tom: good morning, this is "bloomberg daybreak: europe." stock struggle for direction as investors eye u.s. factory inflation data due today for fresh clues on the fed's rape at the head. apple's biggest supplier is said to report. we will discuss what they mean and good thing about the help of the tech sector and john help economy. the clock ticks were tiktok, the fate of the popular video app is in the hands of the u.s. senate after the house forces its owners to so or face a ban. nasdaq ended lower by 0.8%. as an be close lower. it was a press record for european stocks. the catalyst later today,

producer prices out of the u.s., whether or not ppi print out of the u.s. confirms the stickiness that we saw in cpi, the consumer price index orbits a question mark over the sticky narrative. retail sales and initial jobless claims that the u.s. s&p futures flat, european futures flat after record gains. ftse 100 futures at 7775. s&p futures pointing slightly higher after a lackluster session but comfortably above the 5200 level. nasdaq futures looking to gain .3 of 1% so far across the futures. we continue to monitor what is happening at the japanese again as we build up to the important wage negotiation result expected out of japan on friday, and we know that will be crucial for the bank of japan as they consider whether or not to hike the first time since 2007 at the

meting -- meeting next week. you as a benchmark 10 year at 419. we will be watching that on the back of producer price data. rent at $84 per barrel, again of .06%. the get taxed by ukraine on the russian refineries as well providing some support for oil. they coined remaining above 73,000 so far in the session. let's cross up at asia and check in on how markets are faring with avril hong standing by in singapore. avril: we are seeing a mixed picture emerging this thursday, and those energy names rising along with energy prices, but apart from that there is not

much appetite for risk because we have the boj and fed to get through next week, there was a lot of noise surrounding that and investors are choosing to pull money off the table or sit on the sidelines before we get more clarity, and that tech names are during the brunt. hstech last week entered a bull market. that speaks to the disconnect in the markets while stocks are higher. there is still concerns lingering about chinese real estate. we are getting that this week from country garden and no stimulus plans coming through from the china npc, so that is what we are seeing. we are watching out for hon hai numbers, apple's main iphone maker is we are expecting the idea meant to help offset slower

iphone sales ahead of that. it's unit foxconn industrial reporting limits on net income, and we saw a fellow affiliate slumping by as much as 9%, the steepest decline since march 2020. i want to take you to what we are seeing among chinese and other miners in the regioin -- region as copper suppliers surge as smelters are considering production cuts. at that surge in the commodity is lifting chinese, japanese mining stocks. let's take you to the cross as that picture. we are watching out for the boj next week. that there is a lot of chatter around what we will get for the central bank, but it seems like those mining, energy related counters or lifting the stock gauges. at the 148 level, might be a

sign of dovish comments coming through the boj governor. lizzy: i have -- tom: avril hong, thank you very much indeed. the data we are expecting out of the u.s. and that it will move the dial, traders looking ahead to factory inflation with retail sales and initial jobless claims also due. let's bring in mark cranfield. what will you be looking at in terms of the data set that could move the dial? >> if anything they ppi is the more important one today, although given we had a hot cpi number earlier in the week, that gives the fed a lot to think about, so it would need something out of the box when ppi numbers to shift the dial, but that would be where the fed will be looking, but they probably have enough information already to make the decision for next week. what traders really want to know

is this big question about the dot plots. there were expectations that would cut rates for the first time in march. that will not happen, so people are preaching back, jerome powell himself is indicated that the middle of the year. it traders think june is now the likely time, so what does that bed new? do they stick with three rate cuts this year? they still left lending of time -- still have plenty of time. only two people need to change their mind and the picture changes, or in extreme cases some people think only what is necessary, so there was so my changing particularly for bond traders, equities as well. they really want to know what does the fed think in terms of realistically how many red cuts -- rate cuts, and janet yellen said she does not think interest rates can go lower than

