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tv   Bloomberg Markets European Open  Bloomberg  November 19, 2021 3:00am-4:00am EST

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day yesterday in the red marginally. the futures are pointing to solid gains, 4/10 of a percent are what the futures looking like. u.s. futures also in the positive after tech powered the s&p to another record, the 66th record for the s&p. a divergent picture because tech in china was pressured by those earnings from alibaba that disappointed, and the stock there fell by as much as 11% in hong kong. let's check in on the european markets. on the u.k. ftse 100, you are flat in the opening seconds of the trading session. still weighing up what was slightly more hawkish commentary from fed officials overnight in the states. the question mark as to whether investors need stock pricing in a more aggressive --
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and more aggressive rate hikes from the fed. the cac 40 gaining zero point 4%, reflecting what we saw in the futures. a spanish i back up by 0.3%. the german docs gaining -- german dac gaining as well. covid restrictions are put in place and are so focused on those strong corporate earnings. the futures in the u.s. gaining almost 0.5%, building on those records we saw yesterday. tech very supportive. that will buy into the yield environment. yields picking up slightly, currently just below 1.6% for the u.s. 10 year, 1.9. it was a different picture from jd, the rival for alibaba come performing better in terms of earnings, but you are down 0.3 percent in terms of the chinese
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big tech names. bitcoin is the focus for us still, losses down almost 3% for the cryptocurrency. let's dig deeper into how things are breaking out on a sector by sector basis. staples, a bit of a mixed picture. largely, you're seeing a modest selloff. i want to find financials. firmly in the green as well, despite the fact you have u.s. 10 year yields low 1.6%. industrials are a mixed picture and materials as well. it is broadly what you are seeing on gains across the european markets at this point, around 0.2%. we will see how that follows through in the next hour or so. let's get the bloomberg business flash with laura wright. laura: bloomberg understands toyota is planning to invest billions of dollars in a battery plant to be built in north carolina. sources say the japanese carmaker is expected to partner with panasonic to construct the facility, as it looks to ramp up output of electric vehicles in the u.s.
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australia's biggest bank has taken a small stake in cryptocurrency exchange gemini trust via the startup. speaking exclusively to bloomberg television, the ceo of commonwealth bank says one of the biggest risks the industry faces when it comes to crypto is being left out of the market altogether. >> we don't have a view on the asset price itself. you know, we see it as a very volatile and speculative asset, but we also don't think that the sector and the technology is going away anytime soon, and so we want to understand it. we see risks in participating but we see bigger risks in not participating. laura: apple shares rose after bloomberg reported it accelerated development of its electric car and is refocusing the project around. drive in capabilities. sources say the project's new leader is pushing
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today be the vehicles as early as 2025, faster than the previous timeline of five to seven years. apple's ideal car would have no steering wheel or pedals and would not require any human intervention. tom: we have been waiting for this technology. it is progressing quite well. apple the focus there. it is exciting to see how that develops. laura, thank you very much indeed. let's get into the markets and continue this discussion about what is driving the equity markets toward the year-end as we have concerns about inflation. joining us is our markets reporter justina lee. i want to talk about the tech diversions. it was pretty fascinating in the divergence. the nasdaq powering the higher and tech stocks powering the s&p to a new level. but a different picture in the u.s.. concerns about alibaba and the
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strength of the retail sector as well. how should we be thinking abut this split with intact? justina: i am so old enough term ever people used to talk about alibaba and facebook in the same breath, but now we are seeing a very different picture. first of all is the regulatory issue. we have heard a lot about this in the u.s., but not a lot of reaction in china. they just came out and tighten rules across the board. we are starting to see this hit earnings. we had a bad forecast coming out of alibaba, and before that also tencent, baidu, bilibili. we are seeing this big divergence because in the u.s. we are still seeing solid results from the tech giants so far. that also raises the question of what is happening to consumer spending in china, especially in light of these continuous virus restrictions. tom: when it comes to the question of rate hikes, we are hearing hawkish commentary from the likes of williams.
