danny: good morning, this is bloomberg "daybreak: europe." i'm dani burger in london and these are the stories that set your agenda. market jitters, asian stocks follow wall street lower amid fears of u.s. banking crisis. the beleaguered lender said to weigh up to $100 billion of asset sales. powering ahead, but u.s. futures rebound after alphabet and microsoft reassure investors this year's tech rally has room to run. the companies outline their visions for ai. plus standard charter profit tops estimates. the latest bank to benefit from raising interest rates. we will speak shortly with the cfo. first we start with breaking news. earnings coming out, a notable miss on the profit margins for the first quarter coming in at 31%. the estimate had been for just under 32%.

likewise, they are lowering their expectations or operating margins when it comes to the second quarter for nine i frs, they are about 30% to 30 point 5%. additionally the revenue is also a miss when it comes to x fs. so it is a miss when it comes to -- something all are struggling with in this environment. roche earnings coming in, a sizable beat when it comes to sales. 15.3, the estimate had been for 14 point 9 billion. pharmaceutical sales also a beat . diagnostic sales a miss, and at the same time it confirmed their 2023 outlook. we will also speak to the road ceo about those earnings at 7:40 a.m. london time. don't miss that.

the continued fallout from concerns at first republic bank, shares tumbling 50% yesterday. the bank is in a deep profitability hole. it is amid fears of a recession and economic contagion which is moving this bond market. we just had treasury shorts hitting a new record on cftc data for hedge funds. that is some kind of short covering that needs to be happening. two years yields dropping nearly three basis points after falling yesterday. you can see the knock on effect in australia, lower by 18 basis points. also had a big selloff in stocks in reaction to this as well. u.s. stocks fell more than 1.5% yesterday but earnings propping them up this morning. meta-and also google earnings and microsoft earnings supporting nasdaq futures, up 1.3%. let's get to some of those top

stories and are reporters from around the world. the latest on first republic, alex webb on microsoft and alphabet, and denise on those results we got about 15 minutes ago. kicking off with first republic bank, which is said to be exploring divesting up to $100 billion worth of assets. it comes as the lender attempts to rescue itself from the turmoil that engulfed the industry last month. valerie, selling assets at a loss does remind us of svb trying to get rid of treasury holdings. what is stopping the fbi see from putting first republic into receivership? >> it might be a last ditch attempt to find buyers for the loan book. asset sales are likely something the management of the bank wanted to avoid but probably the strategic -- the total loan book is $170 billion.

$100 billion divesting of that loan book is a sizable chunk and they are looking to offload these loans closer to face value. they are doing that because they want to avoid booking a loss and they are offering sweeteners such as preferred equity. a similar strategy to what we saw in 2008. the hope is by strengthening the balance sheet with this divestiture it will offer some potential upside for these buyers. the problem is first republic is not the only one looking to divest loans in this market. other regional lenders are considering divesting and the fbi see also has billions it is looking to divest. there are not many out there with the potential to buy along book of this size. the worry is of no successful -- if they are not successful in finding a buyer, these loans will end up on the fbi balance sheet as a liability to the taxpayer. dani: what does that mean for

the economic environment? ultimately whether the fed can keep hiking. valerie: macro got interesting yesterday. treasuries staged an impressive rally. equities tanked. what was most notable was what happened at the front end. aura may hike, that is just next wednesday for the fed. the probability is down to 80%. we have the most cuts priced ever for the fed if you look at june 2 this year to june next year. the market is pricing at 170 basis points worth of cuts, more than in the march banking turmoil. i think the conclusion the market had from yesterday is that a hawkish fed next week is off the table. dani: standard charter writing that maybe they should be holding in may considering the week survey data. thank you, valerie. one thing helping lift markets after a tough day yesterday are the tech earnings. microsoft third-quarter profit

and sales coming in better than expected. they mentioned ai nonstop on their earnings call as well as cloud demand, helping those shares out. alphabet result beat, its cloud unit turned a profit for the first time. maybe it didn't get as much of a boost considering all the ai hype around microsoft. alex, is it just all about the cloud business, or is it about ai at this point? >> it is important to get google's core business which is advertising, it was a lot of concern to microsoft by building some of the offerings of chatgtp into being was really coming for google. it doesn't seem as though that is had a meaningful effect. search business did better than expected. as you say, also the cloud business did better than expected, with one important caveat. they shifted some cost from loud

business into their services division. that may have brought the unit into profit for the first time above the expected loss. dani: we will also get more big tech earnings on deck this week. amazon, meta, all of those. what are you -- what are you looking out for? alex: there are two things, whether we see the resilience in ads which google has clearly shown. whether that spreads to meta or if it is a google specific boost, given the influence they have. the second piece is that amazon has been an incredible bellwether for demand. what they say about the pace for recovery and consumer demand will be pretty interesting. dani: alex, thank you very much, alex webb. turning back to the banking sector, standard charter has reported better than expected earnings for the first quarter.

