tv Bloomberg Markets European Close Bloomberg March 30, 2023 11:00am-12:00pm EDT
guy: the 30th of march, european stocks tracking higher, inflation tracking lower. headline inflation tracking lower sharply. is europe in a very different place than the united states it if so, how do you invest around that? countdown to the close starts right now. >> the countdown is on in europe. this is bloomberg markets "european" co-with guy johnson and -- european close," with guy johnson and alix steel.
guy: so, let's talk about where we are with european stocks at the end of the day, this thursday, european stocks trading up by another 1% with retail doing well. there's a yield story in there with technology doing well. a place to hide out as yields come low. we do have an inflation issue to focus on as well. german inflation has come down at the headline level. that's not the core story at this point, we will get core inflation data tomorrow, but from spain the headline number comes down quite sharply. the core number stays much more sticky. what is interesting is the european banking sector may not see the kind of outflow we are seeing in the united states, setting us up for maybe a different narrative.
let's talk a little bit about vestas. before the break we mentioned what was happening any sustainability story. they are actually front and center and today getting their biggest order ever for wind turbines. the stock responding positively to that. alix: i love that you brought up end of the quarter. s&p is sitting at the 50 day moving average and i wonder how much of a clean read that's going to be or does it flow into the end of the quarter on the technical level? egging beneath the surface, charles schwab is the worst performing stock on the s&p getting a downgrade from morgan stanley saying profitability was lower by 30% of this year. people staying with charles schwab, losing a lot of the low fee deposits. it's a big probability problem. is that the same for the regionals and does it feedthrough to the underlying economy? if you like that's the question
we are all trying to grapple with. now bed bath, that's just a fun story. they said today yeah we are probably going to go bankrupt i bring it up because carnival is one of the top performing stocks in the s&p. so there are still some company stories with difficulty. consumer stocks, like h&m, are doing well. carnival with its second upgrade in about two days. i don't know how much of this will be positioning at the end of the quarter but 412 is where we are on the two-year, guy. guy: yeah, end of the day, stoxx 600 is up over 7%. do we have an economic problem? through the filter of the stock market, maybe not. how can you have this doom and gloom scenario with the possibility of cuts if we had stocks performing the way they are. another thing worth bearing in mind here is if europe doesn't
have the same banking crisis we are seeing over in the united states right now, is that a reason to buy european stocks? nevertheless, we are seeing a lower deposit meter with money not flowing out of the banking sector the way it is in the united states. is that a reason maybe to see european stocks outperforming? it's an interesting question and i think a lot of people will grapple with it through the beginning of next quarter. alix: at the same time, euro-dollar cannot break above 110. there are other problems around proximity that provide some clouds for europe. it's confusing to parse. we haven't seen those deposit outflows happening and others, they are not convinced we are going to see a real rally in european equities. they spoke about this earlier at the conference in washington, d.c. >> there is uncertainty about what the financial turbulence
means in the euro area. overall at this point i would say that it looks like we have a somewhat smaller problem than we are seeing in the u.s. so at least so far it looks as if our banks were actually quite resilient. guy: bringing us to our question of the day. if europe doesn't have the same banking crisis or outflows, does that mean maybe you want to allocate more to europe? joining us now, simon and justine. in the united states the argument has gone from the dead going basically hiking and holding and then cutting. the credit crisis, potentially headed for a credit crunch, meaning the markets can take up a little bit. going from hikes to cuts. if europe doesn't have the same credit crunch, do we go from hikes to cuts or do we go to
hikes, hold for longer and cut later? and if so, what are the european assets held in that? simon: a very good question that i think will be influenced by what the fed does. europe is behind the curve with a sticky inflation problem. you are discussing core cpi problem -- numbers but they haven't done as much as the fed so far. they are more likely to go to hold rates slightly longer than the fed might and they will not return quite as fast. but that is just because they are at a lower rate to begin with. europe, a lot of the optimism lately has been based on soft data. we just had pmi numbers. they could vanish quite quickly. the hard data in europe is still very negative and leading indicators are still pointing quite firmly there. you mentioned deposit data and money growth structured differently compared to the u.s.
