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tv   Bloomberg Daybreak Europe  Bloomberg  April 6, 2021 1:00am-2:00am EDT

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move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. manus: good morning from bloomberg's middle east headquarters in dubai with me manus cranny, and annmarie hordern alongside me in london hq. the u.s. futures tick lower after the s&p all-time high. data reinforces the hopes for an economic rebound. credit suisse shakes up its executive ranks after the archigos blowup.
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the bank's cheapest set to exit. boris johnson warns of complacency as he sets out plans for a gradual opening of the english economy. good morning, 6:00 a.m. in london. some nerves are jangling. annmarie hordern, good to have you back. four days that wiped out credit suisse's value. $5.6 billion off the value of this stock. which heads will roll? good morning, are you ready for a bumpy ride? annmarie: good morning i think we are. you are looking at the names on the screen of potential departures. the head of the investment bank, and laura warner, the compliance and risk officer.
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this has been building over the course of last week. we heard from harris associates talking about risk controls. this all comes down to what it means for shareholders, the buybacks and the dividends. they are making a splash and saying, we realize things need to change. manus: as you are reading out those headlines, they are confirmed. chin will step down. lara warner will step down. the person taking over from chin is -- so, these are the shifts. this comes down to basic questions. did you ask the family office, what is your leverage with the other institutions? what risk am i taking relative to everybody else? david herro says it is about
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strong building blocks, they need to clean up the people who accepted the culture that does not balance risk and return. the new head of compliance. it begs the bigger question, there are four legs on a horse, and one shoe has dropped. what else do we think? annmarie: you lead us rightfully so to what is going on in terms of guggenheim's chairman. he said it is only a matter of time before another firm implodes in a manner similar to archigos. >> it is highly likely we will have another situation like that. these things, when they come like we are experiencing, where out of the blue you hear of some major loss somewhere, they tend to continue to cascade until the
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market corrects. and flushes the risk out of the system. manus: we have to see where that risk flushes out. the markets did not even blink. the dividend now down to 10 swiss francs, a slash in the dividend. people were worrying about the buyback mother was concerned the buyback would be under pressure. annmarie: it looks like they are firing on all cylinders to clean up where the risk management went wrong, and what is going on in the bank. global equities off the highs yesterday on s&p 500 from the u.s. a mixed picture looking at the
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indices across asia. euro stocks 50 up 0.6% is looking like a brighter start in europe. across assets, we cwt i struggling -- wee see wti struggling. the talks between iran and united states in vienna today. the dollar, some recent strength. the 10-year yield, 1.68%, struggling to hold above 1.7%. what will it take to get us above and hold? we have jay powell speaking on thursday. manus: let's get some context. mitesh parikh is our guest, founder and cio, matador investment management. you have a long career in the fund business.
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what are we missing? 5 billion swiss francs wiped off of credit suisse because of one family office. our markets ignoring potentially an overly leveraged system? mitesh good morning. we tend not to comment so much on individual micro stories. there are broader ramifications but the price action in the broader index level tells you everything. if you did not know the story, equity indexes broadly are making all-time highs. at the individual micro level where there has been significant selloffs within that portfolio, i do not think at the macrolevel there are broad ramifications. what it means from a regulatory perspective, family offices, they will come under more scrutiny incoming years even the size and growth of the family
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office industry, it runs in trillions of dollars. that is where the greater impact will be here read what it means going forward is anyone's guess right now. annmarie: we have another line crossing, they expect pretax losses of 2021 to be about 900 million swiss francs. more headlines dripping out with credit suisse. i want to get your thoughts on bad news in the banking world. we have positive news in the united states with the jobs number and services -- is it all steam ahead for global equities given what is going on with the u.s. recovery? mitesh: absolutely. we have had since postelection and the vaccine rollout positive
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growth across global markets. global growth for q1 was 1%, but for the rest of the year we think it will come north of 7% -- a huge number. the real impetus given the vaccine rollouts in the u.s. and u.k. should mean specifically for the u.s. we should start seeing blockbuster numbers for a couple of months. we see april through him july payroll type numbers and a continuation of consumer sentiment pickups. and not just for the u.s. but europe will catch up as well. manus: before i ask how you embrace u.s. exceptionalism, another line from credit suisse -- it is the biggest market story we are tracking -- credit suisse has suspended the share buyback program.
