ceo elon musk pledges to accelerate output. the shares jump in after hours trading. president biden commits to sending advanced tanks to ukraine as part of a broad allied effort to support key -- kyiv in its fights against russia. plus, adani group says it is exploring legal action against u.s. short seller hindenburg research after allegations of fraud, which the indian conglomerate allies -- conglomerate denies. you're seeing this reflected in the chinese tech names listed in training in u.k. -- training in hong kong. then there is the optimism around the edges when it comes to the earnings picture from the likes of tesla and ibm. futures pointing to the upside. when it comes to the earnings pictures in europe, diageo is

beating but volvo coming in was a mess. just a gain of 0.2% on the u.s. -- ftse 100. the spanish ibex is up 0.4%. let's bring you that china story. the mainland remains closed for the lunar new year holidays but hong kong has reopened for the first time and you are seeing solid gains. 4% was the upside of how that closed, again the big tech companies named in china. the pickup and demand for travel as well as for box office numbers coming out strongly in china, all of that feeding into the optimism. futures in the u.s. pointing higher, euro-dollar at 1.09. they're closing in at a nine-month low and the diversions between central

banks. in terms of the two year, the 10 year gilt, looking at the service in the u.k. and the repricing of the markets, the repricing and expecting a rate cut from the bank of england by the end of this year. just a two basis move on the benchmark in the u.k. let's get over to valerie tytel. you have been looking at u.s. stocks and how they are lagging behind global equities despite s&p has had the best start to the year since 2019. valerie: i have got a chart showing the performance. the one in purple is the s&p 500 up 1.6%, but when you compare it to the euro stoxx 600, 4.1%. and the msci asia pacific indexes up almost 9% for the year.

the correlation is breaking down. meaning on days that the s&p is faltering, em stocks continue to do well. that is a bullish signal. a lot of this is driven by the china reopening narrative, the dollar softening especially as we are pricing fed cuts later this year, but when it comes to the big emerging economies, they are pricing cuts themselves. latin america, especially. it will be one of the first to cut and ease back to neutral especially when it comes to brazil and mexico. one year out, we are pricing in one hundred basis point cuts, and those have performed decently against the dollar, rallying 3% this year. tom: thank you on the divergence between u.s. and em. we have great guests in the studio to break down the big market themes. in north america, a big hall of data from the u.s. this afternoon with the latest reading of gdp and the debate

that continues over whether or not the u.s. ends up in a recession. let's bring in bilal hafeez, macro hive's ceo and head of research. also here is bloomberg's kristine aquino. kristine, let's start with the macro and i want to bring in valerie's conversation of diversions between the u.s. and the rest of the world. we have the bank of canada, one of the major central banks to be the first out of the gate in signaling and flagging a positive in rates. to what extent is the bank of canada a template for other central banks? kristine: it is very interesting. it is something other central bankers are watching closely, including the federal reserve, but we have known from officials commenting over the last couple of weeks that they are very steadfast and at least maintaining that they need to keep rates higher for longer even if they do pause. that is an important caveat for

investors to remember. a positive not mean a pivot to rate cuts immediately, although we have seen signs of market pricing for that sort of scenario. generally, policymakers will be key to emphasize that just because they are pausing does not mean they will be turning to rate cuts anytime soon. tom: in the gdp data coming out later today. what are we getting in terms of clarity on the health of the u.s. economy and whether the fed is prepared to look through a slowdown or if they will link? kristine: again, economists will be looking for more signs of that concerted signal pointing toward a slow down, if we are going to get one. issue at the moment is we are seeing mixed signals from the u.s. economy. we are seeing that slowdown in housing and manufacturing, but the jobs market is still robust, particularly in terms of factory employment. it does not feel like an economy that is hurtling towards a slowdown that is deep and long,

but it could be something short and shallow as some optimists are hoping for at this point. tom: jp morgan's kolanovic saying that he was a bow throughout last year, and he has changed position. he says the fundamentals are clashing with the rally we have seen. economic data that we are going to be in it recessions in the u.s. as the optimism in equities overdone? bilal: it is the issue of timing. for now, the optimism is well-placed, largely because of the china rebound. i would chase the rally for asia stocks are em stocks and that would drag the western stocks up as well. the other factor that has helped stocks is the declining body as well, so at some point that turns up and it will cause the rally to unravel. tom: the other big story is earnings and we are seeing that reflected in st micro.

