tv Bloomberg Daybreak Europe Bloomberg March 1, 2021 1:00am-2:00am EST
vaccine amid concerns over new variants. oil rebounds ahead of this week's crucial opec meeting. we discussed the super cycle with the state street cio. warm welcome to your monday morning. if you want to take a bond vigilante and literally shake it to a core, you go to the aussie's. they tipped the bond market -- took the bond market and smacked it. they came in this morning and bought 4 billion aussie dollars worth of lung bonds. they bought yield curve control to the max. this is how you do it. obviously, short date maturity is where you saw some of the biggest spikes on an unhinged in short dated rates. good morning. annmarie: good morning. i was talking to david ingles
about this and it was a bit of a playbook. ubs is saying what the market is expecting is wrong and they say expect this to continue. this begs the question, what happens at the ecb, the fed? what does the fed have in their toolbox if they decide action is necessary? for years, people wondered if they would do yield control. everyone says jay powell may be now it's philip lowe. manus: the ecb is going to take to the train, first of all, ahead of the federal reserve. with the bond market wait for jay powell? there's a host of voices. let's look at some of the moves and the backslide across the yield curves, and murray. this -- annmarie. this is what you're looking at. take it away. annmarie: let's start with the
tenure aussie notes -- 10 year aussie note. what a move, futures higher, asian equities much higher. if you look across the board, especially in japan and hong kong, the 10 year, 1.4%, far away from the 1.6% last week. i put the pound dollar in there to show you we're back below 1 .40. you can stop fretting for the moment. this reflation trade all well and good. what's going on in fiscal policies in the united states? [no audio] >> we can finally get ahead of
this virus. we can finally get our economy moving again. manus: this comes as johnson & johnson's one-shot vaccine is cleared for distribution after the cdc formally recommended adults of 18 and older should receive it. rick, cio over at state street. rick, always great to get your perspective. respectfully, sir, you and i have lived through, along with annmarie, dislocations in the bond market. 1994, 2013, 1997, there's is a variety of them. your assessment of what took place last week in the bond market. is it a pure regime shift or just a blip? rick: i think it's a little bit more than a blip. it's a catching up, accumulation of information about the fiscal stimulus, how far we are through the pandemic, how far we've got
to go in terms of improvement. you've got to keep in mind changes in market, microstructure, the additional factors that have affected how quickly bonds a react. -- bonds react. when you do get a reevaluation, they can suddenly gain traction in a way that moves markets very quickly, particularly in bond markets. although there are liquid markets in the world, what we saw in march, 2020, is there are technical deficiencies in the fixed income market, particularly in areas where you've got fast markets that can accelerate problems. you've got people working from home, volatility triggers within banks, balance sheets that are constrained. all of those come together. annmarie: do markets need to see more central-bank action, rather, besides the rba, to take this pushback seriously? rick: well, it depends why
they're doing it. if you're trying to correct for the short-term technical deficiencies, then i can understand a need for intervention. if you're trying to tell the bond market no, you're completely wrong about long-term reflation, real yields rising, i think that's not welcome. because i think we are seeing a multiyear stimulus unfolding in the u.s. we may see more fulsome stimulus in other places, particularly the european union. and there a justified rise in real yields that central banks shouldn't be trying to fight. manus: the real yield is negative. many have come on the show and said listen, that is why we're not that concerned. what caught my eye is, some would say, the unanchoring of
the short end of the curve. this is what the fed needs to push back against, isn't it? maybe that's where verbal intervention will come to bear. rick: well, i think average inflation targeting was a very important step forward, in policy terms, in the u.s. this needs to be replayed again and again and again because it's a new thing that fixed income aren't used to. so, it's very important people believe that and accept there may be an overshoot in 2021. you've got maybe -- major distortions in the pandemic and fiscal stimulus, but it's the average inflation targeting message that's got to be brought home credibly. so yes, i believe we've had a bit of an un-anchoring because people are uncertain about how
real that ait is. annmarie: do you expect a change in rhetoric from all the central-bank speakers? i was want to say this entire week, it's almost easier to name who isn't speaking. do you expect any sort of change in rhetoric? rick: i would expect them to reiterate the ait message. and certainly not to give a sense that they're behind the curve, or not behind the curve. reality, we're going to have distortions in 2021, which will lead to inflation rising, in some cases, above target, or above short-term target. and i think the central banks need to ride that out, keeping in mind there is a lot of spare capacity in the world, and this pandemic, or the -- have a long way to work themselves through,
and the central banks have to be supportive to make sure we get through this. rick stays with us monday morning. let's get a recap of first word news with laura wright. laura: the u.k. chancellor is signaling he's prepared to raise taxes to fix the finances. is also going to maintain support for businesses and workers as long as the pandemic lasts. is set to deliver his new budget for wednesday as the country faces its biggest budget deficit in peacetime. the white house is defending its decision not to sanction saudi arabia's crown prince for his role in the death of columnist jamal khashoggi. that's after a declassified report saying mohammad bin salman approve the killing. the administration says it's recalibrating relations with the kingdom ongoing. following his death, chadwick boseman has won a best actor award at the globin -- golden globes for his role in "ma
