-- situation in europe. president xi jinping warns beijing will go after so-called platform companies. the latest on china's tech crackdown live from con tong -- hong kong next. this is bloomberg. ♪ mberg. ♪ annmarie: this is "daybreak: europe." i am annmarie hordern with manus cranny. xi jinping warns beijing will go after so-called platform companies as china's tech crackdown widens. the president is ordering the oversight of internet firms, crackdown on monopolies, and promote fair competition. they allegedly have their sights set on tencent after cracking down on ant group. thank you for joining us. pretty strong language from what we hear on china state media. what is your take on what is coming out of china today from president xi? >> as you mentioned, china kicked off its tech crackdown at the end of last year and it is the first time the top guy gave a d killed comment on the situation. -- detailed comment on the situation. xi jinping mentioning beijing will go after tech companies. they didn't m

and central europe. joining us is our reporter in brussels, maria tadeo. she is joined by a guest from the ebrd. maria? maria: yes, anna, good morning. 21 billion euros in loans to help combat the coronavirus. it is also worth putting out that the european bank for reconstruction and development has an explicit mandate. they already hit their target of 40% of refunding. we are joined by its president, the first female president, odile renaud-basso. i know you care a lot about equal access and equality. that is the goal of the institution that you lead. how much do you worry that coronavirus will set everyone back on that quest for equality when it comes to investment? guest: thank you very much. i am happy to be with you this morning. indeed, the covid crisis has setback economies. countries that spend more on tourism have been harmed, as well as countries relying on oil and gas. the impact of the covid crisis on the different economies is quite different. the impact of the crisis is very different. [no

think towards europe -- how damaging or risky could this impact the way investors think towards europe? fabiani: it is damaging because you see the difference in gross -- in growth between the u.s. and europe. and also with u.s. stimulus and the vaccinng better. i think in the short-term it will hurt european equity markets and we have shifted some way more towards the united states. we are not always on the cyclical side. and i think europe really needs to get back on track with the vaccination program. annmarie: i imagine with this export halts, that is what they are trying to do. fabiani fedeli, thank you so much for joining us this monday morning. just ahead on daybreak, the credit suisse ceo says he considered selling off the asset management arm in the wake of the greensill issue. that is next. this is bloomberg. ♪ annmarie: good morning. from bloomberg's european headquarters, 6:30 a.m. in the city of london, i am annmarie hordern. this is "daybreak: europe." stocks mixed at the start of a busy week. inflation data and testimony from jay powell and janet yellen will give inves

in europe, brazil still a real mess? how does that factor into your outlook? robert: well, it is factored into our outlook. trade is largely driven by gdp growth, and our estimates incorporate different scenarios for vaccine rollout. you will see we have an upside scenario that would add another percentage point to our baseline scenario, which is 8% for 2020. -- for 2021. so we would draw up another 1% of things go badly, and the variance had a bigger impact on the global economy than we expect. guy: how much of the positive surprises you're getting at the moment are driven by what is happening in the united states? robert: a fairly sizable amount because of the large stimulus and aggressive monetary and fiscal policy we see in the united states. it has really helped with the global recovery. many countries around the world have also taken aggressive fiscal and monetary responses which, compared to the great financial crisis, that has helped mitigate the downside impact of the pandemic. alix: part of that is going to be

if europe is able to overcome this, europe will start to kick in. it is going to be an interesting point as to where the equilibrium level of interest rates really is. we do sort of worn our clients to be a little cautious. the market is in flux and it could move higher as well as lower. annmarie: from northern trust asset management, he is staying with us. we are going to talk about tech next, facebook and google blasted for their impact on children. and twitter taking some responsibility for the organizing that led to the capital riot. this is bloomberg. ♪ >> do you agree that this he goes, as the ceos of major tech companies, you should be held accountable to congress and the public? mr. zuckerberg? >> i think we are accountable to public -- to congress in the public. >> do you think you should be held accountable? marx i am not sure you -- >> i am not sure what you mean. >> should you be held accountable? >> yes, and we are. ask mr. dorsey. bikes yes, accountable to the public. >> i said accountable to congress and the public. we represent the

in europe, controversy from the beginning with astrazeneca, how do we restore confidence in europe? oksana: yes, again, incredibly important to emphasize the risks from covid, a known risk is much higher, not only from a hospitalization and death, but we are only one year into this to see what the disability burden will be versus anomalies around blood clotting. we will hear more about it tomorrow. the regulatory expertise has been pooled together and data scrutinized further. in some counterintuitive way we can see these regulatory bodies in germany and other countries are scrutinizing the data. they are doing their job, but to an extent when we are in the middle of a pandemic. we have heard from the who the more that we allow community transmission to carry on, when we suspend vaccinations, other countries do not have vaccines in their hands -- that is another issue -- this promotes the variants. we have to be extremely cautious around this, and i feel the damage has been done. manus: should europe export the astrazeneca vaccine that they are left with that people do not want? if

we are assessing the potential for a third wave in europe. jonathan: the contrast between europe and the united states is phenomenal. we have been talking about it in markets for about three months. i am wondering whether we have fully priced that story just yet. euro-dollar has had a move down to one dollar 18 cents. have we reached the inflection point where we have both peak optimism in the united states a look of to peak pessimism in europe? lisa: there's also a question of whether people are fast forwarding too much. europe will recover. there will be enough vaccine. they will emerge from the pandemic. at least you are in the trade. the idea is that people are fast forwarding to a time where the u.s. isn't recovering as quickly and europe is the one that is leading. if that is delayed by two months, three months, four months, it doesn't make that much of a different. jonathan: there's an infrastructure conversation in the united states which follows the $1.9 trillion relief plan. that is where the debate is a little later this afternoon.

