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tv   Bloomberg Markets European Open  Bloomberg  April 12, 2021 2:00am-4:00am EDT

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we'll give you a super easy refund. we'll even cover the return shipping. this is a limited time offer, so go to aerotrainer.com to get the body you want with aerotrainer. annmarie: good morning. welcome to bloomberg markets, the european open. mark cudmore joins me in singapore to take us through all the action this hour. the cash trade is less than one hour away. here are your top headlines. england's lockdown eases amid the lowest covid cases since september. shops, parks, engines open. jay powell says the u.s. economy
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is at an inflection point but a resurgence of covid-19 remains the main risk and the german chancellor's coalition heads for a two-man showdown as bavaria's leader throws his hat into the ring to succeed her. a warm welcome to the program, everybody, this monday morning. this is the european market open. 7:00 in london. a little bit later than that in singapore. good morning to you. good to see you. what are the markets saying to you this monday? mark: it's great to have you back. markets do not look quite so happy. it's looking like quite a risk-off day. while it's positive that we have the reopening in london, it's turning much more negative, driven mainly by what is happening in india. an incredible surge in cases. it seems like the virus is getting out of control and spreading into other assets. unfortunately, india is a slightly special case but this might be the theme of this week that the virus will weigh on
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assets again. anna: we will be talking about the emerging-market angles on that. breaking news coming through this morning here in europe. news coming through that they intend to lift shares. listing on the stock exchange, that is the news coming through this morning. this is a payments business, swedish simtech company. we had heard previously that they were considering an ipo. they were exploring that and other options for the business. a company that delivered 300 percent growth in the united states and we know all about the move into online shopping which has been so good. certainly, that is part of the story here. we will be speaking to the ceo at 8 a.m. london time so we will get into that conversation about why now, why the location they have chosen, and what the competitive environment looks like in this fiercely competitive space. just what under one hour to go,
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let's get to the futures. go stoxx 50 futures. -- euro stoxx 50 futures. let's move onto the u.s. futures. you can see we are seeing u.s. futures set to look a little lackluster as well. we have this contrast between some comments over the weekend from jay powell that the fed by to an underlying narrative around the virus and i know that is something that put a weight on your mind, mark. mark: when we started out this morning, we started out quite positively. you know, it looks like it was going to be an ok session. inflection point in the u.s., but we quickly turned negative soon after china opened. if we go to the gmm screen, we can see that this spread throughout the region. indian stocks, if you look in the equities column, it was down almost 3%, the worst in more than one month and the pandemic situation is getting really bad.
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across the region, australia, japan, china, indonesia, they are down on the day. the other thing to pay attention to is the fact that we are seeing that broad commodity weakness appeared again, you can see everything in the commodities column is reached. whether it's wheat or steel or rubber, it's all the way down because we are getting an increasingly negative outlook on the global economy. the final thing to draw attention to is the emerging-market weakness but bonds are relatively flat. they are not the big story for the first time in a while. anna: that's interesting. march was the first monthly drop since september and i know that some of our colleagues have been writing about how that is set to change. commodities set for a comeback. you have been giving quite a lot of thought into whether it is the virus narrative and some of the deterioration we are seeing around the global virus story that is guiding risk sentiment to be weaker and i find that interesting.
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sitting here in europe on a day when the u.k. is going to open up partially, partial reopening for u.k. services, we do have better news out of germany about vaccine rollout. the narrative in europe is a little bit different from more global concerns. mark: i think that is right and i think that europe is where some of the negativity was. it has been a nonstop positive story. certainly, germany is massively up to the number of vaccinations they are giving out per day. italy is a particular weak point. we are seeing some more lockdowns in the region. they have been lagging. they are a while away from her community. the problem globally, the reason why the narrative is changing, is we are seeing the one-week average cases head back towards record highs. we are likely to get a new record worst week globally in a weeks time at this pace and it looks like we will continue to rise at this pace.
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the geographic spread is pretty large. india is the epicenter. 80% of the world's population, the fifth largest economy, cases are exploding. you're seeing a real big problem in brazil, in turkey, and even in the u.s., we are seeing a very steady and clear climb in cases and fatalities and there is a real worry that anecdotally , the new variants are affecting the younger population more so maybe there's been a little bit of premature -- i'm optimistic vaccinations will change this picture later on this year. i just think it's farther away than we were thinking even only a few weeks ago. anna: that's really interesting, these regional disparities. let me get to the ipo story because we have been talking about that a little while ago when we mentioned that. we have dark trace announcing their intention to float and some comments coming through from them this morning.
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20% of shares. they are on the london stock exchange. this is a cybersecurity company. we heard reports that they were finalizing their plans to ipo and this comes hot on the heels of an incredibly different story. this is a really different sector, obviously, but it's interesting to see. this has been much talked about. it's another hot ticket ipo in the sense that there's been lots of newspaper problems -- columns written about this. let's leave the ipo story there. you can get plenty of analysis from mark and the markets i've team. go to mliv on your terminal. coming up on the show. >> this growth we are expecting in the second half of this year is going to be very strong. anchor: anna: why jay powell says america's economy is at an inflection point. throwing his hat into the ring,
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the leader joins the race to succeed angela merkel as her coalition heads for a showdown. we bring you all the details from berlin. shops reopen across england. we are on oxford street with the latest and do not miss our conversations with the ceo's of the british retail consortium. those conversations around the reopening trade, coming up. if you have any questions, please send them using the function on the bloomberg. this is bloomberg. ♪
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anna: welcome back to the
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european market open. european futures point to the downside. one of our top stories is the reopening of retail and outdoor hospitality across england after months of being shuttered. these businesses will open their doors to the public today, marking the second stage of the u.k. governments roadmap out of the lockdown. but what will the u.k. retail landscape look like? for more on this, we are joined by emma chandra, who is on oxford street. what exactly is reopening today? am a -- emma: they are at stage two of the reopening plan. the most anticipated industry to be reopening. grocery stores have been open throughout the pandemic but nonessential retail has been shot through the three lockdowns that the u.k. has had and it has
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wreaked a lot of havoc on the industry as certainly many people considering it perhaps the worst impacted industry by the pandemic. we are talking about 17.5 thousand chain stores that have closed at 67,000 jobs lost and that would be more if we just took the figure. nonfood based retail store sales down more than 30% and the cost of the pandemic to retail at 30 billion pounds over the course of the three lockdowns here in england. it's not just nonessential retail that is reopening. also outdoor hospitality so restaurants, bars, pubs, allowed to open and serve customers outdoors. it's chilly on oxford street. they will probably need a few extra laborers but such is the pent-up demand here in the u.k. that the expectation is that many people will take advantage of these new freedoms.