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how should markets be thinking about the rate hike and what are the next catalysts in the weeks ahead? justina: it seems like people are starting to get a little bit more worried about the pace of monetary tightening in the u.s. we heard -- in the u.s. we heard some commentary on that. it is not just that people tend to think it is bad for equity markets, but also in terms of the impact on different sectors. does low rate environment in the past few decades -- the low rate environment in the past few decades has been good for tech stocks. what will happen is going to be a big question. tom: we cannot talk about technology without talking about apple and developments around the apple car. how should we be thinking about mark gurman's reporting on this and what it means for apple and the repositioning of that company? justina: that is a really
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exciting one because i think what we have seen from a lot of different companies is they have hit a lot of roadblocks when it comes to really building an autonomous driving vehicle. but it seems like from my colleague's reporting that apple is really hitting a key milestone in that development. it will be interesting to see how the company kicks it forward. it is not really a car company, so a lot of people are expecting a partnership maybe. that will really set the future for apple beyond its current consumer products. tom: we have to ask about bitcoin as well. 56,000 is what we are looking at. it was not that long ago that it was at 68,000. it is very difficult to make calls on this cryptocurrency, but do we have a sense of what is weighing on the cryptocurrency stage? justina: it goes to a peak, sentiment boils over, and it gets overheated. that is what happened a few days ago. we saw open interest in bitcoin hitting a record high. people were paying the hefty
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premiums to go along. a lot of times when that happens, sentiment falls and we see bitcoin moving sideways. it is not necessarily that there has been terrible news, but i think it is in a consolidation phase. tom: maybe a bit of profit taking rather than fundamental changes in that space. thank you for those insights across multiple asset classes, also talking about apple and the implications of the news that is focused on a fully autonomous car as well. let's check in on some of the stocks on the move at the open. we are looking at unilever first off because there has been this big spinoff in terms of its t business -- its tea business. the stock is lower by 0.5%. ryanair, not a big surprise. announcing they will be delisting from the lse because of the requirements to be owned within the european union. brexit being blamed by ryanair for that move.
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down by 0.5%. and kingfisher as well, the owner of the end q, actually down 5.5% despite saying they see forecasts in a profits and revenues toward the higher end of the range. after reporting a pretty solid third quarter across all of its brands, that is a stock that is under pressure today despite forecasting revenues to be in the higher end. these are the individual stocks we are looking at today. we will keep a look on those through the session. coming up, markets way inflation -- markets weigh inflation. more next. this is bloomberg. ♪
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tom: welcome back to the open. we are 12 minutes into the european trading day. so far, all are making up for the modest losses we saw yesterday. only 12 minutes into the trading session, but we are seeing gains of 0.3 percent against the stoxx 600. a stronger performance in france . in italy, gains of almost 0.5%. iron ore is back, copper is back, oil prices are higher as well. at the bottom of the list, we have a few sectors in the red,
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including real estate and utilities. global stocks are on the rise amid optimism that the pandemic recovery can weather elevated inflation. joining us for more is hsbc's asset management and global chief strategist. good morning, happy friday, thank you for joining us. our markets still underestimating the pace and the rate of hikes from the federal reserve as we look to 2022 and pass the taper? guest: good morning. this is a key question that is on everybody's mind in markets at the moment. we are, we think, in the middle of the economic cycle, and that midcycle point comes, as you say quite rightly, at a point in time when we typically see, when we have passed gdp, we have passed profits, and policy normalization comes to the four as an influencing factor for markets. what we have seen is the front
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end of the yield curve, short-term interest rates really beginning to reflect an expectation of multiple rate hikes next year. the central banks are already beginning to steer the market into that direction as well. we have seen some policy hikes in south korea, possibly more to come before the end of the year. that policy normalization is an important midcycle topic. it is right to focus on it at this juncture, and markets are clearly thinking about it very much. i think probably on balance, our expectation is that maybe in the u.s. that front end of the yield curve is somewhat overpriced to what the fed will deliver next year. clearly rate hikes are on the agenda, are on the possible set of outcomes we could see in 2022. but there is a long way to go. there is a lot of noise on the
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data, a lot of things to play out and watch very closely. there is the question mark about how the feds will manage the taper process. are they going to accelerate that, just that in any way -- adjust that in any way? policy normalization is critical for markets in 2022. tom: central to that decision-making by the fed. the central banks will be the pace of inflation. the competitiveness is trying to get our hands around that. what are you at hsbc looking at to get a clear view as we look ahead to next year? guest: that is a great question. at present, we see significant price pressure in the inflation data, not just in the u.s., the u.k., and asian economies as well, but price pressures coming from the macro restarts, from commodity repricing, from a significant imbalance between where the demand economy is