rainey's black bottom." other winners include "the crown" taking home best drama, and three actor awards. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie, manus? manus: thank you very much, laura wright there in london. coming up, rebound extending, even as china slips. more on the story. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs,
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manus: your monday morning edition of daybreak europe with annmarie hordern in london and me, manus cranny, in dubai. asia -- let's get the details. juliette saly has been checking the data from singapore, so what are we looking at? is it a peaking of recovery in china? juliette: well, certainly the timing of the lunar new year did affect what we got in february with the official gauge in manufacturing, falling to a nine-month low. we saw the surveys dip. what is encouraging to note is we have seen a pickup in business expectations across manufacturing and nonmanufacturing, and expectations of his and the security center rising the highest since 2012. we know it's going to be a consumer led consumption.
the other caveat to the data we saw in february it was the timing of the lunar new year but the fact there had been the flareup and coronavirus in china, meaning a lot of factory workers did have to remain in the towns they were working and not travel home. you are seeing manufacturing service recover, japan recording its strongest reading since 2018, indonesia, philippines, and vietnam all at 52. we get south korea and taiwan tomorrow. we did see separate data today showing south korea's exports rising for a fourth straight month. that was fueled by demand for semiconductors. when you take out the lunar new year affect, there were three business days. all of this really leading to the fact there is optimism in the global economy, particularly asia on track to shake off the
grips of the pandemic, bloomberg intelligence saying high business expectations point to a continuing recovery for the manufacturing sector in asia. annmarie: juliette saly and singapore, thanks for that update. rick is still with us. i want to start with manus, where he started with juliette. i'm seeing a lot of rhetoric about a pause in china's exceptionalism. do you think is fading? rick: i think it moves to services. services have begun to pick up. that's the hardest bit to get moving after the pandemic. many factors and exports have done incredibly well because people in europe, u.s., and elsewhere, have switched to consuming services to consuming goods. it's much harder to get the services part going again. you don't see so much growth in the hard part of the economy and you see more in services and
consumption. manus: rick, the one thing with china and the growth narrative there is on the commodity. it's brought to bear in terms of the oil complex. he would say global oil demand would recover faster than an opec meeting this week. a lot of these recoveries built on the china story. rick: not just the china story. you've got opening up elsewhere that's going to cause demand for oil rise. it -- oil to rise. it is going to rise in the short-term and we're going to see a breach in recent levels, probably the oil price in 2021. a little bit longer term, the view for it is a little more subdued because you have more substitution and you can turn on supply. there in mind, there's -- bear in mind, there's been a lot of
cutbacks. annmarie: we see an uptick in oil prices, absolute uptick in prices when it comes to the agricultural sector. many think we are in a super cycle. you can see that with food prices around the world. how does all of this, in terms of commodities, play into your inflation narrative? rick: well, we've got a little bit of a long position in commodities. again, there are technical reasons we like commodities and there's also the reflation story, which is part of our overall allocation outlook. we are short bonds, longer risky assets. when you look at industrial commodities, it plays all the way through to the value trade that we've got on within some portfolios as well where building materials and other th responded to this fiscal stimulus in many parts of the world, and also the continuing of overnight in china. we are a long way from the end
of that process and that's consuming all of the materials that we've always had in the radar screen, whether it's copper, iron or, or others. you mentioned agricultural commodities. we don't have a strong view that they are on a super cycle. it's more about industrials. manus: the other thing that caught my eye, which goes back to what we discussed in the first conversation, which is it's more than a blip. you want exposure and you're taking exposure to a reflation is narrative by the fx and high beta currencies. just how much of stocky are you taking? are you adding to those? rick: yeah, we like those currencies. they're offering good value. you may well have that exposure elsewhere in the portfolio. i think that's a real puzzle for
some clients who sit in those high currencies, like australia and canada. if got to be careful about your hedging strategy. and when you think about things like sterling, risk on currency, is overshot in the short-term. we think it's got further go against the euro, for sure. but the dollar, the interest rate differential, growth rate differential, might put some limits on the recovery of sterling against the dollar, even though fair value might be 1.55 in cable. annmarie: we're going to dig into the euro market next. manus: that is killing me. annmarie: this weekend, and a note, he said everyone in their grandmother is long nagasaki. do think this trade is to credit? -- too crowded? rick: yes. they goes without saying.