just one example and sap also better, diageo better, volvo trucks was a mess, and tesla. a lot to go and we are just on the fringe of this season so far, but what is your take on this season when it comes to the earnings picture? are you starting to purge addition for a downgrade in the earnings recession, or is it more resilient? bilal: to some extent it captures the mood of the market right now which is that current data is solid. but the outlook is generally quite negative. the outlook for these companies come all of them are saying there is trouble ahead, so everyone is waiting for the big recession to happen. i do think it will happen, it will be deeper and harder than most people think, and it will be later in the year. tom: deeper and harder a recession then some may think. when it comes to the yield question, and kristine i want to bring you back in terms of the dollar, because we have had that move into bonds.

the impact and importance of softer dollar as you look at the nine low for the greenback, is there a sense that this is the trajectory for the greenback, or is the return coming? kristine: there was definitely a conclusion at the end of last year that the dollar's best gains are behind it. if you are a buyer of that theory, that the federal reserve is ending -- nearing the end of its rate hiking cycle, that is one reason to pull back on the dollar, especially when you take a look at the equation for other central banks. if the fed is pausing, this is a time for them to catch up and pick up on the rate hikes. the issue is that the room with which other central banks have to work with and talking specifically about the u.k. and the ecb as well, they are still battling very high inflation, but at the same time they are still conscious of the impact of further rate hikes. on the economy. . the u.k.'s in particular, the

bank of england has guided us towards expecting less rather than more in the way of rate hikes. with the pound, it does not have that much of a fill up even if we have a weak dollar as a supporting factor. tom: bilal, you are short the pound and you want to buy the aussie day -- aussie dollar. explain that. bilal: the bank of england is trying to be dovish, so we have this tough situation where they want to cut, the data is terrible, but -- so they are almost in stagflationary environment, which is bad for the pound. meanwhile australia, the market is not pricing much hikes going forward and at the same time the economy is robust. you have got the china narrative as well, so you have got two economies at different stages, one with a central bank that desperately wants to cuts and the other one the other way around where the market is underestimating the potential hikes.

that is one of the best relative value trades out there. tom: when it comes to euro-dollar, and that is gaining 14% since september, that comes back from the diversions and whether we get back to parity. we have had this debate in the public from ecb governing members between the hawks and doves. who has the upper hand? kristine: it is going to be something to watch. there is tension between lagarde and the rest of the ecb governing council, and she is very much in this position where she has to talk what the ecb has to do, the fact they still have a lot of work left to do in terms of tackling inflation. but then it will boil down to whether she can bring some of the skeptics in the governing council to her side. it is going to be interesting to watch. we will hear from them next week. i will be watching as well for that dynamic between the governing council members, a bit of that body language, and what we hear from them in regard of

unity in the governing council when it comes to tackling still high inflation. tom: bilal, european stocks versus u.s., where do you stand? where do you need to reposition for the u.s.? bilal: the timing and fading of europe is one the growth data trends down. had a terrible run toward the end of last year and it is stabilizing. as long as that is the case, they should do well. tom: bilal hafeez, the macro hive ceo and head of research, and bloomberg's kristine aquino. coming up, tesla reports better than expected profits in the latest quarter. it is on track to deliver 1.8 million vehicles this year. more details on that story next. this is bloomberg. ♪