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based on where the supply side of the economy is. as the jargon goes, we expect that to be a transitory influence on inflation going forward. it is going to be a bit hairy for many central banks because these price pressures are exerting a bigger effect, slightly longer than many central bank governors expected they would do. ultimately, we expect those forces will pass perhaps by the time we get to the second quarter. some of those factors that are driving cpi, inflation higher at the moment, housing, autos, commodity prices, could even be inflation forces overall. what happens as we move into the middle part of 2022 is the crucial driver of inflation becomes what is going on in labor markets, what is going on in wages. central banks are going to closely be watching the developments in inflation
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expectation, the markets, and in surveys to make sure they can retain this sense of credibility in financial markets with their inflation control. tom: joseph, what are you saying to your clients about how they can hedge some of these inflationary pressures? guest: the inflation pressures that are going to remain with us for a while, and as i say, is going to be a tricky environment for central banks for what they do on policy and communication. the markets will be focused on inflation at least for the next review to six months, and is going to be a key issue for investors who begin to think about how we build resiliency against that. i think the challenge is that maybe many of the traditional sources of protection are not necessarily the best places to focus on at this juncture. normally we look at gold. it has not performed during this inflation scare,. this inflation worry we normally look at inflation, but the problem is the real
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yield is so low, so negative at this point in time that there is a real challenge to evaluation -- to the valuation of the asset class, while cpi headlines are coming there higher and higher. the alternative space, an interesting area to focus on instead, maybe ideas in infrastructure debt, infrastructure equity, parts of private equity. getting close to real cash flows is probably the best strategy to focus on at this juncture. in terms of the more conventional part of the market, we might look at real estate. that sector typically performs well in the late economic cycle and typically has that inflation hedge as well. tom: i know you want to be adding some exposure to asian fixed income. how much risk do you want to be taking on? do you look at junk high yield or quality within the corporate debt space? guest: it is a tricky
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macroenvironment. there is lots of uncertainties. we have spoken about the inflation uncertainties. there is noise in the economic data. we have uncertainty in the growth side of the equation in terms of confidence in what is going on in china and asia, more broadly. i don't think it is an environment where you want to make big bets in terms of asset allocation, but you are quite right that we see a lot of attractive relative. valuation in asia fixed income it is in a couple different areas. we can look at the broad em space compared to what we see in risk credits and development markets, the high-yield area, and the em area is better. we look at chinese bonds compared to global government bonds. the diversification opportunities in the chinese government bonds look vastly superior at this point in time, and the currency has been quite resilient despite some tricky headlines and challenges in terms of economic activity and
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the policy situation. also in the credit space in asia, clearly the property sector is front and center for their consideration when looking at asian high-heeled, asian risk credits. those valuations, those spreads, do look very interesting. when the time is right, there could be good opportunities in that asset class as well. we think it looks very attractive on the basis of valuation, risk premium analysis in the part of the market we are looking at very closely. tom: opportunities in rates, private equity, corporate credit in asia, sovereign as well. the chinese 10 year offering 3% versus the 1.6% on the u.s. 10 year. joseph little, hsbc's asset management global chief strategist. coming up, germany announces new restrictions for the unvaccinated as covid infections hit record rates. we will get the latest next. this is bloomberg. ♪
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tom: welcome back to the open. we have 23 minutes into the european trading day. gains of 0.3 percent across the european markets.
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the ftse 100 is gaining 0.3%. basic resources at the top of the list. iron ore, copper prices are higher. utilities at the bottom of the list. the euro-dollar has taken a leg lower, 1.13. it is possibly about this divergence of the views around the ecb and the fed. 113.35 on your euro-dollar. futures building on the gains. another record for the s&p. futures to the upside by about 0.3% stateside. switching back to what is happening across the euro zone, germany is applying pressure on its citizens to get vaccinated, announcing plans to restrict many leisure activities for the unvaccinated. for more, let's get to maria tadeo. chancellor merkel saying the situation is accelerating and it is worrying. what do the new restrictions actually entail? maria: the message yesterday
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from angela merkel was very clear that this is now a wave that is hitting the country in force. we need a break to try to end this spiral the country is in. when you look at the new restrictions she announced yesterday, if you are in an area where the infection and hospital rate is going up, you will not be able to go to a restaurant, to a venue or a concert if you are not vaccinated. the point is they are trying to incentivize people who have not gotten the vaccine to get it. one of the reasons is the admissions rate for hospitals. i want to bring up this chart because it does tell you a big story. you see the number has increasingly gone up in october. a lot of criticism of the german government is it did not take the measures to prevent this in the summer because of the election. nobody wanted to kill the feel-good factor going into a vote. now it is exponentially going up, a vacuum of power because
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this is a government in transition. the country is having to deal with a big wave at a moment that. is politically sensitive we know the big decisions will come down not so much on angela merkel, but olaf scholz, the next chancellor, who has said we will see measures we have not seen yet in the country kick into deal with this pandemic. tom: that is the politics of what is happening, and we have to bear in mind the economic recovery and how that impacts. thank you for the latest on that and of those measures being put in place in germany to tackle those increasing rates of infection. coming up, apple is putting the pedal to the metal by refocusing its car ambitions on self-driving capabilities. we will bring you the details. this is bloomberg. ♪
