equity trading. i'm francine lacqua in london with, quincy -- tom mackenzie. tom: the fight is not over. traders post bets on a july increased by the fed. rishi sunak goes on an american charm offensive ahead of his meeting with president biden, as he looks to strengthen economic ties with the u.s. lionel messi turns down $400 million a year from the saudis. the argentine football player will join david beckham's football team in her miami. -- inter miami. francine: we go through the economics of what is going on behind football. it is all about the bond yields rising today. stocks are falling. a lot of shift in terms of what we should be expecting with rates. that is filtered through to markets.

tom: a reminder from the bank of canada and the rba that there was complacency in markets about the trajectory of rate hikes, and the stickiness of inflation, so you see that selloff across bonds. interestingly in the u.s. session, the leadership being taken by the russell 2000, the nasdaq giving up gains what does that portend? a few seconds into the open, we are weighing up iron ore prices which have been taking up and how that plays into the ftse 100. the ftse 100 gaining 0.1%. across the benchmark, gains of 0.2% so far into the session after losses yesterday. factors in the u.s. pointing to downside of 0.2% on the nasdaq. across sectors, let's have a look at how things are breaking down. in terms of the asset classes,

u.s. futures down 0.5% on nasdaq, focused on what is happening with tech given the run-up in yields. that takes us to the front end of the two-year, for the last 30 days yields are up at the front end. as markets start to price in potentially a hike for july. we have inflation data out next week. that will be consequential for the next steps from the federal reserve. euro-dollar 1.07, up 0.1%. the aussie dollar gains of close to 2% on expectations that there will be more stimulus coming through from china. that is playing into basic resources, and the ftse 100 up 0.1%. francine: global bonds slumping after two stock interest rate hikes this week served a reality check that central banks are far from fighting inflation.

valerie, i guess investors are reassessing the risks of inflation. what does it mean for bonds? valerie: the two interest rate hikes we got this week from the rba and the bank of canada both a surprise. both central banks that have paused in their interest rate hiking cycle previously. it was back in march the bank of canada paused, and in april that the rba paused. many concluding that perhaps the fed will regret their paws in june that they have telegraphed. we get the fed meeting next week. perhaps they will shift dot plots higher, meanwhile keeping that pause in interest rates. the funny thing today was the move in the australia front end on the follow-through from the bank of canada was bigger than during their own surprise hike. two-year yields in australia have moved over 15 basis points higher today, just on that follow-through from the bank of

canada surprise and it is following through for other markets as well this morning. tom: how do you tie in the higher yields of story to what is happening with the russell 2000, and more importantly for the nasdaq giving up gains the last few days? that divergence is pronounced between the small caps in the u.s. and the nasdaq rally. valerie: it is really surprising how much the russell 2000 has bounced in the last three sessions, almost catching up to the monthly equity rally. a lot of this is perhaps a positioning squeeze. those who felt they were under positioned in tech stocks who are trying to catch up on the trade, perhaps persistent -- positioned themselves long been nasdaq and short other indices. we have seen a step in that trade recently. nasdaq has stumbled 2-3% from the peak, mostly led by mega cap names, perhaps that trade is

being washed out. really pushing the small-cap gains quite impressively. they have outperformed 3% to the nasdaq for three sessions in the last week. that is not the kind of outperformance you see often and leads me to believe it is a positioning squeeze. tom: gains of 30% over the last three days. valerie tytel break it now that story. let's bring in helen jewell, blackrock cio for fundamental equities for emea. we got this reminder from the rba that maybe the fight against inflation isn't done. does it add to additional pressure to the ecb? helen: thank you for having me this morning. the key thing for us is to remember the fight against inflation is not over. we see stickiness in inflation and therefore concerns from a

rate hike perspective. what does it mean as fundamental equity investors? two things. we have to think about whether recessionary concerns are more likely and the depth of that recession. and from a bottoms up perspective, what does it mean for earnings? we saw a fantastic earnings season, stronger-than-expected in europe. do have our eye on it to understand the dispersion between winners and losers in the market. francine: fundamentally nothing has changed with the inflation picture apart from these two banks acting unexpected me. is there a bias in the markets? helen: i'm not sure that is the case. from an equities perspective, the market is focused on what earnings numbers will look like. a lot of what we have seen so far, even in large equities, has been driven by earnings. the q1 earnings season, we have seen 65% of companies beat expectations which is higher than normal.