, but it is still heading in the same direction. monetary contraction based on what's happening. alix: part of the fed taking the foot off the gas is the banking crisis in the u.s., not sudden inflation. if we don't have that as acute in europe, is there a solid case to be made if you put your money in developed equities in europe? >> we have seen a bounce in european equities lately. suddenly we are no longer freaking out about a full-blown financial crisis but i think it depends on whether you are thinking about euro versus the u.s., right? the relative performance is the u.s. has bounced back a little bit because of that latest bounce back in equities that was led by big tech and growth stocks, favoring american markets. guy: basically you don't buy europe because it doesn't have tech and tech is the place to hide out. but they do have luxury. so is there a broader appeal to
europe rather than simply buying tech? which some people have questioned this whole story about tech being a safe haven related to the fact that yields are coming down. maybe that doesn't work. maybe europe offers more greater diversity. justina: yeah i think what they really need is for cyclical growth to not roll off a cliff. at the end of the day the entire position of the european market tends to be more cyclical. it benefits from the china reopening story. from people realizing that we are not in a recession just yet. economic data worsening. people thinking about that purely just on an interest rate story. alix: simon, no matter the underlying risks or economic fundamentals, i keep being amazed by the foam of in the market. the dip rotates from different asset classes.
simon, why is that? simon: the equity markets, yeah, they are always kind of a glass half-full. i think it's the path of least resistance when heck -- equities are always higher. in the absence of bad things that's enough for it to rally. it kind of takes a lot to turn it lower. it's a natural state of play for equities. i think that the credit contraction we are talking about will catch up with them eventually. but the timing on that and telling you when it's going to happen is a tricky question. guy: the other aspect to this of course is the currency overlay. simon talking about the potential of the ecb to go longer, but it doesn't have the same banking crisis so it may hold for longer as well. if we see the euro above 110 and struggling, is that a headwind or tailwind at this point for europe? justina: it does tend to be bad
news as european equities rely on overseas exposures. if you translate that back into euros, it doesn't look good. in general it's not great news but it depends on which stocks you are talking about. but we are kind of seeing in the derivatives market pricing in a new rate hike in the u.s. where the rate ends up at the end of the year higher than where we are now and the cpi data coming out of germany and spain, with cpi looking so sickly high, it reinforces that. alix: again that makes it ahead scratcher that we are not above 110. thanks a lot. good conversation. simon, justina, thank you for joining. if europe doesn't have a banking crisis, do you by its stocks? rebecca chess worth joins us next. this is bloomberg. ♪
>> it is harder to trade. transaction crossed -- costs are increasing. it makes everybody more cautious, i believe. if you can't rely on the fundamental analysis and position yourself where the market seems to be much more volatile and often going in the other direction. guy: tatyana is the cohead of public markets, speaking earlier this morning on bloomberg. if europe doesn't have a baking crisis, is that good for europe?
if the u.s. does have one, does that accelerate recession, which could be bad for stocks? rebecca chesworth joins us here in london to try to answer that question. the u.s. is definitely in danger of having a bank-induced credit crunch. that's the fear now. we heard earlier from the ecb saying that you are not seeing the same level of deposit outflow in europe and therefore things might be more stable. do you allocate on the basis of that? if europe is in a better place and doesn't have the recession the u.s. does, does that mean you want to own u.s. stocks? rebecca: before the banking crisis, calling it crisis though i know many of us are trying to dumb it down, before that investors definitely wanted to own europe this year. they had seen the outlook for the economy improve. we had seen it feedthrough to earnings upgrades we hadn't seen
elsewhere when we thought about valuations. fast forward over the last couple of weeks and as you say the european situation seems more comfortable. it's still not great, but more comfortable and can be lived with. so in the u.s. it feels like the regulations around banks will be wrapped up and therefore their lending patterns will slow and there will be much more to impact the u.s. economy then will happen in europe. the other thing i think is that whenever we get a crisis, we forget about things. what are the things we have forgotten about now? china reopening, probably better for european companies more. we have forgot about the u.s. that crisis, which i know your team is all over and is something that we will come back and possibly demand more of a discount to the rates we see in the u.s. and in the future. yes, i think that europe is the better place to be. alix: if that's the case and we