you talk about it all the time -- this goes without saying. you talk about it all the time. what is the catalyst that people realizing is less of a value story in those trades? we've seen that before, particularly in currencies that can remain stretched for a really long time relative to value. you need a really big change in something fundamental to crack some of those overstretched stories. manus: we just need to one grandma. stay with us. we'll dive deeper into the pound in a moment. coming up, the u.k. government deficit is heading towards 400 billion pounds this year. and richie senate finalizes the budget. we'll discuss what is the next chess move. this is bloomberg. ♪
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manus: this is bloomberg daybreak: europe. i'm manus cranny in dubai. u.k. government deficit is heading towards 400 billion pounds this year, 19% of gdp. that's the backdrop for the chancellor richie senate as he prepares his budget for wednesday. he signals he's ready to raise taxes to fix the country's battered finances. but he's also vowed to maintain support programs during the pandemic. rick is a global chief investment officer at state street. we'll see what rishi sunak delivers on wednesday. let's see, we're breaking higher on this pound, you said values of 1.55.
again, my question to you is this a structural reevaluation of sterling assets overall? rick: yeah, i think the problem is when we look at cable, we look at the dollar, as well. it's come a very long way very quickly and i think the vaccine has been giving us a strong tailwind of sentiment. but brexit impacts haven't really been fully evaluated. we're only at the beginning of the process of understanding what impact that has on the economy. and it's a huge number that needs to be worked through. if there is a reevaluation, it has to be on the longer-term effects of brexit. current investors need a huge cushion sterling was depressed. it's now less depressed. still below fair value, probably got further to run against the euro than it has against the dollar, although fair value is
1.55 against the dollar. what's going to happen with longer-term growth rates, u.s. vis-a-vis u.k. differentials, to see who gets to 1.55? we will get there very quickly in our view -- won't get there very quickly in our view. annmarie: the euro pound, that's going to fate. when you say brexit comes back front and center, is the risk for the pound to the downside? rick: well, there's always a news-based risk. you've got increasing stories of friction at the border, difficulties with people having and if that looks like it's holding back the u.k. economic recovery, then yes, people could reevaluate the pound and think, do we need more of a cushion? the critical question is, do we need more of a risk cushion in sterling relative to fair value in order to case it for the
lingering impact of brexit for the pandemic? at the moment, people are on an optimistic track. we're going to have a lot of stimulus from the chancellor. but there will be moments in 2021 where that is definitely reevaluated. manus: rick, on wednesday, what do the markets hope for from rishi sunak when it comes to that tax narrative? what is the scenario? rick: a sort of credible kick the can down the road is probably the least elegant way of putting it, so people don't want clearly a shocker in terms of increases in taxes in the short-term. but they all except the medium -- accept the medium-term, we have to accept a more reasonable state. another reason for supporting the economy that will allow us to grow rapidly, other than a
straightforward stimulus, thinking about regulation and other things that don't make singapore and growth, immigration policy in particular, education, health, those things have a long-term impact. this would be important messages, too. annmarie: rick, thank you so much for joining us this monday morning. staying with the u.k., joint is for a prebudget briefing. annalise. will be sharing her expectations as the government sets up its plans to pull the economy out of the pandemic at 10:30 a.m. london time. you don't want to miss that. warren buffett's 15 page letter barely mentions the pandemic. more on that next. this is bloomberg. ♪
annmarie: good morning. from the city of london, i'm annmarie hordern with manus cranny live from dubai. global stocks kick higher amid a rebound in sovereign bonds. australia's 10 year yield slides as the rba doubles down on purchases. the cdc clears johnson & johnson's one-shot vaccine for distribution but italy tightens restrictions in some cities amid concern over new variants.