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certainly, that is the hope of a number of the stores. we have spoken to a number of people in the retail industry, and they have been spending a lot of money to make their stores ready, make them feel covid safe. a lot of hand sanitizer, plexi grass -- plexiglass. mark: good morning. very exciting to see oxford street behind you. do you think we will get some people there for tourism, just the novelty of shopping? we talk about the cost of the pandemic for u.k. retailers. do we think we now consider the pandemic behind us for u.k. retailers? do you think it will be a slow reopening? emma: that is a very important question i think in terms of what happens once the euphoria of the reopening has passed. our expectations are that people will come to the stores today and over the next week as we get used to the novelty of being
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able to go into stores again. many of the stores here on oxford street are set to open in a few hours time so we will be keeping a close eye to see if we see any lines forming outside those stores but in terms of the long-term impact, remember many well-known u.k. retailers have gone -- during the pandemic. i walked up and down oxford street this morning, not least to keep warm in the cold weather, but there are a number of stores that are getting ready to reopen and there are a number of stores that are shuttered. that is now completely closed and the windows are advertising retail opportunities. i have spoken to a number of people who represent this particular area, this iconic shopping area as well and they are expecting footfall to get back to 40% of pre-pandemic levels in the coming weeks and they are saying there will not be enough to sustain the retailers here so they are looking for more support,
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particularly from the government in the weeks and the monster,. anna: thank you -- weeks and the months to come. anna: it's a little bit too cold for me about the reopening story nevertheless is exciting. peter kinsella, global head of fx strategy, joined us. i wonder how much the reopening story for the u.k. is all in the price, when you look at sterling. peter: a lot of it has been priced in. when you look at sterling against the dollar, we will see the release of pent-up demand so if we look at consumer savings in the u.k., they are roughly $30 billion higher than they would have been. obviously, that's going to be the release of pent-up demand that will be significant in the coming weeks and i think -- i don't think it has been fully priced in. certainly, if you just go by basic anecdotes, it was
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impossible to get a restaurant booking until the end of may. that release of pent-up demand will lead to continued good news or good feeling in the u.k. and we will benefit from that. over the longer-term, certainly, this release of pent-up man will -- any hints towards a move for further negative deposit rates by the bank of england. the market has already priced that out. if we look at the two-year spread, that is around 145 -- 150. we will see continued upside. mark: good morning, peter. it is a pleasure to hear your dulcet tones. i spent part of my career sitting beside peter. you are talking about sterling being bullish. you are very bearish euro sterling. you think it could go a lot lower which is about 6% lower
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from here and i think a lot of people think this as well but it's not working at the moment. there is a long-term view. the last few days, it has been drifting higher and it seems like it is squeezing people in the market at the moment. what is the sudden change in narrative and are you worried that too much of the market is on this position now? peter: you have definitely seen some certain weaknesses, no question about that, pretty much in the last week, basically. remove higher to current levels. again, that is a modest retracement. it looks like it's positioning driven and moved but not justified by, i would say, a relative economic shift. perhaps the only reason you can point towards moving a bit higher was the dollar weakness but also the slight improvement in vaccination rates in the euro zone in the last week or so and also the expectation that this would improve in the euro zone over the coming weeks.
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over the longer-term, obviously, sterling is very cheap. if you look at the u.k. equity markets, it's far cheaper on a relative basis to comparative forces and as that plays out and as we see the brexit horror stories, not happening, not manifesting themselves. given the moves i expect in cable, euro sterling was down around 0.82 percent, consistent with that. mark: given that dollar weakness is part of your fx framework, your paradigm, and part of that is cable will have a higher beat, is your whole view in euro sterling disrupted if dollar keeps on strengthening? if you get told in advance that dollar will continue strengthening, does that change your euro sterling view? peter: it would do, basically on
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that basis. if you dollar moves a slightly higher, euro sterling will take a jump as well. although certainly on my dollar view, i'm very confident that we will see dollar weakness. so the markets priced in roughly two rate hikes by the end of 2023. realistically, that's what they will do on this you think the fed will pick up really quickly, which i doubt they will do. given that situation, i think we will be back in a goldilocks style scenario from a data perspective. dollar does not benefit from it. markets priced about as much as the fed is able to do at the front end of the curve. anna: we started this conversation talking about the pound. we will finish briefly on your thoughts about some other threats. i was looking last week at some polling data, suggesting the s&p could be on track to do very well in the scottish election taking place in may. that is what the polling data
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has been showing. is that something that is weighing on the pound or will weigh on the pound as we get closer to make? -- to may? peter: it should not surprise anyone that support has increased in the last number of years. that has been a well-known and well flagged to development. the question of whether scotland will leave the u.k., we will have to see in the coming years. i am agnostic about it. but certainly, from an fx perspective, the market is not really focused on it to any great extent. certainly, it is not something on the radar at this point in time. it's a development but not when the market is looking out at this point. anna: peter, thank you very much. peter kinsella, global head of fx strategy. coming up, we will talk about the dollar a little bit more. some of peter's use on the u.s. economy right now.