europe is doing well. participation of women in the labor market has risen in the last does of decades. -- in the last two decades. in all the prime work years a woman is more likely to work in europe than the u.s.. that was not true 20 years ago. europe has made great strides at utilizing more resources women have. at the corporate level, women are contributing more. there is now about a third of board members across europe are women. the disappointing factor is while that has moved up a lot, a huge gain in just a few years, we see very few women at the very top levels. the executive directors, the cio, the cfo level. i still think there is a lot more to go. in terms of how women can contribute to performance, my view is greater diversity is good in itself. i find the companies with the largest portion of women on their board about performed -- have outperformed. guy: is that a reason to invest in europe? if you look at the long-term trajectory, most people are investing for the long term. what impact doe

any markets, but the europe market. we saw the markets attracting the interest in many investors, particularly u.s. investors when there was no stimulus by the european union and other european banks. it is more from a sentiment perspective that europe can once again move forward as a bloc and having no internal disputes. anna: thank you very much for joining us. bibiana carretero, senior portfolio manager at efg asset management. let's get a bloomberg first word news update. laura: the european union is escalating with the u.k. -- a spat with the u.k. over vaccines. they are ready to start blocking the administration of astrazeneca to great britain until the drugmaker fulfills its obligations to the e.u.. both sides are blaming the other for vaccine nationalism. u.s. defense secretary lloyd austin made an unannounced visit to afghanistan this weekend. washington is weighing the future of u.s. troops in the country. the former administration made a deal to bring the 2500 personnel home. president biden says the deadline

and europe as well. by the end of may or end of june, you have all of the high risk categories vaccinated. 80% of the population have been vaccinated. the children have a lower rate of catching covid, but don't suffer serious illness anyway. what would be the basis of the u.k. government keeping people from moving around europe when by law, we have free movement of people? i think short-haul domestically within the u.s., there will be very few restrictions this summer, and short-haul within the european union, i think there will be very few restrictions. guy: you are clearly focused on the summer season, which is going to be the holiday for the kids, but nevertheless, short-haul is driven by younger demographics. they are going to be the last to get the vaccines. is that going to be a problem? michael: again, summer holidays tend to be driven by families. the school holidays in europe start around june, july, august. that is when families are moving. young people are generally working at that point in ti

what you need to know ahead of europe. starting to rise again across europe. the variant is spreading across the continent. hungary will shut primary shops for a couple weeks. italy, milan is facing a hard lockdown. the german finance minister telling bloomberg berlin will need to sell extra debt. this follows reports this month's budget can see an extra $50 billion in debt spending. in a boost to london's delivery plan, with a reported $10 billion valuation the ipo will take advantage of plans announced yesterday to reform listing rules to allow share structures in the u.k. a quick look at markets which have started to recover stateside. off our lows in europe. a lot of mining stocks have gone today. oil are gaining traction. we have a bit on the bond market. oil stocks over the last 10 minutes have really added to the upside in european markets. alix: breaking news concerning opec. opec-plus agreed to keep oil output unchanged in april. this is the most bullish outcome you could ask for in this meeting. saudi arabia will keep off one million barrels a day of

guy: we are certainly seeing that here in europe. for more on this story surrounding global travel, glenn vogel, booking holdings president and ceo. looking holdings is the world's largest travel agency, really big here in europe. ask for your time today. everybody started to get really excited that we are going to be having a summer season here, that we are all going to go back to some semblance of normality. is that your expectation as well? glenn: thanks for having me. clearly, everyone is seeing some green shoots, and in the u.k., we called them out. we called them out in germany. every time there is some news that comes out, there is some hope that new vaccinations are possible, that we will learn about johnson & johnson being rolled out today, it is a great thing to hear. but this they race between the number of infections that are still spreading throughout the world and the vaccines. we just hope that governments and pharmaceutical companies together can work really fast, get those vaccines into people's arms as quickly as po