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this will be another blow. the buyback goes. the head of the investment bank will leave credit suisse, lara warner will step down. how do you embrace your inner u.s. exceptionalism? mitesh: the trade will be short on the front end for the past few weeks. if you look at europe and the u.s. on a basic level, the treasury spread, we went into march around 16-205 basis points -- 160-205 basis points. with the vaccine rollouts, and in europe the third wave slowing down potential growth, you could argue for u.s. exceptionalism
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but the global data should continue to be good. we see a lag in the china impetus, and they were first out of the covid side of things. it was holding up global growth at the back end of last year. you see stocks underperform there. the activity is starting to pick up. we think as we go into the summer we will see economies reopening as vaccines start working. that global growth impetus will spill over to the rest of the world and not be such a u.s. centric story. annmarie: mitesh parikh, founder and cio, matador investment management stays with us this morning. we are getting a number of credit suisse headlines. the latest headline, they see the first quarter pretax loss including a charge of 4.4 billion swiss francs. laura: officials from iran and
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the u.s. are set to gather in vienna as they take part in talks to end the crisis over 2015's nuclear deal. they will attend negotiations with other parties from the eu, russia and china. iran is demanding removal of all sanctions on its nuclear program. u.s. treasury secretary janet yellen has outlined a case for a uniform corporate tax rate across the world's major economies. she said the u.s. is working with g20 nations to find an appropriate minimum rate. she signaled china saying, the u.s. needs a strong presence in global markets to level the playing field. north korea will not participate in the tokyo olympics to safeguard its athletes from covid, making it one of the first countries to skip the games because of the pandemic. in the u.s., new york's vaccination program picked up
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speed with a record of a half million doses administered. brazil will vaccinate 2 million people per day next month. blackrock is examining its business to see how it may have contributed to racism in the financial system. the world's biggest money manager is planning to undergo an independent racial audit of its operations following a shareholder request. goldman and citi have asked shareholders not to back similar orders, saying they have taken steps to address racial injustice. 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. this is bloomberg. manus: thank you very much, laura wright in london. more headlines to come on credit suisse. read the u.k. prime minister,
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boris johnson, warned against complacency, as he sets up a plan for a gradual opening of the english economy. the full details. this is bloomberg. ♪
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>> we can't be complacent. we can see the waves of sickness afflicting other countries, and we can see how this story goes. we set out our roadmap. we do not want to see the virus brought back into this country from abroad. there is a surge in other parts of the world. we have to be mindful of that. things still see set for may 17, but we will keep things under review. annmarie: prime minister boris johnson outlining a roadmap for the ending of the lock down in england. he confirmed restaurants and nonessential shops can reopen
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next week. a ban on foreign travel is set to remain until may 17. it could be extended beyond that date if infections surge around the world. mitesh parikh, founder and cio, matador investment management is still with us. there is a clear timeline in the u.k. even if some dates will be a wobble. in europe the situation is more fragile. where do you see the european timeline in terms of their reopening? mitesh: there is a lot of negativity around the european situation, understandably so. that has transcended by the market trying to short the euro come along european bonds. actually, if you look at the pace of vaccine rollout in the u.s., we estimate by june, 60% of the u.s. will be vaccinated. that will be the start of july
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for europe. it is not a huge discrepancy. despite the lockdowns we have seen in germany, belgium, france and italy, the march pmi data from germany was very positive for europe. the growth data has been positive. we think that will continue to bounce back. the trend is for european outperformance later into q2 and the start of q3. manus: where will that outperformance manifest? will it be in the currency? the equity markets have done well in a relative sense. italy, france have done well, but have we joined in on that trade? mitesh: the equity markets for a lot of european benchmarks have sector components, these markets will outperform.