saying the business was boosted by rising interest rates. let's get to our finance reporter, denise wee. standard charter shining in this respect. denise: we are definitely seeing a strong performance from standard chartered bank which contrasts with what is happening in the u.s., the turmoil of the banking sector in the u.s.. they emphasize how stable their deposit base is. credit suisse not suffering any issues. what is important is we have also seen the china real estate sector which is been a drag on standard charter's earnings for quarter after quarter. we finally have the since it is turning the corner and stabilizing. it is a good thing for investors. i would say they have reduced

their guidance slightly. the questions about whether interest markets -- margins have piqued especially since rates are expected to go down in the second half. i think definitely a strong quarter here. dani: what about hsbc? we have the earnings coming up shortly. what are we expecting? denise: it will be an interesting story. on the one hand, it's the first time the bank is facing investors after buying the u.k. arm, there will be questions about the acquisition. more importantly, the bank is facing a big tit-for-tat for its biggest shareholder, paying on. there will be about ping an. this will be a big test for the bank on investor support, whether the investor support the management or they go with what

shareholders are pushing. the two proxy advisors have advised shareholders to go against those resolutions. dani: denise, thank you so much for the latest on those banks. we will also speak to the standard charter cfo at 6:30 a.m. u.k. time. let's look at some of the key things we will be watching out for the rest of the day and get you set up for the trading day. 8:30 a.m. u.k. time, likely raising rates to 3.5 percent. still inflationary pressures that everybody in the world is dealing with. the ecb vice president will be scheduled to speak at the economic forum in greece. we will get u.s. data on wholesale inventories and durable goods at 1:30 p.m. u.k. time. finally we will get more tech earnings.

meta will be reporting after the u.s. close. the year of efficiency, says mark zuckerberg. the company is forecasted to return to growth after four quarters of declines. coming up on the show, we will focus on meta and the rest of tech. how important is ai to their business? what does it mean for the future of their finances. all of that, next. this is bloomberg. ♪

>> the fundamental drivers are the people and in commercial categories, they find ads to be highly relevant and valuable. all those dynamics which have long served us well remain, and as i said, we will be trading as we go and we will be able to guide innovation as we have always done. dani: that's the alphabet ceo speaking on the alphabet earnings call about ai in its google search business. ai was certainly a hot topic in alphabet and microsoft earnings yesterday. let's take a deeper dive into it. ask for joining us this morning. i guess the takeaway, it did

seem like microsoft is really pushing this. google was kind of downplaying it, saying we have so much market share, we are doing pretty well. was google right to rush off these fears of microsoft catching up in ai? >> as you say, ai dominated both calls. in contrast, microsoft pushing this is a transformational moment in the search industry. google saying we are kind of the big beast in this market, we've been in this business for many years and we know what we are doing. this is a gradual evolution of the search product, trust us. we know how to integrate this into our product and maintain our lead. it's going to take several quarters to get a clearer read on whether microsoft will get traction with chatgtp and integrating it. if you look at the mark barton -- market share difference, being is just 3%.

that is a -- bing is just 3%. we all naturally go to google. there's a lot of inbuilt resistance there that microsoft has to break down. google is coming back with its own bard product, so the pendulum will swing back and forth for some time. there's a huge amount of dollars at stake. dani: how do we distinguish hype from reality? are there any signs at integrating chat gdp is helping bing? >> there's a data point they have over 100 million active users on chatgtp, which is fantastic in such a short space of time. instagram took about two years to get to that level. the question is still, or people just curious in seeing what it can do for them, and then they will default back to going to