business sector of importing and exporting to and from europe and the counterparties in europe are seeing the same thing. trading activity largely now doesn't take place. it is a permanent loss. i would like to think in a future time the u.k. will see sense and rejoin the euro zone. lisa: in the meantime, sticking with the idea that we are in a covid era, particularly in the eu, which has been slow to vaccinate, there is a question whether the ecb is bringing an eyedropper to a flood, trying to maneuver a bond market where the eu talks about delays to the vaccine rollout. the eu warning the government about the risk of further astrazeneca vaccine delays. how much does this affect your long-term outlook for the region s growth prospects and how is it changing in real time -- region's growth prospects and how is it changing in real time? ian: the longer you are in the covid hole, the longer term scarring on productivity growth. what matters long-term is productivity growth. the longer the fiscal response is on the smaller side of where it should be, and the monetary response, and i would li

tom: what is the equivalency in europe, to present -- in europe, 2%? jonathan: the outlook improves for the bond market because the ecb is pledging to do more. what about the vaccine rollout? from the european drug agency, it is set to recommend the j&j vaccine for the bloc. joining us now is sam fazeli of bloomberg intelligence. set the scene first on what has been happening in europe with the vaccine rollout. sam: hi jon. obviously it has been slower than expected. i do feel the momentum building. local pharmacies and doctors are making noises about inspecting to get doses of astrazeneca next week, and now are running around thinking about the logistics of trying to get it into people's arms. europe is much more rural than israel or the u.k. which has managed to do more rapid vaccination. the challenge is to get the doses to these people. tom: why isn't there more pfizer in europe? astrazeneca is a train wreck right now. norway just out with a headline on this matter. why aren't pfizer and moderna with their u.s. success in europe more? sebastien: th

is dealing with -- in europe. europe does not have as much fiscal stimulus and they have structural components of their economy that make it more difficult to achieve growth. all of that leads to lower rates for longer than what we are going to see in the u.s., we are here, we are recalibrating to this much better both vaccine and economic growth. jonathan: i know you are thinking about this, also divergence within europe. can you peg me the picture you are expecting to materialize this year? marilyn: we are seeing increased divergence within europe as well and we have improved our overall view on the u.k., we think the likelihood of having negative interest rates from the bank of england are significantly diminished given the rollout of the vaccine, which has been very quick, given the data. it seems like they are at the end stage of this current lockdown and opening up the economy by the end of june. if it happens, it will be positive. we have seen a die down of the uncertainty around brexit. i think in other ar

do you want to avoid domestic europe and buy international europe? john: i don't think so. i think what you're looking for are the same type of trades we are seeing coming through, that cyclical rotation, that value rotation that is accorded by better global growth. i think the situation we saw during the 2010s, where europe had a banking crisis which obviously caused a second recession, we are not seeing the same kind of set up at the moment. so while it may be that the u.s. is in the driving seat for growth at the moment, i wouldn't write off global recovery. when it comes to currencies, yes, the euro has rich end up relative to the dollar. it has obviously weakened a little bit in recent days, but one thing i would look at is it is still well below what we would consider fair valuation, which would be well north of $1.30 to the dollar. in currency today, while at the margin it could be a headwind if the euro does strengthen, by and large, we feel that europe is quite well set up with a currency below what we consider its fair value. alix: what country has the potential t

manus: this is "bloomberg daybreak: europe." i am manus cranny in dubai. let's take a look at cybersecurity now. a group of hackers say they have breached a massive trove of security camera data out of a silicon valley startup, gaining access to live feeds of surveillance cameras inside hospitals, jails, and carmaker tesla, amongst others. joining us now is our reporter for cybersecurity. thank you so much for being with us. how did it happen? more importantly, what do we know about the scale, the size of this hack? >> i think the scale and size of the attack are probably what are the most extraordinary things about it. on monday, a group of hackers was able to access the live feeds, as well as the archives of 150,000 surveillance cameras inside, as you said, hospitals, police departments, prisons, schools, and companies, including tesla. this is probably one of the most extraordinary aspects of this. they were able to access administrative credentials that were publicly available on the internet. they were able to use that user

i want to start with a vaccine strategy in europe. which you've reportedly called a reap -- a real pile of crab. is that a deaf -- >> i think there was the problem in ordering enough vaccines last year, but now everyone is working hard that we will have enough vaccines to bring to the people in this is organized in all the countries and also in germany. jonathan: what went wrong, minister? >> there should have been more activity to organize more vaccines and especially if you understand that most of the important developments of modern vaccines have been made in europe. two of the three big companies that developed new vaccines are from germany. so this is a good basis for doing the right things, but in the end i think we are now on the right track. everyone is working really hard and we are now organizing to have them as fast as possible and there will be in a short time millions of people with the ability. >> considering those companies are german, why didn't the government act to get them first, of those vaccines out of the german

i got used to reporting on her being the stable part of europe, the rock of europe. now she seems to be all over the place. how big of a move will it be and why she decided to go down the road, to federalize what is happening in germany? stephen: --rosa: you're quite right about angela merkel's behavior being unexpected. let's not forget she is not running for reelection, she is retiring, so she can run the risk of taking unpopular decisions. germany and the last week has shown a degree of irrationality with proposing first a total lockdown within the country, preventing people from moving around within the country, but letting germans travel. there were quite a number of decisions that do not seem to make sense. she can run the risk of making unpopular decisions, making executive decisions to force upon the germans another lockdown, which is basically what is happening across europe. we have entered a new lockdown because of the third wave of the coronavirus. alix: how does europe get back from the disaster there rollout was? they tried let's frame -- they tried let