go to the fx market as a proxy, why can't europe break out at 110? there's still an energy crisis that is felt more acutely with a close proximity? does that explain it? rebecca: well, i think there's a lot going on. normally in a situation with stress or a crisis, everyone goes to the dollar has the safer of the currencies. as to the earlier question, if the u.s. is in a more difficult position and is causing that stress, people won't want to go to the dollar. there is so much bubbling that you are not seeing the breakout you might you normally. too much at play and to be frank we are seeing views changing every day. guy: in theory europe has a lot of what you would consider to be defensive stocks. consumer staples, health care industry. yet the market is not flocking to those areas for safety. it is flocking to tech and if you want to flock to tech, you go case for
europe? rebecca: there's plenty to go for in europe. you are right that the tech sector is smaller but at health care you get that sustainable growth. more and more are asking about that and we have got some of our big industrial players who stand to gain from infrastructure spending from the government, cleaning out clean power infrastructure buildings. i really do think we have some great companies out there and we need to be more open-minded. alix: to that point, wouldn't that be even more so in the u.s.? european companies are diverting to the u.s. because of the ira. rebecca: you are right. that ira has caught the headlines, hasn't it? and then the obvious thing is to look at the u.s. but we know that europe is fighting back. they have their own bill, the new energy bill. we know the u.k., as discussed in parliament as well, if there should be more infrastructure
spending. there is an opportunity for that on both sides of the atlantic. guy: so, what do you do? how do you position right now? attentional credit crunch coming in the united states. a potential for rates to go higher in europe, definitely slowing down the economy. what do i want to do? a lot of people are moving money into money market funds because they don't know what the picture will look like in the next few months. how defensive should you get at this point? allocate equities? what to do with my bond portfolio? rebecca: the cash side is positive and that is reassuring clients. reassuring them that the cash is there. the money market funds, the cash equivalent fund, in the short duration treasury bills are out there. so that's a good thing. so, maybe they think about banks. maybe they think about it in a broader european context, the financial sector.
sectors that haven't been affected by the crisis. maybe as you say they start to think more about sustainable growth areas like health care. areas that could benefit from chinese investment in industrials with consumer discretionary stocks. alix: in some ways, luxury stocks have never been this pricey relative to the broader market. how much are those things already priced? rebecca: somewhat at the moment but we have a market that goes to extremes and if we do see earnings change, relative earnings growth, and quite often you can see more in narrating. you asked about tech, you could say the tech benefits were largely in the price. i think it depends on that investor sentiment, how far they let the ratings discrepancies rise. guy: all right, -- alix: all right, right rebecca -- all
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guy: let's carry on the conversation about what's happening in european banking. earlier the report was that swiss officials were in favor of ubs bringing in an experienced executive to handle the takeover of credit suisse. talking here about a long-standing ceo of the former ubs chairman. now they are backing up a bit saying that the board decided on the change without influence from regulators. our managing editor at -- joins us now to discuss this. why was he seen as the right leader for this moment? >> the experience that he had at ubs bringing it through regularly -- regulation is why
regulators i think work in favor of bringing someone like that in and why the ubs board ultimately went with it. yesterday they talk about how he was the better force for this. he has done something like this before. not to this scale. moving ubs towards wealth management in the early part of the last decade, shrinking the investment bank, it's something he will have to do here. i think it gave both regulators and the board some comfort. alix: definitely. michael, good to see you. talking about the differences between the banking sector in europe and the u.s., here in the u.s. we are looking at the fbi see potentially tapping some of its biggest banks. like when you own an apartment, there is an assessment, everyone pays the equal amount. but in this case it's the big guys on the hook. looking at how many billions
here? why are they thinking about this? michael: well you know it always falls to the banks to replenish that fund and the big angst usually have a bigger share just based on their size. but the special assessments can skew that even more towards the bigger banks. often that's politically more palatable. they are coming off the period of high profits and this case says they really benefit from the safety of the ftse backing and we have seen deposits flowing their way in the last few weeks. that may be behind this move. alix: at the same time, talking about wall street, looks like dealmaking is hitting bonuses. we knew it was coming but now we have some numbers about this? michael: yeah from last year we thought the slowdown in deals
was weighing on pay across the board. particularly in the investment banking world. trading was held up a little bit better, but we are seeing it in this tax data as well. alix: michael, thanks a lot. michael moore joining us. all right, we are what, just a few minutes from the close? guy: yeah, few minutes to go, let's talk about where we are right now. key companies we have been watching, i focused on this earlier, the company that went through some turbulent times in terms of its pricing structure but now is coming through that and getting a really positive picture developing from the flow side of things. the top line really beginning to move. the company just received its biggest order ever, biggest order ever for wind turbines. speaking to the push that is being made in terms of the renewables story developing in the u.s. and in europe. it's going to be interesting to see just how much we ultimately
