dani: good morning. this is bloomberg daybreak: europe.

bears stepped back. asian stocks are set to snap three weeks of declines amid continuing signs of growth in china. u.s. futures drop and fed officials lean hawkish on rates. a steady hand with china's national people's congress set to kick off. the pboc governor signals monetary policy will remain stable this year. firms including coinbase cut ties with silver gate as confidence evaporate in the crypto friendly bank, prompting declines in digital tokens. earnings from europe's largest airline are out. they see significant improvement in adjusted ebit in 2023. travel demand is booming and it's back. they are seeing capacity that's going to be get close to those pre-covid levels. it will rise 85 to 90% of average versus 2019. again, getting back to normality. in this current quarter, they

are seeing a miss on revenue. it came in at 8.8 8 billion euros. the estimate was over 9 billion. the adjusted ebit is better. help with profitability there. the main story here is improved 2023 outlook thanks to everybody traveling to the mediterranean, everybody traveling on north atlantic roots. so that's that concept. let's move to the broader market picture. it's yields. we will be speaking to the ceo. this is the broader picture when it comes to market. bond yields keep moving higher. the entire curve except for 30 year yield is above 4%. here's the crazy thing. stocks are set to end the week higher amid all of that. they are little changed on the week when it comes to s&p 500 despite the fact futures are slightly weaker today. perhaps they clung on. bostick's said there's a case to

go higher. perhaps it's china pmi's helping us and the day a little bit stronger for asian equities. same goes when you look at the cross asset picture as well. we are looking at the aussie. could be china pmi stories really helping those commodity and high beta currencies. if we flip things up, bond yields higher across the board. they are higher in australia, japan. they are going past the bank of japan benchmark rate. i think we should have that for you in just a moment. either way, we have the boj meeting on the 10th. will corrode a surprise us yet again? let's get into these stories. we will talk about the higher rates for longer, bitcoin hitting a two-week low, what we can expect the head of the national be those congress. -- people congress. let's talk about central banks, from the fed to the ecb. inflation remains too hot and

more hikes are needed to cool it down. let's get to valerie tytel. we had waller's speech. rudely interrupted to put it mildly. we did see the text. what did he say and it? >> he emphasized the next payroll print and the next cpi print. the cpi print comes in the fed's blackout time. he said he needs to see the cpi pullback significantly. he used the word significantly. it doesn't take much. if you look at eco-go for what we are penciling and as the contest is -- consensus estimate on march 14. we want see a significant pullback in less there is whopper of a miss. it is safe to conclude that his daughter is likely to move higher based on that speech that was rudely interrupted. dani: rudely interrupted. i saw somebody call it a poor bomb.

that was over the zoom chat. to europe. pcbs told a set of 4% terminal rate is possible as banks revise their ecb calls. what's the latest with that? valerie: he mentioned that 4% number. we saw upgrades of ecb forecasts . barclays is calling for a 50 basis point hike in may. that would be an additional 50 basis points after their march meeting. bnp revised up there terminal rate to 4% as well. goes without saying, they are matching what the market is pricing in. the terminal rate has hit 4%. if you look at what the front are -- fronted rates are pricing. i want to focus on of speech we heard from's novel. she said, the large stock of assets acquired under qe continues to provide significant monetary accommodation. it may run counter to our efforts to bring inflation back to their 2% target in a timely manner. this thought that the asset

stock is continually undermining their policy and that the balance sheet is too big for their current restrictive policy stance is pretty interesting. i would take a look at this piece on the ecb website. dani: aren't you so excited for when i start asking you about fragmentation again? aren't you excited for that debate to come back? valerie tytel there on the latest from the ecb to the fed. we got a big move in bitcoin today. it's dropping to its lowest level in two weeks. that's because of this risk appetite evaporate in. digital assets were also absorbing the fallout from the troubles at crypto friendly u.s. bank silver gate capital which has said that it's reviewing whether it can remain viable. the u.s. sec chair spoke about bloomberg to -- about crypto regulation. >> there's nothing incompatible, crypto and our securities flow. our securities laws were brought about to protect the investing

