tv Bloomberg Daybreak Europe Bloomberg March 3, 2021 1:00am-2:00am EST
♪ manus: good morning from boom's middle east headquarters in dubai. near top stories. treasury yields tick higher after calling on comments that the bond market moves. it's the first time of alarm bells being raised at the fed. president biden says the u.s. may have caught the vaccine for every adult by the end of may.
italy tightens restrictions. the u.k. chancellor extends the for low payments until september. we look at a pivotal day. it is u.k. budget day. good morning. 6:00 in london. waiting for the chancellor and briefcase to come outside number 11. another big pivot in the market. it's a reawakening of angst at the fed, at least in acknowledgment. good morning. the first acknowledgment. she's acknowledged the bond activists and not the vigilantes. there are some moves that she's worried about that caught her eye. this is about the volatility and speed of the moves. good morning. finally, somebody has acknowledged there was a little bit of mom last week. annmarie: completely. she's taking a different view from what we have been hearing
from jay powell. she's a knowledge and that. some people are welcoming that. we've heard from mary daly. what's interesting is that she is setting the table for operation twist. this will be the third time in u.s. history. she is setting the table potentially for the fed to take advantage of quantitative easing policies likely used before. is this something that the fed is now thinking? manus: the question is this. are they going to need operation twist? there's a flood of money from the eurozone. on a hedge basis, they pick up the yield. long-term rates are in a trajectory higher.
he makes some pretty big claims. there's a flood of mushy. it's going to buy bonds. you can see five paper at 0.1%. negative bond yields. you need an extreme event to get there. you can always rely on somebody like scott maynard to reset the tone. annmarie: exactly. at some point, this cash has to find a home. take a listen to what we've heard from some others about what's going on in treasury markets. >> i would suspect there's a good chance you will see rates going up. people starting to worry about that at one point. >> we have control of the yield curve at the short end. when it moves, it depends on the driver. >> we are seeing a multi-year stimulus unfolding in the u.s.. a justified rise in real yields that central banks should not be trying to siphon. >> if the driver is as it seems to be, news about the health of
the economy or vaccines, it's a natural reaction. >> i would be concerned if i thought this -- disorderly consistence -- >> the level, the speed, the reason are all very important in determining different factors in the market. >> i would not by 10 year treasuries, just so you know. annmarie: we do know. not a buyer of 10 year treasuries. let's take a look at where we trade this morning. s&p 500 futures, asian equities, green across the screen this morning. s&p 500 futures within the red yesterday. 4/10 of 1%. 10 year study at 1.4%. it's all about what receipt could act is going to present. the big headline was that an extension of the furlough scheme. we will speak to the british chamber of commerce in about 30
minutes. you don't want to miss that conversation. it is opec-plus tomorrow. wti under 60 bucks. how much will the barrels -- of the barrels will they release? let's break down all of this with lucy coutts. thanks for joining us. i want to kick off where we started this morning. the comment from's fed speakers. where they laying the groundwork to do something like operation twist 3.0? lucy: no. i don't think so. there's a move we've seen in the bond market. it's very unusual. jay powell has said, the economic recovery remains uneven and far from complete. the path ahead is uncertain. inflation rates across the u.s. and the globe have been at 1.8%.
u.k. house prices are at 3%. global equities have risen 10.8%. the spike in the yield is a sign of ecorecovery. i think if it were to reach 1.7% , bank of america sees that as a storming point for equities. manus: 1.8 could be the stalling point. good morning to you. the stall point on equities. if we are at the beginning of a slightly new narrative in terms of inflation, how do you embrace that? is it financials over tech? david coston was saying, shorter in duration and the equity portfolio, something like chips which have big turning cash flows. how do you adjust? it's a shift in inflation.
