♪ annmarie: good morning. i am annmarie hordern. this is "bloomberg daybreak: europe."tocks are in the green after signs of a strengthening u.s. labor market, even as above forecast consumer prices reinforce concerns of rising inflation. the cdc says fully vaccinated americans can ditch masks in most settings. conflict between israel and gaza escalates. it's now the fifth day of hostilities. the u.s. security council schedules another emergency meeting. very good morning to you. let's take a look at where we trade this morning. happy friday. what a week it has been, a week of volatile data. yesterday, we did see that ppi number, producer prices, showing inflationary fears. that is bleeding into those inflationary concerns. labor market strengthening, we saw that in the drop of jobless claims. we saw a shift in the equity market from a migration -- with a migration from growth to value. will that continue? those inflationary concerns being called up a little bit. s&p 500 index, nasdaq snapped three days of losses. we are in the green alongside european futures. u.s. trea

annmarie: thanks for that.ur community has called for calm overestimating violence between israel and hamas. a new barrage in israel this morning as the strip was pummeled with airstrikes. our colleague sent this report. >> this place was bombed early this morning i is really warplanes in response to fiery -- by israeli warplanes in response to firing rockets at the gaza strip in israel. tension is prevailing in the enclave that has been under is really blockade for more that -- under israeli blockade for more than 50 years. people ever read and scared that this section will see its largest scale military operation that israel may carry out vacancy gaza strip. -- against the gaza strip. >> [speaking foreign language] >> if you look at the street, it is almost empty ahead of the end of the fasting month of ramadan. people here are experiencing hope that a truce will be reached soon in the gaza strip. annmarie: bringing you both reports in tel aviv and gaza this morning. just ahead, the company that runs north am

that's golo.com. ♪ annmarie: good morning. it is 6:30 in london. i'm annmarie hordern.f red as a tech sell down hits the nasdaq and asia. the debate over inflation, no better time than to speak with mark mobius. america's biggest petroleum pipeline races to recover as president biden says russia has some responsibility to the attack. good morning. 90 minutes from the start of european equities trading, and it is a sea of red. the hang seng down 2%. nasdaq yesterday, inflation is hostile to tech. nasdaq dropping 2.6%. this morning you see that retreat extending. across assets, we are seeing softer on wti as colonial pipeline says by the end of the week they will have most of the pipeline up and running. copper up 0.9%, and 10-year treasury yield 1.95%, a little lower after yesterday breaching 1.6%. tech is getting wrecked across the world. nasdaq 100 trading at five times annual revenue, slumped as volatility jumped. inflation expectations leading to the highest level since 2006. everything was slammed. as markets await a crucial u.s. cpi reading on wednesday. dow presid

annmarie? annmarie: annabelle droulers in hong kong. just ahead, it was meant to be one for the ages, but turned out as arguably the most disappointing jobs. report in history we talk pay worlds and inflation -- we talked payrolls and inflation next. this is bloomberg. ♪ manus: it is "daybreak: europe" with me, manus cranny, reunited with annmarie hordern in our headquarters in new york. it was meant to be. it turns out to be one of the most arguably disappointing jobs report in history. 266,000 jobs added in april, missing all the estimates on the bloomberg survey. economists have pegged it a miss. a tweet said, oop. total unconstrained fixed income. i am reliant on you to have more to say than just oops. the entertainment, the reopening jobs was up by 331,000 and they got pay raises. should i take some heart from the tragedy that we have not seen ever in the jobs report? guest: i think first of all, let's take a look at the spectrum of expectations. we were going for a forecast anywhere from 700,000 positive to 2.1 million positive. c

annmarie: good morning from new york. i'm annmarie hordern. this is "bloomberg daybreak: europe." stocks push higher amid falling jobless claims in the u.s. confidence in the fed's view on inflation. european finance nesters meet in lisbon in person. negotiators back vaccine passports in a bid to save the summer. israel and hamas agree to a cease-fire ending a deadly 11 day conflict. resident biden praises the accord brokered by egypt. the morning to you, happy good friday morning. good news is dominating the market direction today. at the end of a busy week, economic recovery narrative is winning over this morning over inflation fears as u.s. jobless claims yesterday came in better than expected. asia-pacific, the regional benchmark up 0.2%. a little pullback in hong kong and china due to what is going on with tencent. nasdaq futures up 0.2%. tech making a little comeback yesterday. 10-year treasury yield 1.62%. the 10 year treasury auction was met with weaker demand, but what that suggests is confidence thing in the fed narrative on inflation, that this potentially will be tempo