so you are seeing resilience in earnings. maybe the market didn't look through inflation more than it should have done, so this inflation story is what we expect to see play out through the second half of this year. tom: there are disparities within european earnings. we talk about the overall resilience, how do you exploit those disparities? helen: as active equity investors, it gets us excited because it is about understanding which of those companies are the ones that can pass through costs. they have strength in brands, we see that in the luxury goods space. they can pass on costs versus companies that don't have that same strength of positioning. it gives is a good opportunity. we think that will continue. the market on a whole may be flat, we have seen that this morning. the earnings numbers may be relatively flat. you are going to see significant dispersion.

that is going to come across different industries. it will not be industry-specific. francine: the last couple weeks have been funny, we have seen lvmh and the luxury sector gain on the back of strong earnings, then they sold off on china concerns. is the market fluctuating too much? are you expecting more volatility? helen: we have to expect more volatility as we see macro concerns coming out. we have macro concerns on a relatively regular basis, but as long-term investors earnings numbers are critical. and in phylloxera goods space -- the luxury goods space, how much labor cost will give an understanding of what will happen in the luxury space. not just in luxury goods, but across industrials and health care, some interesting and exciting opportunities. tom: taking of 20% year to date

but the last few days down 4% in the last month. how much of your call around luxury is a bet on china and china stimulus? helen: the keyword is as a sector. the sector is down but you are seeing dispersion. china is important. it is an important market for any investor. it is important for us in fundamental equities, but it is only one part of the story in the luxury goods space. it is not the entire story. something we want to make sure we understand, but it is by no means the entire story we're looking into. francine: terrific analysis. coming up, we will have plenty more on the markets. wizz air saying it will return to profit this year as peak summer season gets underway. we will hear from the chief executive. that is coming up shortly.

♪

mmmm, your morning coffee hot delicious comforting.

but by the third or fourth cup, your stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ >> we have much diversified our portfolio. we are significantly present in markets. we have been rapidly expanding in the east. especially the middle east. we have the backbone now for 400 aircraft and we will follow through and in the next 7-8

years. >> put about pricing, and consumers' willingness to pay higher prices? i have lost count of the number of people who told me how expensive their summer holiday will be this year. are you confident consumers will pay higher prices? >> we are very keen on operating the airline at the lowest possible cost. and whatever pricing benefit we can put over to the customer, they can enjoy that. we remain low cost. if i look at our cost performance, we are coming back to 2019-2020 levels. this is important because it enables us to put pricing benefits over to the consumers. not every airline can do that, that's why people should fly wizz air. >> who are presenting a good story on cost. i believe you decided to head sure jet fuel much later than many competitors last year,

after it spiked in the wake of the russian invasion of ukraine. are you still dealing with the consequences? the results are showing it is not a big thing. as it changed your decision process around future episodes? >> if i go back a year, we will know that hedging doesn't make money for the airline. hedging makes money for the banks. having said all that, last year, we learned we are in a volatile operating environment so this is one less issue to deal with if we are hedged. we resumed hedges going into the financial year. that issue is behind us. we are hedged even more, and at lower levels than some competitors, so we are confident that this is an issue which in all longer represents a competitive disadvantage to wizz air in the current financial year and beyond. tom: the ceo of wizz air

speaking to bloomberg earlier. the question of whether low-cost airlines can call themselves low cost because ticket prices are really high. francine: you need a second mortgage to fly with ba. everything is relative. tom: wizz air is getting on the back of that. they see themselves posting profit. they had losses of half a billion euros last year. they see themselves taking a profit by the end of this year. investors are rewarding them. they are hoping to have 500 aircraft in the air by 2030. standard chartered flat. there is reporting around headcount cuts. in singapore, london and other jurisdictions, maybe 100 people lose their jobs as they pursue $1 billion worth of cots cutting. eddie doss -- adidas, the big story in terms of support is what is happening with met seed

moving -- messi moving to miami. it is good news for this company because of their travails around easy. -- yeezy. i have lost market share to nike, but let's see if that turns around with messi moving to miami. let's bring back helen on the earnings story. you can't talk about the airlines without talking about energy. the energy play in europe, is there value here now? it was the story of 2021, profits have been lackluster year today. helen: that has been lackluster but it has not been down. european energy is not in the same straits. key thing with the european energy story is the cash flows they generate. we still see supply/demand dynamics playing through. these are companies which are really cash generative. that is important for investors.

