon as march, that is what markets were looking at when we were at that time of the year, really pricing in something, and that was aggressive there. this delusion -- deluge of fed speak but the hot cpi print from january have which the focus on their. i think before the most recent cpi print, something as soon as may at this point around 64% pricing and is something as soon as you may. that is drop down to about 33%,

34% or so. at this point is harder than expected data, all of this fed to push back on something coming really soon, we are now starting to look into may and beyond when we are targeting the very first cut for the year. tom: and we will see if producer prices out later today give us a little more clarity on where the fed may go. jill with an excellent round up. now to the geopolitics, president joe biden has urged israel to hold off on assault on the southern gaza city of rafah without plans to protect civilians, the latest effort by the u.s. to had off a catastrophe. i am joined by paul wallace for the latest. i guess the ultimate question is is israel despite all the pressure coming from the u.s., the eu and arab partners, are they going to move ahead anyway into rafah and what with the

implications of the implications be of that action? paul: if you listen to the public comments from prime minister benjamin who and others in the government, the argument seems to be, yes, they will still go into rafah despite international pressure whether or not to do so, and the pressure is for them getting more tense, and i would say israel is seeing more of it now from its allies in the west than at any time since the israel-hamas war erupted on october the seventh. israel insists that it needs to go into rafah because it is the last bastion of hamas. the united states and many others say in fact that it will probably cause a humanitarian disaster, catastrophe if israel does go into the city. there are more than one million people there and they fled there

precisely because the israeli military wanted them to as it focused on northern parts of gaza during the start of the war. biden was urging israel to allow civilians to exit before any attack. netanyahu has pledge that would happen, but there is so much skepticism that is possible, and the big question is where would they go? rafah is geared to gives jewish and border but egypt is that it will not taken palestinian refugees. they will have to go north of rafah, but everywhere north is either destroyed or still a war zone because military operations are ongoing, it has been more than one week since israel announced its preparations to go there, so we have to wait and see. but if you listen to netanyahu it still seems a very much of

the case that israel defense forces will move into the city. tom: paul, if we swivel our lens from gaza and to focus to israel's border with lebanon, it seems to be more intensive than it has in a long time. does that tell us there is may be a pivot point in terms of israel and hezbollah? how dangerous is this moment u paul: since the beginning of the year, israel and hezbollah issues have been getting worse, and certainly what we saw on thursday when rockets were fired pretty deep into israel, 15 kilometers into the country, much cheaper from what we have seen from hezbollah since october 7, that did raise a lot of concern. with that incident israel retaliated almost immediately,

sending jets to fire and launch airstrikes into southern lebanese territories, onto hezbollah positions there, and it seems to be getting worse. quite a few israeli officials including some members of the coalition are saying israel has to become more aggressive when it comes to hezbollah. hezbollah is the most powerful militia in the middle east, more powerful than hamas, and because of that that is something that really concerns markets, and they are watching the northern front in israel very closely. if there is a full-blown war between israel and hezbollah, i think you would see a lot of volatility to say the least with israeli assets and even things like oil and other commodities. tom: ok, the potential market

implications of that evolving conflict between israel and hezbollah. paul wallace with a comprehensive update, thank you very much indeed. the kenyan shillings soaring as locals ditch dollars following a successful eurobond sale. u.s. secretary of state antony blinken is set to meet the chinese foreign minister in germany today. we will have an update live from the security conference. stay with us. this is g. ♪

tom: welcome back to "bloomberg daybreak: europe." switch focus to kenya where the schilling as well eat the most in almost 16 years after his successful eurobond sale fueled speculation that a shortage of u.s. dollars in the african nation is over.