tom: come back to the open. we are 14 minutes into the european trade day. risk on across the equity markets following the bank of canada potentially pausing rate hikes. a potential bit of optimism and gangbusters gains for hong kong stocks on the back of the first day of trading after the lunar new year, particularly pronounced around china's to correct -- china's tech companies listed in hong kong. tesla reported better-than-expected profits in the latest quarter even as it gained mixed signals on the outlook for growth in vehicle deliveries. >> it was a smooth year, without some big supply chain disruptions or massive problems. we have the potential to do to million cars this year. that is the potential. tom: for more, we are joined by

stefan nichola. what are the key takeaways from this earnings quarter for tesla and what we heard from musk? >> we have heard him just right now. tesla is predicting 1.8 million deliveries this year. it is not quite the 50% delivery growth the company wants to have each year, but it is a decent number and it puts to bed some of the demand concerns that were swirling around late last year. tesla, lower prices for some of its cars across many markets. that is expected to prop up demands. at the same time, elon musk has sounded more cautious. he cited inflation high, interest rates, force majeure events that have played production the last year, so while elon musk was not as bullish as he used to be, certainly demand is looking decent. tom: demand still holding up.

today's big take is china cars primed to conquer the global market. when i was in tesla, i remember testing out some of their cars. what can you tell us about the competition coming from china and the potential threat to berlin and germany? stefan: quite a big story and chinese exports have tripled in the past two years to more than 2.5 million cars. that is already more than the u.s. sales abroad and it is just behind germany, another major exporter. some of the chinese carmakers are already leading in the mideast and latin america. they are getting more ambitious selling vehicles abroad and we also have western carmakers, bmw, tesla, volvo, producing in china and sending their cars abroad, but the increased bullishness of local chinese carmakers sending their vehicles into europe and the u.s., that

is certainly spreading concerns with the european and u.s. auto executives. tom: meanwhile in the u.k., it pains me to say this, but there has been an almost inevitable decline in the u.k. auto sector. we are reminded of that again in terms of what is shrinking. what are the underlying causes the malaise in the u.k.? annabelle: -- stefan: unfortunately, the u.k.'s auto sector is suffering. it started with brexit and a lot of investments not happening, input on hold. in the past years, two major factories have closed. we just saw the failure of a factory once the u.k.'s best hope for a battery giant sold off. all of that combined puts the u.k. auto sector one step behind its competitors. cars are getting -- calls are

getting louder by the day that the u.k. government needs to do something to bolster its automotive industry. tom: once again, more evidence of the brexit damage. stefan nicola, thank you for breaking down the tesla results and the broader look at the global auto industry. coming up, the u.s. has confirmed it is joining germany in sending more battle tanks to help ukraine counter russian forces. plenty more on that. this is bloomberg. ♪

>> i have been saying this for a long time. the expectation on russia's that we will break, we are not united, but we are thoroughly and totally united. tom: president biden on the importance of keeping nato leaders unified after washington's decision to send ukraine 31 of its air one abrams that'll tanks. let's bring in -- abrams battle tanks. let's bring in rebecca to williams for more details on this. why the quick reversal in u.s. policy? they say that this is too difficult to maintain the battlefield. is this all about the politics of nato? rebecca: absolutely. as of last week, the u.s. is insisting that these tanks were

not really the most appropriate to be sending into ukraine at this moment. we have seen a very certain pivot and it ultimately looks like it rests on germany's stipulation, its insistence, if you will, that it was not going to send tanks, it's leopard tanks, unless the other nato allies including the u.s. also sent their own. it is seen as a quick reversal. it seems to be based off the back of that ultimatum by germany, and sources say there was acute frustration on the u.s. side about germany's stubbornness and in move ability on this issue. biden, now as you say, absolutely reaffirming and prioritizing native unity above and beyond perhaps even his former comments about the appropriateness of the u.s. battle tanks that are now going in, all 31 of them. ultimately, it is a big win for