similar to banks to be honest. concerns in banks have been played down in terms of valuations, but these are high generative cash companies that benefit from interest-rate hikes. that is something we're focused on as investors, so further to go we think. tom: you also talk about ai aftershocks. i'm not sure we are there in terms of understanding how this could disrupt companies. helen: it is early days understanding that. what you often find with big mega themes is the market overestimates the short-term impact and underestimates the long-term. on the cost side, the difficulty is understanding which of those committees will be properly disruptive. we have seen it in education. it is difficult to understand completely how it will play out. it is focused on companies that are benefiting from being part of the rebuild of data centers. we have seen significant price moves. that will continue a little bit, but we're focused on the

long-term story in ai, it will excuse the pun, run for some time. tom: we look to the asml's of europe for potential upside? helen: you have large companies in the u.s., but europe has really good companies that are able to play into the ai theme. people have often forgotten that. europe has been forgotten the little bit in the whole u.s. story we have seen over the last 10 years. this is not a u.s. story, this is the global story. asian stocks, there is interesting names over there. it is understanding the fundamentals and where earnings will come through. francine: what looks cheap right now? if you understand fundamentals, is there a part of the market that was sold off unnecessarily? helen: we have talked about banks. european banks are selling, and we continue to be interested. but it is not the same sector

bias we saw earlier this year. in january, i was saying europe looked cheap. recently had -- we have seen a run-up in europe. but in terms of individual sectors, it is more about cross industries. again, not looking at a particular industry but saying within that industry, industrials or consumer, who are the winners and who are the losers? tom: does europe regain that advantage over u.s. stocks, or does the advantage go to the u.s. for the second half of the year in terms of regional preference? helen: we still think europe has further to go. on average, the european market trades something like 15% lower. still has a bigger gap than that in part because of the strength of earnings and more technical reasons. but i think that gap will close, so we still have a european preference.

francine: thank you for joining us, helen jewell blackrock investment officer. >> u.k. regulators have tightened rules around the marketing of crypto assets, including banning refer a friend bonuses. the financial conduct authority has introduced a 24 hour cooling off period for first time crypto investors, bringing sector into line with other sectors it considers high risk. gamestop shares plunged. calvin's sponsor ability as executive chairman include management oversight and capital allocation. the retailer reported fiscal first-quarter sales that fell short of analyst estimates. amazon plans to launch an ad-supported tier of its prime service.

the report says amazon is in talks with warner bros. and paramount about adding ad-based tears to streaming services carried on prime video. global news powered by more than 2700 journalists and analysts in more than 120 countries. i'm sarah halls. this is bloomberg. tom: coming up, ev car sales are set to more than double by 2026, but how effective are they in the fight to lower global emissions? we discuss the latest report. the reality check potentially for ev's. this is bloomberg. ♪

francine: i'll come. we are 23 minutes into the european trading day. there seems to be a repricing towards interest-rate hikes. central banks doing more after we had two surprise hikes. that is moving yields, but also moving equities. bloomberg nef says electric vehicle sales will more than double by 2026. the government's and manufacturers still need to do more to eliminate emissions from road transport by the middle of the century. let's bring in oliver crook, who has been crunching the numbers. extremely thorough report, what stood out to you? >> i spent all night reading the

284 pages just to bring you the highlights. francine: it is very small print. >> by candlelight, no less. we know there is a huge transition underway. it is abstract. this puts numbers on the scale we are dealing with. 11 million ev sales last year. by 2026 that will double. driven mostly by china. they will hit 50% ev's in their market by 2026. europe 40%. the nordics will be 90% ev's by 2026 which is remarkable. let's talk about the money. the possible scenarios for that zero. cumulatively talking about $9 trillion worth of ev sales by 2030 globally. if however we go to a more aggressive net zero target, that is close to $9 trillion of ev sales globally. tom: that is hugely impactful across the commodities sector. >> you have the upstream and

downstream here. something they have done a great job on is, what does this do for oil demand? they say we are very close to peak for road oil demand. it will hang around longer for trucks. it has already displaced 1.5 million barrels a day of oil from the market. opec has cut a million. by 2040, we're talking about 20% lower oil demand just for road transport. let's talk about the upstream. if you are thinking about placing long-term investments for the kids, maybe manganese is the place to go. we are talking about 30 times demand, iron 26, phosphorus 22, lithium same story. this is where you begin to understand the challenges. you need to get lithium out of the ground and need to develop extraction and processing. this is a market china has