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jay powell says the economy is at an inflection point but covid remains a threat. we will talk u.s. markets, next. this is bloomberg. ♪
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>> what we are seeing now is really an economy that seems to be at an inflection point and that's because of widespread vaccination and strong fiscal some work, strong auditory policy support. we feel like we are at a place where the economy is about to start rowing much more quickly and job creation coming in much more quickly so the principal risk to our economy right now really is that the disease would spread again. anna: fed chairman jerome powell explaining why he thinks the u.s. economy is at an inflection point. peter kinsella, global head of fx strategy, is still with us. do you agree that we are at an inflection point? and if we are, what does this week's inflation
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data that we are going to get out of the u.s., how is that going to add to the narrative? peter: i would not say we are at an inflection point. we are already at unemployment around 6% so we are well on the way toward getting to where the fed wants to go. as regards the inflation data, this is now where we will start to see the base effects kick in and the effects of higher energy prices. on that, you could see headline cpi over the coming months move to levels in and around 2.7%. and then the fed expects to gradually declined thereafter. if we look at inflation expectations on the one-year basis and to year basis, we are around 2.6% so that is kind of consistent with what we expect for the base cpi. the risk is that we get higher inflation and if we do, i think the issue is that we have had 15 years of very low inflation and i don't really think the bond market nor the wider markets
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know how to deal with consistently higher planting inflation, particularly in the united states. it depends on the scale of inflation surprises and on the function by the fed and others to those inflation surprises. we priced in highs. if we get much higher, above 3%, without a fed policy response, that will have a significant effect on bond markets for sure. mark: peter, you give no credibility to this idea of the u.s. exceptionalism argument. peter: look, two things. u.s. assets can do pretty well and there are a number of factors. the rapid recovery, rapid rates of vaccination, and any benefit from stimulus checks in terms of spending and additionally, any benefit from the eventual rollout of the infrastructure
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plan, but that's all good. however, a lot of this is simply -- i do not by u.s. exceptionalism as a story. bear in mind, for the dollar to outperform, what you're basically saying is 1.7% along the 10 year is going to offset a 20% deficit. i just do not buy that at all. what we have seen in previous instances when we had the dollar trading at elevated levels, and then with a massive white man, this leads to a substantial and sustained dollar weakness in the region on a trade-weighted basis. anna: thank you very much for your time. have a good week. peter kinsella, global head of fx strategy. coming up on the program, we speak to the ceo of the british retail consortium. they reopen in england today. we will discuss the state of businesses in the u.k., the
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increasing dominance of online, and how much damage the lockdown can cause to the retail sector. that coming up a little bit later on. this is bloomberg. ♪
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...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. anna: welcome back to the european market open. half of an hour until the start of cash equity trading. the cac and the dax looking brighter than they have.
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already minutes to go until the start of the european trading day. your thoughts are global and elsewhere. we have a raft of data expected this week from emerging markets. mark: what we are seeing is a bifurcation between emerging markets which are trading poorly led i what is happening in india but there is a brazil story and a turkey story. versus a positive scenario in the developed market world including the reopening in the british market. i am watching emerging markets to see whether the weakness might feed into developed markets this week and i fear they might. there are three data points. otherwise it is a data like day. we have turkish numbers. external deficits are going to be a big problem for emerging markets if yields continue to rise. in india, we have the industrial production and the cpi.
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inflation running away in emerging markets is a big concern. and a bigger concern there because they need to tighten policy more aggressively then developed markets. we have these three data points from emerging markets that are symptomatic of global emerging markets at the moment. including a runaway inflation problem. this is all coming as a virus is seeing a resurgence may be in emerging markets including turkey and brazil. i am very worried this week whether this will be the week where the emerging markets' lagging the sluggishness feeds into developed markets. anna: certainly something that health professionals in developed markets are watching as well when they think about the way that the variants are allowed to develop and that is a health story running alongside the economic story. let's get back to that reopening story and england. here in england, non-essential
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retail shops and hospitality venues are reopening today. the second phase of the government's plan. many are excited to return to work and regain a sense of normality, retailers are worried about what the next few months might look like and that is according to the british retail consortium. i next guest -- my next guest says there could continue to be headwinds. joining us now is helen dickinson. good morning to you. what preparations have businesses that are members of the brc making ahead of the reopening today? what preparation work has been done? helen: well, the big priority has been around preparations for -- safety of customers and employees in stores. aching sure stores are safe and clean and ready. a lot of excitement and
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anticipation in welcoming people back. many of these businesses have been closed for more than half of the last year across the u.k. it is a really important day for the country in terms of entering the second step of the lockdown and for those shops in england and in wales, they are opening their doors today. mark: good morning, helen. one of the fast sets of the pandemic is that it forced people like me to do online shopping. how worried are you that that attachment to online shopping might remain? helen: well, i think it is a future that we should be optimistic about. it comes with its challenges and certainly i think what many businesses have done, whether
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they are high street businesses both independence and larger brands, are very invested in the digital shopping. it has been a lifeline for so many of us and it has offered to people that have not shopped online before. that was a shift we were seeing before march 2020 that has been accelerated hugely over the course of the last 12 months. and i think what we will see in the future is a much closer relationship between physical and digital shopping. so, given that investment that has been made and will continue to be over the coming weeks and years, we as shoppers will be able to interact with the businesses both local and national and international that we want in whichever way most suits us at the time. so, it is an optimistic future
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that we should be excited about but it does have some challenges from the re-imagination of what high street and town centers look like. with still plenty of retail but fewer shops. anna: what conversations are you having or hearing with regard to vaccine passports and their use domestically in the u.k.? clearly, there is a conversation about international travel but also whether they will be used if at all domestically. what about retail, what is the latest you are hearing? helen: well, what they are exploring is broader than a vaccine passports. it is looking at a certification that includes not just a record of vaccination but also one of a test or of antibodies that someone may have if they previously have had the virus.
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i think the government has been clear that there will be circumstances where such specifics -- certificates will be useful and should be available to us all. you mentioned travel. that is the obvious one. perhaps at big-ticket or major events might be another. but at the other end of the spectrum, they have also said that there will be places where they will never be required. shops, public transport, those are examples given. and there is a bunch in the middle that they are exploring including parts of retail, all of hospitality. and i think certainly from a retail perspective, the conversations we have had with them and that i have had with the retailers, retailers have been very clear that the purpose of any source of passport or certification is to protect people. and from a shopping environment, the environment is very safe of
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its own account and it does not really involve people staying very close together for long periods of time. and those are the sorts of scenarios where that sort of certification is most likely to be required. anna: do you think most retailers are assuming that they will not have to participate in such a scheme? helen: they are and they believe it is not appropriate in a retail environment. mark: i mean, how viable is it that the retail, given that it is trying to recover from the shift to online can afford to throw more hurdles in front of its consumers. are you going to go into your food shop and order online again or are you going to wait to skew -- or are you going to wait to queue? helen: i would not call it
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organized or aggressive. we are engaging with government as we have across many different issues over the course of the last few months. what is important here is that they follow the science. we keep talking about data and evidence and i hope we will end up in an informed place that has really looked at the sorts of scenarios where any sort of certification will be most useful. and if one day in a worst-case future they are approved to be necessary, then i am sure every retail business will ensure they are complying and the same way that they are complying with the rules as they stand today. i think what is important right now is that we have proper engagement and conversations and hopefully, that will lead to a good and sensible and informed decision over the coming weeks.