public against fraud, schemes, manipulation. it was through this idea of full, fair, truthful disclosure. dani: let's get to annabelle droulers in hong kong. what are we at right now? 4.5% slide. how much further can bit point go? >> you mentioned the three factors there. you had the macro and then you had the regulatory side. also what's happening at silver gate. this is a crypto friendly bank, traditionally. it was a key on-ramp for the world between the fiat currency and crypto one as well. that's one factor that needs to be worked through. also what's happening on the regulatory side. that was our exclusive interview with the sec chair. there's a lot of concerns about those regulatory frameworks that still need to be worked out including the crackdown that we've seen on those more speculative areas that have been

generating better returns for the exchanges. there's also the macro factors. yes, that move higher in treasury yields, that more research and dollars that has come back into play, these are factors that our team says is keeping a lid on the price gains. these are things that can place downward pressure. when you look at the technical analysis side where bitcoin has been trading on a 100 hour average, we are close to that 23 level now. that puts a move back down to the $21,000 range in focus. dani: you mention silver gate which has fueled this latest selloff in bitcoin. what happens next? where we stand on that saga? annabelle: to give more context here, this is essentially a crypto friendly bank as i said. in a filing we got earlier this week, the bank raise questions about whether it can manage to stay in business. the stock was down 60% or near about. you can see in that graphic.

it's the biggest drop we've ever seen. it's quite sizable. 60%. brings us back to a record low for the stock as well. investors are heading for the exit. key partners are cutting off ties, the likes of coinbase, galaxy digital. others deciding to stop accepting or initiating payments for silver gate. that threatens a key source of deposit, also threatens its status as a platform for crypto participants where they can transfer money among themselves. at the same time, we have analysts cutting their ratings. jp morgan among those putting it down. morgan stanley already has the equivalent of a celebrating on silver gate. silver gate itself yet to hand in its annual report to the sec. the longer the delay lasts, it will only raise more concern. that report could raise more questions as well for the company. dani: so more selling potentially to come. thank you so much. pboc governor has reiterated

that the central bank will maintain targeted and prudent monetary policy and keep its currency stable. that's ahead of china's annual parliamentary meeting. let's get more with our asia and government politics reporter rebecca choong wilkins. all of this comes off of the back of very strong data which continued today in china. what were your key takeaways from the briefing? rebecca: well, the focus really for me today is all about stability. monetary policy is going to remain prudent, targeted, and forceful in their words. again, the focus remaining on making sure minimizing risks. that includes things like financial risk. there was also some mention of stimulus, not much indication that they need to turn to stimulus right now. the tools like the rrr remain

primary way of injecting controlling the quiddity. dani: and then we also have the national people's congress coming up shortly. what can we expect from that this weekend? rebecca: yes indeed. this is most likely his final briefing as governor of the pboc. he was a technocrat to the end. he remained very stoic. three really big things to watch. first will be growth. we may see a more ambitious growth target than the 5%. could be near 6%, given we have these reports that authorities were surprised by those data and growth numbers as you mention. the second will be any kind of restructuring. lots of reports now. we are seeing him tighten his grip and introduce more central oversight to key financial institutions. the last will be whether we see any stimulus or not. the global economy and for the property sector. there's not a lot of optimism.

we see something particularly sweeping. property is still somewhat under pressure although numbers are slightly improving. we've seen a flurry of measures to try to boost demand there. we may see again traders watching for any signs that authorities are going to do more to help improve consumption. dani: great set up for the mpc. rebecca choong wilkins. now to the banking sector. sources say citigroup is cutting hundreds of drops across the company with wall street giants investment banking division among those affected. joining us now is russell ward. how should we be thinking about this? this is hundreds of jobs, not thousands of jobs. russell: that's right. just to put it into context, this is less than 1% of citigroup's 240,000 workforce. the cuts are routine of nature, from what sources have told us. but really, they do reflect the

cost cutting drive across wall street. we've seen cuts in mortgage business, not only citigroup but also wells fargo and jp morgan perfecting the slowdown in housing demand because of higher interest rates there. on the investment banking side, the slowdown in dealmaking is continuing. this is a reflection of that. citigroup cutting dozens of bankers last year. the outlook is it looking good either. citigroup and other banks are trimming staff to reflect that.