pre-pandemic. tom: interesting you bring up the comments from janet yellen, what did you make of those comments? is that a warning shot being fired across markets or is that scenario already priced in? >> she is being realistic. she can see firsthand where u.s. government spending is going. she knows they are running a large deficit. she can see the level of interest rate so she has probably warning people. if we continue to spend away they are, when you think of interest rates being 4% plus, they may come down a bit. inflation is running higher than it was in her term. unlikely we can take rates down to 1% or even lower. we are talking about a higher number and there was a big debate about where is the neutral rate? is a 2%, 3%, where it fall? janet yellen is warning people

it will not be anything like the days after the global financial crisis when we had something close to zero interest rates. tom: thank you very much preview of important data out of the u.s. and analysis from the u.s. treasury secretary suggesting rates will not get back to pre-pandemic levels. now to an intriguing story, one that combines politics, geopolitics and a crucial business story, the u.s. house of representatives passing a bill to ban tiktok unless it's chinese owner sells the video sharing app. the ceo calling the news disappointing while critics call the app a national security threat. >> hi, everyone. just wanted to share thoughts with our u.s. users about the disappointing vote in the house of representatives. there has been a lot of misinformation, and i hope to clarify some things. thank you two our incredible

community. you are what makes tiktok so special. over the last few years we have invested to keep your data safe and our platform free from outside manipulation. we have committed to continue to do so. tom: let's go to rebecca wilkins standing by. it flew through the house and is expected to have a more challenging time of the senate. whether the concerns are being flagged by u.s. lawmakers and the response from tiktok? >> absolutely, as you say, the concern here is that tech talk -- tiktok is not adequately protecting user data because of its connection to china. it has that chinese owner bytedance, and that is behind the push. tiktok itself maintains it has gone to great lengths to make sure that the data is not at

risk, but as who say this is really a company called and the crosshairs of china-u.s. intentions here, and beijing issued quite a robust statement making it clear it did not want to see such a divestiture between bytedance and tiktok. the ministry of foreign affairs says the u.s. is bullying tiktok and all of this would eventually ended badly for america and criticized these unfair practices, so it is been quite firm here, and tiktok itself has said well it is considering possibly divesting, that is a last resort, and up until that point it is going to take all possible legal measures to resist fish -- this. tom: there is that bipartisan push, but it seems to break down when it comes to the senate, and

we know there is a furious lobbying campaign underway, but there seems to be divisions as well between the two presidential candidates. the way this is playing out domestically is pretty fascinating. >> this is really interesting, this is by no means a surefire thing when it comes to the senate. there is no cosponsor for the bill. the majority leader as declined to endorse it, and we even had figures like republican lawmakers saying they do not approve of this going forward. biden previously said he would sign the legislation if it is passed, and biden raised this issue with the beijing too, but the other element is the u.s. election. trump despite being hawkish earlier talking about these 60% tariffs said he does not approve of this policymaking. they keeping to flag is tiktok

unlike these other geo-economic flashpoints we have seen around autos or chipmaking, tiktok is such a relatable topic, it has so much residence and understanding in the american public it makes it a different issue from some of the other debates around key sectors that have been caught between u.s.-china tensions recently. tom: brilliant write-down of a fascinating story. rebecca wilkins on the potential fate of tiktok. let's check in on what else is on the agenda today. we are looking for inflation data out of sweden, swedish cpi and expectation year on year the february number will move lower from previous months. 4.7% down from 5.4%. oil is suddenly more interesting

given what we are seeing in terms of the stockpile and reductions and to get tax -- the attacks by ukrainian drones in russia. we will get an iea report out in the context of everything happening, oil at a five-week i right now -- high right now. then it is the data front when it comes to the u.s., retail sales data is of a gauge on the health of the u.s. consumer and the key one, producer prices at 12:30 p.m. u.k. time and weather producer prices confirm the stickiness that we saw. do we get a similar picture coming through from ppi or do we get a reduction in the concern. producer prices and factory prices out later today. apple's main iphone maker hon hai is due to reported