oil rebounds ahead of this week's opec-plus meeting. brent crude, north of $65 a barrel. a very busy week ahead, but we have to start down under, in australia. doubling down on bond purchases. seem to be taking a cue from the boj, targeting the long end. last week, it was the short end and you have to think, what are other central banks going to be doing and what could the fed possibly do in its toolbox? we will hear from fed speakers leading up to thursday, jay powell speaking and the question is whether or not it will be the same rhetoric or if they will fight the spike in yields. manus: this is the point, isn't it? i think the central bankers of the world set the pace, the agenda in terms of what you need to do to bring a bond market back, bringing the bond vigilantes back into line. it was more than a blip
according to our guest host in the last 30 minutes but what the fed needs to do this week, that's a move on the aussie bonds. you are looking at a 32-basis point implosion on the back of the purchase of longer bonds this morning. what does the fed need to do? the bank of singapore says they need to stop observing the surge as something benign. standard chartered says you need to tell the bond markets it is not ok. there is backup in yields and it is not ok and if you go on with this ignorance is bliss and growth is the real driver, then you are sending a red rag to the bond market. annmarie: certainly and i think we have a full scene outlining the fed speakers this week. it is easier to name who is not speaking when it comes to it. have bostick, williams, tamara brainard and thursday powell.
friday, the jobs report is coming up in the united states so a busy week when it comes to fed speak and economic data but rba, coming out full throttle this morning. manus: absolutely, and it was the short end of the curve in the united states some would say became unanchored, 90 basis points priced in for hikes by 2024. let's show you what is going on in the markets this morning. on the markets in australia are pricing, aussie 10-year dropping in terms of yield. that is the priority in terms of what you are seeing. 10 year government bonds in the united states, at 1.4. what really happened last week was close to the second major market accident according in regards to the bond markets. the bank of singapore needs to stop observing the surge in yields as benign. s&p futures up, which takes me
to a couple of comments in the equity markets, which is about rising bond yields, about growth. growth is good. let's cheerlead the stock market. there is a whole other sequence to consider and it comes down to stimulus. annmarie: adding to inflation concerns as the u.s. house passes joe biden's $1.9 trillion pandemic relief plan that spans the 1400 stimulus checks and fresh funding for vaccines and testing. biden, calling on lawmakers, it was in the house, now goes to the senate, to approve the aid package. >> we have no time to waste. if we act now, decisively and boldly, we can get ahead of this virus. we can finally get our economy moving again. annmarie: on the vaccine front, johnson & johnson's one-shot vaccine was cleared for distribution after the cdc formally recommended adults 18 and older should receive it and
those should be sent out immediately. joining us, fiona frick. she says central banks should act quickly and cap the rise in bond yields if market turmoil lasts. i'm sure you like what the rba has done. what should the fed be doing next? fiona: at one point, it would be nice if the fed showed yield uptick would stop. we believe as long as it grows to a certain level, it is ok for markets but if the bond market goes up too strongly, there could be opposition on asset classes because a lot of asset classes are not dependent on the yield of the 10 year. manus: and we saw that last week, didn't we, in the equity markets. dislocation in the bond market brought the equity markets lower, but if the yield uptake came from growth, which is what
jay powell is trying to tell us, does that embolden the long equity scenario in the medium-term over 2021? fiona: on the medium-term, we are positive on the equity. growth is good and as you said correctly, interest yields goes up for a reason. there is more growth and with growth comes inflation risk. what is more worrying is when interest-rate risk grows too quickly, too high. it is more the rapidity that is worrying and therefore, that should be controlled. annmarie: what level on the yields won't have you start to worry about the impact on equities? fiona: we would say if yields grow to 175 on the 10 year, that would be acceptable for the markets or 2% at the end of the
year, that would be acceptable to markets. as we strike beyond that, it would be negative. what is important is equity markets are not all equal because there are some sectors that are more -- have more duration risk, technology, and while other parts of the equity market have underperformed last year. we would say there are parts of the market that are more lauren orval -- or vulnerable, such as technology area where others have more resilience such as value or energy. manus: we will dig into the energy complex in just a moment. i just really want to focus in razor-sharp on this bond market with you. you are concerned the sharp rise in rates, the surge in yields we have just seen, you are concerned another spike is
eminently possible. what could deliver that spike? has it the capacity of the 2013 taper tantrum, 1994 where 30 year bonds repriced? give me context around what could unwind here and why. fiona: the fed said last week they were not very worried about inflation and in fact, it looks like the number they are looking at is unemployment. perhaps they will not act as much, they will let inflation come, and that could have an impact on the interest rate. the problem is that equity markets are already quite expensive. they were expensive last year on a historical basis and the only thing that kept them bullish was the fact that on a cross-sectional basis, in comparison to yield bonds, they
were not expensive because yields were less. yield bonds go up and the story changes, and equities become expensive in terms of valuation, and we can see in one aspect, the earnings for companies -- above expectation for a lot of companies. 80% had above expectation, but no impact on bond equity market, which shows the trend is higher for the moment and difficult to go higher. manus: it is the differential between yields and the dividend yield, the earnings yield in the equity market. stay with us, fiona. do not hang up, do not close the link. the fiona frick ceo -- the unigestion ceo fiona frick with us this morning. turning to berkshire hathaway, the annual report. warren buffett avoided controversies in his latest 15 page document.