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anna: helen, thank you for your time and good luck with the reopening for hospitality and retail. helen dickinson, ceo of the retail consortium. let's get a bloomberg business flash. laura: after a record $2.8 billion antitrust fine, alibaba is thanking regulators. china says the firm abused its market dominance. alibaba said it would not have achieved its growth without sound government elation and critical oversight. the penalty is less severe than many and lifts a cloud over jack ma's empire. microsoft is making a massive bet on health care artificial intelligence. it is said to purchase nuance communications. it has been collaborating with the firm since 2019 on tech to allow doctors to capture voice recordings and enter the data into records. the deal could be announced as
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soon as today. two south korean ev battery makers have reached a last-minute settlement. as kate innovation has agreed to pay $1.8 million to lg solution avoiding a 10 year import ban of batteries into the u.s. and and the legal battle over trade secrets. it is also a blow to the white house green agenda. anna: laura wright here in london. coming up on the program, we got the latest from brussels as the eu's campaign -- vaccination campaign speeds up. details coming next. this is bloomberg. ♪
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anna: welcome back to the european market open.
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17 minutes to go until the start of the trading session. things are improving a little bit. ftse futures still very much in the red. when it comes to europe sorry, the asian session. chinese equity markets, the shanghai composite for an example down by 1.3 percent. some news flow around alibaba and the fine leading to a rebound in the share price initially. mark: a rebound and a thank you from the company to the regulators which is not something you would normally see in western markets perhaps. what happened in china was a $2.8 billion fine. 4% of last year's revenue. not the 10% they could have been fined. the market -- alibaba got to open several percent, 8% up at one stage this morning. there was positivity. first of all, the whole process concluded quickly. secondly, it was not the maximum
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fine allowed and thirdly, because they said there were no more investigations ongoing. this provided a boost to tech stocks that quickly faded as people turned more negative deciding there is more coming. that i do think that thanking the regulators for a large fine was one of the most fun bits of the story. anna: a little bit of an eclectic closure to that news flow. let's think about what else is coming up this week. today, the biden's administration economic insecurity advisors will meet with leaders to talk about the global shortage of computer chips. tomorrow, the oil market report. wednesday, we hear from christine lagarde. across the atlantic, jerome powell will also speak at a moderated q&a. bank earnings season is soon upon us.
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we will get results from jp morgan and goldman sachs. and on friday, a white house summit between the japanese prime minister and president joe biden. prime minister is the first foreign leader to meet joe biden in person since he was inaugurated in january. those in person meetings so difficult. 15 and its to go until the start of the trading day. let's focus on the european vaccination rollout. the campaign met with delays and missteps but markets are wagering that the pandemic is on his way out and sentiment is turning positive after a delayed start in immunizations and mistrials over the astrazeneca vaccine side effects. france met its goal of many -- of -- and germany has doubled its piece of vaccinations. joining us now with more is -- maria tadeo in brussels for as.
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news out of germany after the easter time -- that news seems to be substantial. maria: look, we have spent weeks thinking the rollout was behind. that it has been patchy and difficult and slow but if you look at the numbers now, the narrative of the story is clearly changing and taking a different direction. if you look at the numbers from last week, germany had a monster day with more than 700,000 people acts needed in one day. a good day in the ok to give you an idea. they brought in the doctors that are closer to patients which is making things go quicker. the government saying they will give one million vaccines each week to speeded up further. france was ridiculed for weeks for having a slow rollout. they hit a milestone, 10 million expected. they also had more than half of
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a million people vaccinated in one day. things are improving. distribution is on and now vaccines are getting to people quickly. mark: good morning, maria. the eu drug regulator has started a review of the johnson & johnson vaccine ahead of its rollout in europe. maria: this is one to watch. funny that tone about this is much more positive than it is about astrazeneca. not as worrisome as astrazeneca used to be one or two weeks ago. the regulator has said that they do factor that there are hundreds of people that die of coronavirus on a daily basis. with the johnson & johnson case, they need to establish this is a clear connection. and they have to make the assessment that the benefits outweigh the risks. europe has -- this is a single
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shot. they expect 55 million doses. they do have big hope for this vaccine and they do see it as a key to herd immunity this summer. anna: let's get a bloomberg first word update. laura: the u.s. secretary of warning china against encroaching on taiwan. in an interview, antony blinken raised concerns about beijing's aggressive actions in the taiwan strait adding the u.s. stands by its commitment to ensure the self-defense of the island. he also faulted china on its secrecy around covid-19. your money's conservatives are split in the battle to succeed angela merkel. the bavarian state leader is joining the race taking on the head of the cdo.
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they both formally declared their bids yesterday. party leaders are meeting to set up the next steps and the cdu is the sister party of the cdo. david cameron has broken his silence over the controversy of his lobbying for greensill capital. he is defending his actions but says there are important lessons to be learned. as an advisor to the company he lobbied a chancellor encouraging officials to give greensill access to pandemic funds. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark. anna: laura wright in london. coming up on the program, we get you the stocks to watch this monday morning including diasorian. it agreed to acquire covid-19 test maker luminex. we will look at more deals plus news about an ipo. this is bloomberg.
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anna: welcome back to european market open. eight minutes to go until the start of equity trading. things improving when it comes to the futures picture. we see a little green on the screen. let's get to the stocks we are watching this morning. dani burger joins us with a look at a few names that could be on the move. you're looking at a life-sciences diagnostics company. dani: we don't mention the company daily but the deals it is doing is something we talk about every day, covid related. the key is that this deal for 1.8 billion dollars, they will acquire a company that does a lot of covid-19 testing which is a good business to be in this year. for the future, a gives it
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exposure into the u.s. market as well. that is its justification for buying up this u.s. company. mark: hammerson is in the news with another retail story. dani: a lot of -- i have a lot of deal stories for you. hammerson potentially selling some of its retail parks to the u.s. real estate giant brookfield asset seven properties at 150 million pounds. these are just talks at the moment. in a statement, hammerson says there is no certainty that the deal will take place. anna: let's also talk about omv in the energy space. dani: this comes from a report from an austrian newspaper. they say that omv has met with one of their key shareholders to talk about a deal. some of them include omv buying stakes in various companies and
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selling their romanian business. and the key is that the ceo is looking to back his contract and get it extended for another five years. it is up at the end of this year. anna: dani burger with the latest on the stocks we are watching. a few minutes to go until the start of the trading session in europe and it seems things are improving in future as. as we head to the start of the trading day here in europe. mark: it is not that risk off in context of how big the gains have been. european stocks and u.s. stocks at records. some weakness in the futures. u.s. futures down about 0.2% but not much when we look at what has happened in asia. there is little sign of contagion. that will be a big theme this
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week. will we see contagion. i think we might but it is up for debate and not clear yet. anna: contagion from the health perspective as well as the market narrative perspective. thank you for taking us through some of the market thinking from there in singapore. i will be back with the market open next. futures point to the downside in london. flat to positive for the other major markets in europe. we will be back with that market open for this monday morning. this is bloomberg. ♪
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anna: welcome back to the european market open. a minute to go. england's lockdown eases amid the lowest covid cases since september. shops pubs and gyms open today.