fourth-quarter earnings, and we will break down those numbers, what it says about demand for ai and iphones in the crucial chinese market. we will be live from rome at the bank of america global it investment summit. we will bring you an exclusive interview with bernard menshah. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." hon hai, the producer of the apple iphone and ai hardware, and the redhead crossing the line, it is a be coming through from hot hi -- hon hai, $53.1

billion taiwan versus the estimates. in net income basis it is a solid b for hon hai. they also see in terms of the full year, they do see growth rising and terms of revenue growth for the full year of 2024. fourth-quarter operating profit coming in at 48, close to $49 billion taiwanese. analysts have been looking forward to the guidance around the full year for 2024. expectations of growth for the full year. this is a touch of not just the reduction of the iphone, because this is the biggest contractor for apple but also on the ai hardware around ai servers. there was an expectation that the slowdown and iphone demand would be offset by the pickup

and ai infrastructure. we know apple sales in the chinese market fell 24% in the first six weeks, so it does seem like the narrative is playing out. this is a crucial story for multiple reasons on apple story and ai demented picture. the stock popping a little over in taiwan. european union passing the world's most comprehensive guard rails on artificial intelligence after parliament agreed to the ai act. a landmark set of rules could set the tone for how ai is governed elsewhere in the world, but the legislation's passage comes while company said the law goes far -- too far. the dutch election winner has dropped his bid to become prime minister following a shock when in november.

he took to the social media platforms to say i can only become premier if all parties in the coalition support that. wilders has been forced to step aside in a compromised good events to talks to a form a cabinet. we will take a look at trade roadblocks to deglobalization and the opportunities that investors should be looking out for, and how to invest along those themes. that is next. this is bloomberg. ♪

tom: welcome back, time for terms of trade, our weekly dive into the state of globalization, complex and climate change are

focused around the trend of globalization, but some are arguing investors should think about the investable realities around really -- re globalization. let's speak to lauren goodwin. a lot of people pushback on the whole deglobalization team. whether you characterize it as globalization 2.0 or reshoring or a shift in supply chain balances, there is a view that things are changing but not necessarily within the prism of degloablization. >> there is no doubt the world is changing moving from a global economic model that was focused unilaterally on expansion, cutting cause, efficiency. not just geopolitical events, but the covid-19 pandemic that made it felt that this focus did not support the access and security of really important

supply chains in the economy, so in those supply chains like technology, energy, finance, but we are seeing is the knee-jerk reaction to globalization is not investable. it is focused on how we get to this new economic reality where opportunities,. tom: you think of tech, semi, you're making the case that you can have self-sufficiency around the semi conductor supply chain is not realistic given complexities, so how do you invest around that proposition? >> the reality is still not just 60% of chips but 90% of advanced processing is made in taiwan, so the focus of many governments have on self-sufficiency is going to require a lot of investment, infrastructure, and that will take a lot of time, said the innovation in tech is not in specific types of technology but the digital infrastructure and in the political reality that is required to make it happen.

tom: where along the semi conductor ecosystem do you want to focus your investments? >> we particularly like digital infrastructure which can manifest in equity and bonds. in equity you are looking at the remaking of utilities. the technological infrastructure for cell phones, 5g, so what is a global infrastructure equity complex were not only that technology component, but inflation component are interesting. you can find it in bonds too. an interesting opportunity we find is an infrastructure bond, which is a taxable municipal bond it is global friendly. it is a part of the yield curve where we see a good risk reward trade-off. we think the infrastructure team will be perceived -- pervasive. tom: when it comes to the energy

transition, you want to invest in commodities and the raw materials that go into that shift or do you want to invest further downstream? >> it is a bit of both. the reality is today it is either highly unlikely or impossible that we have all of the raw materials that we need for energy independence, not to mention a great transition, so the investment in raw materials. tom: 1% to 7% allocation? we have got one on finance. we talk about dedollarization within the context and you are making the call that you get exposure to bitcoin. unpack that view. >> when it comes of the most with clients it is often about how different countries are trying to fight back against dollar hegemony, and any