lucy: that's a very good question. at the moment, this is such a short, sharp change. for the way we look at investing, it's a long-term game. and i don't think that switching or rotating into value as it is known in the u.k. or european markets, where the cheap -- they are cheap by recent standards, and companies that are generating future cash flows. they are investing in the future. i would rather hold those companies and move through the cycle. personally, i'm sticking. i'm not changing my investment strategy. annmarie: what is that? are you then long high-growth
out of the united states if you are not interested in the cyclical story in the u.k. and europe? lucy: i'm long the u.s.. i'm also tilting portfolios towards china as well. these businesses are taking benefits of societal and structural growth. unemployment furlough scheme. those numbers aren't in the unemployment. in the u.s., where people are not still associated with an employer and they stop work,
they are cast is unemployed. the u.s. is going to see a fall in unemployment from here on. we are going to see arise. richie soon at has said he is going to pump another 20 billion into the furlough scheme. that is being kicked down the road. we are going to see arise in inflation. that will see less money being spent in cities. more in the suburbs. more online. manus: you said something there which made my ears set up. what you just said is perhaps the best reality check anybody has come on the show and made in regards to employment. hats off to you on that. everybody else is glass overfloweth. how do you tilt china? lucy: china is at an inflection point. it has relatively normal gdp at 6%. relatively normal interest rates. it has addressed covid. i understand it's a less liberal society than we have in the west. but the companies are innovative. in the u.s. and u.k., companies are silent. we have amazon for e-commerce.
there, they have companies that do everything. $.10 and alibaba. there are risks in investing in china. if you have an asset allocation which takes account of investing in that area, it's a place i would not want to ignore. manus: ignore it at our peril. our guest host this morning. let's get the first word news with laura wright in london hq. laura: the u.k. is extending its furlough scheme until the end of september, supporting millions of people until after the pandemic restrictions are due to be lifted. it's a key part of the chancellor's budget, set to be delivered this afternoon. he's promising the fiscal firepower to drive the recovery through what he describes as the challenging months ahead. opec-plus is set to agree to a production increase this week as it seeks to cool a rabbie -- rapid rally in oil prices. a widespread view within the group that the market can absorb
additional barrels. saudi arabia remains cautious. russia is keen to open the taps. we are told all sides are ready to increase production. lawmakers in new york have agreed to curb emergency powers granted to the governor at the start of the pandemic due to an escalating scandal. he's facing an investigation and calls to resign over accusations of inappropriate behavior with women and questions of his administration covering up data on deaths and care homes. global news 24 hours a day on air and at bloomberg quicktake, powered by 2700 journalists and analysts in 120 countries. this is bloomberg. manus: thank. let's check in on three of the big starts here in our part of the world in dubai. it's offering paper, 0.51 of its
stock for emaar mouth. this is a family of companies, the icons when you look at the by. muhammad ali mark is the man behind the companies. this is what we have. a bid from the property side of the business to take the business back into the family 100%. it's below the ip broke -- ipo price from a couple of years ago. annmarie: really fascinating when you look at what's happening with property around the world. i look forward to you chasing that interview. i know you are working on it. we hope we can get some of that sound onto the show this week. coming up next, european leaders struggling to find a way out of the pandemic amid rising cases. we bring you the latest, next. this is bloomberg. ♪
manus cranny in dubai. let's take a look at what's happening in europe. italy expanding restrictions to limit the spread of the coronavirus. the country faces a surge in cases from the u.k. variant. in germany, the chancellor is looking to consciously relax some curbs despite a stubbornly high infection rate. a reporter -- our reporter all over the story. maria tadeo. they are lagging when it comes to the vaccine rollout. what can you tell us about all these plans. there's a bit of divergence in terms of reopening. maria: yes. you make a very good point. the exit strategy for lockdown in europe is dictated by the infection rates. it's not the vaccination plan. the u.k. has said, we will vaccinate this amount of people and reopen. that's how they calibrated the strategy. in europe, it is different.