dani: the message is eerily similar. inflation is too hot. ♪

dani: i was really excited to be able to say today that the entire u.s. treasury curve was above 4% but the bond gods have cursed me. i want to show you what bonds have done this week. we are basically there. we are above 4% in everything except the 30 year yield which is extremely close. here's the move. you got six pips on the front-end. on your 10 yield, you are up nine point sent. this is on top of yet another week last week where we saw yields move higher. this has been the trend and we have data that's coming in hot at the u.s. and europe.

officials from both who have said potentially, we need a higher peak. this market has had to do a big re-think, as our guest had to do everything. joining us now is christian kopf. we talked back in january, the environment was so different. you said, the fed will likely do a hike on february 1 and it will be the last one for the cycle. the data has been dramatically different. have hit -- have you been rethinking about where the fed is going to go? christian: that's right. it's been a bit of a shocker. we have this massive labor market report in the u.s.. the pce numbers last friday have not been moving down. i've just returned from the u.s. monetary policy form in new york last week where there was a very broad consensus amongst both market participants and the fed representatives who spoke there. the buzz word that's making the rounds is --. people are talking about the fed

funds rate all the way up to 6% on the back of this inflation. we've changed our stance. we've moved back to the long end of the u.s. curve. we neutralized our duration in the euro area. that was good. we had a shocker cpi number yesterday out of europe. dani: it is funny because we were just talking during the break. everything was perfect behind you and as soon as you started talking about central bank policy, the wind appeared out of nowhere. it's quite appropriate, i must say. ok. given what you are just saying, is it likely then that euro area bonds will underperform that of the u.s. in 2023? christian: well, i'm not sure. i think the euro area still has a lot of hiking to do. judging from the numbers we got yesterday, we have barely any disinflation in the headline cpi. we had acceleration for cpi.

we have not changed our goal for the ecb. we expect the ecb rates to hike at 3.75%. today on bloomberg, governor carol wood talked about 4% for the euro area. barclays yesterday was a very dovish central bank and has moved there call for the ecb up to 4% as well. we do have a bit more rate hikes coming in the euro area. it seems the persistence of core inflation is more of a problem in europe than the u.s.. it could be a situation where we could see euro area bonds underperform the u.s. bonds. at the front-end of the u.s. curve, rates almost at 5% already. in the two-year treasuries in this setting, it seems attractive to us i have to say. dani: of course, the mp raising

their rate to 4%. what else can they do? how can they get more hawkish? we potentially got an answer yesterday, talking about qt. the large stock of assets acquired under q. week continues to prove significant monetary policy accommodation. it may run counter to our efforts to bring inflation back to our 2% target in a timely manner. so i ask you this. is tightening on its own enough? is she right? ? do they need to ramp up qt which is just a passive 15 billion euros per month? christian: yes. very good speech. full of details, full of bond market arithmetic. she made a compelling case to increase quantitative tightening and the reduction of the ecb balance sheet. i feel that there's pressure mounting on the national central

banks of the euro area to bring down their balance sheet because they are running negative. the average yields has now declined below the yield of the exit deposits which are holding at the natural sink -- central bank's of the euro area. you had the bundesbank come out with an estimate of large losses two days ago. the other central banks will follow on that trajectory. there will be mounting pressures to reduce the balance sheet of the national central banks in the euro area. that means quantitative tightening. dani: well, just quickly. who is going to be buying all these bonds? the ecb will disappear. the boj isn't. are we going to have this huge supply flood of bonds? christian: there will be more supply. there will be more supply from the governments themselves. i have to say, we see very