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there is more of a value proposition in european stocks. the euro has underperformed. the benchmark is down 3.5%, in some cases more since the start of this year. that was a popular trade into the second half of last year. europe rallied in short order. i think the euro can continue higher. some will depend on the u.s. exceptionalism somewhat, and that is the tricky part. being long on the euro makes more sense, being short dollar is trickier. in an environment where you have 80 basis points, it is hard to see that getting higher than a hundred. fixed income trades suggest pullbacks will be solved. you have that support for the
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dollar. i do not think that will change anytime soon. annmarie: where do you see the dollar post pandemic? we see central banks, goldman is calling it quits on their short dollar trade. what do you see the trajectory of the greenback? mitesh: post pandemic you see an environment of a weaker dollar because global growth will pick up. that depends on the world playing catch-up with the u.s. if you think about q4 last year, it was a dollar negative environment. q1 has been driven by the rate side of things. the back end moved initially, but in the last six weeks it has been driving the price action trending lower. post pandemic, as economies reopen and you see idiosyncratic
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stories, procyclical trade should to well in norway, canada, australia and new zealand. in the u.k. is underweight from neutral fund etf's and broader fund managers. you go back to 2015 when they were positioned in the u.k., that number is closer to 3%. we see a u.k. outperformance especially given it is a service sector economy. manus: if you were at goldman sachs, we would ask you what a taxable retreat is. will we see real rates go positive in 2021 as they did in 2013? what is the risk of that? mitesh: we have had a significant pricing duration. if you go back to 2020 before covid really hit, 10 year treasuries -- we are now in an
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environment where it has exploded which is rare in a recessionary period. you had $5 trillion in stim and us alone from cares act and broader stimulus this year. now you have a $3 trillion infrastructure bill which will probably hit next year after a reconciliation process and how they have to get that through. ultimately, i think it means you have an environment where we can see real rates go higher. will they go positive? that will depend on inflation breakevens. real rates are driven by nominal's. we have had good activity data and growth data but inflation data has been softer than expected. some of that is technical. there is a large part of health care that is causing a suppression of that pickup. i'm not convinced we will be
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positive real yields in the next six months. it takes time for inflationary pressures to come through. it is a question of how much inflation we will get. manus: let's leave it there. mitesh parikh, founder and cio, matador investment managementm based here in dubai. thank you for joining us this morning. it is a shakeup at credit suisse. brian chin exiting the bank. lara warner will exit is the chief risk officer. the dividend is slashed. the aftermath of the archigos blowup. is it done? the latest. this is bloomberg. ♪
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manus: it is "daybreak: europe."
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annmarie hordern finally back after easter. credit suisse hard-hit the collapse of archigos capital management. sweeping changes. the dividend is gone. dani burger has the context, the dividend, the buyback and the human capital cost. what is the big move? dani: definitely the standouts would be the exit brian chin and lara warner, the investment bank chief ende risk chief officer. we have a lot of capital changes as well as the suspending of the buybacks, that will not come back until they get their dividend back to full force. a proposal of a tencent dividend. they will not get the buyback until their capital ratios are where they want them to be. a memo over the weekend
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announced even more executive and high-level departures at credit suisse. it is a who's who of the risk department. the head of equity and sales trading, the head of prime risk services, and other people involved in the risk department. you can see where they are focusing these cuts and what happens to risk and risk management. an investigation when it comes to the u.s. hedge fund, archigos , announced in this statement. annmarie: they are expecting a pretax loss of the first quarter. some of these costs that are mounting for the bank? dani: they have to sell a lot of these stocks. effectively wiping out their first quarter profit, despite the fact they had a good quarter when it came to investment banking and new assets in the
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wealth management department. this really is the tip of the iceberg when it comes to costs. as they addressed risk management and controls have high operational cost from this quarter on, we could see revenues trend if they rein in prime brokerage and focus inward . they could face legal costs, regulatory costs. at the same time, they mentioned in this announcement that they are going to look at compensating investors over supply chain finance funds. reuters reported they might need 50% of the losses. those are more losses to add on top of this. this is one moment in time of what they are announcing, and we are likely to see more in quarters ahead. annmarie: thank you so much for recapping. all these headlines we are getting this morning. we will stay on this story for
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the entire hour. we will ask dr. nouriel roubini what he thinks of all of this. this is bloomberg. ♪
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♪ annmarie: good morning. from bloomberg's european headquarters in london, i am annmarie hordern with manus cranny in dubai. this is "bloomberg daybreak: europe." u.s. futures lower after the s&p's all-time high. credit suisse shakes up its executive ranks after the ark egos blow up, suspending share buybacks and proposing a reduced