the shilling has gone from the second worst performer in africa to the strongest currency this year so far. let's bring in odiro. give us more details as to what has driven the upside for the schilling -- shilling. >> what explains it is an increase in dollars and supply the market and change investor confidence. can you put out a eurobond report met by strong investor demand which almost eased the fear kenya was going to default. there is been a $1.6 billion infrastructure bond we saw it investors rush to change their dollars into shillings. there have also been inflows from the imf, securing a syndicated loan from the world bank. the last three days have been such a sharp turnaround from what we saw last couple of months when investors were jittery about kenya's ability to

meet its debt obligation come june, and the government is partly to blame. they said we would buy back one billion it went to 500 million and then $300 million. market fundamentals are weak. so markets can be very unpredictable. tom: indeed, what is your assessment of how sustainable, the market assessment of how sustainable this game is likely to be, and what are the broader trickle-down effects for this economy and for the people of kenya? >> that is the million-dollar dollar question, how sustainable is it. the market is very noisy, so is it driven by market sentiment or fundamentals? the national treasury is taking the wing and running with it and saying they gain signals investors have confidence in the way the economy is being managed. market watchers are saying it could be because investors are taking advantage of the desperate situation kenya finds

itself in. if they gain holds momentum there could be lowered debt obligations when it is time to pay back our debt. there could be relief for importers and in the short term exporters are going to take i had. all eyes turned to next week when on february 19 they will settle the infrastructure bond, february 21 they will settle the eurobond and where the shilling falls will determine what is driving this gain. tom: we will look ahead for further details. we appreciate it. senegal's top court as rejected a bid to postpone elections and remain in office for almost another year. the constitutional council rule delaying elections scheduled for this month is unconstitutional. it said polls should be held as soon as possible taking into account the time for campaigning. it has been a roller coaster few years of course for the lng

market. we will be bringing you a deep dive next. stay with us. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." checking in on lines coming through from bank of japan, governor ueda speaking in tokyo giving an update to lawmakers. he started out by sending -- sounding relatively dovish saying if and when they increase rates they will remain accommodative in terms of monetary policy. ueda saying the bank of japan will study data and various information with great care and are aiming to hit the price target with wage growth. he previously said japan would not be in deflation if their

forecasts are realized. he says he wants to confirm if wages and the spending cycle is taking root. ueda saying the outlook from the bank of japan is wage growth will exceed inflation in the full year of 2025. checking in on the yen, currently down .2 of 1% at 150. the liquefied natural gas industry as been through a volatile few years. in 2022 energy prices spiked on squeezed supply as top producer russia invaded neighboring ukraine. prices have come back down to earth as europe and others moved away from russian gas. traders are watching for a potential ramp up in competition with asia for lng supplies later this year. for more let's bring in the head of apac gas and lng at bloomberg nef.

it has been causing chaos across the world of ship and we have been seeing freight rates jumping. about the follow-up for the lng market. what have you been seeing? >> it has affected significantly lng shippers in the middle east. they are taking longer routes via the cape of good hope to reach the markets in europe, so if you look at the recent data, the number of lng transfers has fallen in january versus december and we have seen no transfers in february so far. transits around the cape of good hope have almost doubled. the longer route has increased the shipping cost. however, we have not seen much impact on pricing on the benchmark for lng prices on both

asia and europe, and this is because of the demand outlook. tom: give us a little more detail in terms of what that demand outlook is shaping up particularly out of europe and asia. >> so demand expectations for europe are still well below five-year averages over the 2016-2020 period. industrial demand is quite weak because of the lagging economy. mild weather has surprised, and we are also expecting less gas demand because of higher generation. overall we are still seeing lingering signs of demand disruption across all sectors. we are projecting your to enter 51% storage level, and 94% full

by september under the current prices. demand in china las vegas economy shows weakness. tom: thank you very much indeed. a deep dive on some of the demand and supply constraints around lng and the competition between europe and asia and how that is evolving. atlanta fed president raphael bostic says there is no rush to cut rates with the labor market and u.s. economy still strong. we discuss that next. this is bloomberg. ♪

tom: good morning, this is bloomberg daybreak your. asian stocks search, japan drives towards a record of consumer rebound hopes wrapping up in china. raphael bostic pushes back on rate cuts amid mixed u.s. data. markets await u.s. producer prices do later today. the uk's ruling party suffers too heavy by election losses. leaving another weld to prime minister richie soon aixa head of a national vote expected later this year. let's check in on the markets after the s&p pumps are a fresh record driven by energy, driven by the banking sector. s&p futures pointing flat, still above the 5000 level. nasdaq pointing below at 18,000 level. european futures pointing to

gains of another pretty decent day. 5/10 of a percent. ftse 100 looking to gain around 5/10 of a percent. let's look across assets and see how things are shaping up. u.s. tenure at 426. higher by three basis points. raphael bostic sounding relatively hawkish. we will do a deep dive. eurodollar out 107. down a 10th of a percent on the single currency. we heard from the central bank governor. they should be thinking about a potential cut in march. 150 on the japanese yen. seeing gain coming through for the u.s. dollar versus the japanese yen. reuters reporting a wave giving comments to parliament saying they are on track, the be oj, to end negative rates. it keeps the door open to april where some traders think the end of negative rates will come to pass.