strong inflows in europe and also the u.s.. i think the supply at the end, we will be able to absorb it. frankly, what we have now is for the first time positive real interest rates in the euro area for the first time in about a decade. yields of 4.25, four .5% for a very good investment grade corporate. this is quite attractive already. for investors with a longer-term horizon, there will be appetite going into those bonds, into government bonds. for the first 10 years, investors have not been interested in recovered bonds, adding to their exposure. in a way, the yields are quite attractive. dani: ok. great catching up with you this morning. we are out of time. go inside. go shield yourself from the wind. coming up, we bring you the

latest on u.s. china tensions as the commerce century -- secretary weighs in on the issue. this is bloomberg. ♪

>> with what we are worried about, chinese backed companies being on tens of millions of american phones including members of the military and privacy concerns, data concerns, misinformation concerns. that doesn't just apply to tiktok. dani: it's not just about tiktok. the u.s. commerce secretary there, concerns about u.s. china tech. this has been a long-running concern of course of the u.s. and the u.s. commerce secretary also said the administration is working carefully on scrutinizing outbound investment into certain chinese industries.

president biden is expected to discuss concerns about china with germany's chancellor earlier today. joining us now is bruce einhorn. we have a biden schulz meeting. what will be top of the agenda? bruce: this will be a relatively low-key meeting. we won't be seeing a lot of the things that you usually expect when a major nato ally visits washington. so it's going to be very much biden and schulz meeting in the white house today, talking about issues like ukraine. so they will likely to be talking about basic things like getting more ammunition, more supplies to the ukrainians. there have been promises from both the u.s. and the germans about getting tanks to ukraine. they are likely to talk about a timetable for that. of course, they are likely to talk about what to do about china. the u.s. has warned that the

chinese are considering providing more assistance to russia. the german chancellor yesterday in a speech did express concern about china's unwillingness to condemn russia at the recent g20 meeting. also concerns about possible chinese assistance to russia militarily. dani: to that point, the u.s. commerce department just announced export restrictions for dozens of companies of chinese entities. what is their aim? about a minute to go here. bruce: sure. this is for the so-called entities list that the commerce department has. there are many chinese companies on it, most notably huawei. they've added more chinese companies to the list. these would be chinese companies that make servers,

semiconductors. these are all in industries that the u.s. is concerned about. the u.s. has imposed restrictions on exports of semiconductors and other things to china. also possibly having a system in place to restrict outbound investments similar to what they have for chinese investment into the u.s.. that's still a long ways off. dani: thank you so much. bloomberg's bruce einhorn with the latest on u.s. politics. coming up, price pressures stay elevated. we talk

dani: good morning, this is "bloomberg daybreak europe".

the bears stepped back, asian stocks are set to snap three weeks of declines amid continuing signs of growth in china. u.s. futures are weaker, fed officials lean hawkish on rates. a steady hand with china's national people's congress set to take off. pboc governor signals monetary policy will remain stable this year. citigroup is said to be cutting hundreds of jobs across the company with investment making unit affected the most. it is all about bond yields, but equities don't care. how data in europe and in the u.s.. -- hot data in europe and in the u.s.. asian equities up 1%, that is in part fueled by china data. s&p and nasdaq futures are declining, but we are still on track to weekly gain. the china pmi data is helping some of the higher beta

currencies. you look at the aussie dollar, that is outperforming some of the metals that are doing better as well. 10 year yields are up in japan because they are up globally. we have a 10 year yield at jgb in japan that is above the benchmark rate. kuroda will have his last stand on march 10. could we be in for a surprise? it is not unusual for them to have a surprise for market. bitcoin is down 4.3%. silver gate, one of the big banks that provided some of the crypto transactions, there has been a run on the banks, some concerns about liquidity. that is denting sentiment further with bitcoin. when we talk about the economy, the pain in the commercial real estate market is continuing blackstone has just defaulted on a $531 million eurobond, rising