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dividend. boris johnson warns against complacency as he sets plans for a further gradual opening of england's economy. it's all about credit suisse this morning. 7:30 a.m. in switzerland. so far, no risk to the broader markets. manus: nope, not at all. let's quickly show our viewers what's going on with the market. asia lighter on its feet by 0.2%. you see china and hong kong come back into play. facebook made a record high. are we beginning to think a little bit about the topping this in these markets? europe just ignores everything, up 0.6%, playing catch-up to the u.s. on friday. oil is lord. the supply -- lower. the supply is coming back. discussions in vienna today. crude is up by 0.8%. goldman makes a tactical retreat
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on being short the dollar. . there is only one story, it is credit suisse. the ins and the outs. the chief of the investment bank is gone, larra warner. the lady who controlled risk, she is also gone. there is an absolute huge hit to the first quarter, isn't there? 4.4 billion swiss franc's of a provision in the first order numbers. those are the faces who are going to take responsibility, we understand, for the affair. annmarie: guggenheim's chairman told bloomberg this is only a matter of time before we see another firm implode in a similar manner to what went on at archegos. >> it is highly likely that we are going to have another situation like that. these things, when they come like we are experiencing, where out of the blue you hear of some major loss somewhere, they tend
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to continue to cascade until the market corrects and flushes the risk out of the system. manus: joining us now, nouriel roubini, professor at stern school of business at nyu. great to have you with us, sir. straight to the affair. it knocked 5 billion swiss franc soft the value credit suisse last week. provisions are in. is this in your mind a demonstration of excessive risk in the market or just incompetence in risk management? and is there more to come? nouriel: i think it was a combination of the two. we are in a situation where financial markets are extremely frothy, where there is either zero policy rates or negative policy rates. financial conditions are very easy. we are seeing widespread
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frothiness, bubbles and re-staking in leverage. there was a bust of bubbles in 2000. we have seen now this frothiness and other financial markets, the spac phenomenon, the crypto phenomenon, the blowup of some hedge funds. i think this general frothiness, money is very easy, liquidity is too easy, and people are taking too much risk. annmarie: if you think this is what the environment is calling for, do you agree with scott minerd that there is going to be more hedge funds that could implode? nouriel: yes, i would agree with that assessment. i think there are lots of players that have taken too much leverage, too much risk, and some of them are going to blow up. manus: the kind of risk adjustment in terms of the blowup, what could happen to
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equity markets? what is going to cause these equity markets, as you say, the froth, to come off? nouriel: i don't think a single institution going belly up is going to cause that. this is not a situation like 1998 where you have a huge, highly leveraged hedge fund and there is systemic effects. i think the markets should worry about the overheating of economies coming from this experiment where a massive fiscal and monetary stingless. there is a risk that the economy is going to be overheating. there is a risk that inflation expectations are going to be rising. the fed said we are not going to end qe until next year, we are not going to raise rates until 2024. the long end of the yield curve can go higher. the markets are expecting that the 10 year may reach 2% by year-end. but what is going to 2.2, 2.4, and then a rise in real yields,
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that could be the shock that hits equity markets in the u.s. and globally. annmarie: you talk about a spike in yields. where do you see inflation going? do you think it is going to be a blip or is it tuesday -- is it here to stay? nouriel: if you're looking over the next two or three years where still, large monetization of fiscal deficits in the u.s., europe, japan to other advanced economies, and i see they are going to be observing a series of negative supply shocks that may lead inflation. we have deglobalization and the rise of protections. we will see tensions between u.s. and china escalate. we have aging a population -- of population. therefore, the supply of labor is going to be restricted. we are going to go to policies
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that try to reduce inequality and the weakness of labor. we are going to be taxing capital, among other things. there are many things that may reduce potential growth, increase the cost of production and then in a situation where you monetize fiscal deficits, eventually, you could have a de-anchoring of inflation expectation well above the targets of central banks. the fed is saying we are going to tighten when inflation is above target. we are in a situation where there is a huge amount of public and private debt, and central banks that are going to try to raise rates when you have too much private and public debt are at risk of causing a financial crash. i worry that they have lost their independence and we have been choosing between raising rates and causing a financial crisis of inflation. we are accommodating and then leaving to rising inflation well above target. may be the last will be more likely than the former. manus: you are setting the
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fiscal stimulus as coming. we are waiting to see what infrastructure stimulus we get. you talk about an un-anchoring of inflation expectations. would the stimulus that's on the table and proposed, do you think it is excessive and do you think it will on anchor -- un-anchor the inflation expectations? nouriel: we did three points e trillion plus laster. the -- last year. the infrastructure plan may be another 4 trillion. the economy is already recovering quite robustly. i think by certain standards, the fiscal stimulus is likely to be excessive. in part, it has been monetized by the fed. this combination of very aggressive fiscal, monetary, and credit easing can lead to an overheating of the economy and de-anchoring of inflation expectation. that is a risk that both