we are going to see an impact in europe. can europe afford that reaction if, for instance, btp's start moving up? is that going to be an issue? chris: first and foremost, i would say they may do. you never know. everything is on the table in that sense. but i think if they did signal it, but you would see as a temporary short-term flattening of the curve. so short dated yields up a bit, and longer dated off a bit. so the implication for btp's would be a similar kind of trade. i think the yields would fall slightly from where they are at the moment. so i don't think it is going to happen, but if it did, i think that would be the main implication, rather than yields taking off to the moon on the 10 year. i don't think that is a credible thing to expect at the moment, given where the economy is. i think that yield backed up aggressively on that announcement probably wouldn't happen, and i don't think the nouncement will happen anyway. ix: but if they say nothing and they don't get in the way of higher yields, what is going to t

europe is well behind. the u.k. is coming out of what was a very strict lockdown in the easing plan that has been laid out by the government is quite cautious. we are looking at the easing of restrictions at the end of mark all the way through june. vaccinations are going quite slow now but we do expect them to accelerate. particularly from april. i cannot stress enough that there's huge uncertainty about supplies which should come through in greater quantities in the coming month but also in terms of the logistical challenges at the national level. we could see significant improvement in all of our european economies with that expected increase in supply. alix: and counterintuitively, the u.s. and europe are doing the two shot vaccinations and the u.k. is spreading them out more. the numbers of fully vaccinated people be higher in the e.u.. does that point to potential positive news for europe? frederico: i think prioritizing first doses has been quite a success story for the u.k.. i'm no medical expert but it seem

banks, europe banks, u.k. banks? of course there have been many people that have lost their jobs and they have not been saving during this time, but for those who have still been in employment there has been an opportunity to save. how do you expect that wave to hit markets and be spent? mike: i think it is going to be spent across the board. if you look at it, it is interesting. even the people who have lost their jobs, because they have been on generous unemployment benefits in the u.s., many of them are in a better position than they would have been. it is the who kept their jobs that have really benefited. they are seeing a big pickup. we are talking about 8% in the u.s. relative to what we saw in 2019. as that gets deployed, it will be spent a lot on services. people are desperate to go out, eat out, see their friends. i think restaurants, bars will get a boom. some of it will get spent online as well. as a result, you will see this continual catch up on stocks that got hit hard by covid last year. the big tech

europe struggling, the u.s. flying, and a question we have asked, how well priced are they in foreign exchange? jens: in the introduction you talked about all of these cycles of optimism in the u.s. that have been around for a while and it's no surprise that we have a big stimulus package coming out. in europe we are waiting for the all clear, the vaccine rollout has been disappointing to say the least so far and we have spikes in cases in the middle of march in many countries. we don't have the all clear and we have not had the reopening yet. in terms of us pricing aggressively a global reopening, that is still something that will happen in the next one to two months. in terms of the catalyst for verbal lift to global risk assets comes in confidence the vaccine is working in the u.k. and in the eu, and the spikes we have in latin america and india are going to get under control as we get vaccinated and take other measures. that's going to be the final catalyst the big global reopening is here, not just in israe

on april 12 we hit rock bottom in europe. daily flights in europe went to 2099 flights. normally it would be over 30,000 a day. we want to see what will the consumer do when they are allowed to travel? within nine weeks we were back to over 18,000 flights a day in europe. similar in the u.s. and china. in europe we have been hit with additional lockdowns, but in china over 100% of travel where they were pre-pandemic. they are already back. in the u.s. we are at about 60%. there is no change to consumer demand to travel. yes it will be led by leisure, yes it will be shorter, but they want to travel. on the way out the pandemic, does the consumer have the money to travel? again, as you know, we are seeing record high savings in the industrialized economies in the consumer has the money to spend. we say that is well and good, but is there an end to this pandemic insight? as you got site of the vaccine you could say there is. everyone wants the vaccine to roll. that is not the case. it is going to be bumpy. it is coming. there is a solution. then we said ok, that is good. wh

given what's happening in europe, does that seem right to you? or is europe just kind of dominated by the kind of value stocks that the market loves right now? and if so, can it continue to stay in love with those kinds of names? mark: i think that is exactly the story. if we look at the vaccine story over this past quarter, that is not something yet. what we have heard is that the technology sector is really not present compared to u.s. or chinese equity markets. but all of a sudden, these are all of the stocks we want to own, so it is value, it is very cheap. if you look at the financial sector trading cheap even to the normal discount we see in the broad market, you have a lot of these great cyclical drivers like high capital ratios of banks that are very well-capitalized. if anything, we are going to see stock purchase programs, may be outside of some of the few names mentioned on the show, but on a broad sector basis, a lot of attractive valuation. europe has been the most closed down, so once we finally get these vaccines to be rolling out