interest rates hit property values. blackstone had wanted more time to solve the underlying assets in order to repay the debt. they were denied a further extension by holders of the securitized notes. there are concerns about european property, about real estate, especially when it comes to the nordics. elsewhere in europe, we aren't seeing that dent to the economy specifically, specifically the dent to inflation. i want to show you what five-year swaps are doing. this have long been an obsession of the ecb in the era of easing. now that we are in the era of tightening, they have hit an all-time high. off the back of core inflation that surged yesterday. cpi was 8.5% year-over-year. this is a market that has had to quickly readjust. it's get to josie, managing economist at the center or

economics and business research. the market has readjusted, have you readjusted your thinking on your can inflation? -- european inflation. josie: yesterday's data highlighted that inflation could be sticky. it fell yesterday for the euro zone as a whole yesterday. that was just due to energy, energy prices have been falling this year and the end of last year. we have seen inflation slowing, every other broad category that euros stock measures rose in the euro zone in terms of it price change. in the latest data in february. it continues to rise, it is a big concern. it does affect our expectations in the future. and probably the ecb's. they will probably make a 50

basis point hike. we are expecting another hike and our expectation is that will become even more sure because this really has highlighted that prices are going to continue to rise. it is things like the services inflation increase that we saw yesterday that showed how entrenched inflation can become in the wider economy. and what people expect kind of a 5% pay rise, it means that it will probably become entrenched in their expectations. they will negotiate for it, but they might also negotiate for it next year. that is a big problem, because that means that inflation can stay higher for longer. dani: i wonder if there is some sort of perverse thing where energy falling can make inflation worse in a different way. sick with me here, if inflation before was driven by energy, it kind of acted as a tax. if that falls, we still have a

strong consumer who is spending more? that makes the next leg of inflation driven by services? josie: with services high and energy falling, it suggests that consumers might be able to afford slightly more, energy bills have been a big source of the cost of living prices as of late. they are still very high, much higher than a year ago. if they start to fall, it could give the average conservator -- consumer slightly more to spend. the cost of living crisis is certainly not over yet. energy bills are much higher than they were a year ago. there are other pressures, food prices have accelerated so much, inflation was very high in the data yesterday. still extremely high bills. they are probably not going to be going out and spending loads and loads of money, which will drive up inflation.

that is a theme we could see further down the line if food inflation also falls back because it is a more volatile category like energy. dani: looking at a chart of the euro right now, perhaps that is due to dollar weakness that it is up today. this week, it is basically flat, it tanked yesterday. despite the fact we had that inflation data coming in, the market is preparing for over tightening from the ecb, that potentially they break something. how big do you think that risk is? josie: the ecb has been quite cautious, more cautious than the fed. there was an argument that they have to keep up with the fed to bring it closer to 4% or higher interest rates from the 3% refinancing rate at the moment. just for the sake of the euro, because the key rate, key

interest rates can really affect these currency fluctuations. i think we definitely are going to be seeing more tightening from the ecb, we really do have to get a control on inflation. the target is to percent, that has just been brought down by these volatile ella jerry -- energy category. it really depends on the war in ukraine and how that affects energy and the china reopening, the impact of that on energy. i think the ecb is probably going to be looking at this data seriously and thinking, how much should be increase rates and for how long? many people were expecting that central banks across the world in the u.k. and the u.s. were -- would really slow and stop their increases in rates this year. that could change. if inflation actually proves to be very sticky, to stay high for long, we could see rate rises

further down the line. dani: dani: how concerning is china's strength when it comes to this picture? josie: it is interesting. so far, the china reopening hasn't had that much of an impact on energy. the picture there is constantly moving. there is still scope as the coronavirus prices hopefully ease. as factories get up and running again. that could be a global energy market. the pitch there is very difficult to understand quite with the impacts on energy will be later this year. dani: before we let you go, i got to ask about the recent developments in the u.k.. i can't even believe that the windsor framework, the north ireland agreement was this weak, that already feels like years ago. does it change the picture at all for you on this u.k. economy? josie: josie: i think it is a really positive sign.