nominated. francine: a perfect birthday present, manganese. tom: a ton in a box. >> my retirement will be a rock of lithium on my desk in berlin by 2050. tom: thank you for the comprehensive of report. we will be live from superreturn's conference in berlin. we will speak to the chairman of europe at bc partners. european equities down 0.2%. yields are up. the bond selloff continues. u.s. futures down 0.1% on the s&p e-mini's. this is bloomberg. ♪

francine: welcome back to the open. 30 minutes into the european trading day. global equities and bonds

dropped after two surprise rate hikes this week served notice that the inflation fight is not over. traders boost bets on a july increase by the fed. rishi sunak goes on an american charm offensive, as he looks to strengthen economic ties with the u.s. lionel messi turns down $400 million a year from the saudis, the football player will join david beckham's u.s. team i nter miami. inflation freak out is changing what bonds are doing. tom: shaken out of complacency by the rba and bank of canada this week. european markets are looking for the next catalyst as they weigh up the implications of actions from the central banks. whether it pressures the fed to reassess. the markets starting to dabble in the prospects that you get a hike coming through from the fed in july.

across the benchmark today after losses yesterday, downside by 0.2%. the dax is off by 16, back below the 16,000 level. the ftse 100 below 7700, an important level for many. basic resources is something of a support for the ftse 100. as we switch to the sectors. the prices around iron ore have been taking up, but you see upside for oil as well. that is around speculation that maybe the pressure is getting to the point where it will tip policymakers in beijing to tipping their hat on stimulus. bloomberg economics inks they may come through with a cut in terms of benchmark rates as early as mid june. certainly giving some support to basic resources and iron ore prices today. energy to the list gaining 0.8%, basic resources 0.7%. most sectors in the red, this is

linked to the yield story. tech as a sector down 1.5% from a the enthusiasm around ai run its legs? probably not. the front end in the u.s. is up in the last 30 days by 65 basis points. francine: the conversation is shifting when it comes to private markets, and as big firms get bigger, fragile economic backdrop is threatening the survival of counterparts. this is a key theme at the superreturn conference in berlin. dani burger joins us with a guest. take it away. dani: hi, that's right. i'm joined by nikos stathopoulos , chairman of europe at bc partners. we always look forward to this conversation. we talked roughly a year ago, and he said i am an optimist. a lot has happened, svb, central banks are still hiking, are you

still an optimist? nikos: thank you for having me, dani. i'm still cautiously optimistic. the market is stabilizing. inflation seems to have peaked. we see it in the u.k. and europe. interest rates remain high. but hopefully, they will stop increasing. you see the market stabilizing. there is no doubt that we need to become more cognizant of the fact that both inflation and interest rates will remain higher for longer, but apart from that, i think the world is adjusting to the new norm and things are stabilizing. dani: can this industry adjust? there has been a lot of leverage in high valuations, can everyone deal with higher for longer? nikos: when i started my career 25 years ago, it was higher inflation, and we did have higher interest rates. we did go through a period of 10

years or more, of more abnormal situations with interest rates at these levels. so, it has been proven that we can go through cycles and manage investing, still making good investments. dani: i have heard comments from folks at this conference that are less optimistic. there are funds that will fall by the wayside, there will be consolidation in this industry especially among smaller funds who don't have a niche. nikos: there will be a flight to quality. the more experienced managers will shine in this environment. our job has become a bit harder, because we need to manage our portfolio more. we need to have more active ownership in our portfolio. we need to manage our debt maturities more. we need to manage businesses and focus on operations. but i do think the more

experienced managers will differentiate themselves in this market. dani: it is a tough time in terms of the macro climate and the consumer. you had to hand back the keys for the wedding dress company. how do you keep that confidence, how do you instill trust among investors? nikos: the quality of the assets that we own will come through. investors can see whether the portfolio is weathering the storms or not. we have the operational focus to have a portfolio which is extremely resilient despite the macro, the interest rate hikes and everything else. this is what investors see how is your portfolio performing. they look at the macro environment which is natural, but we are micro investors. we buy countries, we don't buy economies. if they see the portfolio weathering the storm and

performing well, they have that confidence that we're buying the right companies and going the right way. dani: how has the more consumer-focused businesses in your portfolio done? everyone is worried if the consumer will stop spending and cave in. have we seen signs of that so far? nikos: very little percent of our portfolio is directly consumer focused. we have taken the liberal view that we don't want to have assets that have direct consumer exposure. exactly because no one has been immune. it is obvious that the inflation environment has hit the consumer and pricing. we haven't seen much impact, because we don't have that many portfolio companies -- dani: that's a conscious decision? nikos: it is a conscious decision, frankly pre-covid and certainly post-covid as well. dani: there is a lot of excitement around sports. right when this conference

started, we learned liv and pga would merge. you have done via rights for inter milan. are you still interested in big media rights? nikos: sports in the past has been one of the most disruptive. sports is an industry that is not only growing, but increasingly opening itself up towards institutional capital. there are areas where institutional capital can be more catered. so, investing in clubs for example, is more difficult for an institutional investor because there is more volatility in cash flow, and we like predictable cash flows. it is difficult to have predictability in sports. but investing in rights is potentially more interesting and stable. we think, as we look at the u.s. sports market, that the european market will follow. you see that attraction in media rights. it will be a interesting space.