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jay powell says the u.s. economy is at an inflection point the resurgence of covid remains the main risk. the german chancellor's coalition heads for a two-man showdown as the bavarian leader rose its hat -- his hat into the ring to succeed her. some 20 seconds to go until the start of the european equity trading session. this is what futures look like. a fairly flat. coming off the back of quite a negative session in the asian equity markets. down by 0.9%. the indian markets, chinese markets under residual pressure. the shanghai composite down. covid infection rates still part of the narrative in many parts of the emerging markets and that is perhaps having an impact on investor sentiment in those locations. moving through to the european session, that psychology is different. margin narrative looks
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different. we have the reopening story in the u.k. in england and wales as well. we also have the better data coming out on vaccinations in germany and perhaps also in france. all of that adding up to a different narrative for european equity markets. this is where we are. we do see some fairly flat in germany and france but the spanish ibex and the ftse 100 are both moving to the downside. we do have some move lower for some of the major markets. and look at the sector breakdown. all of the sectors seem to be in negative territory apart from auto and auto parts which perhaps is helping the german markets but elsewhere, basic resources and travel and leisure moving to the downside. european equity markets opening fairly mixed. a little weaker, down 0.2% on the stoxx 600. one of the top stories is the reopening of outdoor hospitality
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in england. the businesses will reopen their doors to the public. what will the u.k. retail landscape look like? for more, we are joined by emma chandra who is live on oxford street. stay warm. i am hearing reports of snow. how hard is the industry being hit or has it been hit i the lockdowns? -- by the lockdowns? emma: it is rather chilly here on oxford street. i have been walking up and down looking at the preparations in stores to reopen this morning. the retail industry, one of the hardest hit during the pandemic. certainly in terms of job losses. 67,000 jobs in the retail sector net lost. chainstore names have shuttered their doors. and the british retail consortium telling us the cost of the three lockdowns in
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england to british retail, some 30 billion pounds. and we will not see some names reopen. speaking of the arcadia group that used to have its flagship store behind me. that will not reopen. and i am standing close also to john lewis. a stalwart of the british high street excited to reopen their flagship store but one third of their fleet will not open again after shutting their doors during the pandemic. there is palpable excitement about the reopening. i have seen a lot of social media about stores getting ready to welcome customers back in with covid secure as yours including mask wearing, plexiglass, and socially distanced queues in stores. the british public have access in savings and retailers hope
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they will be willing to splash the cash. the concern is how sustained that will be. whether it will last beyond the excitement of the reopening. whether those online shopping habits build during the pandemic , whether they will indoor and what that will eventually mean for store based retail. anna: emma chandra reporting from oxford street all morning. snow or not. she will be later on in programming for you. from a market perspective, let's talk to valentijn van nieuwenhuijzen who joins us this morning. good to speak to you. from an investment perspective, this partial reopening of the u.k. hospitality and retail sectors a welcome sign for those watching the rollout of vaccines and the economic straight for europe. is this all priced in or is there still further to run in the undervaluation of u.k.
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assets that we hear from some of our guest? -- guests? valentijn: it is great to see. we have snow in the netherlands. we are locked down still. the positive energy people feel when you see these images does carry a certain amount of weight. i would assume that markets have not fully priced in this. i do feel that the reopening and the u.k. and probably later toward summer in europe will provide quite a significant boost to the economy and therefore boost recovery and the overall tone in markets and other areas of support. anna: the u.k. economy is usually fairly cyclical. and perhaps that plays in the sector -- the ftse 100 down by
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0.4%. how would you expect u.k. equity markets to perform? valentijn: the picture is relatively positive on the back of the vaccination program and the rollout has been so much more effective than in the rest of europe. it is a cyclical market. financials are the more traditional parts of banking. but also manufacturing and export sectors will benefit from this. the u.k. markets, the ftse, although rising nicely this year is lagging the european equity markets. there may be the fact that the currency will play a role. sterling has strengthened. there may be a bit of a headwind compared to some of the other equity markets but all and all, i think the outlook for u.k. assets is certainly good in this
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cyclical recovery background. anna: just looking at the sector breakdown this morning. it is interesting to see that one of the only sectors in the positive -- tech and autos. how much further does that narrative have to run? how do you value the ev focused makers compared to the new entrance into that space? valentijn: what is important is if you talk about autos and germany specifically, there are other elements. but the embrace of a transition into ev by german carmakers is something that is critical. that was not they substantially wonder two years ago. that transition has taken place. in that sense, i think there is more to go there. they have strong brands there
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and if they are willing to embrace this ev transition, we still see an upside to that sector as well. anna: another sector on the move -- you are long materials. give us your thoughts on why so at this point. resources are having a tough march. one of the worst months since september. and stocks are performing badly. valentijn: overall, we are still looking at a global economy that is plowing its way back to a much more normal level of activity. we are seeing certain trends -- globalization trends and supply chains are more disrupted than in the past. if you combined the two, there will be maybe not a secular, but a firm demand for overall materials in the global economy. certainly also with china
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growing a strong as it is and looking to remain quite resilient. all in all, the macro factors remain quite supportive for materials. there are some specific needs related to whether it is semiconductors or other types of needs that continue to provide strong demand there. we think the medium term macro factors are remaining quite supportive for the sector. anna: stay with us. valentijn van nieuwenhuijzen, the cio from and and investment partners. breaking news -- from the utility sector in france. the and suez have announced that they have reached a merger agreement. this has been a long time in the making. they have agreed on a price of
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20 -- 20.50 euros per share. if you look at the three day price, up 7% but for the day, 6.5 8% on the screen. coming up on the program, jay powell says the economy is at an inflection point but covid remains a threat. this is bloomberg. ♪