a positive sign that the u.k. can negotiate with the eu to try to get an agreement that works for both parties. just as a sign of confidence in the relationship, and the impact of that on both economies. that was really good news. of course, the area of the u.k. that this policy document will benefit most is northern ireland. i think businesses in northern ireland were very encouraged by the windsor framework. we might not see its impact for many months because we have got to see it implemented. it does reduce a lot of the red tape and bureaucracy which is very costly for businesses in northern ireland at the moment. we could see significant boost to the northern ireland economy. the wider u.k. economy, it hasn't had so much of an impact, i still think there are a lot of questions in the city of london around the future of our relationship with the eu.

certainly for businesses, it is a positive step. dani: josie, i am afraid we are going to have to leave it there. josie anderson, managing economist at the center for economics and business research. let's get your first word news. we have simone foxman. simone: u.s. commerce secretary gina raimondo says the administration is working to blunt the national security risk from various chinese social media apps. in an interview, she said the rules would apply to high-profile targets like tiktok as well as other chinese platforms. >> what we are worried about is chinese backed companies being on tens of millions of american phones, including members of the military. and privacy concerns, data concerns, misinformation concerns.

that doesn't just apply to tiktok. simone: bloomberg has learned that foxconn plans to invest about $700 million on a new plan in india to ramp up local production. the taiwanese company, one of apple's biggest suppliers, plans to make iphone part and possibly assemble handsets on a 300 acre site close to the airport. the new plant could employ about 100,000 people. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm simone foxman and this is bloomberg. dani? dani: coming up on the show, this weekend's national people's congress is set to usher in beijing's biggest economic readership -- leadership reshuffle in decades. this is bloomberg. ♪

>> an expected overhaul of china's financial regulatory regime would likely put more decision-making of key economic policies in fewer hands. and centralize it under xi jinping. unlike in past policymaker lineups, academic or international credentials won't necessarily be preferred. who lee fong, a close confident of chi, will be central to this reshuffle. he is expected to be named parties chief. the last vice premier who also took a top pboc position was june long g, whose tough reform style in the mid-90's helped comeback high inflation. the next pboc governor could be to the scene. under his watch, citic played a

major role in rescuing china's troubled debt manager. unlike current governor and party chief, neither of these two have reputations as academics or academic theorists. analysts feel the recorded leadership moves to install a party official and the veteran banker to key central-bank positions could actually usher in more pragmatic and less hawkish policy. stephen engle, bloomberg news. dani: dani: stephen engle there on what to expect ahead of china's national people's congress. sticking with the theme, pboc governor has reiterated that the central bank will need to keep its monetary policy targeted and prudent and keep its currency stable. he spoke at a rare in person briefing two days before the mtc -- npc. major economic leadership changes in china. let's bring in tom who is in

hong kong. let's start with the briefing. what were your key takeaways? tom: it is probably the last time we will see him giving a public press conference like this as the premier of the people's bank of china. because he is set to be replaced . it was a very technocratic and unemotional affair, in keeping with its reputation. what he was saying is that china's economy is recovering and there is not really any pressing need to loosen monetary policy, and they are going to keep on going with the current settings. dani: that is really underscored by the data we had today. strong china pmi's, strong growth data earlier in the week. how does that all color not just egon, but the national people's congress? tom: yes, it is going to be

interesting to see what is the growth target that comes out of the national people's congress. we announced on sunday. analysts are expecting around 5% as the target, which is definitely achievable, given the relaxation of covid restrictions this year. the data that has come out recently has been stronger than many expected. that is leading to some speculation that the target could be unexpectedly higher, maybe even as high as 6%. that would probably require more policy support as well. that will be watched very closely. dani: we will certainly watch that closely ourselves. thank you very much, tom. let's get to some of our top corporate stories with the bloomberg business flash. she is back, simone foxman. simone: simone: i, dani.

