we will talk about microstrategy and facebook, next.is bloomberg. ♪ emily: time now for our crypto report. microstrategy recently turned to a bank to borrow against its own bitcoin to buy more bitcoin and the bank it turned to was silver gate. sonali: i want to bring in the silver gate ceo because he's been facilitating this and a lot more in the cryptocurrency space when it comes to loans. thank you so much for joining us. why are you comfortable lending against bitcoin to this degree and how have regulators become comfortable with that? >> yeah, i appreciate the question and the opportunity to talk about silver gate and what we do here. we have been banking bitcoin and broader cryptocurrency system since early 2014. we've been doing this for several years. when we first started, it was bitcoin only. it was before the ethereum and other tokens. as you are aware, bitcoin is a digital bearer asset and it trades 24 hours a day seven days a week around the world. and so, that really gets to the heart of your question, which is when we are

microstrategy co-founder michael saylor might push back on that idea. i would expect him to.ring him in now. good to have you with this. you've been saying you think bitcoin is the hedge against the dangers of inflation but what do you make of the fact of staying in a tight range and not moving on from that $40,000 mark? michael: it's all time frame. if you go back to years when microstrategy brought -- bought in, it's up to hundred percent -- is up 400% and has dramatically outperformed the nasdaq or gold or any other asset. if you are looking at it in a matter of days or weeks or months, the traders control it. there are three types of investors in bitcoin -- there are the traders, the technocrats, and the maximalist's. the maximalist's are all in. myself, jack dorsey, we think bitcoin is an instrument of economic empowerment. we are busy educating and sweep free cash flows into it but we are out of the market day today. -- day to day. the market price is set by a tug-of-war between the technocrats -- the people who are pro-technology and think it is the next big tech netwo

i will ask the first question to matthew horn bok, global head of microstrategy, long ago and far away off the morgan stanley desk in tokyo trading government bonds. off your remit, what -- at what point does yen become problematic for the global financial system? is it 127 weaker yen or is it 130? >> my japanese government bond trading days were quite some time ago but it will take more than just a number on a screen to change the country of japan. people there, consumers have been thinking about unchanged prices or prices that are little changed for decades now. it will take more than a 130 handle on dollar-yen to get customers thinking about sustainably higher inflation for the goods and services they consume. it is more than just one number on the screen. jonathan: my career advice to lazy college graduates who want to jump on wall street, trade japanese bonds. some days you do not even get a trade on a japanese 10 year. lisa: what kind of career advices that? -- advice is that? jonathan: month today, up 50 basis points on the 10 year, obsessed with curve inversion. for you and the

doubt it looked good, they are talking about -- smallholders are buying it, as a reserve, you have microstrategyhasn't quite translated to that higher price yet. the analysts are disconnected from the price action at this point. manus: a couple of running calls for miami could change the narrative. our crypto specialist. that's it for the week. a pretty volatile week. the market still trying to digest what is the momentum from the fed. where is the rate and have we had a breath of exhaustion in curve flattening and inversion? dani: it certainly seems like the curve steepen or -- we are getting calls from barclays, the 10-year yield could go to 3%. they are going in -- recommending you going, jumping by, it is overdone on the bond market. that is it for us on daybreak: europe, markets: europe is up next. this is bloomberg. ♪ dani: good morning and welcome to "bloomberg markets: europe." the cash trade is less than an hour away. fed officials are out and forced again. bullard warns that the fed may be behind the curve, calling for rates above 3% this year or more. the eu bands of russian coal impo

head of microstrategy. morgan stanley put out a nice piece. ellen zentner putting out a long research piece. "price increases to offset higher wages may soon lose steam as demand destruction is emerging in consumer end markets. it may pose a risk to corporate profit margins." is that the story for 2022? tom: is out in front. ellen zentner with francine lacqua out on lake cuomo. she is flyfishing after the interview. this is the point for the second quarter, to easy demand destruction click in? dominique said he is -- we are returning to normal labor economics with the reemergence of the phillips curve. i've not said that in four years or six years. jonathan: are you heated about not being at lake cuomo? tom: it is not as romantic as you think. there is/and the line goes horizontal -- there is slush and the wind goes horizontal out of the alps. jonathan: i would say it is best to go in the summer. futures up .5% on the s&p. the nasdaq up. yields higher by seven basis points. they do a great breakfast. 490,000 is your estimate for payrolls. that