we are looking at oil, $82 a barrel. jumping out 1.5% yesterday. let's do a deep dive on the u.s. data we got yesterday on the comments from rafael bostic. traders are looking past that mixed economic data ahead of her reading of producer prices today that will help define the fed's next steps. it comes as rafael bostic did caution on rate cuts. our m life strategist joins us now for the analysis. to me he sounds incredibly hawkish. is he an outlier or is this the consensus? [standby]

if it's even possible in the way the economy is shaping up from what we got from the sales data is that they may even get to pay cuts. no pricing yet. tom: really interesting, as you point out, a reminder that the

dot plot's report -- is reporting three dot plots. a warning from rafael bostic, there may be too, because that's what he penciled in. you are seeing a little bit of movement across the yields, across the treasury curves. 435 for the u.s. ten-year up three basis points. a three basis point move on the two-year at 460. a little bit of selling coming through across u.s. treasuries. we have a few audio issues, but we always appreciate it. he thinks the resale -- retail sales dropped. it's a bit of a one off. what's happening in cryptocurrencies. this ties into the great. the expectations that rates will come has been one of the factors that supported what we are seeing in terms of the broader upside for bitcoin and other cryptocurrencies. coinbase jumping after returns profit for the first time in two years. first time in two years this comes as bitcoin continues to rally in the great -- in the wake of exchange traded funds.

let's get more from bloomberg's -- let's start with coinbase in terms of the earnings picture. they return to profitability, what was behind that? >> coinbase did beat markets estimate with a profit up to two years. they also saw an increase of 51% revenue. all that comes on the back of improving volumes in the last quarter in the crypto market while prices of bitcoin where valuing. both volumes were quite depressed last year. last quarter we saw volumes improve on the back of the news of finally seeing u.s. spot etf's bitcoin. that helped improving the revenue and bottom line for coinbase. that was with the reserves that

were reported yesterday. tom: that's a coinbase story. we zoom out. what's been happening with bitcoin influences what's happening with coinbase, to a large extent. that cryptocurrency is back to a trip -- back to a trillion dollar market. what was the outlook for markets and investors around the cryptocurrency for the rest of the year? >> once the spot etf's were announced, there was a bit of a selloff in the market, that was more or less expected. everybody saw etf's to be net positive for bitcoin. we are seeing that play out right now. since the launch of the etf's, we have seen more than $10 billion worth of net inflows for these products at the moment, where as the current rally that we have seen this year so far,

there are structured headwinds for the cryptocurrency and it points out we have the bitcoin due in april. that usually precedes with the token reaching an all-time high as we have seen with the past cycles over the last 13 years. bitcoin trading around 50 $2000. -- $52,000. it is far from its all-time high. it's all the in november of 2021. it seems like the market is very optimistic for seeing the cryptocurrency breach that level and create new all-time highs in 2024. tom: currently, as you say, 52,127 of the largest cryptocurrency, bitcoin. thank you with their earnings breakdown for coinbase and the outlook for bitcoin in the days and weeks ahead. we appreciate it. also making news within the tech space with the focus on ai.

bloomberg has learned that apple is nearing the completion of a new ai software tool frappe developers. the software will use ai to predict and complete code. apple is set to be planning to release it as early as this year. the move sees the firm stepping up its competition with microsoft. sam altman's openai has teased a new system that can create realistic looking videos based on tech prompts -- text prompts. the ai tool can quickly create videos up to one minute long, making at the latest company to embrace generative video technology. by the way, alphabet took a drop yesterday on the back of that news. increased competition concerned that google's lunch will be in. we seems to be away away from that. digital appetizer key for google, which is housed within