google to see what the real answer is. dani: what about nuts and bolts of finances over at microsoft? presumably it is expensive. does it hurt profitability of the software unit? >> they have very high margins, operating comes up year-over-year. clearly it will take a huge amount of investment. so far, and we heard clear messages in both microsoft and google yesterday that they are very focused on growth and doing it in a cost-efficient way. they are looking ways to find efficiencies so they can find aggressive growth of ai without impacting profits. dani: to change topics a bit, geopolitical concerns about the u.s. and china have played out in the tech world, be it ships

or tiktok. yesterday nick clegg spoke to bloomberg about tiktok in china specifically. >> as a general principle, it's always good in any market, including the technology market, to have a level playing field. for instance, tiktok is hugely successful, highly dynamic companies able to operate in the united states but meta is not able to operate our social media services in china. dani: i guess the take away, he's saying it's not fair a chinese company can operate here, but we cannot operate in china. the question is, does meta benefit from a tiktok man? is -- tiktok ban? >> in the short-term, absolutely. it would shift a lot of eyeballs back to their platforms, particularly instagram.

longer-term, it still a question because we see this kind of social media environment moving very quickly. they slightly dropped the ball a bit in terms of the shift to the metaverse. i think there are longer-term structural issues they still need to convince people of. in the short-term i think it will shift back. dani: meta is already a behemoth in social media. does congress look at them and say, perhaps we need a break up, if tiktok is gone, there is no more rival. >> they need to be careful in terms of how they operate. they wouldn't really be able to look to those acquisitions that historically have fueled their growth. this not forget they bought instagram and whatsapp.

i don't think they would be able to continue in that context. dani: thanks for joining us, matt. coming up, speaking of politics, house republicans are preparing to vote on the new debt ceiling package as the deadline looms closer. we will get the latest, next. this is bloomberg. ♪

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dani: let's get to your first word news. >> renewed fighting in khartoum is testing a fourth attempt of a nationwide cease-fire in sudan. smoke was seen rising from the presidential palace in the country's capital yesterday with violence reported in nearby cities. u.k. meanwhile has become evacuation of it is nationals

amid mounting criticism it has been slow to react to the unfolding conflict. elsewhere, the boe chief economist says the british people need to accept -- except they are poorer instead of clawing back against the drop in living standards. strong pricing power means companies can pass on costs in higher prices, fueling further inflation. he says a game of pass the parcel is one of the reasons u.k. inflation remains high. u.s. house speaker kevin mccarthy is moving ahead with the vote this week on his bill linking an increase in the debt ceiling was spending cuts. in a rare sign of how close the vote could be, the outcome may not be known until the rollcall happens. and that your bloomberg first word news. dani: sam, thank you very much. let's get more on that story he was just mentioning, when it comes to the debt ceiling and kevin mccarthy's work to try to get something passed.

does it seem like mccarthy has the votes? >> well, if he is willing to bring it to the floor for a vote as early as tonight, he is betting he either has them or can get them in time to have this pass. it's a major test of his leadership just four months after he became speaker and a big test of whether he can hold or rein in republicans on all different sides of the party spectrum who have opposed this for very different policy reasons. dani: let's say that mccarthy cannot get the votes. he already became speaker by such a slim margin. what does that mean for him and for the future of his speakership and how he is perceived? >> if you remember it took 15 rounds of votes in january for him to become speaker. it was the most votes in over a century. it will be a big humiliation i

think for not just him but for republicans in terms of their ability to run the house. it could potentially leave all the debt ceiling negotiations up to the senate and the white house, where you would have to look at whether senator mitch mcconnell would be willing to work with the biden administration to try to come up with the deal. it will also raise questions about whether someone will challenge kevin mccarthy for the speakership, essentially calling or some sort of no-confidence vote in his four month old leadership. dani: i guess the other ramification is what happens to the debt ceiling itself. if this bill fails, what is next and trying to get something passed? >> i think whether the bill passes or fails, the white house has said it is not willing to negotiate. the senate is run by democrats and they are not going to

entertain this legislation if it passes the house. i think the goal mccarthy has is to give himself some leverage to deal with the senate and the white house. regardless of what happens tonight or whenever the vote takes place, this will probably be a negotiation that goes up to the very last minute. you've already seen some nervousness in the markets about what that means for the shorter-term treasury bills. the best estimate right now is that this comes to a head in the first half of june. treasury secretary janet yellen said she will likely give an update this week on exactly when the u.s. will run out of money if that ceiling is raised. dani: you can see the yield spreads between three-month and one-month bills have reached a new high on this, just underscoring the tension. less than a minute, but what is one of the big sticking points when it comes to the gop faultlines? is there anything specifically that this debate will center

around? >> one thing some midwest republicans are upset about is speaker mccarthy's bill would cut support subsidies for biofuels. that means in the midwest, ethanol which is a big part of the agricultural economy there. that is something some republicans want out. there is concern among mccarthy's staff that they will open up the bill to a lot of other changes that he doesn't want to see taken right now. dani: think is so much for that, bill. coming up, standard charter reports better than expected results for the first quarter. we will speak to the cfo, next. this is bloomberg. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price