citigroup is said to be cutting hundreds of jobs across the company. including in its investment banking division. staff across the bank's operations and technology departments and u.s. organ underwriting arm are also among those affected. sent out at least 1% of the groups 240,000 person work ores. bloomberg has learned that blackstone has defaulted on a 531 million euro bond backed by a portfolio of a finished commercial property. bondholders are said to have rejected the firm's request for another extension to dispose of the assets. the default comes as rising interest rates hit european property values. laxton says it continues to have full confidence in the wider portfolio and in its management team. qantas plans to add over 8500 jobs over the next 10 years as australia's travel industry slowly recovers from the pandemic.

the roles include pilots, engineers, cabin crew, and airport staff. the move is driven by investments in new aircraft and increased flying to meet long-term demand. that is your bloomberg business flash. back to you. dani: thank you very much, simone foxman indo how. earnings taking off this year, thank you, producers, for a flight pun. this is bloomberg. ♪

dani: european futures are moving higher, but one of the stocks we are going to be watching is live tons of. it expects earnings to take off this year. luftansa.

let's go over to oliver. oliver, summer travel, high hopes from the german airline. oliver: that is right. it is all down to demand coming surging back over -- after those terrible years for the airline industry. after the pandemic. a very bullish outlook, 1.5 billion euros. they say that is a significant improvement on that in 2023. the capacity will be about 85% to 90% of what it was the pandemic. it is still pretty good, given what they have been dealing with. overnight, you have the supervisory meeting, the 10 year of the ceo has been extended by another five years. they had a massive order of aircrafts, that is their biggest order in a decade. this is a massively bullish signal from a company that has

really been pulled out of what was a very very rock-bottom and almost an as substantial crisis. -- existential crisis. dani: it is incredible to look at this now and think about where we were in covid. what is the outlook for luftansa luftansa? oliver: let's go back very quickly, because i want to sit on that point for a second. the german government took a 20% stake in this company around the pandemic. they sold that stake in september. shares are up 75% since september, in the last six months. this is really a massive turnaround story. when you think about the tailwinds, excuse the puns, you have this huge resurgence of demand. they did record freight last year, and freight is coming back down the air opening new freight routes to china. the other tailwind is a china reopening, when will this come in?

here you have the real big question, and the question is, will you have another summer chaos that you had last time around? they are actually limiting their capacity to 75% in the first quarter because they have not worked all the stuff out when we speak to the ceo, i think the first question will be, how do you prevent this from happening again this summer? dani: something that i am sure nobody wants. rate stuff, all over. -- great stuff oliver. let's take a look at some of the other things that we are going to be watching out for today. at 10:00 a.m., we will have the january euro area epi readings. followed at 3:00 p.m. by u.s. ism services index. we will keep a close eye on that because the market has been digesting all of this hot data. another piece of hot data which fed officials have said if it keeps coming in that way, they will have to move the terminal rate higher.

later today, two ecb councilmembers will be speaking at an event. also later, the boe's andrew hauser speaks. hosted by the initiative of global markets in chicago. then joe biden and german chancellor will meet in the white house we have already seen some announcements made that they are talking about china specifically. gina raimondo has been speaking saying she is concerned about u.s. and china tech in the u.s., not just tiktok, it goes further than that. here is your look at top markets as we head to the close of this hour. chinese equities are much stronger. they have had a very stellar week, considering the data has been really strong. the pmi's today be which was potentially we had egon talking about central-bank policy staying as is. it is strong, which is potentially bad for equities, it means they don't get the

support. that is thrusted higher beta currencies. a weaker dollar, a stronger room and be, and stronger aussie dollar. higher beta currencies is also why the commodities are really strong. sovereign bonds, the story continues to be the inflation data in europe and the u.s.. core inflation in europe hitting an all-time high since the euro was created. equities may be unbothered. hope you enjoy the rest of your friday and your weekend. up next is bloomberg markets. this is bloomberg. ♪

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anna: good morning, welcome to "bloomberg markets: europe". mark joins us from singapore to take us through the market action this hour cash trade