date basis, coinbase has lost hoof of its market value, robinhood nearly half of its value, and microstrategye, when it reports results after thursday's closing bell, it's had three earnings report and three price actions. it's averagele about 10% moves in that. the options market is pricing in lacked -- what could be a 14% move back over to you. >> thank you,dom >>> a new ftx is taking place amid all this price action pascal gaultier, thank you for being on the show. we had icrostrategy on yesterday. you could argue that it's a similar dynamic across the cryptocurrency asset space. >> sure. i always give you the same disappointing answer, which is the ledger, we don't really care about the price on the market. we focus on bringing in security what we see from our side is the trend is still up. there are more and more users coming in every day. also for nfts, and we see big -- >> i think we're having some technical difficulties, so we're going to work on getting pascal back in the meantime, mike, just getting another check on the markets here while we do that. it's a mixed picture with the na

with us now, the global head of microstrategy at wells fargo, mike schumacher.d was really hawkish yesterday, particularly on the balance sheet. the minutes are three weeks old. can we assume that reynard is already -- reynard is in a different position and they are more likely be -- to be dovish? mike: the details will be interesting, but it is going to be difficult for the minutes to come across as more hawkish than the comments we have heard from brainard and others. you make a good point. three weeks is a long time. seems like an eternity in these markets. we will take what we can get today. kailey: we have heard hawkish commentary out of the federal reserve for weeks now. the reaction to that has been a flattening and ultimately in version of the yield curve. the reaction in the last 24 hours has been a steeper curve. what do you make of that? mike: the market read has shifted less to rate hikes and more to the fed's balance sheet runoff. that is what brainard emphasized yesterday. the program is quite a bit bigger, so is it more aggressive in absolute term

joining us is the part of had an microstrategy at strategic, christopher verrone. what is going on in this fx market? chris: it is funny, about a year ago i wrote something that said we are about to enter the golden era of macro investing again and i did not know how precious that would be. what we see in the macro right now we have not seen in 30 to 40 years. what is playing out in entering now is so reminiscent of what happened as you know in september 1992 with the bank of england and the pound. the big fantasy that they can keep a lid on 10 year jgb, the 25 basis points, the currency market is laughing at that. with german yields near 1% and u.s. yields need 3%, the likelihood this cap on jgb at 25 holds is a fantasy of this point. the outlet for this is the currency market. this is the currency market coming for the bank of japan. tom: is there a george soros out there? i don't want to put you in hot water but can you identify 2022's george soros? chris: i cannot. i'm sure there's a number of macro guys out there who are following this trying to have been on t

little get about gary gensler and she had comp limits for gensler she was on stage with the ceo of microstrategy for bitcoin because she's provided some clarity not as much on the etf side. they're looking to launch a spot etf. it's looking more like the futures etfs are the near term thing, but she's hopeful for an eventual etf, but no progress to speak of quite yet >> kate rooney, thank you. in miami for the big bitcoin conference >> stocks continue to gain steam as we go into the close after two straight days of selling, this as earnings season kicks off next week. joining us, erin browne, pimco managing director and portfolio manager. take your pick because there's been a lot of damage which setup, which sector setup do you like the best heading into earnings? >> firstly, i think earnings really is going to be the pivotal key for markets as we look forward right now, wee really at an inflection point for stocks. i think stocks are waiting to see how much has the bite from higher energy, higher food costs, inflation really hit the bottom line? as well as how companies are managing to deal thr

> welcome back the first retirement planner t allow investors to put option into their 401(k)s microstrategys to offer it in the retirement plan. michael saylor, chairman and ceo. great to have you back on the show. >> yeah, thanks for having me. >> the news certainly does seem like a big deal, fidelity, the first major provider is taking a move like this how do you see it in terms of next steps to bitcoin and bitcoin adoption >> it's less risky that stocks, bonds, than real estate, gold. it's kind of built for this. most people buying bitcoin want to give it to their grandchildren or great-grandchildren. there's 80 million americans that currently own or have owns digit at assets. 30% of institutions want to own it a 401(k) plan is a common thing for millions of workers to save. this will fill an important vacuum. >> technically a tech company, but also the la large. >> yeah, there's been a lot of demand for this. it's a -- and fidelity has overcome that, so really delighted to offered it to our employees. >> it was just last month that the u.s. labor department published guidance causing t