vaccination has not been able to catch up so quickly across the continent. i would say that there needs to be a difference between the private meetings and the public meetings. if you look at angela merkel, she's going to recommend extending some of the high restrictions. it would also allow germans to take people into their homes and private meetings. there's concern about fatigue. it's a year-long lockdown now. you need people to engage on that front. in terms of the timeline perspective, it's clear now that before we get to see any meaningful reduction in restrictions, we will have to wait a month. germany has extended that until the first week of april. the spanish argue that we need a final push for another month and a half. emmanuel macron jumping on that. before we ease restrictions in france, we will have to wait another six weeks. the timeline, over the next few weeks, we will have to wait until the end of april to see meaningful lifting of those
restrictions. manus: good to see you this morning. a sudden change in tone over astrazeneca. what's the latest? maria: this is a good, interesting story. you have the french saying that they will accept the astrazeneca vaccine, recommended for use. a few weeks ago, aid they didn't have enough data so t wouldn't use it. the belgians have also changed their protocol on that. they all cite to new study. they say the reason for the change is that there's more data for that age group. we should not be naive about this. this is a vaccine that has worked very well in the united kingdom, that got caught in a nasty spat with the european commission. to some extent, it suffered reputational damage because of the politics. astrazeneca is below pfizer and maternal in europe. european authorities are looking
to remedy that. millions of vaccines are not being used. putting out this message, saying that the vaccine is perfectly safe and we can use it on all age groups. the european medicines agency says that from the beginning, it looks like the politics here did more damage than good when it comes to the vaccine. manus: certainly you can damage a great deal in the messaging. thank you very much. great context. the european central bank slowed the pace of its emergency bond buying last week. the gross purchases totaled 17 billion euros, the lowest in four weeks. it comes despite us -- despite a warning yesterday who said that the jump in yields seen recently is unwelcome and must be resisted. lucy coutts is still with us. you laid out the landscape of unemployment to come, potential
scarring, tough times ahead of us. what needs to happen for you to perhaps change and shift your perspective on europe and become more bullish? lucy: no one knows what lasting damage this pandemic is going to be. no one knows the full impact. economists are going to have to make judgments on the fly. as epidemiologists did in identifying the virus and tackling it. the u.s. will recover more quickly. it wants maximum employment. it has employment. how it treats those out of work already. i think europe -- in the u.s., you have a younger generation that's going to put aflame under
the consumer boom. and here, we have an aging population. annmarie: right. when you talk about the reality check when it comes to unemployment, i think about richie sumac. an extension of the furlough scheme. it will be tapered but it will go through september. do you think that's enough? lucy: i think -- what i'm hoping for from the budget is that there are no big spending commitments, no big tax changes. i think he will kick the can down the road. we are going to have to address the spending that he's -- that we've had to do to keep the economy going. i think it would be sensible to defer any tax rises by holding income tax levels where they are now, freezing them. the economy should grow and then we can start bringing in taxes further down the line.
and then build up for what will ultimately be another crisis that we have to face. manus: the interesting one is going to be whether it is wealth tax, online tax, or corporation tax. let's pivot to the currency briefly. the dollar's demise has been sterling's gain. brexit dissipating. vaccine rollout. standard banks say, they are talking about 150. state street is talking about 155. do you see a prospect that sterling can recover that much alpha in 2021? lucy: no. i don't. i'm sorry. i'm slightly contrarian. manus: we love it. yes contrarian as you want. lucy: [laughter] good. look at where we are. this is a nonpolitical problem. we have left our largest rating partner.
the strength of sterling where it stands now, trying to export into europe. it's a massive headwind. it may move stronger in the short term. we have brexit. we have covid. we have debt levels at 100% of gdp. it doesn't look great. he's done a great job. he just needs to keep the economy going. i think ultimately, the pound will start to breathe. annmarie: what's the level? quickly. lucy: the level? 137. annmarie: good news for manus in dubai. me as an american that goes home to new york, not so good news. thank you so much for all your contrarian views and a dose of reality this morning. coming up, oil bouncing back as opec-plus alliances are set to agree on output increases this
week. how much will they return to the market? this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com.