what kind of pressure do you think europe is under? use the term europ broadly. is there going to be some kind of transatlantic pressure because of the amount of money the u.s. is spending either in a band-aid, propping up the u.s. economy or in the infrastructure investment that the u.s. is doing, will that put pressure on europe? jeffrey: firstly, the eu recovery fund will be spended later this year and next year. we have the $90 billion directed to the periphery countries of europe. that is positive. secondly, the large u.s. infrastructure program is likely to lead to increased import demand from the u.s. for european goods. exporters will benefit. on the infrastructure point, we do expect in the coming months, we will see infrastructure initiatives particular from the u.k. as they look to level out the country in the months ahead. one final area where we expect growth near the head will be on alternative energy where european governments are looking to make significant investments in areas where they are lacking to see competitive advantages. areas like wind

we have been focusing on europe as a bounce back story. it has been weaker through the first couple of months of this year, so again, it is benefiting from rising bond yields, stronger global growth, but if the euro does depreciate, that removes one of the risks in terms of the earnings. so we are quite enthusiastic about how european equities can perform relative to global peers over the next three to six months. alix: good stuff. really appreciate it. graham secker, morgan stanley european equity strategist, thanks for joining us. this is bloomberg. ♪ omberg. ♪ alix: ge agreeing to sell its air leasing business to aircap for a deal worth $30 billion. joining us with more is bloomberg's benedikt kammel. benedikt: the ceo of aircap probably sees a way the industry will recover here, and that potentially is at play, so there is some movement in the stock, but longer term if you look at the way he looks at it over 10 or 20 years, he sees a recovery and saw an opportunity to buy this asset, and that is why he went in. he's known for makin

the latest on europe's chaotic vaccination rollout next. this is bloomberg. ♪ >> this is an event that has affected everyone around the world. i think no one has escaped the tragedy that this pandemic has represented. and the effects have been long-lasting, it's been over a year. we now see the light at the end of the tunnel, but we are by no means there. annmarie: bloomberg ceo, you can hear more from that interview all morning on bloomberg television. i want to switch focus, europe's ongoing vaccine route with the rollout, the eu is breaking for a decision. biden agency clarifying whether astrazeneca shot is safe to use. the regulator has consistently back to the vaccine, but has been reviewing evidence on blood clots. russells is sweating up its dispute with united kingdom, threatening to withhold exports, and seize control of production and distribution. the plot really thickens here, european 30's has suspended astrazeneca vaccine use, but they are also attacking the country for not delivering enough. can they actually have it both w

what can europe do and what that is europe planned to encourage more people to become vaccinated? >> for several approaches and strategies followed by the c.d.c. one is we regularly di play an update on the vaccine covid-19 overview and what are the approaches by member states and, of course, we are encouraging to keep as much as -- as much close as to the strategies that have been defined by member statements. we are also organizing medics with a national organization technique advisory groups where we discuss the situation overall, all over the world but also at the effort u., e.a. member states and are facilitating the information that we have through the vaccination rollout on the c.d.c. webpage. so the man date is focusing on advising, supporting and trying to harmonize the way the vaccination is rolled out in member states. we keep with that and try to sfourpt them as much as possible. >> of course, we've seen some divergens in treatments, certainly of theas zen vaccine around --as zen vaccine around europe. do you feel you have all of your real-life rollout at your disposal

europe is half that level. i expect in germany and france initially we'll see significantly larger fiscal impulses. we saw that on friday, we'll potentially see it with germany and france they need that fiscal, very positive, for economies, vaccine, very positive for economies. and narrowing with these economies reupping at a later stage in the year. ann marie: we'll talk more about what's going on in germany in faw moments, but let's get a recap of other news. hey, lawyer rasm lawyer ramplet a shooting at the colorado supermarket yesterday killed 10 people including a police officer. a suspect has been arrested but no details have been revealed including a potential motive. according to a.p. it's the seventh mass killing in the u. to -- in the u.s. this year. that follows a shooting last week that left eight people dead in the atlanta area. the u.s., u.k. and canada are joining the e.u. in imposing sanctions on china. the actions are over alleged human rights abuses against uighurs. they're largely symbolic an

and europe in europe, i don't think spac's are going to be as technology focused. there is going to be more industrial and other types of sectors. i think it is a robust position in europe right now. anna: is there any sort of lack of seriousness to some of the activity in the spac arena? the way they are named or perhaps some of the people attracted to finance for the first time to put their name to one. ? or is this an exciting democratization and that is the point? >> i think it is all of those things. clearly a spac is a democratic way to invest in a private equity situation. it encourages -- allows private investors to participate in things like ipo's. that is very much a good thing. clearly also, when you see the amount of issuance that is happening, particularly in the u.s., there is the potential for things to go wrong. that is why it is an equity risk and equity return. some of this directional aspects are interesting. you do have the redemption rights to get your money back as an investor in case you do not like the acquisition. if you buy in the aftermar