annmarie? annmarie: thank you so much. just ahead, the crypto yo-yo, bitcoin loses 31% of its value in the morning and surges 33% in the afternoon. what's next? for the virtual currency? we'll discuss that next. this is bloomberg. bloomberg. >> i think what's happening right now is because the stock market, the highly volatile part of the stock market, the innovation-oriented part of the stock market has gone through such a correction which has been flamed by inflation fears. i think the correlation is among volatile assets are going to one right now. and that's including bitcoin. >> so bitcoin, you at one point i think back in april told dow jones that it could go to $500,000. you do still hold that target? do you still think that's where we're headed? >> we do. i do. yes. mandra is our crypto analyst and we go through soil searching times like this and scrape the models and yes, our conviction is as high. the one thing that has changed here, however, is the environmental concerns around bitcoin in particular have caused

annmarie: dani agrees with you.ning, we are seeing, to your point, at least today, risk assets taking a little bit of a leg lower across asia and european and u.s. equity futures. bitcoin at the moment down more than 9%. we will keep an eye on this story. here is a recap of your first word news with annabelle droulers. >> prime minister boris johnson is fleshing out plans to level up the u.k.. he wants to spend 830 million pounds on transforming local town centers. he plans to shift 3000 civil service jobs out of london by 2025. johnson says he wants to seize the opportunity to build back better from the pandemic. president biden is planning a two-week delay for ban on new investments with certain chinese companies. sources tell bloomberg officials are drafting guidance to clarify the trump era policy that confused wall street. the main question is over how the china investment ban applies to subsidiaries. the biden administration wants to give consumers -- rebates for buying electric vehicles. the aim is to help th

annmarie: good morning from new york. this is "daybreak europe." global stocks close in on their fourth straight monthly rally. strong u.s. data and hope for spending spree gives investors a tailwind. jamie dimon slams the president's tax plans as wall street ceo's face and other congressional grilling. a cautious tone on crypto's. g7 finance ministers ready for crunch talks. france puts the onus on the group to lead the way on the new global standard. good morning. 6:00 a.m. in the city of london. that is where my heart and mind is. 1:00 in the morning on the east coast. we are seeing euphoria and green on the screen. asia-pacific up more than 1% alongside european and u.s. equity futures after pretty strong u.s. economic data yesterday on top of that potential spending spree, proposal of a budget, the new york times talking about the budget from president joe biden. on top of that, the 10 year treasury yields above one 6% this morning and brent inching closer -- 1.6% this morning. demand side of the story, optimism is outshining the concerns rega

. ♪ annmarie: it is 2:00 in london, 9:00 new york. i am annmarie hordern. cd out with its global economic outlook, warning of an uneven global recovery. we hear some of bloomberg's interview with the secretary-general. china lifting its two child r ule. this is china's factory holds firm on the month and day. oil advancing head of an opec-plus policy meeting as traders expect rising demand to absorb plan production increases. a very good morning to you if you're joining me on the side of the atlantic. good afternoon if you're awake in europe. it is memorial day in the united states and he u.k.'s bring back holiday. low volume. you can see what we are doing in terms of equities. the stoxx 600, down .15%. we see a little bit of red on the screen if you look a clause that u.s. equity futures and across the european equity market if it comes to the dax, the cac 40, and the ibex. there is a story overnight. that is the fx market from china. china has taken one of the most substantial moves we have seen yet to put a pause on the yuan rally. no more of this verbal