it barely mentions the pandemic. it stays clear of u.s. politics. how to win friends and influence people as opposed to alienate people across the markets. dani burger read all 15 pages. buffett really didn't mention the pandemic? nothing vicariously? dani: not only did i read it, i have it here with me and the only time he mentions the pandemic, there is one instance or he talks about a furniture company that has done well despite the pandemic. i think the bar was set very hard for buffett this year, given not just coronavirus, but the political controversies happening in the u.s., reddit, gamestop, robinhood, you name it. he didn't address it, but it is classic buffett in this letter. perhaps it is not unusual he didn't get into those controversies. he talked about his investments, some of his mistakes, and took some victory laps, as well, but he didn't address a lot of these big issues that shareholders
care about and often, we do look at buffett's letter has something where we get an idea what the investment buyer meant is like -- environment is like. the closest he got to talking about u.s. politics is on page 10 of the 15 page letter. he talks about individual american companies he's invested in that have done very well and continues to say that our constitutional aspiration is becoming a more perfect union, that progress has been slow, uneven, and often discouraging, and continues with the refrain he often says. our unwavering conclusion, never bet against america. that's the closest he got to politics in this letter. manus: that is ultimately american exceptionalism and a little sneaky buyback in there, as well. dani burger on the berkshire hathaway letter to investors. coming up, annmarie and myself and our guest host fiona frick. the biden administration defending the decision not to
manus: it is your monday edition of "daybreak: europe." manus cranny in dubai with annmarie hordern in london. crude is rebounding from the biggest slump since november. this, head of the opec-plus meeting this week. futures and oil are in the green. this morning, we slumped by more than 3% on monday. the producer is expected to return some barrels to the oil market that had its best start ever. fiona frick is unigestion ceo. annmarie pazo mosh to the super
cycle. it is her tagline for 2021. -- pays homage to the super cycle. do you want more than industrial minors take advantage of the re-rating we are seeing? fiona: we like energy for different reasons. it is the sector that has been hammered. valuation is interesting. second, there is a supply demand issue because most of the company has been going down in the year so there could be a demand in balance which could be in favor of a price surge and with macro economic scenario, we've been positive, abided administration, the 1.9 -- procedure could have an effect on the oil price because it will
favor low and middle class people, which will spend more on oil. annmarie: you are in the camp of a new super cycle. first, it was 10,000 for copper, oil, brand going to 75 and now, i hear about oil going to 100, copper testing 12,000. what is your target for how much further we have to run on the big ones like copper, oil, iron ore? fiona: we saw the number of goldman sachs around 100 for oil and i think we are perhaps not at that but nearly at that so oil has a leg to go and agricultural commodity also has a leg to go, so obviously we leave -- believe in a period of
growth and where low and medium income people will receive some more fiscal, especially in the u.s., this commodity will continue to grow. manus: with that backdrop to a bullish commodity call, i'm curious to see how you mary your contrarian dollar call -- marry your contrarian dollar call. your trade has been consensus in the market. to what extent would a rising dollar just slow the trajectory of commodity bullishness you are telling us? fiona: there are different aspects to it. if the 10 year yield goes up, dollar becomes bullish again because obviously, it has an impact. it could put some pressure on commodity prices, but i would say the positives on oil, be it because of growth, be it because
of valuation, be it because of unbalanced demand and supply will make it grow, even if the dollar goes up. annmarie: i want to end on something fun. you have a lot of thoughts about bitcoin and the debate is commodity or currency? have you figured it out yet? fiona: i'm not sure we will figure it out because it is a moving story. i would say for the moment, we see it as more of a war between diversification investment. it has its own dynamics which are different from other asset classes and independent from macro that we follow. for the moment, we consider it an investment or asset class that can play a role in a portfolio. we don't see it as a currency yet though tesla has shown it could be a currency but there is so much volatility for the