annmarie: good morning. oil has rebounded after three days of fall. the opec agreeing to an output increase at this meeting. where the black gold is going. juliette saly brings us the morning call. what are they saying? juliet: with opec-plus poised to add to the market, it's probably this tonga signal that we are seeing the market rebound from the depths of the coronavirus pandemic. this meeting happening at the same time as an event as well with the number of key industry executives. most are in agreement that you will see more returned to the
market. the usual suspects and play, showing saudi arabia being cautious and russia more keen to open the taps. all sides ready to increase production. amc saying that opec-plus has the perfect opportunity to add 750,000 barrels per day from april, assuming a 500,000 per barrel day increase across the group coupled with 250,000 from saudi arabia. quantico saying that they see global oil demand recovery not returning until 2022. it will probably be another year before we really get back to that full normal 100 million barrel a day known -- market. goleman sachs, the head of commodities research saying, the clock is ticking on oil. companies in the industry need to shift away from long cycling in terms of short projects. the metals market overtaking here in the midst of the commodity super cycle. in terms of where the black and gold price goes, wti will
rebound around $55 a barrel in the second half of 2021. a little lower from where we've seen it the moment. coming back into a bit more stability as we see more production flowing through into the market. manus: thank you very much. the super cycle negative -- narrative. it's going to be a super cycle like no effort. -- no other. they own half of the boulevard. i've lived in one of their properties. emaar properties, full disclosure that i have lived in one of these properties. they are going to take the rest of emaar that they don't own. they will offer paper. 0.51 of its shares. the point from the marketplace is, are you paying enough? now you are just tasting the
♪ annmarie: good morning from bloomberg's european headquarters in the city of london. this is daybreak europe. here are today's top stories. trigger yields take higher after falling on comments that bond market moves caught her eye. it's the first sign of a law being broken by the fed. president biden says the u.s. may have enough vaccines for every adult by the end of may. italy is tightening its
restrictions as cases surge. u.k. chancellor extends furlough payments until september. we look ahead to the pivotal u.k. budget. very good morning to you. a lot going on when you look at covid in tokyo and italy, the united states ramping up their vaccine program. we have to start with the treasury market. we had daily, brainerd. what she said is that the speed of the moves last week caught her eye. she's taking a step further than we heard from jay powell. will he pushed -- be pushed to answer that question tomorrow? manus: yeah. operation twist. something we've done before and we could do again. she has accepted that there's bond activism. i would not say vigilantism. a lot of people disagree with me. bond activism. the speed of the moves, i i. that comes down to market and volatility. scott minerd talks about the
propensity for the bond market to move back to zero and even negative. annmarie: so much cash's washing around. in us to find a home, doesn't it? manus: it does. the japanese hedges coming in and picking up yields. it will come from stimulus and elsewhere. let's check on the data. s&p 500 this morning. we are up 0.5%. the question is, has the right been done? bank of america talking about steepeners. they are saying that plays to the financial side. goldman sachs wants cyclicality and shorter duration. everybody is listening to bernard as the fed is now in the listening mode. cable 139. our last guest says 137. not convinced about this 155 narrative we are for -- hearing from other houses on state street and standard bank.
crude up 0.5%. will the opec-plus meeting deliver 1.5 million barrels of additional supply? that's the question that we have. to the u.k.. a pledge to use the u.k.'s government balance sheet, the fiscal firepower to protect jobs and livelihoods in the annual budget statement. he will also signal the need for future sacrifices to pay down the huge debts accumulated over the past year. >> we keep alternating between moments of pessimism and optimism. >> people don't want a shocker in terms of increases in taxes. they all except that we have to get back to a more reasonable state. >> it's too early to judge by how much taxes will need to go up or spending cut. >> if you take money out of people's pockets, they will
tighten their belts and spend less. >> the right thing to do now is keep options open, not to commit ourselves to a precise path or measures. >> all the things that previous generations benefited from, high levels of social spending, lower house prices, are not there. the pandemic has only made that worse. manus: let's get a little bit more from lizzie burden. what exactly can we expect from the chancellor in six hours time? lizzie: good morning. the biggest challenge facing the challenge -- chancellor is the prospect of a jobless recovery. the idea that she to be could bounceback but a high level of unemployed may could linger. the resolution foundation says it's the lowest paid workers who are most likely to lose their jobs in the next three months. that's exactly why we are expecting the chancellor to focus his budget on immediate
support for jobs and incomes. all of that is going to cost. extending the furlough scheme is going to cost. the next headache is the public finances. since the last budget, we've had 14 major fiscal announcements, pushed government borrowing to an all-time high. the question is whether he will deal with that now or signal that he will deal with it later. are expecting the latter. a likely rise in corporation tax by the next general election. crucially, he's not going to want to abort the recovery. this net chart -- next chart shows the forecast for gdp over the next five years. every economist i've spoken to has said that a premature fiscal tightening is going to hold back this bounceback. the governor of the bank of england says that people are going to go for it when restrictions are lifted but if tax rises are on the horizon,
will people who have been lucky enough to save money through the pandemic get out and spend savings? questions for the ob are. the u.k.'s fiscal watchdog. it forecasts -- another big question will be whether the success of the u.k. vaccine rollout has lifted its projections for the economic recovery here in the u.k.. annmarie: we are hoping so. thank you so much for that. it sets the stage for next conversation. let's get the view from the corporate sector. joining us now is claire walker. i want to throw out the furlough scheme. we heard the announcement last night. is september the right timeline to be cutting this off? could his hand be forced to continue with longer? claire: first of all, good morning. i think we called for the extension and september was a
welcome deadline for the furlough scheme. the chancellor needs to say, if it looks like restrictions are going to be reinstituted, he may well have to look at it again. at the moment, the end of july for business contributions to start, and the beginning of september for that scheme to end, it's a very positive sign. manus: good morning. welcome to the show. thank you for joining us. to lean into a rhetoric with tax hikes, tax to come, that rhetoric is a danger ground for him to go in terms of hitting our confidence. it could certainly hit the ambitions. it's a delicate line. should healing into taxes to come today? should there be a warning? claire: i think he has highlighted it correctly. it's a difficult balance.