dani: how long will it take to get the european media rights market to look more like the u.s.? you see areas of pushback, voting against institutionalizing that. is this a long process? nikos: it will take a bit longer, because the nature of european sports market. the fact that europe is not just one country, whereas the u.s. is one country. therefore, you have that system of different countries having to manage different situations and cultures. different interests. the clubs have their own interests. bundesliga is a an example of things taking longer. dani: a good lesson for american folks coming in and trying to do this. we have to leave it here. really wonderful to talk to you. that is nikos stathopoulos of bc partners. tom: great conversation, dani burger, thank you, on the ground

in berlin speaking to the europe chairman at bc partners. coming up, baseball diplomacy from rishi sunak even though his preferred sport is cricket. ahead of his meeting with president biden today. we look at the u.k. prime minister's visit. what can he achieve? this is bloomberg. ♪

francine: welcome back to the open. 42 minutes into the european trading day. the focus firmly on the surprise hikes from two central banks. the latest was bank of canada, that rate increase leading traders to reassess the risks of stubborn inflation. we're seeing repricing in a lot of bond yields and equities are practically unchanged in europe. rishi sunak is stateside on his first official visit to the u.s. as prime minister. sunak wooed business leaders engaging in baseball diplomacy i have is meeting with president biden in the white house. they see -- i didn't know this was a thing. but the concern is that he needs to deal with the u.s. [indiscernible] and they don't know [indiscernible] >>'s main mission is to shore up economic ties with the u.s., try

to put them on an more even footing with the security relationship. behind the scenes, officials are calling it affect trade deal in all but name. but rishi sunak is more of a cricket man than a baseball man, trying to get a home run when it comes to the economy. tom: very nice, lizzy. maybe ai is something you can come home with because there is the need for an alignment in terms of regulation. both countries have deep talent markets. lizzy: the u.k. ai sector is third in the world behind the u.s. and china. he announced yesterday that britain will be the home to the first global ai summit on ai safety. he wants london to be home to a global watchdog for ai regulation. just as is the case with many other issues post-brexit, britain has some fighting to do. last month there was a meeting between u.s. and eu officials in

sweden. britain was not at the table. it was about ai safety and regulation. he will have to do some persuading at the white house today. also talking about ukraine and china. tom: watching whether that chemistry is genuine when he meets the u.s. president later today. lizzy burden, r u.k. correspondent with the latest as we look ahead to the meeting between the prime minister and his u.s. can apart. >> bloomberg has learned that donald trump's legal team has been notified the former president is a target in a federal investigation into the handling of classified documents. prosecutors have been building a case that includes testimony from former aides, informing former chief of staff mark meadows. the mayor of new york has told residents to stay indoors or where n95 masks. this, as wildfires continue to ravage large tracts of forest in

canada. sending smoke more than 1000 miles southwards. prime minister trudeau says it is the worst wildfire season in canada's recorded history. u.k. regulators have tightened rules around the marketing of crypto assets, including banning refer a friend bonuses. the financial conduct authority has introduced a 24 hour cooling off period for first time crypto investors. bringing the sector into line with other sectors it considers high risk. the bank of canada has surprised with a 25 basis point rate hike, restarting its tightening campaign. policymakers raised the lending rate to 4.75%, the highest in 22 years. it ended the pause to hikes declared in january. japan's economy grew more than expected in the first quarter, as businesses ramped up spending. data showed gdp rose 2.7% annually, up from an initial reading of 1.6%.