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tom: welcome back to the open. we are 30 minutes into the european trading day, and here are your top stories. german covid cases hit a new high. the government adds new restrictions for the unvaccinated. battling burnout. london-based broker for an cap offers unlimited holiday to ease the strain of staff. we will speak to the ceo in a few minutes time. and apple pushes to accelerate the development of its electric car, sending the stock up more than 2%. it is very much a risk on day
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here across the european markets, 30 minutes into the trading day, following what was a modest selloff yesterday. it seems that investors are once again looking through those inflationary concerns, getting past the hawkish comments from officials. the gains being reflected across the indexes. investors also seeming to take in their stride these increasing infection rates that we are seeing across the euro zone and the policy measures being put in place to mitigate those rates of infection in places like germany, austria, and belgium as well. what we are seeing is green on the screen, and gains of zero point 4% across the european stoxx 600. the dax gaining 55 points. 0.5% gains in the cac 40. the ftse 100 is also up 0.4%. the euro-dollar, euro at a 16 week low.
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that seems to be based on the economic fundamentals, the divergent on the data we are seeing out of europe and the u.s.. we will take a look at the grr and to see how things are playing out in a sector by sector basis. iron ore is back up. oil prices are higher as well, even as we await that decision from president biden around the reserves and whether he makes a call on that following what we saw from the chinese. basic resources, gaining 1.6%. energy is also higher. at the bottom of the list, utilities, but only by a fraction. broadly, you are seeing green across the screen in the first 30 minutes of trade. let's get the bloomberg business flash now with laura wright. laura: ryanair has confirmed plans to drop its london stock exchange listing, becoming the first major company to blame its departure on brexit. the irish discount airline is claiming supplier headaches, following the exit from the eu.
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bloomberg understands toyota is planning to invest billions of dollars in a battery plant to be built in north carolina. sources say the japanese carmaker is expected to partner with panasonic to construct the facility, as it looks to ramp up output of electric vehicles in the u.s. unilever is selling some of the world's best known tea brands, including lipton and pg tips, to cvc capital partners. the deal values the business at 4.5 billion euros on a cash free, debt-free basis, marking one of the year's biggest carveouts by a european company. demand for tea has suffered in recent years with herbal alternatives and artisan coffee rising in popularity. australia's biggest bank taking a small stake in cryptocurrency exchange gemini trust. speaking exclusively to bloomberg television, the ceo of the commonwealth bank says one of the biggest risks the industry faces when it comes to crypto is being left out of the market altogether.
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no time for fomo. tom: i want to bring your attention to some of these lines crossing over from christine lagarde of the ecb, saying the medium-term inflation look out better than pre-pandemic. we must not rush into a premature tightening. this is.christine lagarde of the ecb inflation is likely to increase further until the end of the year. she says it is expected as well, and likely to slow the near-term pace of recovery. a couple of lines from christine lagarde. we will recap those for you. the euro-dollar trading at 113,, at a 16 week low. let's switch focus to the corporate and a bloomberg scoop. apple is pushing to accelerate development of its electric car and is refocusing the project around. driving capabilities. joining us for more is our global car star. it is -- we have been so focused
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on the story, trying to glean information from them. what do we know? how significant are these changes? reporter: it is a great scoop by mark gurman on the west coast in the u.s. to say that the apple card project has been in flux would be an understatement. this is a project that has been going on for years now. a lot of turnover at the top, which is unusual. and a little bit of indecision as to what exactly is the plan here. are they going to try to make a connected vehicle with the apple experience inside? are they going to go fully autonomous? are they going to go driver assistance, higher technology from that perspective? what mark heard from his sources is they are going to make a push to go fully autonomous and try to go with a vehicle that will be personally owned, which is to me what is most interesting
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because i think what we have seen is a lot of tech companies have concluded, and auto companies as well, this is going to be very expensive for a long time, if it is ever going to be available at all. this is a very ambitious push on their part by a new ownership, the head of the car project very recently leaving for ford. this is a new person taking over and setting the ambition. tom: there has been a lot of staff turnover. they clearly have the cash to deploy on r&d and build out the base to have this project come to the fore. 2025 is very ambitious. do we know if they will reach out? any partnerships? do we have clarity on that? reporter: that is something to watch. they are rating talent from the other oem's. in addition to losing some people, like they have lost the car project head to ford recently. they are bringing in engineers
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from some of these companies. there will be a war for talent we will continue to see. a likelihood they would have a contract, manufacturer or manufacturers because that is the apple way. it is not necessarily an attractive thing to get into the car business. the margins are not there the way they are with a product like a phone. tom: it sounds like despite the travails they have gone through, they are full in on this. thank you very much on that update, on the evolution and evolving picture on the apple car. let's recap some of these guidelines. the ecb president giving her views on inflation and the impact on the growth picture in the euro zone. christine lagarde saying she is confident that inflation pressures will ease over time, so reiterating she is still transitory on that front. she says the medium-term inflation outlook is better than