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dani: good morning, this is bloomberg "daybreak: europe." i'm dani burger in london with the stories that set your agenda. market jitters, asian stocks follow wall street lower as fears are rekindled of the banking crisis. powering ahead, but u.s. futures rebound after beats at microsoft and alphabet reassure investors that this year's tech rally has room to run. the companies outline their visions for ai. standard charter profit tops estimates. the latest bank to benefit from rising interest rates. we will speak with the cfo shortly. like for like sales, stronger for the full year. estimates are sick percent growth. the expectation was for 3%-5% growth. sales also a beat. first quarter like for like sales also a beat. i'm trying to see if i can see

anything when it comes to margins and prices. i don't see anything yet. that's what i'm most interested in, considering we had results yesterday for consumer goods, still able to raise prices when it comes to sales. those are coming in stronger. full-year sales forecasts have been raised. when it comes to the overall market environment, it is one of fear of another failure and regional u.s. banks. yesterday there was a 50% decline in first republic shares. they are in a deep profitability whole, having to sell more assets, specifically mortgage and real estate related ones. the credit of those customers is strong but if they sell them now they will certainly have to take it out a loss. you continue to see two year yields move lower, we are back under 4%. the ramification is global.

australia yields declining. if your pricing in a recession, why would you want to buy equities? the saving grace of stocks this morning has been alphabet and microsoft earnings. strong results and a lot of hype and high expectations around ai. that is what is powering the nasdaq futures session higher up 1.3%. non-ifr us revenues rose 7% payment analyst saw a percent and issues when it comes to their margins. we looked at the rise of the chairman and ceo at the french conglomerate. >> from intern to billionaire. in 40 years, he has climbed to the top of the french software

giant. today the chairman and ceo of the holding company's biggest business is a billionaire and one on france's highest paid executives. with the compensation package of about $36 million last year, he is not far behind some of silicon valley's highest-paid bosses. he is the frontrunner to take the top spot at the family holding in the next couple of years. one of france's most influential conglomerates. the business goes back over a century. it has grown into an empire spanning aviation, media, real estate, software, vineyards, and an auction house. investors might agree his rewards are justified. over the past five years, including dividends, it has been among the top 10 investments.

perhaps little wonder he was named among the world's best ceos i the harvard business review in 2017. dani: looking at the rise of the ceo. don't miss our exclusive interview with the man himself at 7:30 a.m. london time. let's get to some of your top corporate stories with the bloomberg business flash. >> gucci struggle to win more shoppers. missing analyst estimates, while sales of the unit which includes alexander mcqueen dropped 9%. the result stand in contrast to the strong performance of some rivals. and the u.s. federal reserve is closing a loophole that certain funds have used to take advantage of its reverse

facility, raising the criteria for access to funds for the purpose of accessing operations. since last june, $2 trillion have been parked in the facility which has offered rates better than treasury bills. apple is reportedly working on an ai powered health care coaching service. new technology for tracking emotions. sources say this plane to use apple watch data to create tailored fitness programs and iphone algorithms to determine a users move from their speech and the words they tight. the move is part of a push to make health features central to apple's product offer. that is your bloomberg business flash. dani: sam, thank you so much. standard charter has just reported adjusted pretext profit ahead of estimates in the first quarter. saying its business has been boosted by rising interest rates.