if he talks about tax rises to come, that might already affect confidence on independence and business investment. businesses are realistic. they do realize that tax rises need to come. it's just the timing of that will be the thing that people -- people will be really looking at. they cannot afford them now. they need to have the time to recover. annmarie: other taxes you potentially expect besides the corporate ones? claire: the corporation tax, it's fair to say business communities feel it would be the least work. i think that one is probably the most likely. what we would say to the chancellor is, don't stifle growth. don't stifle investment.
taxes are up. that's where we need to see concrete steps for investment and growth as we come out of the covid pandemic. manus: build back better is the narrative. infrastructure spending, etc.. that takes time to train jobs with those policies. what do you want to hear? what do businesses want to hear about the next five years to inspire them to invest? claire: really great point. up-and-down the country, there are so many pod -- projects that could be done to a night jobs now. -- ignite jobs now. that's a great way for firms to invest. looking at that net zero economy. is there a way we can incentive five -- incentivize new jobs in that space? it would be good to see if we can try to build back better in
a greener way and look at that space. also reset development which is being released from the pandemic. whatever can be done in that space. annmarie: the keyword you said there is incentivize. if the government wants to raise corporate taxes, what is the incentive for corporations to do what they want to do come build back better? claire: there's a creek a point. you've got to have a really balanced budget. also confidence is critical. [inaudible] we need to make sure that today's approach is balance between making sure we have really important support that will see companies out of the pandemic but also looking at investment and making sure that they come later. manus: what a wealth tax drive
entrepreneurs to reconsider the u.k. as a destination? the government themselves commissioned a wealth tax report, i understand. hotel footed be in the u.k.? -- how bad would it be in the u.k. from an investment perspective? claire: that is something we need to look at. we need to be thinking about how we drive investment into the u.k. economy. particularly now as we face the pandemic and also this change in business circumstances, we need to be thinking about how we incentivize growth in the u.k.. business communities will be looking really closely at what the chancellor says on that. also, looking very closely at global headwinds as well. making sure that the right choices attract investors into
the u.k.. annmarie: when you look at attracting investors and people wanting to come to the u.k., dublin is now the favorite destination for financial firms. three dozen are considering moving. this is in the wake of brexit now. we have commentators talking about covid. what's the status of the city of london, in terms for european gears and global destination, considering brexit? claire: yeah. it's a great point. london will always be a center for investment. it will always be a huge center for global investors. the critical thing is making sure that we recognize that we've gone through a transition and that the chancellor puts the policies in place that will make sure that those companies both stay and equally that they move here as well. that's why some of the moves
around corporation tax are so critical. companies need to know the direction to travel before they think about investing here. a longer term plan would be incredibly helpful and would help trying to trap that investment. manus: thank you so much, claire chase -- claire walker. thank you for joining us this morning. coming up, the u.k. proposes sweeping reforms for london exchanges. among the changes, making it easier for spac's to list. we have the details. this is bloomberg. ♪
the mammoth spending package to the floor to did date as soon as today. elizabeth warren urging robust response, warning that anything less puts the recovery integrity. -- in jeopardy. >> what we should've learned from the 2008 crash is that when you don't put enough into recovery, recovery is slow and some folks never get a chance to get back to where they were before, much less be able to go forward. we need a full, strong, robust recovery. that's what the secretary of the treasury says. that's what the head of the fed says. that's what the top economists in this country say. so i think we have to do this. >> what about the minimum wage? it will not be included in this. many progressives want to see that included. >> i would love to see it included. the problem ultimately is the
filibuster. we are trying to get the minimum wage in through a package and reconciliation because we want to do it by majority vote. we think that a majority of people will vote for the momentum -- minimum wage. we can make that work. as long as we have a filibuster, mitch mcconnell has a veto. mitch mcconnell should not have a veto. we need to get rid of the filibuster. >> some senators in your party have come out against this. >> look, in order to get things done, we are going to have to deal with the fundamental question. does mitch mcconnell get a veto? are we going to do the things that the american people sent us to do? i don't think the american people want us to sit back and say, darn, we can't get anything done. can't get a minimum wage past. can't get immigration reform. can't get gun safety. can't get universal childcare.