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pre-pandemic. we are seeing pictures of steam lagarde speaking. we must not.rush into premature tightening -- premature tightening. christine lagarde says she does not expect a rate increase. it is increased until the end of the year. we will hear more from the ecb president if and when we get them. inflation is moving in the right direction, she says. euro-dollar down by 0.3%. what would you say if your employer offered you unlimited holiday? we will speak to the ceo of a company that has done just that and it looks to tackle worker burnout. that is next. this is bloomberg. ♪
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tom: welcome back to the open. 41 minutes into the european trading day. it is a risk on friday across european markets. future in the u.s. -- futures in
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the u.s. pointing up. 0.4% is what you're seeing in terms of the stoxx europe 600. gains of 0.5% for the cac 40. basic resources at the top of the list, utilities the only sector in the red at the moment. your euro-dollar is that 113. christine lagarde saying we should not overreact to inflation, and in terms of your u.s. 10 year, up by two basis points, 1.6. 2021 was a blockbuster year for capital markets, but it also exposed the work until you drop culture in mobile finance, with high levels of burnout plaguing many workers. one company is offering staff unlimited holidays. we are pleased to be joined by the ceo of finncap. happy friday, and i hope you are gearing up for a good weekend. what was your employee reaction
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to this pretty significant announcement? how did they react? guest: they all knew about it, so what we do at finncap's work out what the problem is, come up with some ideas, and this idea came from our markets division, the managing director. weirdly come up when we first picked up with it, the problem was they were not taking enough breaks. not necessarily holidays, but not taking enough regular breaks and people were getting burned out. we wanted to enforce minimum holidays, and there will be no maximum. what people did not like about that was no maximum with no other commentary around it, because they felt guilty about taking holidays and would probably take less. what we did was say, we want a long list of what is a holiday. taking your pet to the vet, that
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is not a holiday. have this minimum and everything else is up to you. we trust you to get the job done. having those parameters around it meant our team was much happier that that was something that helped take the pressure off. having unlimited holidays made it more stressful. tom: explain the rationale behind this decision because finncap has recently reported its best interim results on record. guest: ever, yes. tom: congratulations on that. but that sounds like the team is doing very well. guest: they are, but that is half the problem. when you are very busy, things get pressurized and you don't take breaks. on top of being very busy, we have all been two years in a pandemic where we have not known where we were working on any given day, there are stresses at home, everybody has had a really difficult to years mentally.
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trying to get back some normality, our resilience is very low. people are finding it hard. we just needed to give people a break, and it was coming around february. mental health became a big issue for our team and something we were focused on. we had to look after our team. tom: the burnout is very real. how do you separate the work life from the home life in today's modern culture of smartphones and everything else. how are you going to encourage employees to take that up when they are thinking it will have an impact on their team and on the bigger company? guest: it is really difficult, and i think this is a problem that if you take a four or five week holiday situation, whether
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it impacts the workplace. people don't want to take a break, and that is what the pandemic did. i think what we are trying to do , the real key thing is not the minimum you have to take, it is we will enforce two or three days every quarter for people to just have a break. it does not have to be a big holiday, it just has to be stepping out of the place they were and just doing something different. i think that is the bit that people do. they forget the odd day here and there is just helping you to cope with the pressures of what the working environment is now like. we are hoping that enforcing the two or three days a quarter will make a difference. tom: how much of this is about recruitment as well and staff retention? guest: it is a lot about staff
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retention. it has a massive impact on who wants to come work with us, how can we recruit, can we really keep a culture? one thing that has been interesting at finncap this culture has always been our number one thing. and how we make it the best place to work in financial services. that is my aim and my management team's aim. we always try to think outside the box for how we can do something better. show ownership. that culture piece is important to retaining and recruiting talent. tom: samantha smith, thank you for joining us. the ceo of finncap. unlimited holidays and the challenges around staff recruitment and staff acquisition in this very challenging environment. let's get the bloomberg first word news now with laura wright. laura: germany is applying
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pressure on citizens to get covid shots, restricting many leisure activities for the unvaccinated across almost the entire country. while avoiding a full national lockdown, the measures will allow access to restaurants, bars, and events in areas with high hospitalization rates only for people who are vaccinated or have recovered from the illness. india is to scrap three controversial farm laws that have seen angry street protests by farmers groups in the last year. in a televised address, prime minister narendra modi apologized for failing to convince some farmers and said parliament will repeal the legislation by the end of the month. the announcement comes ahead of key provincial polls, where farmers are an influential voting bloc. the women's tennis association has told cnn it is willing to pull out of china if tennis star peng shuai is not accounted for and her sexual assault allegations investigated. peng has not been seen in public since early november, when she accused a former senior chinese leader of rape.