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anna: welcome back to the european arcade open. 12 minutes into the session that looks fairly flat overall. some real divergence to what we are seeing in germany and france versus london. look at the stocks on the move. dani burger joins us. dani: the budget airlines are doing poorly today. some of the biggest losers. easyjet being one of them and ryanair all falling. it is a down day in markets. amidst these economically sensitive companies. perhaps some virus concerns. travel concerns after the new stoplight system unveiled by the u.k. in terms of looking at some of the biggest gainers. the italian diagnostics company
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trading at more than 7%. they will purchase a u.s. diagnostic company. they are a big maker of covid-19 test kits. it gives the italian company more exposure in revenue from the u.s. the biggest m&a story -- suez and veolia have agreed to a merger. 20.50 euros. shares climbing not quite at that level but still up 7%. quickly look at the overall market. a dull day. u.s. 10 year yields holding on to some of the gains they made on friday after the higher inflation data. perhaps some of the dull market data is about the inflation concern. things are priced with expectations high. bitcoin able to breach the
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$60,000 level ahead of the ipo this weekend. anna: dani burger with the latest on stocks on the move. in the macro things we are looking at. here is laura wright. laura: microsoft is making a massive bet on health care artificial intelligence. it is set to buy nuance communications. it has been collaborating with the firm since 2019 on tech to allow doctors to capture voice recordings and enter the data into medical records. if talks are successful outcome of deal could be announced today and that would be microsoft's guest deal since it purchased linked in. and abu dhabi's sovereign fund may purchase -- may make an aramco pipeline deal. aramco has put together a loan of $10.5 billion to fund the transaction. it would be part of saudi arabia's effort to open to more
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foreign investment. grab is putting southeast asian tech on the map. a blank check company backed by t. rowe price. the deal will value the firm at more than $34 billion. it would be the biggest spac merger ever. anna: thank you, laura wright. the u.s. economy is at an inflection point according to jay powell who sees stronger growth and hiring ahead thanks to rising vaccinations and powerful policy support. but the pandemic remains a threat. he spoke to 60 minutes. >> we are seeing an economy that seems to be at an inflection point and that is because of vaccination and strong monetary and fiscal support. we feel we are at a place where the economy is about to grow more quickly and job creation coming in more quickly. principal risk to our economy is that the disease would spread
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again. anna: the thoughts of fed chair jay powell. valentijn van nieuwenhuijzen, c io with and then investment partners. it was interesting to hear some of the thoughts around inflation and what that does to stock valuations. how much further do you think stocks have to run when we think about the warning signs about inflation? a colleague of mine said warning signs about inflation are popping up like spring flowers. valentijn: it has been the talk of the week and the year and obviously, there is a breaking point talking about inflection and breaking points, inflation becomes a destabilize or. however, i do sort of tend to still feel some sympathy for the fed's perspective in the sense that they are emphasizing a lot their willingness to be fluid on
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a temporary basis. whether it is the energy price impact, there are clearly temporary factors at play right now which will drive up inflation numbers in the near term. the big question is not so much the headline readings but rather how do we look at that from a medium-term perspective, 1-2 year horizon? a moderate increase in inflation is not a bad thing. it allows stronger topline growth. it allows more pricing power. it does create a bit of room to support earnings dynamics. i think we are not yet at this breaking point. at this point, it is rejuvenating overall the economy and is part of the recovery story. but also for the rest of the year. i don't see a big risk for earnings and for equities. however, if there is a
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deceleration from the current pace, we will have a problem. anna: that is where the risk comes from then in your view. talking about the things that of gotten us to this place in the inflation conversation, the fiscal and monetary support have people asking when will we see this coming through? it also raises questions about what is priced into markets? reading quite a bit about whether we have seen equity markets fully reflect the size and scale of fiscal stimulus in the u.s.? markets open to the positive but not digesting the negatives. higher tax rates. goldman sachs saying this would cut 9% of 2022 earnings in the u.s. our markets aware enough -- are markets aware enough? valentijn: that is one of the biggest risk factors out there.
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currently, plans are being designed for how biden will pay for all of these expenditures. a bill has already passed congress and there is another one. and there is a lot of discussion more globally about taxation and harmonization and the minimum tax rate for corporations and all of that. europe seems to be open. but all of these factors -- equity markets globally in europe and in the u.s., almost everywhere, record highs. have they fully capture this? no, i don't think so. that needs to be monitored very closely. there can be more macro economic benefits but from a corporations perspective, there is a risk to equity markets for sure. anna: valentijn van nieuwenhuijzen thank you for joining us on bloomberg tv.
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he will continue his conversation with us on bloomberg radio at 9:00 a.m. u.k. time. coming up here on the european market open, throwing his hat into the ring. of areas leader joins the race to succeed angela merkel as her coalition heads to a two-man showdown this week. we bring you all of the details from berlin. we are live there next. this is bloomberg. ♪
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anna: welcome back to the european market open. 23 minutes into our trading day. european equity markets to the downside even in germany where we saw early gains for auto stocks. sticking with the german theme, angela merkel's block is heading to a two-man showdown over its candidate to succeed her as german chancellor after the leader of the bavarian party through his hat into the ring this weekend. joining us now is agatha cantrell from berlin. from bearberry a, we have -- from bavaria, we have a late hat being thrown into the ring. bavaria does not normally provide a candidate. where does this leave the cdsu? >> as we see it now, the bavarian option is very much
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more favored in the polls especially when compared to the leaders of other parties like the social democrats and the greens, a key rival in september. but it is as you say typically the case that the leader for the block when they run in the national elections calms from the cdu which represents 15 of the federal posts. and a lot of parallels have been made recently about the rivalry between helmut kohl, the famous chancellor and the leader who was a clear rival to take him and there was a rupture in the party because of that. what was made clear yesterday when he made his willingness to become chancellor clear, went into the press conference with another, they expressed their interest in unity for the party.
