5 things to start your day

More inflation, oil hits three-year high, and back to the office.  Target  Inflation in the euro area climbed to 2% in May, the highest level in more than two years. The news comes on the back of German inflation data yesterday, which showed the annual rate rising to 2.4% and European data signaling that price pressures are building in the region's factories. Investors are still not getting too excited about the prospects of sustained price rises, however, as policy makers stick to their message that the move higher will be brief.  Oil rise  Drilling down from the headline inflation number this morning, there is clearly a large effect from energy prices. That trend seems set to continue as crude started this month by hitting the highest level since October 2018. The OPEC+ alliance believes the global glut caused by the pandemic is nearly gone and stockpiles will diminish rapidly in the second half of this year. Ministers from the coalition are expected to agree to move ahead with a planned production increase from next month at today's virtual meeting. There is confidence among producers that the return of Iran to international markets would do little to upset the global supply balance.  Paid Post Introducing 25 Park Row — a 21st century icon with panoramic river-to-river views overlooking downtown Manhattan. Residences feature gracious entertaining spaces and timeless interiors designed by COOKFOX Architects and are complemented by a suite of park-facing leisure and fitness amenities. Priced from $2.815M to over $12M. 25 Park Row Office jobs  The rise in inflation is closely tied to the rapid reopening of economies. There were mixed signs of progress on that front, with the European Union reportedly set to announce the end of quarantines for the fully vaccinated as Malaysia heads into a two-week lockdown. In the U.S.,. employees are returning to the office, with Bank of America Corp. bringing top New York managers back to headquarters from today. The WHO has starting naming Covid variants based on Greek letters rather than geography. Markets rise After a relatively quiet session yesterday, global markets are starting the month on a general positive footing. Overnight, the MSCI Asia Pacific Index added 0.3% while Japan's Topix index closed 0.2% higher. In Europe, the Stoxx 600 Index had gained 1% by 5:50 a.m. Eastern Time with miners and energy companies among the biggest gainers. S&P 500 futures pointed to a strong start to the week, the 10-year Treasury yield was at 1.623% and gold was broadly unchanged.  Coming up...  Canada March GDP is at 8:30 a.m. U.S. May manufacturing PMI is at 9:45 a.m. with ISM Manufacturing at 10:00 a.m. April construction spending is also at that time. Dallas Fed Manufacturing for May is at 10:30 a.m. Fed Vice Chair for Supervision Randal Quarles and Fed Governor Lael Brainard speak later. OPEC+ ministers meet. Zoom Video Communications Inc., Bank of Nova Scotia and Constellation Brands Inc. are among the companies reporting.  What we've been reading Here's what caught our eye over the weekend. Odd Lots: Roshun Patel on what really happened during the crypto market crash. The Covid trauma has changed economics — maybe forever.  The unloved 60/40 strategy needs a modern makeover to win over skeptics.  What hoarding toilet paper means for economic data. China's three-child policy may do little to boost birthrate.  Ben and Jerry's with CBD? Dark energy survey releases most precise look at the universe's evolution.  And finally, here's what Joe's interested in this morning If you're a reader of this newsletter, and you got together with people over the long weekend, there's a good chance that at some point you ended up talking about cryptocurrencies. The crazy thing is that crypto is still here and bigger than ever (well, almost, they were bigger a few weeks ago), despite numerous reasons for them to have died already. The space is riddled with scammers, hucksters and charlatans. Much of its existence has been in a legal grey area. The space has seen huge hacks, resulting in extraordinary amounts of money having been lost. Its advocates are known for false promises. It often doesn't live up to the hype. When you ask what problems it solves, usually the answer is gibberish. And yet the whole space persists and, in a weird way, matures. Other things these days are similar. For years, there's been a $TSLAQ community on Twitter convinced that Tesla would inevitably implode. All the red flags seemed to be there. Complicated accounting. A CEO tweeting a vaporware acquisition rumor. A controversial related-party transaction (SolarCity). And yet Tesla's share price has grown massively (the last couple months notwithstanding). Think back to a little over a year ago. Who did you trust more? The legendary Oracle of Omaha, who for the first time in ages, seemed unsure about the bull case on America? Or did you trust the guy who ran the sports betting site who suddenly took an interest in the market, and picked trades using scrabble tiles and said stocks only go up? We're in a moment where all the filters people used and relied upon are getting smoked. You're not alone if you've been feeling disoriented. Joe Weisenthal is an editor at Bloomberg Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more. You received this message because you are subscribed to Bloomberg's Five Things - Americas newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022