president zelenskyy. it has been a long-standing issue. has asked for more of these battle tanks in particular. we saw that as far back as december, his christmas statement as a plea, and he is part of this broader pattern we have seen from nato where there is one member that is perhaps more hesitant and not wanting to commit as far and the others having to step in line to show this agreement. part of that is reaffirming nato's unity, particularly because the perception of nato as fractured, which in some ways, all of these issues are strategic and leading up to russia's invasion. ambiguity is the last thing that biden and nato want right now. tom: rate context and great analysis. bloomberg's rebecca choong wilkins on the decision from u.s. and germany to send tanks into ukraine. let's get the bloomberg business flash with laura wright. laura: the change at the top of

the world's biggest carmaker. toyota is emoting the lexus president to become group ceo. his job will be to guide the japanese company through the challenges of electrification and automation. the bank of canada has raised interest rates for an eighth consecutive time at 4.5 percent. policymakers say they expect them to hold the rates at its current level. the bank's governor says it is too early to talk about rate cuts. shares in at&t jumped after the u.s. company reported better than projected earnings. the move followed fourth-quarter profits of $.61 a share. analysts had penciled in 56 c ents. however, it came up short on earnings and free clash flowed -- free cash flow. boeing has disciplined with its sixth loss in a row for the last

quarter. the ceo told staff that more work is needed to stabilize operations and supply chains. that is the bloomberg business flash. tom: laura wright in london, thank you very much. we are on the fringes of the earnings season and those numbers are coming through. let's check in with a couple of companies that have reported. st micro is up 8.5%. first quarter net revenue for the france based ship -- chipmaker, the forecast beating estimates. they now see net revenue of more than 4.2 billion u.s. dollars. investors rewarding that company on the back of that upbeat forecast and suggesting that something prevails in the semi conductor industry. volvo trucks are down a little over 3%. it was a miss in terms of fourth-quarter profits and investors say they expect these stoppages to have extra cost in truck productions continuing this year.

apply team constraints are major headwinds for that company. when it comes to diageo, it was a beat in terms of the forecast. sales rising more than expected in the second half and they expect the resilience in high end brands will continue. nonetheless, the stock is down 4.3%. coming up, do not miss our exclusive interview with the ceo of the hongkong and shanghai hotels and what the reopening of china will mean for that broader business. stay with us. this is bloomberg. ♪

tom: welcome back to the open. we are 30 minutes into the european trading day and here are your top stories. tesla's profit beats estimates and ceo elon musk pledges to

accelerate outlook. shares jump in after hours trading. president biden commits to sending advanced tanks to ukraine as part of a broad allied effort support kyiv in its fight against russia. plus, diageo shares slumped after the drink maker raises concerns about johnny walker sales in the u.s., but ceo is upbeat on china. >> the chinese consumer will come back. rounds are well-positioned, high end scotch and baidu, so we are confident about the recovery of china. tom: the diageo ceo on the opportunities in china, even as some concerns come through around the edges when it comes to the u.s. part of that business. the earnings are being digested by the markets and investors. it was positive in terms of topline for diageo and for the likes of sap.

st micro rallying strongly comes all of that is playing into the mix. the bank of canada is flagging a pause in rate hikes. to what extent is that a template for other central banks? the european benchmark gaining 0.6 percent. hong kong coming back with some force, specifically on the hstech index above 2% as those markets reopen for the first time after the lunar new year holiday. optimism in terms of what they are seeing for travel and activity as borders reopen and those covid restrictions crumble. the ftse 100 gaining 21 points. the business survey index in terms of sentiment out of the u.k. pointing to the worst picture since the financial crisis. it's look at how things are playing out across sectors. last i checked, financial services of the top of the list and that remains the case. yields have come off a little bit along with the u.s. curve. technology gaining strongly as well, a little over 1%.