moment and not enough to ration for it to be a currency. annmarie: certainly, tons of volatility, back and forth about 50,000 on a daily basis. fiona frick, unigestion ceo, thank you for your time this morning. we will take a look at middle eastern politics. the biden administration has defended its decision not to sanction saudi arabia's crown prince, mohammad bin salman after declassified reports implicated him in the death of "the washington post" journalist jamal khashoggi. joining us is sylvia west all. good morning, thank you for joining us. what reasons are behind the u.s. not sanctioning the crown prince? they did make a pretty strong stance last weekend go pretty far to try and say biden and his counterpart is the king -- it is not the crown prince. >> that's right. i guess biden has to advanced to
think here. -- things here. he's got domestic pressure in the u.s. to be seen cracking down on saudi arabia. there are lots of critics in washington, but he has to think about the relationship the u.s. has with saudi arabia and the crown prince is the defect a ruler. yes there is the king, but the crown prince holds power right now. if you sanction him, you are limiting your ability to have that relationship with saudi so he has gone for an in between phase where he says his counterpart is the king and he'll communicate with him and this report, which the tone around it is very sharp, it is critical of the crown prince. the report itself doesn't have any direct evidence, which is something that has been pointed out, but the tone surrounding it is very different to the biden administration. manus: great to have you with
us, so why would you say biden is defending the decision? is it playing to the particular section of the dmc? significant changes, we've known there have been announcements in regards to who can enter america, but this is about recasting the narrative with saudi arabia? sylvia: yeah, it is definitely important biden addresses his concerns in the u.s. about the relationship and that is something commentators in the middle east say is happening, he is dealing with his own domestic pressures. there are things biden, the u.s. can look at which wouldn't go as far as sanctioning. they can look at pressuring saudi arabia on diplomatic issues such as the u.s. desire to reenter the nuclear deal,
issues like yemen, the u.s. envoys to yemen recently, but this points to why this relationship is important. it is an important trade partner of the u.s. and one of the biggest buyers of u.s. weapons, so it is this balance that has to be made and that is what happening here. -- is happening here. manus: thank you very much. sylvia westall, our government and economy leader here in the middle east. coming up on the show, the u.k. chancellor hints at tax rises, covid support ahead of his budget announcement. we bring you the key events to track this wednesday. this is bloomberg. ♪
annmarie: an hour from the start of european trading. i'm annmarie hordern with manus cranny. wednesday, richard sunak delivers his budget to parliament. he could raise the corporate tax to fund massive spending accrued during the pandemic and thursday, opec-plus holding a meeting via video conference to decide whether to provide more crude to the market in april. manus: then friday, it is about the jobs report. it will set the tone for the fed. providing an update on the speed, directionality of the nation's labor market recovery. millions of americans remain unemployed. covid-19 ways on the -- weighs and that is what a lot of people
are concerned about. how do you bring a bond the jolanta to heel? you take it by the scruff of the neck and you say rba with you and you scoop up $4 billion. they bought $4 billion worth, aussie dollars worth of australian government bonds and reset the tone. i think they set the gauntlet for the ecb and the wrath of fed speakers. -- raft of fed speakers. annmarie: everyone sees jay powell as the central banker of the world and you see this from the rba. is philip lowe taking that spot? what does the world have to do in recalibration? the 10 year aussie, down 24 basis points. ubs talking about the markets are wrong on the rba and expected to maintain its course. manus: how do you see the moves?
anna: good morning. welcome to "bloomberg markets: the european open." i'm anna edwards live in london. australia's 10 year yield slides as the rba shows it is not about to stand aside in the face of global reflation trades, doubling down on purchases. the cash is less than an hour away. here are your headlines. global stocks higher amid a