currency dominance does not work for everybody all the time, but when we see major currency transitions over history, from the pound sterling to the u.s. dollar, it was not only about or majority about geopolitics. think about world war i, world war ii, it was about a more efficient global economic system moving from a gold standard or hard currency standard to a fiat system, so if the dollar is replaced it will not be from little bites at the heels of the dollar. it will be about a new efficient system that emerges, so cryptocurrency we see as a speculative risk as said, but the new, more efficient system is likely to be digital, some in the long-term a central bank digital currency. tom: how much exposure would you want to bitcoin within that hedge? >> it is a very small bit, because bitcoin is diversifying because it is one of the most

volatile asset classes out there , so one of the ways we balance that exposure is by looking at mobile equity allocation -- global equity allocation that includes a currency had as a way to navigate ups and downs not only cyclically, but structurally as well. tom: thank you, and how to invest around key themes whether it is energy, semiconductors or bitcoin is well. lauren goodwin, economist at new york life investment. we will bring you an exclusive conversation with bernard mensah . that interview is up next live from rome. this is bloomberg. ♪

tom: good morning, this is bloomberg daybreak: europe. these are the stories that set your agenda. stock struggle for direction as investors i u.s. factory inflation data do today for fresh clues on the fed's rate path ahead. the iphone maker reports its second straight quarter of strong profit thanks to lucrative ai hardware sales that have offset week smartphone sales. plus, the clock ticks for tiktok. the fate of the popular video app is in the hands of the u.s. senate after the house votes to force its chinese owners to sell up or face a ban. let's check in on these markets. a little bit of downside coming through across wall street. we are waiting for the data on the inflation front. producer prices and retail sales. also jobless claims will build up the picture in terms of the health of the economy and

whether the fed has a little bit of wiggle room to hold on or if it can pull forward expectations . 5000 on european stock futures under a 10th of a percent after fresh records for european stocks. ftse 100 futures pointing modestly high. 7770 six being flagged for the ftse 100 futures. s&p futures point to the gains of a 10th of a percent so far in the morning. a pickup to the downside we saw yesterday. nasdaq futures, 18,384, pointing to gains after losses of about 8/10 of a percent yesterday. let's flip the board and lacrosse asset, u.s. ten-year. restart that. u.s. ten-year at 419. just below the 420 handle on the u.s. benchmark. treasuries will be in focus on the back of the producer price data, whether there's movement for adjustments for the federal reserve headline.

you are expecting a number of 1.2% year on year. 147 -- close to 148 on the japanese yen. building up to that wage negotiation detail tomorrow from the key japanese union. we know the boj will be thinking about that ahead of its decision next week. brent and that coin, 73,000. raking lines. we switch to the defense maker over in germany. the panther tank as well. of course, with the overlay of the conflict in ukraine. posting operating margins above estimates, 12.8% for the full year. 12.8 percent of operating margins. operating profit coming in below the estimates, 918 million euros . the estimates have been for 924 million euros. that's full year. in terms of dividend per share, they have increased the 5.7

euros. 5.70 dividend per share. five euros $.10. they see 2024 sales of about 10 billion. that's a crucial line. they see 2024 sales of 10 billion. the estimate had been for nine point 5 billion. the slightly higher sales. european lawmakers are scrambling to get their hands on additional immune and they could send to ukraine. let's switch focus. traders looking ahead to producer prices, retail sales and jobless claims out of the u.s. today. the closely watched and numbers set to give more insight into the fed's policy direction next week. investors have gathered this second bank of america global investor summit in war -- in rome, francine lacqua is there. good morning. francine: good morning. we are delighted to be here in beautiful rome talking about finance and the challenges ahead. i'm delighted to be joined the

president of international bank of america. thank you for giving us a little bit of your busy day. there's a lot going on. looking at data out of the u.s. fed inflation, geopolitics. you go around the world and you are in charge of bank of america outside the u.s. what do your clients worry about the most? >> it's great to be in rome. we think about the pace of slowdown. there has been a disconnect between what central banks have been signaling on what the markets are pricing in. that's one thing we can come back to. geopolitics is complex for people in finance. not things we have to tip over or not. we look at indicators like oil markets not moving very much. you wonder what future elections might bring through. in each of the suite -- c suites, i say they are probably a talented group with a lot of crises.