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serena williams tweeted that she was devastated and shocked about the news. 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. tom? tom: thank you. you saw germany's equities gaining by about 0.5% on the back of the fiscal stimulus. we now have more details coming out from the team led by prime minister because she the. -- prime minister kashida. it includes 55.7 trillion yen in terms of fiscal measures. they are saying the stimulus will lift the country's real gdp by 5.6%. that is according to the government. the yen is a little softer on the back of that news. coming up, hillary clinton takes a swipe at crypto. the former presidential
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candidate said they have the power to weaken nations. this is bloomberg. ♪
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tom:tom: welcome back. back to record highs for european stocks.
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you are seeing decent gains in france, the cac 40 up by more than 0.4%. gains of 0.3% on the ftse 100. a sharp leg lower for the single currency. we will be hearing from christine lagarde as well about taking a cautionary approach to inflation that we are seeing materialized. australia's biggest bank has taken a small stake in cryptocurrency exchange. gemini trust via the startup's first equity raise. speaking exclusively, the ceo of commonwealth bank says one of the biggest risks the industry faces when it comes to cryptos is being left out of the markets altogether. >> we don't have a view on the asset price itself. we see it as a very volatile and speculative asset, but we also do not think the sector end of the technology is going away
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anytime soon. so we want to understand it. we see risks in participating, but we see bigger risks in not participating. tom: joining us is our reporter. why is the crypto space under pressure today, and what do you make of this? reporter: the ceo, his summary is what a lot of people are thinking. they are somewhat hesitant about really getting into it, the prices are still volatile, regulation is still being sorted out, that they also do not want to completely miss the boat on it. they are doing things like taking a stake in an exchange. it makes sense to be in there, but not too much in case it starts to really have issues. this space overall is under pressure as people think that
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rate increases could come sooner than expected, which in the past has seen bitcoin and other cryptocurrencies fall, plus concerns about u.s. taxation and a china crackdown, and simple momentum when you have crypto going down. it does continue to go down often. tom: we also heard from hillary clinton the former presidential candidate, speaking at the bloomberg new economy forum. she issued a stark warning about crypto. let's take a listen. >> what looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies or undermining the role of the dollar as the reserve currency, for destabilizing nations. tom: what do you make of clinton's comments? reporter: it makes sense to be
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thinking about all these things. there are many people in crypto who said bitcoin could become the reserve currency of the world, and that seems quite far away, if ever. anyone in a position of policy authority needs to be thinking about these things. the ceo was asked for his reaction and he said, the way to deal with something like that is to embrace it, to get in with the technology and make sure that your nation has a role in dealing with it. he likened it to the internet. the u.s. embraced technology and now has places like google and amazon. i thought that was an interesting reaction to what she said. tom: certainly some regulators in some jurisdictions are coming around to that view, that the need will build out the framework to embrace this different cryptocurrency, this technology, which is not going away anytime soon. thank you very much.
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risk on, 0.3% the gains in europe. you are looking at upsides when it comes to the u.s. futures building on the record levels. the s&p 500 yesterday. this is bloomberg. ♪
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>> europe is at a very fundamental level will stay with the united states. >> we have to cooperate and we should cooperate on a range of issues. >> sometimes when china has been assertive, the government responds rhetorically. >> the growth lay book has changed and we will be looking at lower growth moving forward because the party is ok with that. >> this is "bloomberg surveillance: early edition" with francine lacqua.

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