alphabet and the prospect of a search change are being bought out by ai and then being used on the microsoft platform, causing some concerns for after that and investors there. dropping close to 3% by the end of the close. the other ai story is what's been happening with tsmc over in taiwan. now the 10th largest company by market cap in the world. it has reclaimed that 10th spot thanks to a $42 billion rally today. yesterday, i should say, fueled by ai. stocks urging almost 8% on thursday. tsmc, the maker, the provider of these for these chip designers getting a continued boost on that ai enthusiasm. let's switch focus to the security issues and question marks being to dated. antony blinken will meet with china's foreign minister in germany today. there are among key figures

gathering for the security conference to discuss the world's most pressing defense challenges. i'm joined by our bloomberg correspondent who is at the conference on the ground for us. why is there a big presence from tech at the security conference this year? what is the rationale and what is bringing tech executives there? >> there has been an interest from the tech sector for several years now. as you just mentioned, one country that is a particular security interest is tsmc, the taiwanese semiconductor company. a lot of the conversations around resources, security of resources, and a lot of the ways in which the nature of warfare is developing in the 21st century, has a lot to do with the tech sector. there is a big presence from companies and from investors trying to pay attention to what is going to be the big security

risk for the sector in the coming years. tom: on the ground for us at the munich security conference. she will read us all the latest from that -- from that event. the geopolitics of the middle east on the conflict there, and how tech is evolving to confront some of these challenges. the politics of the u.k. and the u.k. labour party has taken two seats from richie sunak's conservatives. how will he regain momentum, if he even had any? we will discuss that next. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. to the politics of the u.k. the labour party has overturns

significant conservative majorities to win two parliamentary by elections. labor leads in the national policy. this morning support dense richie sunak's hopes of gaining momentum ahead of the expected general election. joining me as lizzy burden, our u.k. correspondent. how bruising is this for him? >> here is a race richie sunak is winning. no other administration has lost so many races like this in a single term since howard wilson in the 1960's. this is very bruising. why has it happened? you could look at the headlines yesterday about a recession. but also, conservative analysts have been tearing through how much impact the u.k. had in terms of slitting the right wing vote. in any case, it's going to raise questions about whether richie

sunak and make it all the way to the general election or whether he will see another leadership race in the party. tom: it is a relative up within the political space on the right when it comes to the politics here in the u.k. will they be able to revive momentum with the budget in march? can they cut taxes and get people of the u.k. back on board with optimism? lizzie: that's what they would like to do. we had this report from the telegraph newspaper saying jeremy hunt does not think he can afford to cut income tax of the spring budget on march the six. we also had reports that he's planning to cut public spending. this is off the back of labor, paring back their pledge to spend 20 billion pounds on the green economy. what a all tells you, despite people dismissing blackwater -- black rocks morning about bond vigilantes swirling before the election, that it is the word as

we head towards it. at the same time i would note, it is absolutely classic richie sunak laid up to under promise and over deliver. when you have jeremy hunt saying, we don't have the headroom, i'm not going to do anything that would add to inflation, there's business and personal taxes. expect a lot of kite flying as we head towards this budget. tom: lizzy burden, thank you very much. of course our u.k. correspondent covering the politics of the political outcome we've seen in the last 24 hours. staying with the u.k. for -- for quarter results. focus on margins. it is set to become permanent ceo to preview the results i'm joined by bloomberg's will sure. what can we expect from the earnings on the earnings front from matt west?

where will you be focused? >> we are expecting pretax profits of 1.2 5 billion pounds. that will be down on the 1.3 billion they saw one year ago. and it will also be heavily focused on margins in the last in october with a cut the margin guidance for as much is 18%. people are also going to be looking out for any signs of impact from the government's ongoing review into the later arrangements. tom: interesting. when it comes to leadership of the bank. being flagged by some report suggesting that he will be installed as the permanent ceo. is that likely to be welcomed by investors? >> he said continuity candidate. he will represent stability. he's coming out an important

time. while matt is recovering from the scandal forced out by his predecessor. there is an offering to return investors as the government seeks to get rid of it. the final turn of the bank, which was the june financial crisis, that's about a third of the ownership. a lot at stake. during previous privatization sets being compared to the 1980's, they turned out to be one of the hallmarks of the margaret thatcher era. and the implication from matt west are obviously going to be very hardy. as preparations build for that sale we are expecting it within the budget, which will come next month. tom: an important preview, we will be dropping at about 11 minutes time. we will break those lines for