i think supply chains and resiliency of that in inflation embedded in the supply chain, if they have to think through things like that is the top. francine: there are a couple of big wall street chief executives who said they are hopeful, unclear of whether we go into the soft landing scenario people are expecting. many questions are on china. when you look at inflation, how do you look at inflation and what the fed has been telling us? >> i have been higher for a little bit longer and i think that's as you travel around you see some of the supply chain. some from covid, some from things like the inflation reduction act that has resulted in u.s. exceptionalism. i felt that would stay little higher for longer. the other thing some market participants have thought through is what will be the terminal rate, even if it is slowing down, should there be a

new underlying rate, and i think sometimes they think through that impact and whether it's climate, geopolitics, that means we might settle it at a different rate than where we were before. francine: do you worry about exuberance and markets that could translate into chief executive sticking wrong examples as to where to put their investments? >> i think about it in terms of pricing risks. the central bankers do, what is that disconnect. financial markets drive a certain market, those are the things that you can have two people reasonably disagreeing on those. that makes the markets go around. i would say that i worry if there is too much profit, there will be the reaction of the central bank different. data-dependent. things feed into that.

yes, it might mean people are making decisions and they are moving too slowly. francine: 2023 was a difficult year. mismatch when it comes to m&a. do you see it for 2024? >> yes, i do. the banking markets, if you look at it over a 10 year timeframe, what we had was an incredible 2021, 2022 and there are some institutions that our staff the little bit for that and try to speeded away for where the markets might hold. i think that the markets was what it was. for 2024, we see a lot of activity in terms of corporate balance sheets and looking to take advantage of situations. there were issues in 2023 as well. i'm sure we will manage to 2024.

francine: what are you most worried about for regions? like there's a consensus around that when he go around generally the u.s. is the biggest region people are most positive about. india is on everybody's list. mexico is. i was in mexico city and monterey. that was tremendous. everybody knows mexico is not the largest trading partner. was the quality of that supply chain move to mexico the question i ask. and the middle east of course. where bank of america had an event in saudi arabia. it has been in the region for a few times recently. those would be the few areas. japan in terms of financial markets on the stress of the nikkei, we have talked about that. the other things is what's happening in china. and, japan is finally coming out of the zero bout. francine: japan is exciting. we talk about it almost every day. doesn't matter if they do it sooner than the markets are

expecting? is there a long-term opportunity in japan? >> japan matters as fixed income. i look to things like their yield curve control policy when that comes through. in the yen is funding currency, which has been for a long time. i do try to think through what happens when japan really does settle into positive territories. there will be winners and losers in corporate balance sheets. and the cost of the japanese treasury funding its own debt will be a question. but i think it will be a new paradigm which we will see for a while. francine: there's basel three, all the things we heard from jay powell and possible capital changes in the u.s., is a change the way you operate and do business internationally? >> no, we've had to focus for quite a while, and we have been through regulatory changes going back to the financial crisis. so we are managing our way

through that. we also focus on the basil in games and you saw what was said. there are other regulations coming through whether it's ai. we think one of the things we have is we have the scale to manage the complexity. we are in over 35 countries. we have 50 regulators looking at everything will thing that we do. it's important we are regulated, we need to be. but i think that our scale, just the incredible quality of our people means that we can manage our way through that. we have our opinions and different bits of legislation, whether they are necessary or not. certainly you have different regulatory equal biases and emphasis on different parts of the world. francine: we are in rome, how is europe doing? >> i try to be euro bull is much as i can. europe is an incredible place, incredible talent. italy has had a very decent run as somebody that has said, let's