see. there is the big gap from earlier this morning with the stock trading to the upside. talking a bit more about phillip morris, jp morgan has a nice note earlier on about the supply chain issues starting to come through. this company has actually delivered ok top line, even during the time of the surprise -- supply crunch. you could see this top line potentially moving even more. let's conclude to talk about what's happening at h&m. it is again an issue of supply chain inventory. a cracking set of numbers from earlier on. the reason for that, obviously not the only reason, but this company dealt with and is dealing with a lot of the inventory challenges it has faced and the real question going forward is what is the consumer demand picture going to look like and you saw some data today certainly suggesting the european consumer is beginning
guy: so, european stocks continue to push higher off the recent lows. driven by a bounce back and real estate, technology continues to do well. in terms of the picture across europe, the ftse is up by seven pence of 1%. switzerland is only up by six tenants of 1%. we should show you the session to show you where we have been. moving higher first thing in the morning. then relatively tight as we head to the u.s. open and we picked
up off the back of that, as we say. end of the month, and of the quarter, sorry, up by a certain percent. in terms of what is driving it today, single stocks are coming back to the earnings story, increasingly giving us that single stock story. retail has been driven by what's happening today. real estate, 80 run -- 81 around town, the bounce back is continuing. technology doing well. utilities are up. the bank rally continues in europe. food and beverage, it the defensive and. people keep saying to get into defensive but that the pet -- defensive is what keeps performing and health care with the weakness lying there in terms of the equity market performance. giving you an idea of what's happening here, i've already mentioned investment. massive order already coming
through for investors. this just paints a different picture of the orders coming through in a substantial fashion. the issue now is reconnection to permitting. problems faced by the industry. huge rally today. but it is interesting to know what's going forward in terms of the consumer picture. consumer confidence is maybe not quite so positive. then around town i mentioned it this stock has been absolutely battered. up another 8% today. huge volatility within this space right now. that's the space tomorrow, coming through to the end of the quarter, a bunch of other things are happening as well. if you are interested, and i think you should be, there's the beautiful hotel, there's the beautiful lake como. this is one of the fantastic outside broadcast events we are able to do. francine will be there tomorrow. we have some really great guests
lined up. look out for that. normal earnings story continuing around what's happening. christine lagarde speaking tomorrow. put it all together tomorrow, there a eurozone cpi. the challenge here is how to dear with core. mechanically, headline inflation is coming down, coming off the big story of the huge spike in gas prices. we have got a kind of preview of this today. the spanish headline, inflation down quite sharply. 6% to 3%. but the core number is very sticky. the germans don't break it out in the same way. it was a countdown from nine, but nevertheless it's still above expectations. let's get some insight into what it all means from the european economists over at ubs who are joining me over onset. europe doesn't have a headline inflation problem anymore it's darting to come down sharply.
but we are in danger of having the headline go below core with the core remaining sticky. how big a problem is this going to be for the ecb? how hard is it going to be for them? >> looking at headline inflation, it's well anticipated that it will come down significantly in the coming months. what we have seen from the start of the year, january, february, it remains sticky and tomorrow we are likely to get another strong print with broader underlying inflation. looking at february print, for example, we see that there are no strong science of easing at that point. definitely a big challenge for the ecb that was also reflected in a bold move and their 50 basis point hike at the last meeting. alix: talk to me about wage inflation. two point 5 million german
public-sector workers still don't have a deal. what does wage inflation look like if you model it out? anna: looking at the eurozone inflation wage growth, we tend to focus on negotiated wage growth and what we have in fact seen is a significant pickup and wage growth from the second half of the year. at the moment we are tracking 3.6% for february and we do anticipate a further increase into the first half of the year. germany, as you mentioned the latest rounds in terms of negotiations, that's something we are particularly closely monitoring. guy: let's figure out the impact of the banking sector. europe leans on its banks in a more significant way than the united states, but this credit crunch could have come as a result of the banking crisis we are seeing. isabel was on earlier saying we are not seeing the same deposit outflows in europe, much lower banking peters.