you the moment they cross and bring you further analysis. thank you very much. on the earnings front, beyond the cast major of italy breaking now. fourth quarter, the redhead, topline coming through fourth, adjusted net income coming in with a slight it at 1.6 4 billion euros. marginally above the estimates of 1.6 3 billion euros. a very modest be coming in for anyone. we are looking for lines on the outlook given possible concerns at the oil prices are starting to soften on questions around demand. operating profit of 2.7 7 billion in the fourth quarter. that's on an adjusted basis. the estimates have been for 2.97 billion. adjusted operated profit coming below the estimates. we will bring you more details and stock reaction at 8:00 a.m. on the back of the earnings.

increasing bonuses. increasing bonuses for its investment bankers after posting record profit last year. it is terrorized by 10% on average. the bonus decision was pushed by the company to expand its u.s. investment banking operations. staying with banks, deutsche bank is tightening its work from home rules joining a growing number of investment banks requiring staff to be in the office more frequently. managing directors will have to come in four days a week while other staff will need to be in at least three days a week. the changes are effective from june. bloomberg understands that barclays has fielded interest from pe firms, included brookfield for a majority stake of its payments business. sources reckon the unit evaluation may be around one billion pounds. barclays began setting a stake in the unit last year as part of

efforts to boost the banks returns, which have long lagged rivals. nike will cut its global workforce by 2%. that's as the sportswear giant purchase on with efforts to reduce cost amid a weaker sales outlook and growing competition. bloomberg understands the cuts will happen in two phases with the first kicking off today and the second round completed by the end of the company's fourth quarter. there is plenty more coming up. we do a deep dive in terms of the retail sales data in the u.s. and a look at the gains that come through for the japanese nikkei. stay with us. this is bloomberg. ♪ welcome to ameriprise. i'm sam morrison. my brother max recommended you. so, my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, -hey, john reese, jr. -how's your father doing? to help reach your goals with confidence. my sister's told me so much about you. that's why it's more than advice worth listening to.

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tom: oh come back to bloomberg daybreak: europe. happy friday. we had a bunch of data out of the u.s. yesterday. one of the key data points was retail sales and they felt by 10

being below the estimates. it was a 0.8% contraction for retail sales for the month of january. pretty strong december. but even the december number was revived lower. there is the number that came through yesterday. contraction of 0.8%. u.s. consumer is raining and purchases to some extent. we had other data. was a big mixed, suggesting that the resilience around the market remains relative -- relatively strong in the u.s. when it comes to retail, we know this is important in terms of the health of the u.s. consumer. did they come back with strength? there was tightening when it came to what was in the pocketbooks and wallets of u.s. consumers. we will flip the screen and see what's been happening with the nikkei. it has been taking a little bit from the s&p that pumps through fresh record yesterday. back above the 5000 level. the nikkei is getting back to levels we haven't seen in 34 years.

1980 nine. around the end of december of 1989. we will be breaking through, if it crosses that line, 38,000 915.87, that would be a record high for the nikkei. the first time we have seen that in 34 years. again, it has disconnected the equities market from the broader economy where you are seeing a recession. you have seen inflows into the japanese market. japan's gains have been well vote over course in terms of the analysis in the deep dive that has been done. we know china has for the last decade. here has what -- here is what has happened. the economy of japan, 3.19 trillion in 1989. compare that to the u.s., 5.64 to 25. the disparity is there, but the equity markets right now in japan are on fire. let's have a look at what was happening in 1989. the euro did not exist in 1989. the population was 5.2 billion,

the world wide web had not been invented in terms of the broader scale. steve jobs had just started. those are a few things. other things to think about when it comes to what's on the agenda today, the security conference, ukraine is going to be a focus, israel at gaza will be in focus. we will be hearing from nato's top military officer in the ukrainian deputy prime minister. up next, it's markets today that will bring you data in earnings from that west, and they will continue to keep across the market moves. europe set for a solid session this friday. this is bloomberg. ♪

anna: this is bloomberg markets today alongside kriti gupta where the cash trade is less than an hour away. here's what you need to know.