not forget for all of the things we associate with italy, the tourism, italy has the fifth or six most -- is the most quoted in terms of scientific journals. and the strength of the italian diversity around it supply chain is tremendous. around europe there is a focus in terms of the challenges in front of them. there have been movement in terms of capital markets, the banking, which we were very excited about. i'm sure other colleagues have been making this case very strongly, that it should be focus and it feels like it's coming higher up the agenda. it feels a little bit better. francine: the million dollar question is will we see a proper capital markets union in our lifetime? there was a movement last week. >> it feels that france has picked up the battle little bit. i think it's just a key piece of the jigsaw when europe thinks about reflate bank and thinking about the trends growth rate i

believe it has been something under 1% per growth over this time. that is too low and everybody recognizes that. we have tried to convince people that, for europe, where the capital markets are relatively small compared to the size of the economy, there is something to be said for pooling that. to reflect the single market that the euro is waking its way through. francine: thank you for joining us. with that, i send it back to tom in london. we will have plenty more from the bank of america conference in rome throughout the day. tom: great conversation, stunning black -- stunning backdrop. the president of international bank of america. francine, -- francine will have more interviews from rome, including exclusive conversations with the former president of croatia. michael harnett, and you don't want to miss this one, blackstone president and coo john gray.

plenty more coming up. this is bloomberg. ♪

tom: welcome back to bloomberg daybreak: europe. now to the story, the corporate earnings story which is high-end the ai booze that has come through for that business. a lift in terms of the earnings revenue. they've seen profits soaring 33% on their ai demand. that ai demand seemingly outpacing the softness we see in terms of the production of apple's iphones. let's get the detail on the story and bring in robert lee from broome -- from bloomberg intelligence. what stood out to you? >> as you said, the business saw

a good sequential rebound into q4 partly driven by the ai focus side of the business. as you take a step back and look at 20 23 as a whole, it was a relatively weak year due to d stocking and their call. as we know, the stock market is all about what's looking for forward. the company should have a much better year. i'm sure you are well aware there's been ongoing weakness on the demand front related to apple influence in china. it's all up to management to see what they say on the earnings call later on today in asia. tom: more than half their revenue is coming from apple when we see that softness down. sales in the chinese market for apple down 24% in the first six weeks according to one report. i guess the big question is, to what extent the ai story will

continue to drive things higher even as their self vulnerability around apple. what precisely are they doing within the ai space. why are they playing this important role now? >> the business is an assembly business but operates on huge volume. i remember hearing that one single site in southern china had a million employees, just to put things in context. this is a massive scale but thin volume. so, they are picking up more business on the ai service side. there has been speculation in the market of them winning new orders potentially from hp. it remains to be seen if there's any truth in that or not. in common with the many tap businesses, ai looks good, but when more than half your businesses come from apple and there is a question mark to the sustainability, that will over sustain them. hopefully management will give

more clarity come the earnings call later today. tom: what is your assessment in terms of challenges apple faces in the crucial chinese market. is this a blip for apple or a sustained downturn that we are seeing? >> anecdotally, people relatives that i know, you look at the quality of chinese developed smartphones. the huawei's and other brands are actually not bad. in many ways, you get good features at a cheaper price. just in simple terms, there's a great incentive for people to look at these brands. with the geopolitical situation at the moment with a degree of patriotism and nationalism in all countries, maybe that is pushing the chinese consumer to look at the domestically developed funds as deposed to apple, etc. those are the two factors i would like you to play out through this year and next with the risk remaining on the

downside to apple going forward, unfortunately for them. tom: risks to the downside for apple. robert lee from bloomberg intelligence on the earnings still getting more than 50% of their revenues from the iphone maker. second straight quarter of strong profit growth driven by ai. now to some of the other stories making news this thursday. the chinese premier has called for an acceleration of that nation's ai development in a visit to top local firms. his visit to baidu and nord technology group comes as the u.s. looks to further restrict beijing's access to cutting-edge technology. according to state media lee says ai is an important engine to develop new productive forces , which is president xi jingping's latest slogan for high-tech growth. bloomberg has learned donald trump has talked about hedge fund tightened john polson as treasury secretary if he wins