annmarie: thanks so much.etail traders piling into amc helped push meme stocks towards a weekly game last week. steve sosnick, interactive brokers chief strategist, joins me. explain this theory you have, the rotation specifically for meme stocks. steve: good morning, annmarie. the interesting thing i am finding here is i think that you've got a group of traders, investors, speculators, whatever you want to call it, they look at the markets differently than traditional investors, but act in a way that traditional investors would find normal, which is rotating from one sector to another. they are not specifically seeking alpha is a big cap investor would do, but seeking absolute profits, which is really the same thing. i think what you have seen is as bitcoin and other crypto's have faded a bit, you have seen a lot of excitement go back into the meme stocks. i think that money is rotating from one sector to the other as you would see traders move from banks to energy stocks. annmarie: do you think this resurgen

annmarie: u.s. european equity futures are in the green, leaning into the vaccine programs, and those economies that are reopening. ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. (announcer) back pain hurts. you can spend thousands and still not get relief. now there's aerotrainer by golo. you can stretch and strengthen your core, relieve back pain, and tone your entire body. (man) and you're stretching your lower back on there. there is no better feeling. (announcer) do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me. it

annmarie: good morning from new york, i am and ray hoar dorn with manus cranny -- annmarie hordern with cranny in dubai. outrage after belarus forces a ryanair flight to land in minsk so a journalist can be arrested. eu leaders meet today. another weekend on the crypto roller coaster. investors will shift attention to a raft of u.s. data this week. and zero-tolerance as a china tightens the screws on the commodity sector, punishing violence -- pledging punishment for violations. we are seeing a divergent of assets across the board. if you look at the commodities sector, what a downdraft we are seeing, iron or across a singapore down more than 6%, this as a china vowing zero-tolerance. brent crude up 7/10 of a percent, this is the optimism of demand, especially when you look at the vaccine rollouts in the u.k. and u.s. i know one asset you are looking at is bitcoin, 35 k, i think just yesterday, volatility down some 18%, and whether or not we will see contagion to other parts of the market remains to be seen. mohamed el-erian is saying narrowly no, but more complex potentially. manus: an

annmarie: you talk about tricky allocation.hus the clampdown on tech also damage the investment case in china? esty: to some extent, yes. for a while, china was seen as almost a defensive play. you had the management of the pandemic that was much better, it reopened much sooner, less restrictions, data improve very strongly already in the second half of last year. chinese markets benefited a lot. then you had obviously the tech situation, it is not particularly helpful for china in general. when you are investing in emerging markets, you have a big allocation to china. i think more neutral on emerging markets for now. it does not mean it is not attractive entry points for the longer term, but in the next few months, i think again, another factor that might be weighing on allocation. manus: do you think it is more of a headwind to your em call if the pboc shifts from neutral to tightening, than the fed's position? esty: i don't think the fed is moving. i think the fed has been doing what it told us it was going to do and i think

annmarie: i was so shocked by the exxon story.activist, .02% stake, no history of activism in oil and natural gas. what does that mean for the future of these oil makers? >> yeah. it's a really good question. the immediate thing is that you will see a lot of divestments. especially with the shell decision, there's very little way for companies to reduce their emissions in the near term except for selling oil and gas assets. you will see divestitures and that might go to private equity. it might go to national oil companies that are looking to diversify, depending the market that you are in. it's not necessarily going to mean the end of oil and gas. it will certainly mean smaller exxon, shell, and chevron in the future. manus: not all assets are poorly yielding assets. they will offer opportunities to the marketplace. we could see a little bit of action there, couldn't we? dan burton there on the activist investor. it's all about the trade, isn't it? [laughter] annmarie: just ahead, trade talks underway. we can trade these teasers.

i am annmarie hordern with manus cranny.ggest banks on wall street will be testifying at two separate hearings on capitol hill. elizabeth warren has weighed in the head of the appearance, saying the chance to quiz the executives will be fun. i would like to be there. jamie dimon, david solomon, brian moynihan, james gorman, and charles scharf will all appear. there they all are and they are going to get grilled today. manus: i wonder where they are going to get grilled about lending. is it about their green credentials, diversity in terms of where you lend? let's say the start of that banking senate committee today -- they will be quizzed across a broad spectrum. risk management. the practices along with diversity. there is a lot on the agenda. should we finish with a bit of a flurry on the kiwi? you said it at the start. it's all about steven major. it is not forward guidance. the possibility of rate hikes going into 2022. literally flying high. dollars on the year two. year two. annmarie: our mliv says rbnz met the kiwi ou