the leisure stocks in europe of 20% year-to-date so far. if the euro has got wooden -- has gotten weaker recently but we priced in a better outlook not just in america but europe too. it's not just the banks that have been rolling in america but the european banks too. on the travel and leisure story, up 20% given what we have seen in europe still, which is countries, cities still in lockdown and travel not picking up anytime soon, according to guidance from france and germany. it is pretty remarkable. lisa: i wonder how much bipan pointed to liquidity is the issue here. a lot of stocks are coming off of low base. if you look at what european banks and travel socks have been doing in the months prior. before last year, when you take a look at that, perhaps it is a liquidity story. people looking at the most oversold themes and saying they will not perhaps go bankrupt. the bar is getting lower at least on a macro level and for the whole year, not necessarily in the last couple weeks when it comes to what to invest in. lisa: it's been that wa

this idea we have better-than-expected data out of europe. no one cares. at what point does data matter or at what point is it always backwards looking? jonathan: trying to game out the future based on where we are with vaccinations. europe versus u.s., of the new number in the united states tracking daily on average over the last seven days. your average rate of vaccinations in america, 2.5 million doses per day. hanging out at that level. let's discuss that with lauren sauer. always great to get you back on the program, let's start here. yesterday, texas announced they will widen the eligibility for everyone 16 plus, all adults next week. when you see those decisions being made to see that driven by the data? what's your take? lauren: it's a mix. it's less about the data and more about getting as many people in those spaces. texas is creating a space where they can get maximum amount of people and supplied to back it up. that is definitely an approach many people are advocating for. we are seeing in a lot of sites across the country. the key is vaccine s

then it is in europe. how do you think about allocating regionally, given the divergence we have seen in the way that program is going? liz ann: it is not only because of vaccine. in fact, i would suggest it is maybe a small part of it. we went to an overweight non-us, or international stocks, at the beginning of this year. the offset to that from a tactical perspective was a downgrade of u.s. large caps. so we now favor small caps in the u.s. a bit more than large caps, but broadly in terms of global equities, we have a bias towards developed international equities. the primary reason, in addition to things like vaccine and more reasonable valuations, is that we believe when you exit one full cycle, a psycho inclusive of a bear market and a recession, you tend to see a shift in leadership patterns. you tend to go to eight to 10 year periods where you flip u.s. to non-us in terms of equities. we think we are at the beginning of another trend that at least means diversification outside of just u.s. large ca

europe probably will as well. scott: yeah, the rollout, which, you know, a as we saw in the u.s., it's bumpy in the beginning most of the member states will solve some of those prox the supply question be likely not be solved until later in the spring. ultimately, that probably puts many european union countries a couple of months behind the u.k., probably the u.s. in terms of reaching this less disruptive new normal. that could be midsummer. but ultimately, i think they will put the pieces together to vaccinate enough people to really drive downs transmission but it will be slower than their peers and there will be political and economic implications as many countries right now are dealing with a challenging potential third wave. alix: yeah. let's end on that. and this may be an unfair question, but i wonder when you look at the economic forecast and then the corresponding market reaction, is that factored in? do you feel like investors have come to the fact that europe is going to be months behind because of thi

the story around europe and the divergence between europe and the u.s. is so well-known, is it well priced? euro-dollar year to date comes in 2%. euro-dollar 1.1932. but the banks in europe are at 19.5%, largely off what we have seen on rates. when it comes to the economy, does the outlook in europe justify the gains we see in the financials on the continent? tom: the book value of jp morgan leading the way, world-class. the others, including ryan moynahan, at 12:00 noon today across bloomberg. i go to the red paying -- european banks, .23 of book value. that is a different number. jonathan: a big repricing here in europe and in the united states. romaine: good morning. over in europe right now, we are seeing all those travel stocks -- i did not know where you were on friday, tom, but welcome back. they were nice to me when you're gone. we saw the travel leisure index reclaim those -- reclaim those hides from the pre-pandemic levels, which is pretty encouraging. looking at u.s. travel stocks, we reclaim those highs in the u.s. three or four weeks ago. we

europe didn't participate holy in all of that selling, so we see a bit of that in europe. let's get to another story, which is being read a lot on the bloomberg terminal. goldman bankers are begging for a better worklife balance. a group of analysts are asking bosses for an 80 hour work week instead of the usual 100 hours. they say the long days are detrimental to their physical and mental health. joining us is bloomberg's executive editor, tracy alloway. who are these analysts who have been making these calls and putting together a very slick presentation to make their points? and what are their complaint? tracy: yeah, these are the bank's junior bankers, future investment bankers. they are recruited every year, often directly out of college, and they typically spend a couple years working very intensely to learn the basics of the trade. they are at the beck and call of their superiors and a big part of what they learned to do is making these types of slide decks for client pitches. when the time came to complain about working hours, they reflexively decided to make a sli