novembers presidential election. sources told us trump has held a series of meetings with potential cabinet picks and his name has come up in recent discussions. the european union is working on an aid package for egypt that would provide around 7.4 billion euros in a mix of grants and loans. the push to help them has become increasingly urgent after the government carried out a long-awaited devaluation that allowed its currency to weaken more than 38%. chiral is dealing with the fallout from the israel-hamas conflict. u.s. secretary of state antony blinken is calling on israel to boost the amount of food aid getting into gaza. america's top diplomat says to -- says supplies allowed and since the israel-hamas war remain insufficient. lincoln's comments come after the u.s. resorted to air dropping aid with the pledge by president biden to build a temporary period off the coast of gaza. here's what else we are looking

out for today. 11:00 a.m. u.k. time, nato will release his annual report. of course the focus likely to be on the conflict in ukraine, possible aligning in the israel-hamas conflict. 12:30 p.m. london time, inflation data on the factory floor with forms of use about the next steps for the federal reserve. jobless claims data hitting the terminal as well. finally, the ecb's the cost all due to speak at events today. that's after dovish comments from ecb officials yesterday suggesting that the first cut could come in april, more likely in june. that was a line from the governor and the bank of france. plenty more coming up. this is bloomberg. ♪

tom: welcome back to bloomberg

daybreak: europe. we have a host of data out of the u.s. jobless claims, retail sales data, arguably the most important print that will come through will be producer prices out of the u.s. whether or not that confirms the stickiness, the relative increase we saw in terms of the consumer prices. here's what's happening longer-term. you saw this big pickup in the summer of 2022 but work is being done to get producer prices lower. monetary prices lower. the biggest components are services. energy is now in contraption in terms of the component, the basket, the mix within the producer price component. whether that stays the same will be crucial. we have the right ea report out. leucine geopolitics at play in it being reduced in the u.s. the thing about energy, even though it is a negative territory, you are looking at the number 1.2%. that's the estimate ticking up

from 0.9% in the month of january. let's look at the boj. we get the union data tomorrow and the decision next week. 2010, the boj started buying japanese stocks via etf's. they started that 14 years ago, they are thinking about walking that back. we got to the record across japanese equities. a positive territory, they haven't intervened or bought etf since october of last year but now we are reporting they are considering ending the policy. they don't think it's needed anymore, but they will still continue to intervene. the expectation is in the bond market. that's thinking about another component in the boj story. another part of the asian region, india has been in outperformer, but the narrative has changed your to date. it's an underperformer across the apac region. really intriguing story. $80 billion worth of losses in two weeks. regulators flagging overheating.

analysts say given the valuations, you could see further downside. five mid-cap stocks overturned about a thousand percent. five stocks, 1000% each in the last few years. overheating is regulators would define it. putting pressure more broadly on the indian equity space after a couple of years of solid gains. a bit of a picture because the producer price story around the u.s., india and boj. plenty more coming up. francine will have more interviews from rome, including conversations with the former president of croatia. the chief investment strategy is michael, and blackstone's president and coo john gray. up next, markets today. this is bloomberg. ♪

when i was your age, we never had anything like this. what? wifi? wifi that works all over the house, even the basement. the basement. so i can finally throw that party... and invite shannon barnes. dream do come true. xfinity gives you reliable wifi with wall-to-wall coverage on all your devices, even when everyone is online. maybe we'll even get married one day. i wonder what i will be doing? probably still living here with mom and dad. fast reliable speeds right where you need them. that's wall-to-wall wifi on the xfinity 10g network.

anna: good morning from london. i'm alongside guy johnson and kriti gupta. cash trade just an hour away. here's what you need to know.