annmarie: it's just so crazy it might work."bloomberg green," philip: we're dealing with something that's as fundamental as the genetic makeup of the species and thinking about putting them back out into the wild. the genie is out of the bottle. annmarie: the scientist trying to be extinct species back from the dead, fix the food chain in the process. melanie: with determination and ingenuity, humans have achieved incredible things and there is no why we shouldn't achieve fusion. annmarie: the ever receding fuel of the future. why nuclear fusion could be the answer to humanity's energy problem if we can only make it work. steven: the purpose of our paper was to provoke thought about whether a technology is feasible or whether it's just impossible out-of-the-box.

annmarie: the ever receding fuel of the future.ar fusion could be the answer to humanity's energy problem -- if we can only make it work. steven: the purpose of our paper was to provoke thought about

annmarie: and from the disruptors to the big players who want a piece of the electric vehicle pie.olkswagen is throwing its hat into the ring to be the ev champion. herbert: so far, it is going

annmarie: this week, one man's trash is another man's treasure.companies doing to make the most out of junk? >> the complex supply chain is global and very valuable. annmarie: efforts to reduce the use of single use plastic tech was setback during the pandemic and safety replaced sustainability. plus a satellite out of control, and a team of engineers, it is not

. ♪ annmarie: -- manus: it is " daybreak:europe." my cohost annmarie hordern has taken holiday.her for the first time in two years. the meeting is set to be held in london amid strict covid procedures. let's get to our executive editor for government. it sounds like multilateralism is being rebirth by blinken and dominic raab. >> what we are seeing is quite a turnaround from europe. a very overt anti-china policy of the u.s. it is still a bit more calibrated. this big investment deal that they have agreed on has not been ratified. they are going to have a very tricky time getting it done because of rising concern over china in its own neighborhood, primarily against the theater -- the uighyur population. it is still not showing genuine progress in opening up its own economy to the world and eastern europe, need key sectors. all of those things come together to lead to a little bit of hardening, interesting to track to see how much we are closer to the approach of the biden administration. manus: thank you very much. we believe you with pictures of mr. blinken talking about a rul

annmarie: cheering on the equity manus: -- manus: cheering on the equities performance.ll hear more from him shortly. the g7 clearly lampoons china in terms of its human rights position. the red headline that unseated the equity markets and the aussie dollar currency this morning was the suspension of dialogue between china and australia. is it largely a symbolic moment that the talks were suspended in last held in 2017? it took a bit of a beating yesterday. there is a debate as to whether your seen a moment of any sick that significant rotation from tech into values into commodities. copper, 990 one dollars, up .5%. various housing calling -- bank of america, my apologies to barclays. get ready for 4% inflation, but it may not endure. society general reported first-quarter revenues beating the equity business, the best quarter since 2015. revenue surging. the suction ceo spoke to bloomberg in paris. >> we're considering the overall job and financing activities. >> do you believe the volume of tradable assets as you create momentum for the business? >> again, it's a mix

. ♪ manus: it is "daybreak: europe" solo today, annmarie hordern is out.n musk stoked a fresh bitcoin rally, it has since been debated somewhat, the tesla ceo showing support for m bitcoininers to be more -- bitcoin miners to be more environment italy friendly. -- environmentally friendly. will it make a difference? >> that's an interesting question, when it comes to the price of bitcoin and reaction to it, the rally wasn't very long. we have seen today the price has drifted lower once again, trading just above 38,000. that's after a pretty good rally yesterday. if we are looking for a continuation or a fresh rally from here, we are seeing a little weakness today. one of the issues is the talk of greenification is not going to happen overnight. we are seeing this with any industry, not just crypto mining. it could take years. we talk about the crypto climate accord, there talking about d carbonizing the industry by 2030. prices continue to swing as it has a couple of weeks. longer-term, will we see improvements to the environment? we will have to see if th