can't do things that are broadly supported across the country because mitch mcconnell, in the minority, has the power to block that. i think what's going to happen, if we will keep putting up the things that we need to do and if mitch mcconnell keeps blocking them, i think democrats will step up and get rid of the filibuster. >> when we talk about all of these different plants, how will they pay for it? you have an idea. the wealth tax. you tweeted this. >> let's remind everybody what it is. this is on fortunes that are bigger than $50 million. your first 50 million is free and clear. no tax at all. your 50 million and first dollar, two cents. two cents on every dollar above 50 million until you had a billion. and then we add a little bit more on top of that. that would raise, over the next 10 years, $3 trillion.
>> what do you want to do with this money? >> there is so much we could do. universal childcare. we could do a big infrastructure package. we could do more on racial equity. we could do an environmental package. it would give us the resources to help build. >> why is now the time? the feedback from the wall street crowd has been, texas. senator warren demonizing wealth. why now? >> let's talk about demonizing for just one minute here. the 99% in america, the people not at $50 million in assets, paid about 7.2% of their total wealth and taxes. the top 1/10 of 1% of people above 50 million, they paid 3.2%. less than half as much.
this is not demonizing. you can still grow your fortune. just pitch and to sense that everybody else gets a chance. manus: that was senator elizabeth warren speaking. coming up, we bring you the events to look out for for the day ahead. this is annmarie's most exciting part of the show. this is bloomberg. ♪
london catching up with all the other european and american exchanges. the idea here is that you don't require companies to suspend their shares when they acquire new ones which is the current rule on the u.k. exchanges. it's not great if you are a spac. that's the whole purpose of what you want to do. it would allow them to come in to london. it goes further than that. it gives founders of companies more control over when they list. you don't have to float as much as previously. you only have to sell about 15% of your company before it was when he 5%. it's also allowing for dual shares to give founders more voting rights. this is relaxing some of the governance rules to make listing in london more attractive. annmarie: one interesting point we spoke about before the show. what does this mean for the imports being placed on esg? dani: there are a lot of investment associations who don't like this proposal exactly because of that. governance is really important
now. this is taking some of that away. the u.k. regulators would argue, this is what every other exchange is already doing. a gap already exists and we are simply filling that by doing this. of course, you have to wonder, with esg gaining in importance, looking at amp and up the government requirements, is london taking a step backwards? that's why we are seeing arguments against this. richie soon act saying that the government is going to act fast and trying to implement some of these rules. annmarie: this is -- manus: this is about capturing flow. there's lots of reasons why people would want to have their listing in the u.k., relative to the u.s.. why now? dani: when you look at the london exchange volume, it has been sapped. we had a month where more bit happen in amsterdam. it's this post-brexit environment that the u.k. wants
to solve. in this report, the writer says, the u.k. is on the back foot right now. we've lost some of our glimmer as the financial hub in the center of the world. we are trying to get that back. this is really a reaction to the post-brexit environment. the uk's financial services finding itself there. annmarie: all the celebrities in the u.k. can have a spac two. thank you so much for that story. coming up today, a lot to discuss. the u.k. chancellor delivering the budget to parliament at 12:30 followed by a press conference on the measures at 5:00. in germany, chancellor merkel do to meet with state leaders to discuss the way out of the pandemic. we see this divergence across europe on when we should be lifting restrictions. manus: i think it's a variant that is really at the heart of this issue. the world health organization warning about the rise in covid for the first time in seven weeks. the bundesbank releases its annual report.
due to discuss inflation concerns, rising yields, and the post pandemic economic outlook. later on, the very latest from the city fed president. we have the chicago fed president. so it will be interesting to see where they come in versus mary daly who i think is setting the table for operation twist. reynard has shown that the fed is definitely in listening mode. annmarie: what they are worried about is if there's a tightening of the financial conditions. if there was an operation twist, it would not be for the economy. it would be to make sure that there isn't this tightening of the financial conditions. i'm looking forward to tomorrow. what does powell say? manus: exactly. the bond market has treaded marker -- water. will it continue to do so?