europe's vaccine campaign in turmoil. germany, france and italy suspend use of the astrazeneca vaccine. plus, targeted one million electric car sales this year, looking to unseat tesla. we speak to the ceo shortly. it's just gone 7:00 in london. mark is in singapore. what other markets -- what are the markets sing to you today? mark: a quiet day today, and a holding pattern ahead of the fed. in asia, we are a little distracted by china volatility but it seems like chinese stocks have managed to finish and positive territory, a good sign, because there was nervousness earlier in the session. anna: absolutely, we will return to those themes in a moment. just under an hour away from the start of cash equities trading in europe. let's look at futures, a little bit of comb as mark said -- of calm as mark said. european stocks sluggish by comparison to u.s. european futures have some catch up to play, u.s. futures look more mixed. nasdaq futures pointing strongly to the upside, up by 6/10 of 1%. through the asian session, it's

what does europe do? george: it was a bit of a curveball question because the eu position on a lot of substantive issues between the united states and china has been a little bit equivocal, right? there was the whole kind of malarkey about signing this comprehensive agreement on investment which the eu announced towards the end of last year, and which most people thought in the united states, as far as i understand, that it was premature and there was no urgency for it, but angela merkel wanted to get it through, and she did. so it is commonly said that the europeans, particularly the germans, are much more interested in commerce and trade than they are in human rights, to put it bluntly. i don't think that is strictly speaking is black-and-white at his -- as black-and-white as it sounds, and the europeans have come out with statements about human rights and about china's behavior, which certainly would align very well with the united states position. so to answer your question directly, after this initia

the vaccine story in europe front and center. a third day of declines on the yields as jerome powell sees prices rising, but he played down the risk it would spur unwanted inflation he says it will knock it out of hand and he told the house financial services committee that bottlenecks will cause a bump in prices. powell testified along with janet yellen on the pandemic. take a listen. >> our best view is that the effect on inflation will be neither particularly large, nor persistent. >> we should be clear eyed. the country is still down nearly 10 million jobs from its pre-pandemic peak. >> indicators of economic activity and employment have turned up. household spending on goods has risen. spending on services remains low , especially in sectors that require in person gatherings. >> i am confident people will reach the other side of this pandemic with the foundation of their lives intact. i believe they will be met by a growing economy. we may see a return to full employment next year. annmarie: joining us is the head of credit

some parts of europe are going back into lockdown. the vaccine is front and center when you look at europe. we want to begin with what is going on with the bank of japan. they are carving out more flexibility for stimulus. juliette saly joins us from singapore. a lot of this was flagged yesterday with local reports, but still very important what the bank of japan is doing today. juliette: absolutely. clarifying for the first time that they are not only going to widen the movement around their 10 year bond yield target, but also for the first time on record putting that target on paper in their statement. they will widen that, as reported yesterday, to 2.5%. previously, it had been elated by the market it was around 0.2%, but it had never been explicitly said. they have also scrapped their $55 billion etf target. this is being seen as giving them more flexibility in the fight to stoke inflation, instead of buying etf's from the topix and not the nikkei. certainly, we did see a weakness coming through in the nikkei, but the topix rising

potentially that is where europe is lagging behind. there is a lot of distrust, a lot of problems with vaccinations, astrazeneca pushed and pulled in different directions. so something very coordinated will be something, like a positive factor to look for europe. at this moment, it is our least favorite region. manus: if europe is your least favorite region, where is your most favorite region? marija: we are liking more cyclical plays, so we still like emerging markets, particularly that america, we like japan. we are keeping -- it has been our favorite region for a long time and still profitable. kind of key ideas for our portfolio is cyclicalality -- cyclicality. annmarie: we have to ask about what is going on with the suez, the ship is getting a reef loading and potentially the congestion will ease up quicker than expected. how does that higher transportation cost, the supply chain worries we have seen out of the suez, does that cross your mind when you are looking at glass of -- assets globally? marija: yes, it's kind of been in ou

singapore a little bit ahead of us all in europe. i wonder what it is the asian session is saying to you? >> chinese stocks have finished very strongly. the best session for the csi 300 since january 12 in almost two months. the afternoon session has been quite negative. that is an anomaly. i think ahead of the premier's speech, that is probably a good sign, a risk on session today in europe. it is not about yields in the dollar, it is more about stocks. they say it will be a positive session. anna: we will return to the things it is and is not about shortly. let's get to the corporate earnings. wpp is one of those. fourth quarter comparable organic sales down by 6.5%. it looks a little bit better than anticipated. still a very negative number. wpp plunging 20 million pounds canceled share buyback. one of the focus is going into this report was what we would see from them on shared buyback plans. now we have more detail. they are raising guidance for 2021 and proposing a final dividend for 2020. let's move back to the broader picture

on here in europe. in terms of the oil story, that is something that could also have an impact on european equity markets. we see european equity markets opening to the upside this morning. that is as the eu gives its guarded support to a plan to restrict some vaccine exports. let's talk now to iain stealey, j.p. morgan asset management international cio for fixed income. very good morning to you. if we start with a slightly more european focus, given we have had this news around vaccine rollout and vaccine exports, what is your expectation for growth in the euro zone now given what we know about the vaccine rollout, what it can achieve and given what we know about the extension of various lockdowns that have been introduced this week? iain: i think when you look at europe, you have probably got to make an assumption that some of the really strong growth that we were expecting to occur during the second quarter probably gets delayed. we do not think it gets removed, we just think it gets pushed back a b