if that's the case, does europe, does the ecb need to do more than the fed at this point? some of that lending tightening we are seeing in the states is going to detract from the need to do the rate hikes originally planned. europe doesn't have that. how much further does the ecb have to go compared to the fed? anna: asides from the financial sector turbulence, ecb still faces a challenging inflation outlook. as we talked just now, we see core inflation remaining sticky and perhaps more importantly in the euro zone, wage growth is still accelerating. in the u.s. arguably we see signs of slowing down. so against this backdrop the ecb is still facing very difficult inflation outlooks. guy: but the banks are not going to do some of the work for the ecb or the united states. people are talking about 150
basis points that the fed is not going to have to do to potentially cut. if we don't see that in europe, is the ecb going to have to continue hiking? anna: we do expect ecb to hike twice more. we did flag upside risks exactly because of these reasons. if the noise of uncertainty around the financial sector settles down in the coming weeks and inflation continues to surprise to the upside, ecb might still have to deliver another 50 basis point hike or in fact extend the hiking cycle. alix: what happens to growth in that kind of scenario? anna: at this point i think it's hard to say the impact of the latest turbulence in the financial sector on growth. but we have to remember that essentially the transmission mechanism of monetary policy has to affect growth, has to slow
down demand and bring inflation lower. of course, more tightening will have more negative impact overall but at this stage it's very tricky to say how much of an impact. alix: can we live in a world where the fed might be done or to being done with its tightening cycle and in the same world the ecb is going to do at least two more 25 point basis hikes and not cut? anna: so our baseline is that the tv will be doing another hike. may and june. our u.s. colleagues do in fact expect the first rate cut by the fed already in september. against this backdrop we do end up in a scenario where essentially ecb is falling. starting the cutting cycle later. guy: does the ecb want a significantly stronger euro at this point? in that situation it's going to
get it. anna: it has a negative impact on inflation so yes, potentially that would help them to bring inflation lower. it's not something that they would officially advocate. alix: going back to my earlier question, why, in the scenario that you are painting, one that we are reading through the inflation data, why isn't the euro stronger, why can't it break out at 110? anna: well i think there's a lot of uncertainty, noise in the markets at the moment. we need to look through it based on our epic strategies forecast. they do expect a strengthening in the end of the year. guy: it's always great to catch up, anna, very nice to see you. getting eurozone data tomorrow, we will be covering that on the show tomorrow. not much action during the
auction process. broadening european equities, this is the picture we continue to look at as we climb out of the hole we have been in. alix: coming up, guests here to talk about the risks we are seeing in the u.s., how they are different, and how you want to invest in that environment. this is bloomberg. ♪
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lisa: this is bloomberg markets, you are looking live inside of the principled room. t. rowe's chief economist joins us live in new york. this is bloomberg. keeping you up to date with news from around the world, i'm lisa mateo. russia, a wall street journal reporter pled not guilty to allegations saying he was spying according to the news agency, gursky venture was detained in the city and vladimir putin's
spokesperson says the reporter was caught red-handed. "wall street journal" as they deny the allegations. ursula von der leyen and says it is not in the interest of europe to decouple from china and called for open dialogue instead, saying europe must control investment in critical sectors. >> we need to make sure our company capital, expertise and knowledge, are not used for the military intelligence capabilities of those who are also systemic oppressors. lisa: in kentucky, two u.s. army helicopter there's collided sunday night near fort campbell. all nine soldiers on board were killed. the helicopters were hh 60 blackhawks from the 100 and 60th airborne division. a spokesperson says the collision is under
investigation. global news powered by 100 and 70 journalists and analysts in 120 countries. i'm lisa mateo, this is bloomberg. guy: thank you, lisa. getting cpi data tomorrow, we will also be getting u.s. core pce, the fed preferred inflation gauge. which of these pieces of data are going to have the bigger impact? the morgan stanley tow lead global portfolio manager cio of the global balanced risk control team joins us. hell of a business card, got a point that out. [laughter] nice to have you on set here in london, seeing you here in person. you have got eurozone data out tomorrow. cpi data. which data is going to give us the cleanest read on what's happening? >> pc is backward looking and
not really picking up the event that just happened. clearly the inflation data coming out of europe, there will be a year-over-year affect with numbers coming down and a problem that's still a little bit sticky. a lot of people have talked about this. look, the idea behind this is really what does the central bank policy function come down to. does the ecb have to react further to the sticky inflation? i think it does. maybe the fed has one more rate hike may 3 and then they are probably done. we may have seen the last rate hike. it really depends on what develops in the markets. alix: jim, do rate differentials come into effect in a big way? is that a realistic scenario? jim: it's not durably a realistic scenario. the way that europe is functioning, it's about one quarter behind the u.s.