joining me is the standard charter cfo. thanks for coming over. i know you have been all over london this morning so i appreciate you hustling over. i want to start net interest income. for some of your u.s. rivals, this was an area of disappointment. can that interest income continue to shine? >> overall, topline growth has been really strong for us. we are up 13% on topline growth. we were up double digits last year. the overall performance has been fantastic and profitability is now up to levels we last saw back in 2015. interest rates going up has clearly been a help in that but also we have seen a lot of client demand as particularly the asian markets pulled through the covid period and start to look forward. dani: does that mean interest income martens will have peaked? >> last year interest morgan was

about 1.4%. we've said this your we think it will be about 1.7%. next year it will be about 1.75%. so we are nearing a higher level but still on the rise. dani: so everything looks good, profitability is strong. your figure of $5 billion, would you say that is a conservative figure? >> well, we need to start somewhere. 5 billion, we are roughly halfway through in terms of what we have announced so far. essentially we are handing that money back but overall we are on track to delivering the 5 billion. dani: you're probably tired of talking about u.s. regional banks, but i do want to bring it up because yesterday we learned that first republic saw their portfolio potentially as a loss.

you still fearful that the worst of the contagion emanating from a market far away for mirrors, are you fearful that perhaps it is not over yet? >> i think if one looks at what happened over the last several weeks, there have been two major issues in the sector. for us as a business we've seen our numbers stay incredibly solid. our deposits have remained very stable throughout the period. not that anybody is totally insulated from something going on in the sector but i think the fact that our businesses are more based in other parts of the world, our deposits are spread across many countries and many different types of clients. our business model is a very robust model for this sort of circumstance. dani: i'm thinking specifically of credit suisse, did you see flow clearly from them and their clients especially in wealth management and coming into standard charter? >> if you look back over the

last six months or so we saw strong growth in her assets under management. some of that was probably helped by some shift away from some banks like that. i think this will be a flight to safety. the more robust institutions that have been around a long time will be the beneficiaries of this. we have been around a long time and i think we will be beneficiaries of this over a period of time. dani: are you facing more banking regulation as an outcome of this? >> inevitably, regulators must look at what has caused what happened recently. equally we need to be thoughtful about whether those causes are global or national and whether there are things that can be done it will tighten things up for everybody. so yes, i'm sure there will be some review. for us, actually the stability of our deposits has been quite commendable over this period of time.

we have not seen a major disturbance during this time period. dani: are you snapping up any bankers from asia, from credit suisse who are jumping ship, if you will? >> we are talking to some, yes. dani: fair enough, short and simple and sweet. you talked about the benefit of having a very diverse type of geography exposure. where would you say the risk of a bank run in asia is? is it minimal? is it more isolated than the rest of the world? >> i think every bank situation is slightly unique. clearly as the markets have shown, there are weaker links. generally i think asian banks are in a strong position and certainly for us, we have seen very significant stability through this period of time. we monitor it closely of his lead but it has been a good,

stable period for us. dani: in january, first abu dhabi bank said it had explored and ipo was standard charter to bite. since february it is no longer playing to do so. have you had any conversations with them and is standard charter of the? ? future still an independent bank >> we have had no discussion with them whatsoever. we are pleased with our performance. dani: unfortunately we will have to end it there. thank you so much for stopping by, andy halford, the standard charter cfo. coming up, first-quarter quarter results in line with forecasts. the ceo says 2023 will be the year to restore confidence. she will join us to discuss the numbers next. this is bloomberg. ♪

dani: first quarter adjusted met estimates. the telecom company said it's all revenue growth in the swedish market. joining us is the ceo of telia. thank you so much for joining us. first off, when it comes to the mix of business, it's been a challenging environment for some sectors more than others. how are you looking at that and what leads growth and what maybe lags behind in this environment? allison: i think what we are seeing is telco services are still seen as bible for individuals and businesses to live their daily lives and run their businesses. we've seen good, solid momentum in our telco business during the quarter. revenue developed to 2.4% and

that flowed through to good development in the quarter as well. the tv media business had quite a challenging start to the year. quite natural in economic times that commercial broadcasters have slightly less advertising, but overall it was a solid start to the year, with telco super solid and some softening in our tv business. dani: i want to linger on that point, the idea that tv and media, the challenges there for advertising. is the amount they pulled back do you think commiserate with a recession, or is it likely the economic environment returns will result in a more severe pullback? allison: i think it's more that

some of the advertisers are just being demanding on the prices they want to get this year. they are using the recession environment to take advantage of that, but actually there's no real sign of a recession yet in our markets. yes, there has been some pullback on big-ticket items, but people are still going on holiday, still going out to restaurants, and we are actually seeing some excellent sales of the latest iphone and equipment sales. we had a very strong quarter, particularly in our baltic markets where we are rolling out 5g. we are monitoring it very closely and when we came into the year we knew that tv media would be challenged. we did not expect tv media to grow this year but we did expect our telco business is to return to growth and we sare really solid first-quarter in telco.