at the bottom of the list, two sectors in the red. let's talk about what is happening in terms of the market impact in the hong kong and china mainland about the covid restrictions being lifted. the lifting has been welcomed by the global travel sector as it heralds the return of the lucrative chinese traveler. the hong kong and shanghai hotels group is one company hoping to cash in as it opens its latest property in central london. we are now joined by the ceo of hongkong and shanghai hotels, clement kwok. the reopening has not happened yet, but it will happen. you have got one lined up in turkey as well. yes, we have the impact of the all-important chinese traveler, but then we are facing recession concerns in the u.k., europe and the u.s. any regrets about the investments you are putting into this luxury hotel spaces and the u.k.?

clement: good morning. the first to say is that we are a long-term owner when it comes to operating hotels. within the 100 year horizon, you know there will be ups and downs. need to have the staying power to get through those downs and we know that, so we are always prepared for that. it is great when you're seeing a good market, but our investment is there to stay. in the case of london, people know it is a large investment for us. we found an incredible location to build a flagship hotel, and that investment will be paid back over a long people have time. the focus now is not on short-term return but i'm quality and the quality of the spaces we create and the service we provide. tom: with the quality comes the price tag, about 1000 pounds for a night. it kind of customers are you looking to attract -- what kind of customers are you looking to attract? clement: we are looking at value for money. we put a lot in terms of design

and the specifications in the rooms and the service standards we provide as well. obviously, the customers will be an affluent crowd, but one thing i want to make we're is when we build hotels, we are not trying to serve just the affluent foreign traveler, but we want the hotel to be part of the local community as well. we have this big lobby that is going to welcome locals. we have a cafe and boutique that many locals will hopefully commend use, as well as the ballrooms for banquets and other -- locals will hopefully come and use, as well as the ballrooms for banquets and other activities. tom: talk to us about the branded residence and because of your prime location, you have the branded residence. have heard from ken griffin that has bought 100 million -- i do not know if you can confirm that, but these are some of the most expensive properties in london. how much demand is therefore those properties? clement: we cannot comment on

the identity of the buyers, but we have sold 70% of the branded residences, and what we offer there are the facilities which are specific to the residences, the apartments themselves, but also full access to the hotel as well. what we are bringing to the residences is the same level of attention to detail that we bring in building a hotel. what the buyers are looking for is peninsula property but within their own residence, which is owned by them. tom: is that above target? how confident are you going to get to 100%? clement: that is our plan so far, the critical result, especially when you think we have been through covid and an economic downturn as well. that is a good testimony to our brands that we have so many. tom: let's step back from the particular story around the peninsula in london. your business is 24 hour hotels, you have investment properties around the world.

what is your expectation around that demand more broadly for your business from the reopening of the border of hong kong and mainland china? clement: we have 10 operating peninsula hotels and they are all operating in gateway cities around the world. we focus on quality rather than quantity, but nonetheless, that is enough for us to see the trends around the world because we have hotels in north america, europe, paris, and asia. what we saw last year was that there was a strong recovery in the u.s. and also paris when travel resumed. that resumption has been later in asia because everything opened up later, but we see in japan a great resurgence since october when the restrictions were lifted. now we are seeing that in china and we are already seeing some recovery in demand in the closer markets, hong kong, japan. there is a very large pent-up demand from the chinese for

travel as well, and we are expecting to see that too. there is 1.i want to make witches is that china has become -- one point i want to make which is that china has become a factor of domestic demand. tom: we have seen this within the luxury good space as well. do you expect it to remain resilient as we way out those recession concerns, or will you get a pullback even at the top end? clement: when you think of the affluence and affordability of developed markets like the u.s., like your country, like europe, that demand is there to stay, because once income reaches a certain level and wealth is created, there is clearly the demand for luxury. our job is to provide the right product in order to capture that demand. tom: when does it open?