serious stuff going on in europe. over in germany today, this is the german newspaper talking about how the ministers of the nations had to hand over control of the vaccine operations to brussels. this is the united states of europe versus united states of america parallel here. it is not inflammatory but they have their angle. i think our listeners and viewers no this is a strident article of germany losing control or the perception of that of the vaccine process. jonathan: i hope we can bring in matt miller into the conversation. it is not just that they were pushed, they did involuntarily in many ways. they could have stuck with it on their own. they could have pushed back. i can bring in matt. let's have a conversation. was it germany forced to hand over the powers to the vaccine strategy or did they volunteer to do that? matt: no, everyone i have spoken to in the government says they wanted to do it this way. they wanted to take a multilateral approach to ensure everyone in europe gets the same shot at a vaccine,

in some regions like europe, well above that, above 40%. so it is really from this strong recovery that we are expecting. but bear in mind, it is not just the gross recovery. we are talking about an environment where policy rates are zero, real rates are negative, fiscal policy is expanding, commodity prices are going up, yield curves are steepening. that is a combination of factors we simply haven't seen at least over the last decade. it is positive for risk assets, and also areas that were left behind like cyclicals and value stocks, which have further to run, i think. lisa: this area you are talking about has an inherent tension being played out every day in markets. you have bonds pricing in the now and the bleakness of the now, and stocks pricing and stocks pricing in the optimism of the future. that tension is that if bond markets start to price in the same optimism stocks are looking at, the stocks can't rally as much as they are currently, at least if you look at some of the productions with the nasdaq and some of the expectations w

is it just steepeners delayed in europe? the steepening in europe is delayed. is this a delayed trade but it will arrive? esty: it might be delayed. it will not arrive on the same scale as in some of the other regions. we know that the reopening is going to be slower in europe. vaccination is slower. hopefully, it is accelerating, but it will still take time so we are talking second half before the reopening so you are seeing more of a sympathy move in yellow but probably not on the same scale as what we are going to see or what we have seen but that's going to continue compared to the u.s. you also have the ecb that very quickly came out, saying they do not want yields to rise too much. we will see what christine lagarde says today. you know, in terms of the supply of debt, the ecb is buying a lot of it so it can act more forcefully or more easily to try and calibrate a little bit more so i would not expect the same size of the move in terms of steepening in europe as in the u.s. and elsewhere. annmarie: i'm glad you brought up the ecb because last week, we ha

in europe, a takeoff. in london, rule changes could clear hurdles that have held these listings back in the past. joining us is hugh osmond, chairman of broadstone acquisition corp. you floated a spac recently in new york. are you pleased with what you've seen from london and its plans to change the rules so you could have made the decision to list in london? oh dear, we seem to have a problem. that is a shame, mark, isn't it? because we had a lot of interest in the spac story, the changing regulations coming in london, whether they will come quickly enough to encourage investors to do their spac business in london because that seems to be the future. though as we discussed before, some are concerned that various parties do well out of the spac phenomenon and others suggest perhaps investors are a little less protected in the situation. mark: yeah, london has a lot of catch to do on this issue. spacs are clearly great for investors, spac sponsors, the middlemen, but are they great for the end investor? it

he rightly brought the conversation to europe and what the rising yield environment means for europe had no better illustration than the services sector in spain when it comes to examples of sectors under pressure, heavily reliant on tourism. february services pmi rising to 43.1, just a tiny fraction above the estimate or forecast of 43, but still in contraction territory. that was what the number below 50 means. the composite pmi, 45.1. let's get a bloomberg business flash with laura wright. laura: greenville capital is nearing a deal to sell its operating business to an annuity owned by apollo amid a crisis of confidence in the startup losing longtime allies like gam and credit suisse. questions are emerging about credit worthiness. a decline in coronavirus cases may be giving lyft a reprieve. february's last week was its best since the start of pandemic. it expects increases to continue through march. the firm forecasts it will lose $135 million this quarter, but says the worst is in the rearview. at goldman sachs, its chief lawyer is leaving, the second departure from goldman's t

let's focus back on europe. the rollout of the vaccine clearly crucial in europe. we are also one day ahead of an ecb decision. the central bank stepped up the pace of emergency bond buying after repeated warnings about the rise in yields. carolina, how much do you expect christine lagarde to address this head-on, this rise in yields we have seen globally in some of that into europe? carolina: we expect her to be very direct and how she addresses the topic. this is something that the ecb will not be particularly comfortable with, not necessarily because the rising yields per se, but because of conditions, a concern for any central bank wanting to manage monetary policy. anna: the euro is actually a little bit weaker than it was. how much relief will that be providing? carolina: definitely. a weaker euro at the margin again, very much in line with what the ecb and currently the major central banks will like to see. having said that, it really depends on the context in which the euro might or might not appreciate. in the context of a strong economic recovery in europ