dani: that such an interesting point, the idea that maybe they can use this recessionary environment to be more demanding with prices. we just got europe pmi's, the service sector is still extremely strong. what does that mean for the overall cost environment? to what extent are you able to pass that on to customers? allison: cost inflation is still definitely a problem. we've seen some of the highest wage negotiations and 40 years in sweden and norway in the last few weeks. around the 4% mark is what we are seeing on salary inflation. that is levels we have not seen in years. we are having to offset that inflation by doing what we've been doing for quite some time. pricing on the back of giving our customers more value for money. so the rollout of 5g, the

rollout of fiber, offering better security services to protect their networks and information. there is still demand for that and the more secure we are, we can take some pricing behind that as well. and driving productivity initiatives, looking at the use of ai so we can try to offset inflation as much as we possibly can. dani: is there a light at the end of the tunnel? it feels like headwind after headwind when it comes to inflation. first it was concerns about energy. those prices have come down. now it is a strong consumer. i know you are or not a macro strategist but you are very in touch with this problem, with what consumers are paying and what activity flight. are you confident that inflation can get under control, that at some point the environment can

get better? allison: inflation will have to come under control. it's not good for society if inflation stays high or too long. so of course it will. the question is, when will it dissipate. the most important thing for us is to be able to offer all of our customers full range of products and services they need to live their lives. telcos are not a bad place to be in inflationary times, because everybody needs our services. the more that enterprises digitalized to drive productivity to offset inflationary pressure for them, the more the products and services makes sense that we can sell to them. we are seeing great demand for the digitalization of the energy grid here in sweden. we are seeing great demand for services that help our customers reduce energy consumption. so we are an enabler to offset

those pressures for work -- wide range of our customers. we grew almost 3.5%. dani: you sold some assets in denmark or announced it yesterday. at the same time you've called 2023 the year to restore confidence. tell me about your plans when it comes to selling assets and how it fits into the overall picture. allison: we have a belief that we should only be in markets where we can either secure or defend a market-leading position. in telcos, you need scale. you need to be number one or number two. denmark has been market where we have been a number four mobile player in what has been a very tough market for a long time. over the last 18 months we have turn the business around. we have invested in the network to make it a better business. when we were approached by nor

less, the largest owner of fiber , it made absolute sense for us to take advantage of that. that will allow us to focus even more on those markets where we can truly win and lead over the medium to long-term and improve value creation and capital allocation as a result. dani: really great to catch up with you this morning, thank you so much for joining us. coming up, first republic bank is set to be mulling a major asset sale. shares dropped as much as 50% in the trading day yesterday. we will discuss that next. this is bloomberg. ♪

dani: let's get you set up for

the rest of your trading day. it's almost 7:00 a.m. here in london. at 8:30 a.m., we will have sweden's rate decision. likely another jumbo rate hike, 50 basis points, three point 5%. still tackling inflation much like the ecb's commitment to keep hiking. we will hear from the ecb vice president 1:00 p.m. u.k. time at the economic forum in greece. then we will get data in the u.s., wholesale inventories and durable goods at 1:30 p.m. u.k. time. the big data points like pce occur later in the week. met it will be reporting after the u.s. market close. it is the year of efficiency for mark zuckerberg. how much of that will play through in the company? you've had massive cost-cutting measures, employees let go. and finally forecasting return to growth after four quarters of declines. we had tech earnings yesterday

from both microsoft and alphabet , helping lift markets today. yesterday was a risk off day which i guess is putting it mildly. two year yields failed more than 13 basis points yesterday, on the back of first republic falling some 50%. the fear is that the bank is in a profitability whole and it will have to sell a lot of the mortgage book. and of course selling their portfolio at a loss, it was treasuries for svb but it was still the same thing they did before they went into receivership. that's why you had the market reaction, and recall the fact that hedge funds had just taken out the biggest short position on treasuries on record. that is a massive shortcoming they will have to deal with.

the other impact was to rethink cuts. cuts are priced into the market up their summer of next year. we are still in that mode of buying bonds. two year yields continue to fall. a new record when it comes to june 23 -- june 2020 three-june 2024. some of that pricing still lingering in markets, but can the big tech earnings save us today? that's it for me this morning. this is bloomberg. ♪

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and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways. i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works.