this indicates japan appointed technical recession at the end of last year. global news powered by more than 2700 journalists and analysts in more than 120 countries. francine: sarah halls here in london. ray dalio says the u.s. is seeing a late debt crisis as it deals with high inflation. he spoke with david westin in new york. >> in my opinion, we are at the beginning of a very classic late cycle, late big cycle debt crisis when the supply/demand gap, when you are producing too much debt. and you have also a shortage of buyers. what's happening now as we have to sell this debt, is do we have enough buyers? there are changes now in terms of the quantities in the world that are being held by large

investors that have lost money in treasury bonds, and so on. and then there are geopolitical changes which are having an effect. some countries are worried about sanctions. then there is this geopolitical shift. when i look at the supply/demand issue, there is an issue for that debt. there is a lot of dead, it has to be bought, it has to have a high enough interest rate. a crisis, if we continue down this path, in terms of what's likely over the next five to 10 years, he would reach the point that that balancing act becomes very difficult. >> is it really a function of not having enough buyers for the federal debt? is there to evidence of that so far? >> we are at the brink of starting to find out. the amount of selling of government debt collapsed. we didn't issue government debt.

and now we're going to issue a lot of government debt. and so, when one looks at the buyers, there appears to be a shortage of the buyers for that government debt. but we're now at the brink of being able to see what that supply/demand picture looks like as we go over the next year or two. tom: that was billionaire ray dalio on the u.s. entering a big cycle debt crisis at bloomberg's invest in new york event. coming up, lionel messi turns down a huge saudi offer, $400 million. instead he will play for a u.s. team backed by david beckham. we discussed that next. this is bloomberg. ♪

>> we are at the beginning of a very classic late cycle, late big cycle debt crisis. >> private credit is now 1.4, $1.5 trillion and a lot of companies will suffer under the weight of interest payments. >> there is a true reset in value in real estate. now is a great time to be with an active manager in real estate. >> i think the next big

opportunity is in women's sports. women's soccer should go from 50 million to 500 million. >> this discussion is going on if you travel the world and everybody is fixated on it, because the united states is the benchmark. >> the most important thing is how we take care of ourselves. that we get strong and raise productivity. francine: key voices at the bloomberg invest summit taking place in new york. lionel messi has turned down a huge offer from saudi arabia, but it is a score for u.s. club inter miami as the football star will join them instead. joe easton joins us now, he is also a big football fan. this feel significant because of the timing. we have golfed and the saudis

playing a big role. the russian is whether the saudis would attract lionel messi for the little some of $400 million a year, and he said no thanks. joe: it is a below given that they were willing to offer that. it has made it more high-profile than it would have been because everyone thought he would go back to barcelona, or would go back to saudi arabia, and now he has made that even bigger deal. it is also bigger in terms of his age and performance. he is still 35. not in his late 20's, but if we look at how he performed in the last world cup, he is still performing at such a high level. it shows that the mls attracts players that aren't necessarily on their way out. they are still performing at the top level. tom: is there a turnaround in terms of u.s. soccer, miami? beck's has played a role has

been a challenge. >> the deal goes back to 2007 when he first signed the deal. that was a big change for the league. since then lots of players have gone over towards the end of their careers. now messi coming over will be something that re-invigorates the league. it is more significant than other players they have signed recently, a big star was 37. this is a bigger deal in terms of that. francine: we also have this great story looking at some of the money, private equity sovereign wealth funds. today we see qatar upping the state with the money they are willing to offer for united. joe: the qataris potentially bidding a fifth time according to our reporters. they are looking to outbid radcliffe. they want the deal done before the transfer window opens.

they want to control what deals the clubs do on a transfer perspective. that story has got great graphics where you can see where there was virtually no sovereign wealth ownership in the premier league in the early 2000. that has expanded and it could potentially expand even more now. tom: it is a great read, well worth checking out. joe easton jennings up to speed with all the changes coming through for the world of football. we look ahead to what happens with man u in terms of that bid. at 10:00 a.m. u.k. time we get the euro area final gdp reading for the first quarter. later on at 1:30 p.m. we get u.s. jobless claims. also in the u.s., we get wholesale inventories data for april at 3:00 p.m. finally, u.k. prime minister rishi sunak continues his washington, d.c. trip where he is hoping to see closer economic ties with the u.s. meeting with president joe biden. francine: this is the picture across the board. there is quite a lot of news, we

have two interest-rate hikes from central banks that we weren't expecting. bond yields globally are rising. if you look at technology or equities in general, tech shares are bearing the brunt of jitters over higher interest rate expectations. the unexpected decision by the bank of canada to restart its interest-rate hike campaign yesterday was full of an increase in earlier in the week in australia is reverberating across below markets. tom: that is it for the market open. "surveillance: early edition" is up next. european equities off 0.1%, nasdaq futures down 0.3%. this is bloomberg. ♪