give us the date for london. clement: it will be later this year. there are still technical problems to overcome, but we are looking forward to the opening. tom: thank you for coming into the studio. clement kwok, ceo of hongkong and shanghai hotels on the details of their opening in london. sticking with luxury companies, lvmh has become europe's first company to reach a market cap of $4 billion. they posted their full-year earnings tonight after the markets closed. there has also been speculation about billionaire arnaud's succession plans. >> there is no better place than the french riviera to talk about luxury and its biggest empire, lvmh. the group's fashion brands are regulars on the red carpet along

with bulgari and shall may. where champagnes are often flowing behind the scenes. in total, lvmh calls 75 luxury brands. arnault became the richest man in the world last month after a long must's the net worth tumbled. the company lifted the maximum age of its ceo. over the past few years, he has been carefully crafting his accession plan, slowly elevating his five children to bigger roles. his only daughter has just been named ceo of the cutera brand dior. his eldest son now runs the christian family holding, which controls lvmh.

alexandre is running tiffany, which is worth $16 billion in the most profitable m&a deal. then you have frederic who runs tag hauer. all five of the billionaire's heirs are dying to take over their dad's luxury empire. incidentally, europe's most valuable company. tom: bloomberg's caroline connan on the expansion and succession plans around the owners of lvmh. coming up, adani refutes allegations in what they call a maliciously mischievous report by shortselling hindenburg. more on that next. this is bloomberg. ♪ ver to■ get your projects done right.

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tom: welcome back to the open. we are 44 minutes into the european trading day. gains of 0.6% across the benchmark. in the u.k., the ftse 100 up 0.3%. the futures also in the u.s. pointing higher, nasdaq futures up 0.6%. the bloomberg dollar index is down again. let's get back to huge story and

controversy around india's major conglomerate. adani group is exploring legal action against u.s. short seller engine bird research after it accused adani group of accounting fraud. adani group says the report was maliciously mischievous and not researched. emme bryant joins us now for the details. give us the latest. >> there is a lot of pushback coming from the adani side, which is probably not unexpected. of course, this report from hindenburg, which is not the average shortselling, they do have credence, some of the scouts they have claimed. nicola, the each track maker, for example. they are very sensitive and concerned about the impact of this, particularly on the follow on shares sale that they have just embarked on and luring

investors for. the timing does not look good for them, which explains this full throated pushback. it has been a broad rush thus far. they have not gotten into the specific allegations that have been raised in the very long and detailed hindenburg report, but that could come given the way they have responded to criticism in the past. tom: and you touted this, or at least had a nod to this is in terms of the entry and timing with the shares sale. how much should we read into that, and we expect further details and even more robust response from adani going forward above and beyond the legal action? emma: yes. i think they will potentially try to address some of the specific allegations raised, particularly if we see more from hindenburg, if they do signal this is a long-term target that they are going to keep hitting at.

the company, the research firm, rather, has said it has taken short positions in unspecified u.s. instruments of the adani group, not anything traded in india. and we have reporting today that it is unlikely to affect sentiment in the middle east at least from the retailer business side to this follow on shares sale that adani is embarking on. it might have an impact, and i am just speculating, is on some of those bigger middle eastern investors that have committed to this shares sale. at the moment, they are staying mom -- mum. tom: this story has more to run and i know you on the team will have the latest on the developments. emma o'brien on adani and the proposed legal action from hindenburg research. let's get the first word news. laura: the u.s. has confirmed that it is joining germany and

sending tanks to help ukraine repelling russian forces in the east. washington's decision follows a broader trend of allies giving key of increasingly powerful weapons. the first batch of tanks from germany could arrive within three months. meta says it is reinstating former president donald trump's facebook and instagram accounts following a two year suspension. trump was banned after the company deemed that some of his posts had encouraged supporters to invade the u.s. capital in january 2021. meta now says they don't want to get in the way of open debate and that trump will face tougher penalties for any offenses. according to a survey of accountants, u.k. business confidence confidence is at its lowest level since the global financial crisis amid recession fears and persistently high inflation. companies in the retail, property, and manufacturing sectors were particularly downbeat. separate data showed carmakers in the u.k. had their worst year since 1956. the global chip shortage and the closure of key factories