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treasury and fed r underestimating -- are underestimating. annmarie: is tax hikes the right way to pay for it? nouriel: yes, because from a fiscal point of view, the situation of the united states is unsustainable. public debt as a share of gdp is rising sharply. both explicit and implicit debt is very high. eventually, that is not sustainable. if you are looking at the next two years, we see very large budget deficit as far as the eyes can see. we cannot cut spending so have to increase taxes. whether you like it or not, taxes on the corporate sector are going to go higher. taxes on the wealthy and rich are going to go higher. what's going to be the market implication of a significant
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increase in tax rates in the united states? manus: where will that play out? will that had equities -- hit equities? we might waken up to the deficit situation, perhaps not now, but will that knock the dollar? put some context on what you have just said about the deficit situation. nouriel: for now, the markets are going higher because they believe that the growth impact of the stimulus and infrastructure is going to be dominant. and i think the tax increases are going to be postponed in terms of being introduced by early next year. eventually, i think the market is going to start to worry about what's the implication of corporate tax rates going from 21% to 28%. new york state, they are raising
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local taxes and so on. i think the markets are going to start to eventually price in this and there will be an impact. on the u.s. dollar, recently, the slide of the dollar has been stopped because u.s. growth is outperforming one of europe. you look in the medium-term, we are running very large between currency -- and fiscal deficit. those deficits will become larger as fiscal debt grows bigger. it's up to the capital inflows to max out the dollar. the fed is saying zero rates qe as far as the eye can see. another weakness is going to come from the fact that the u.s. dollar is a tool of national security and strategy and using -- against strategic rivals wanting to diversify away from dollar assets and a dollar funding system. if you look at all these facts, i would say that the dollar will
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gradually weaken over time, even if in the short-term, growth in the u.s. and the strength of the dollar. strength of the dollar is going south over time. annmarie: overnight, we heard janet yellen talking about a harmonized corporate tax rate around the world. is that really realistic? nouriel: the birds are already deciding with a concerted government to raise also the corporate tax rates. i think that the phenomenon is that alongside, we need to deal with this budget deficit. we are not going to be able to cut spending, so we are going to have to raise taxes come in part. there has been a massive increase in income and wealth inequality. 81% of equity, wealth, is held by the top 10% in the u.s.. the bottom 50% of the distribution of income holds 0.5% of the wealth. you have 50 billion in the
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u.s. -- they will be increasing taxation and taxation of the wealthy, the rich and of the corporate sector. that's the direction we are going in the u.s., europe and other parts of the world. annmarie: all right, nouriel roubini, stern school of business professor at at nyu stays with us. first, let's get you a recap of the news you need to know. good morning. laura: boris johnson has confirmed that some restaurants, pubs, and shops were open again from next week as england's lockdown is east. the u.k. prime minister set out plans for a first step in reducing restrictions as the country's vaccination program reached more than 31 million people. however, in a setback to the airline industry, the government said it is not yet clear that non-essential international travel can resume as planned next month. china has urged japan to steer clear of internal issues, including hong kong and ching ching.
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according to a statement from beijing, the foreign minister told his japanese counterparty hopes japan can treat china's development from an objective and rational perspective. that's as japanese prime minister prepares to meet the u.s. president later this month. bloomberg understands the board of air france has approved and a package aimed at strengthening the indebted balance sheet. it is said to include the comfort -- conversion of government loans into hybrid bonds and raising -- -- as the pandemic sire travel collapse. -- saw air travel collapse. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. laura wright. coming up, we continue our conversation with nouriel roubini, and what he thinks about bitcoin.
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has he updated his view? we will get the latest updates on the view from nouriel roubini on bitcoin. this is bloomberg. ♪
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♪ >> president biden's proposals announced last week because for bold domestic action, including to raise the u.s. minimum tax rate and rendered international engagement -- renewed international again june. we are working with -- engagement. we are working to agree to a global corporate tax rate that can stop the race to the bottom. i am very hopeful that because of the steps we are taking, including speeding vaccinations, dealing with the pandemic and the economic support that we are providing, that the job market
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is going to become far more robust in the months ahead. if the package did proved to be inflationary, we have the tools to address it, so i see the risks as asymmetric, that i am wearing much more about long-term, adverse consequences from not doing enough than problems that would result from doing too much. annmarie: u.s. treasury secretary janet yellen outlined the case for a harmonized corporate tax rate across the world's major economies. we want to look at what is going on in the cryptocurrency world. the total market value of cryptocurrencies has pushed past $2 trillion for the first time. the price of bitcoin has more than doubled in 2021 amid surging institutional demand. our guest of this morning, and professor nouriel roubini, has previously said bitcoin is a self-fulfilling bubble with no value. we all know you hate bitcoin.