alix: michael o'leary, ryanair ceo speaking with annmarie hordern and manus cranny earlier today.ka joints me now. in relation to ryanair, when they talk about feeling better, what kind of reopening, what kind of travel non-restrictions is priced into that? daniel: i think we have hit the bottom of that. they said on the earnings call they expect to be toward the lower end of their passenger guidance at around 80 million passengers. i think that is a reasonable assumption off of what we just heard michael saying. alix: how do they make their money? is it people going to portugal and malta or spain and greece and italy? daniel: you definitely need a reopening of more markets than just portugal. portugal, even if the entire u.k. went to portugal that would not be enough to get to 80 million passengers for ryanair. you need u.k. outbound come you need portugal, spain, germany, all of the economies coming back. with more vaccinations we would expect governors to ease -- governments to ease travel restrictions. toward the second half of the summer there is a good possibility we will ha

annmarie: -- anna: welcome to "bloomberg markets european open." the cash trade is less than an hour away. open to talking about talking about tapering at some point. the fed markets give the markets -- fed minutes give the markets plenty to think about. the crypto yo-yo takes another turn with bitcoin rallying after plunging in the same day. and the biden administration changes its tone on nord stream 2 saying it will -- saying stopping it is a long shot. the state department also wei ghs sanctions. welcome to the european market open. what did the market say to you? matt: it is a confused day in markets but it seems like traders are on the back foot. still in all of the volatility -- in awe of the volatility we saw in the crypto space. bitcoin has bounced back, but many cryptocurrencies are down massively. volumes in asia a little bit lower, more reluctant. we don't have a strong reaction yet -- direction yet. anna: we will get back to the big story in a moment. breaking news in london. we are getting numbers from u.k. corporates and easyjet is o

annmarie: we will have an update on the covid story and we will get some of the micro building blocks. numbers from maersk. we had numbers from this busy we are looking for more detail. they are giving full-year guidance. they pre-released some of the q1 numbers already. hey full-year underlying abbott da number, ebay guidance, also -- e bit guidance. we will be talking shortly to maersk. the supply of the cassidy to the market, all of that going on -- capacity to the market all of that going on. janet yellen's comments intentionally or probably unintentionally sent markets into a bit of a loop yesterday were reinforced downward trajectory we already had. futures pointing to the upside. stoxx 50 futures for europe up. u.s. futures, strength coming through after the day that was yesterday. what does the gmm say? mark: the gmm does reflect that we did have somepurchase of bon. anna: first quarter sales from hugo bosque coming in, beating estimates as china sales almost doubled compared to a year before. the brand says it is unable to provide a precise outlook for the year but expects to

annmarie: laura -- anna: laura wright in london.'s take a look at some of the things on our agenda. at 12:30 p.m. u.k. time, the ecb publishes the account of april's policy meeting, when christine lagarde pushed back against suggestions that they were thinking of scaling back stimulus. a little bit later at 1:30 p.m. u.k. time, we will have the figures for u.s. retail sales for the month of april. what echoes of that strong cpi number will we see in the data? later, robert kaplan takes part in a discussion hosted by the university of texas school of business. a really interesting bloomberg intelligence report called kaplan: the lone hawk calling for tapering talk. stocks are back in the green. signs of a strengthening u.s. labor market ease some concerns over rising inflation. we will discuss next. this is bloomberg. ♪ ♪ anna: welcome back to "bloomberg markets: european open." 40 minutes to go until the start of the equity trading session. looks as if we are going to end the week and slightly better form then we saw earlier on this

scouring the supply chain for infrastructure -- but production increase takes time to come online annmarieine. >> when you talk about the agility of the consumer end, are there examples you can make where that is being done well at the moment? >> the typical element where you build in that kind of agility is as an example, many products have semiconductors that need to go into them. the moment you go into custom, you need someone to produce them. you work with a foundry to optimize the process. to the extent you can use more industry-standard parts, to the extent you can qualify more than one company to build those chips for you, to the extent that is distributed across more than one balance sheet, that builds resiliency into your supply chain. the best manufacturers tend to do that. typically that carries some cost and effort upfront. the equation is how much should i invest upfront in order to build resilience? think of an automobile as an example. semiconductors are a few hundred dollars. the total bill of materials for a car, you are spending $500 on semiconductors. that has grown over