remember a few months ago inflation was difficult, struggling, then started to come down. the same thing will happen in europe. the tightening takes hold. all of these various things are going to start to happen. but to your point, we may be in a situation where we have about a differential where the ecb is announcing it will keep hiking interest rates but the fed might be near done. so then why is euro where it is? that's the issue i think we are struggling with. i think it really is that people ultimately see that the rate hikes in europe are going to lead to more material slowdowns in the second half of the year. you don't see the capital flow coming in just because of the interest rate inferential. guy: i also thought there would be a recession in the united states. not just the fed tightening but the potential credit crunch. who goes into recession for
this? jim: oh i think it's the u.s. and the second quarter is when it needs to happen. the difference between second and first quarter can be jarring . a lot of what made the first quarter growth strong, a lot of it is seasonal. energy effect. a real pull forward and demand. payback. not only do you have a banking crisis weighing on confidence you also have technicals with seasonals coming out of the market in the second quarter. slowing you down. third quarter, it could potentially happen but it is i think a mild recession. alix: what's the right buying allocation for that kind of set up? jim: you obviously want high quality and that is where you want to be, but i think you also need to look at the broader real economy. clearly, financials have been hit. there is value there. maybe there is a little bit of risk. but when you start to think
about investment-grade credit yields that really haven't come down, spreads widening a bit in the fed doesn't know what's going on with investment-grade treasury yields, the high-yield yields are close to 99% in the u.s., so do we have increase in default risk? and are you being covered for that with a 9% yield? i think you are. the other area i really like is housing related bots. yes, prices are coming down with cooling in the market, but what can get in the not agency -- nonagency work space is the bond that yields 6% to 7% and i don't think we will see a housing crisis in the u.s.. guy: bank credit? >> risky but i like it better than equity. we'll talk about this credit tightening, but when does that occur?
that's a slow melting ice cube. it could be quarters or a year, 18 months. a tightening of credit standards and suddenly next month we see it, it takes time for borrowers to want to borrow. on both sides of the balance sheet, you've got the bar and the lender. borrowers are not showing up to banks because they don't need the loans at this point as they purchase assets like treasuries. they don't know what to do with their deposits. the fact that there may be a tightening of credit around lending standards, it's much because people were not borrowing much to begin with. adding it up, i think it's a tightening of financial conditions that slows things down, but it will be over quarters. not a month or two months or something like that. that is why it is an important point. it's an immediate sharp risk to what you are seeing.
alix: hence that idea of foam of the equity market. keep buying the dips, hasn't evolved. volatility in the market on the front end, does that you? jim: i think it does but it goes both ways, right? so far volatility rates have been coming down sharply because people may be expected the fed to cut rates. but if no news is good news and things start to do ok with inflation remaining sticky, maybe the volatility rates go up as people start to price out the aggressive rate cuts they priced and more recently. it goes both ways. guy: do you think the slow melting ice cube of credit tightening is going to be enough ? or is the fed going to have to do more? the objective is to kill and nation but if you don't, you got to do, you gotta think about the
duration and those are difficult questions. jim: and they are great questions. the difficult thing for me coming into the year is the s&p going down without being anchored and then it starts to go up at the end of the year and the fed has to reinsert itself and come back in. does it lower the inflation? does this event lower inflation risk? yes. in that case it's a mild positive for financial conditions saying that the fed may not have to hike as much. a few weeks ago we thought they might have gone to 6%. today people wondering if they should go again at 5%. there has been a reduction in terminal policy and some of that interest rate easing is around those interest rate hikes. alix: thanks for helping make sense of all of it for us. jim, thank you. this is bloomberg. ♪
alix: the s&p is below the 50 day moving average. >> all major indexes in the u.s. are hard to peg but technology stocks are leading the gains and we will get to that in a second. the bloomberg dollar index is a little lower, down by 3/10 of a percent, helping the commodities up by 1.7%. let's get back to the nasdaq 100, having its best order since 2020 and of course we know there is a flight to safety and a flight to quality. at the same time we know that semi conductor shares are really helping to boast these huge gains. talking about banks, the biggest story today is charles schwab,
morgan stanley downgraded the stock, saying clients are pulling money out of the low interest rate account faster than analysts expected. they also expect a lower revenue for the first order because of the turmoil. now we see that some regional banks are also reversed on their earlier gains where most of them are down today. finally, let's talk about retailers. a few separate stores but the biggest one is bed, bath, beyond. stock down 18% after the company announced that they will sell about $300 million in shares. alix: i'll take that. all right, waiting for you to take it. i'll take it. thank you very much. ok, that does it for gyan myself here on this thursday. tomorrow is friday. i really thought friday was wednesday, but you know. coming up, stuart russell will be joining bloomberg technology with ed ludlow. we are still looking at equity