hammered output in 2022, leaving it well below pre-pandemic levels. global smartphone shipments suffered their biggest drop on record. or pain for shipment hubs like south korea and vietnam. turmoil in apple's main chinese production base may have been a contributing factor. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom. tom: laura wright, thank you. let's check in on some of the movers for you. diageo, the world's largest drinks maker, down 3.4%. this is on concerns around the top run they beat their last quarter results, but it is around concerns of a slowdown in the north america part of their

business. analysts say that could be a drag for the rest of the year and the stock is down. that is putting the rest of that sector down as well. st micro came out with a solid beat and you can see the stock is rallying on the back of that. the guidance beat the average analyst estimates. they're not forward is well above the estimates of $3.8 billion. volvo, the truck company, has had earnings with a miss. there's supply chain pressures continue into 2023, currently down three point -- 320%. last week's wall street mayhem was triggered by human error. more details on how that unfolded. this is bloomberg. ♪

tom: welcome back to the open. 53 minutes into your european trading day. european stocks are up about 0.5%. chinese tech stocks listed in the jurisdiction rallying more than 4%, enthusiasm around the reopening trade continues. the mainland remains closed. u.s. futures also point higher. talking of the u.s., the new york stock exchange has an manual error for the wild price swings and trading halls in

tuesday's market open. joining us now is tom metcalf. what do we know at this point? there is intrigue about what happened at this event, the likes of wells fargo and mcdonald's moving as much as 20% in the open. what happened? >> there is a very monday and explanation. every day, the new york stock exchange at the end of the day will reset its systems in its disaster recovery data center. unfortunately, someone did not do that. the next morning, 9:30 came along, and the market basically did not realize it was 9:30, so it took no care of opening prices. there were massive jumps, lots of volatility, hence all of the chaos. very embarrassing, and i imagine a few people at the new york stock exchange had a very bad start. tom: some guy or gal in chicago had a pretty terrible tuesday or

wednesday. how is it possible that a sophisticated exchange like this can come down and be hit by a single human error? >> that is exactly what regulators are going to be asking. they expect there to be redundancies, it sounds like the end of something which is pretty terrifying given the current reports. if just one person forgets that at the end of the workday. we will do whatever we can to make trip does not happen again, according to the stock exchange. tom: talking of regulators, this is a stories in the financial times, morgan stanley finding some of its bankers over convicting -- conducting business on whatsapp. have talked about how some of these regulators have been hit by fines by regulators and now we are seeing it hit on employees. >> you see a few instances of

banks coming in and cut executive pay for this morgan and deutsche bank, but this seems to be much more widespread. bankers on the front line and they are seeing those bonuses for 2021 starting to be clawed back in various ways. tom: you have to wonder if morgan stanley is setting a model for other banks to do the same. tom metcalf, thank you very much on the nyse saga and this story in the financial times about morgan stanley and its callbacks. let's check on some of the individual stocks once again. across the broader market, gains of 1.5% across the european market, the enthusiasm coming through after the lunar new year holiday is in hong kong, and the earnings as well. st micro based in france coming through with strong results. the read across for the broader semi conductor chip industry, asml was also a beat, gains of with an 8% for st micro.

volvo trucks have been hit badly by supply chain constraints and they do not think that will completely reset this year, so that damaged the stock today. diageo, it was a top line beat for the drinks maker, but there is concern for its north america business. we were speaking to the ceo earlier in bloomberg tv live programming. get you a recap of what will be happening coming up. "surveillance: early edition" is up next and we will have the u.k. special, so stay focused and with us for that. the ftse 100 currently gaining 0.3%, dropping to the lowest levels since the financial crisis. stay with us. this is bloomberg. ♪

this is bloomberg surveillance early addition with francine lacqua. >> good morning and welcome to bloomberg surveillan