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is there anything that could change your mind? nouriel: you know, in my view, calling bitcoin or rather cryptocurrency currency is a misnomer. they are not a unit of account, not a scalable and widely used means of payment. with bitcoin, you can do five transactions per second. with the visa, you can do 25,000 transactions per second. it is like going back to barter. they are not currencies. if and when soon there will be central bank digital currencies, they're going to dominate for payment services, not only cryptocurrencies, but also private forms of money like deposit in the banking system or online payment services. the question is whether they are assets. for something to be an asset, it provides you some income like stocks, bonds, loans or real
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estate. they do not provide an income. residential real estate because you housing services. growth provides you -- bitcoin is not having any income, does not have any use, does not have liquidity services. what's the intrinsic value bubble. manus: what about the central banks? there is more than 50 central banks investigating issue digital currencies. if the fed issue digital currency, could it be one of the alpha stores of value? if you had to make a choice to own a central bank currency from the fed, would you? nouriel: a central bank digital
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currency will just be a digital manifestation of something that right now is already partly digital. of the base money circulation, only coins and paper money is nondigital, while reserves in the banking systems, over 95%, is digital. for payment services right now, we are relying on bank deposits, wire transfer, you name. once you have a central bank digital currency, everybody will have it. payment systems, you can do transactions privately, securely, cheaply, with instant clear. central bank digital currencies are going to dominate any form of private payment system as a means of payment. that's the direction we are going. even the fed will have to move. otherwise, the chinese plan to make a global resolve currency. the u.s. has to think about digital manifestation of the doubt. it's necessary. it's going to happen over time. manus: before we let you go, we want to get a sense of what the
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biggest risk is on your radar. you are in dubai, in the middle east talking to people around the region. what is the biggest risk for 2021? nouriel: well, i would say first of all, i think people are really starting to worry about the return of inflation and what that is going to imply for bonds, and also for equities. i think that's a key risk that people are asking. i think that increasingly, people will start to worry about the increasing conflict between u.s. and china. i think people are underestimating how much even something on taiwan may lead to a military confrontation. it is a risk that is underpriced. u.s. and china currently are on a collision course. there's a cold war that's becoming quarter. i think the risk of even a hot work is rising -- war is rising over time. that's a risk. manus: we wish you well. annmarie: nouriel roubini, we
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both are so excited to thank you. nouriel roubini, professor at stern school of business at
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♪ annmarie: good morning. 6:55 in the city of london. i am annmarie hordern with manus cranny in dubai. i want to recap what is going on with credit suisse this morning on the collapse of archegos. joining us now is marion half smile. what's the latest? you have been across this for hours. >> yes. we have been reporting on this for about a week now and for hours. the latest is obviously one of the biggest hits we have seen in a while for credit suisse, 4.4 billion francs write-down
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expected, equivalent to about a year's worth of profit for a bank like this. this is all coming out about how they have been dealing with this archegos family office. we are getting more information of how the bank is going to be looking at their risk and compliance functions. a lot of personnel changes happening this morning. the chief risk officer stepping down as well as the head of the investment bank. these are big changes. manus: yes. and dividend and buyback, buyback is gone, dividend is sliced. for income hunters, this is a blow. >> this is a blow coming us. we are also -- this is a blow, yes. the share buyback is being suspended. we also do not know whether capital, their capital ratios, will stick around. they said that they will manage
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to keep their targets but who knows if we start seeing some fallout from this and their supply chain finance funds. manus: we will see how the stock price opens this morning on the market. marion on the credit suisse story as it evolves. $5 billion drop in value last week. what will come today? what's boom -- it's bloomberg.
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want your workout to be easier, more effective, and more convenient? then you should try aerotrainer by golo. the new full body workout that you can do at home or anywhere. it's great for planks, squats, core, and glutes. you'll strengthen and tone muscles, relieve back pain, and reduce stress. it's also great for yoga and pilates. get noticeable results in just ten minutes a day. (woman) aerotrainer makes me want to workout. look at me. it works 100%. (host) all of this is a $300 value, but through this special offer, you can get the entire aerotrainer system for just four easy payments of $19.95. and if you order today, we'll also include free shipping. still not sure? then we're eliminating the risk. try the aerotrainer in your home for 60 days.
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if for any reason you don't want to keep it, we'll give you a super easy refund. we'll even cover the return shipping. this is a limited time offer, so go to aerotrainer.com to get the body you want with aerotrainer. ♪ matt: good morning. welcome to "bloomberg markets: european open." i am matt mother live from berlin. the cash trade is just about an hour away. here are your top headlines. credit suisse shakes up its executive ranks and suspends its share buyback after the archegos blow up. u.s. futures take lower after the s&p's all-time high. strong

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