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they are having meetings separately with their own parties to try to come to an amicable agreement and the next couple of days about who will run as candidate. anna: it was interesting to hear him talking about working together whatever the outcome. in terms of the fight against coronavirus in germany, how are the measures to contain the virus impacting the election campaign? >> the measures have continued for longer than a lot of people probably expected because of the interest in getting rid of the third wave of the virus which is still heading the country quite hard. in the last week or so we have seen a real ramp-up in vaccinations which could also be attributed to expanding the ways in which people can get vaccinated in the country. they can get vaccinated at a doctors practice for example. we could potentially see the cdu maintain their lead be yet
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smaller in the polls going into the september election when earlier in march, it was showing that they could be losing out to the green. anna: thank you very much. agatha cantrell live for us in berlin. coming up, we speak to the ceo of the trustly group. conversation is coming up next on european market open. this is bloomberg. ♪
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anna: welcome back to the european market open. coming to the downside of essentially, even the dax and cac have made earlier gains, now negative. add that to the ftse 100, underwater, and we are weaker across europe. let's get to some of the news flow we are covering in terms of dealnews flow. suez and veolia making an announcement, both of those stocks moving to the upside more than 7%, continuing to make
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those gains, up 5.7%. they agreed on a merger price. and we are just hearing from a press conference taking place the veolia ceo is speaking to journalists, saying the asset sale is canceled. the deal concluded during the night. giving really interesting insight into the timing of all of this. the ceo is saying they're confident in the business's ability to integrate suez. that's one particular french m&a story we've been following in their utility space for a long time. let's turn our attention to the sector moves across europe and equity markets. earlier on, we have seen the auto sector doing well. it is in positive territory, but not sufficiently to bring the german market to the upside. we see autos and parts to the upside, utilities also higher. autos and auto parts something of a long-term story around electric vehicles, basic
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resources making moves to the downside. with that combination, easy to see why the london market underperforms. let's get a bloomberg first word news update. for that, here's laura wright. laura: and glints pandemic markdown is easing -- england's pandemic lockdown is easing. scientists are saying the u.k. could be about to cross a key threshold, herd immunity. we've heard that before. others are more pessimistic, imperial's sang 44% of the country has protection from covid. i ran says -- iran says it was an act of nuclear terrorism, blaming opponents of talks between the islamic republic and world powers to revive the landmark 2015 deal. iran did not elaborate, but has largely blamed israel for its attack on nuclear infrastructure. the biden administration is stepping up scrutiny of china
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for a digital yuan. sources say some officials are concerned a good spark a long-term hostile dollar as the dominant reserve currency. the u.s. wants to see how it would be distributed and if it can be used to get around sanctions. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. anna? anna: thank you very much, laura wright here in london. chuck lee is playing to raise $900 million and a stock market listing as the firm becomes the latest company to see growth amid a surge in demand for online services. bankers will be mindful of the recent flop by delivery in its long-term listing, very different business. let's speak to the ceo who joins as now. very good to speak to you. i understand that until quite recently, you're keeping a number of options on the table, not committing to the ipl --
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ipo. so what convinced you? >> good morning. thanks for having me. i think the board decided to pull the trigger on the ipo. we have prepared for this for close to a year, approving all the processes. and at the end of the day, it came down to the fact that one or two independent company. we wanted investors to invest in the company for years to come. and i think that was it. anna: so, that's what drove things. how did that tie in for the decision to list in stockholm? is that simply geographical or real impressed by the ability -- or were you impressed by the ability of the founders and shareholders to stay connected to the business? what convinced you about a stockholm listing? >> i think the choice was between stockholm and new york. we were roughly in the u.s.
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the u.s. is becoming our largest market. at the end of the day, we are a swiss european company, and we concluded sweden would be the place we would want to list. we could potentially do a dual listing in new york, as well. anna: and other businesses in the space have been perhaps considering things like specs -- spacs, but you are going through an ipo. what was behind that decision? >> obviously, the main interest in spacs, we want to do kind of an old-fashioned listing in meeting with different investors, spilling out our broad, long-term shareholder base. we conclude in doing it the old-fashioned way, if you would. anna: what about the performance in the build in the business? --
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in the business? clearly, lockdown has had upside, businesses focusing on online payments. we saw 300% growth from your business. how much of that is sustainable as we start to see the u.s. and other parts of the world opening up? >> actually, i think travel airlines vertical has been less shut down this last year. we have had multiple years of growth for several years of good growth, and on a proven business model, we are making money. it's really more to come as things come back to normal, in particular travel airlines. anna: in terms of the payments business, there do seem to be a lot of businesses in the payments space. what is it that makes your payments business different than other payments businesses that might operate in a similar
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sphere? >> great question. i think the big difference is weak completely bypass the core networks. a lot of great semtex celebrate companies out there that are core networks. we're building our own payment network, computed by core networks. on top of that, we have our own consumer payment method. we accept payments in an effectively. we can bypass the core networks for a time when commerce happened in a physical world. -- fiscal world. there are core payments online we can address. we can get rid of the middlemen you have. so, that is really what differentiates ourselves from other companies out there. anna: bypassing the core
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networks, does that require a large amount of infrastructure and investments on your part? >> it does. we have connectivity globally. we can enable half a billion consumers. so, if you were a merchant with a global footprint, we are extremely relevant to the cards. we also have our own network in europe. so yes, 10 plus years of investment goes into building this network and payment solution. anna: a lot of syntax businesses thinking about coming to market, already coming to market. does it feel competitive? does it feel like to competitive time to do this ipo? imagine you're confident -- i imagine you're confident nonetheless. >> we have a strong track record of strong revenue growth, as well as profitability. so, the way we think about this, your revenue growth plus our
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margin, we want for that to be around 80. and, you know, and then we get some thoughts ability. we may invest more -- some flexibility. some years, we may invest more. i think from that perspective, we have this proven platform, proven business model, and the network infrastructure built to compete. that gave us the right kind of backdrop, if you will, the right means. anna: oscar, thanks for your time. thanks for talking to us. the ceo talking to us about the business's plans to ipo. coming up, hitting the gym. we speak to the ceo of pure jim as the lockdown in englund eases further -- england eases further. more on that next. this is bloomberg. ♪
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anna: welcome back to the european market open. 42 minutes into the trading session. u.s. futures point slightly to the downside, nasdaq futures down around .8% or so. as we've been talking about, phase two of the plan out of lockdown in the u.k. came today
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with retail and leisure reopening. that includes jim's. with the pent -- and that includes gyms. businesses see demand return? our next guest says he expects one million workouts to take place this week. a little early on the monday morning. that's an exhausting thought. the pure jim ceo joins us now -- pure gym ceo joint is now. -- joins us now. are you inspecting people to come back and droves or hesitant -- are you expecting people to come back in droves or are you expecting them to be hesitant? >> i was delighted to see we had about 60 people through the door by 6:30, members smiling, really happy to be back in the gym. that's busier than a normal monday morning. it wasn't the easy as morning. we had heavy snow, which is bizarre.
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i was able to get in a cheeky workout, one of the first of those million workouts that we hope take place this week. so overall, i'm reassured by that. my belief is that we will see members coming back, wanting to come into discipline, activity, enjoy the social environment of the gym, the equipment we provide, 20 quid a month. it's a great deal. we have great procedures in place. anna: ok, good to hear you had your workout this morning, the snow perhaps playing in your favor. what has been the pattern of people canceling their membership and then in the run-up to today's reopening, coming back and taking out membership again? have you got details on how that weight? >> evidently, when you are closed long periods, and we've been closed eight months the
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last 12 in this, and we froze everyone's membership -- in the last 12 months -- and we froze everyone's memberships. they can rejoin anytime they want. we opened this morning with 30% of our members down but they will be coming back very strongly over the last month or two. we will be have between 200 and 250,000 people join us. i think everybody needs time to reprioritize with being out there and doing things again. they want to make sure we've got social distancing in place, plenty of cleaning going on, all of which we've got. and i'm confident we will see a steady rebuild of our base. it's an essential service to people. it's not something that's fuel
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anymore. this is an essential part of life. there are 10 million members of jim's in the u.k. of last year before the pandemic, and this has been a health crisis. people know they've got to look after themselves. notwithstanding what they can do at home with the home kit, which is great, i think there will be coming back to our facilities. anna: how concerned are you about the rivalry you are seeing from home kids, from those who have invested in home kids during the lockdown? yes, people are coming back and yes we are seeing reopening today, but it is not fully reopening. they are not able to operate short-term. >> things like that will be reopened after may 17. we have longer to weigh on that. on your -- longer to wait on that. on your central point, and the fitness fan. i think it's great people are more active at home. but what i've seen, nearly 15 years now, is that when there's
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more opportunities for sports and activity, people do more of pretty much everything. what we'll see is people continue to do more at home. we open our classes to anybody in the country, 400 classes and exercise routines available to anybody who wants to download it. people continue to use that. but they want to come back to facilities. the average person uses between 15 and 25,000 pounds worth of equipment when they come, lifting platforms and weights and plant -- and treadmills. most people can't replicate that variety of activity at home. most people can't afford a peloton bike. palatines are great. the chancellor is a -- pelotons are great. the chancellor is a fan. that's great. we provide an economic option for people to get a wide range of activity. anna: we are looking at images of some of the measures you put
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in place, you and other gyms around social distancing, trying to keep everybody safe. what are conversations with the government like about how you make sure the government -- and thinking about whether there's use of any kind of vaccines in the future, or immunity certificate. what conversations are you having about whether the gym sector needs to be a part of that conversation or not? >> we are working very carefully with u.k. interactive, the body that works on behalf of all the gyms operating in the country, inputting into the government consideration of those schemes. we know there's a lot of discussion about that. it's all a bit confusing as to exactly where the government thinks it's going to go. obviously, they don't know yet. ever general view is that -- our general view is that the sort of schemes will be important in the appropriate environment. people sit next to each other at 40-50 centimeter distances for long periods of time.
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we are going to have some certification requirements in airplanes and things like that sort of nature. how much beyond that remains to be seen. we're very confident that the protocols that we put in place, the social distancing, and the way that jim's work, mean that they -- gyms work, mean that they're safe without that. the november-december lockdowns, as well. so, we are very confident that people are safe. of course we've inputted to the government, you citing those statistics, and asked them to think carefully about overburdening people with requirements. it will be strange if the government wants everybody to get healthy on the one hand and get back to activity and back into jim's but they put a barrier in the way by making it a vexing complaint for sort of certification required. -- vaccine compliant or sort of certification required.
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anna: thank you. ok, we'll watch that carefully. thank you for your time. the pure jim ceo, thank you for -- pure gym ceo. coming up, back to the data, back to the economics. bond watchers are bracing for a bumpy ride ahead of key inflation figures. what it means for markets next. this is bloomberg. ♪
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anna: welcome back to the european market open. 53 or so minutes into the equity treading session and can see the london market underperforming today, pressure on basic resources and the resources. joining us now is laura cooper, the markets live macro strategist. let me start with the subject of inflation because that is the big thing of the week, a big thing of most weeks i can think of lately. because we've got the inflation figures coming out in the u.s. tomorrow, what expectations look like and what the market is waiting for when it comes to that narrative. laura: it's going to be about the u.s. inflation tomorrow. markets are expecting we are going to see a spike in the headline print to about that two
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by 5% rate. that -- 2.5% rate. that's because we're going to see the base effect from a year ago. we also have climbing energy prices. from a markets perspective, the challenge now is we are in this goldilocks period for stocks improving growth, improving earnings expectations, whereas at the same time, really a contained environment for yields, supportive monetary policy. so, we do start to see those price pressures begin to build and we start to see the fed rate hike expectations ramp up once again. we could potentially see that spook stocks. clearly, that could be a catalyst tomorrow. anna: that's what we're looking ahead to then. in terms of the more immediate story, it doesn't seem the london reopening, england reopening story is getting through to markets. are priced in seems to be part of the conversation -- all priced in seems to be part of the conversation.
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certainly a big sentiment left for those in the u.k. to see life returns slowly to other bit of normal. laura: absolutely. yes, markets aren't as excited as the rest of us to go out to pubs and finally get our haircuts. but as you mentioned, a lot of that is already in the price. the ftse 100 has a lot of room to climb relative to its european peers. when you look at the currency, i think a lot of that offbeat expectations about growth is baked in. euro sterling reached its highest in six weeks. we are potentially seeing that under pressure, but not yet. it's going to be all about the data for the u.k., as well. will we see consumers unleash that pent-up demand? we are seeing elevated savings rates. so, could us consumers going out really provide that catalyst to the u.k. growth that is largely being priced in across u.k. assets? anna: markets and moved.
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they clearly don't need it as the rest of us do. let me ask you the question of the day around chinese tech rate how big a threat is -- chinese tech. how big a threat is chinese tech? laura: we are seeing tech under pressure. we did see abounds in terms of alibaba. the clearly, that -- but clearly that could be a potential ripple effect across the u.s. that is largely a story about u.s. yields dominating that tech story. if we look at the reflation trade, relative to the nasdaq, that's actually tumbled the last couple of weeks relative to what we would expect to see in yields. so really, tech has been an outperfomer, so that could potentially be shaken once we do potentially see those yields spike higher again on that back of u.s. data, and as well as a deluge of supply coming in on treasuries this week. anna: we'll watch out for the
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supply story, as well. that is it for the european market open this monday morning. surveillance early addition is up next. this is bloomberg. ♪
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get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things
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we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. >> what we are seeing now is an economy at an inflection point. >> we will be comparing this year's prices with last year's collapsing prices. >> what's most important is we make the investments in the country that we need to. >> this is "bloomberg surveillance: early edition." >> good morning and welcome to "

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