not get a rate hike from the bank of england. you look at some of the dates -- amongst it all, i think the growth in the u.k. is actually doing pretty well. however, with omicron and a number of other things, we've got cpi wednesday, we are worried about 10% in the u.s., but u.k. probably gets up to 4.9%, maybe worse. that could do something to the bank of england, but they will wait to february for quarterly review. we are seeing things getting priced out on the interest rate market for sure. caroline: there has been some shakiness within the real estate market. may be a healthy dose of shakiness because prices have been going ever upwards. but is that going to be some thing of concerned, do you think? marcus: there's only one way for housing prices to go in this country, and that is up. people with small deposits can access a mortgage which has been a problem in this country for the last five, certainly seven years. there's a problem with interest rates staring very low, and banks wanting to lend mortgages. you might think the

alberto: i think this is a move from the bank of england. to me, this is not a big change in the scenario. but the u.k. stocks -- i think eventually it will be quite nice to invest in them next year. i would suggest that we are stable for the moment but next year, start investing for sure. tom: ok, alberto on the call in terms of the opportunity in the u.k. next year. alberto will stay with us. barclays, jp morgan and others, plans to boost bonuses. we will find out who will be getting the big paydays next. this is bloomberg. ♪this is bloomberg. ♪ tom: welcome back to the open. we are almost 23 minutes into the european trading day. a handoff from the u.s., heavy losses. in europe, losses of around 0.3 percent. the one index with modest gains is the ftse 100 gaining 0.2%. autos in focus. prices falling and banks as well, lower by 0.4%. let's get to another corporate story linked to what is happening in the banking story. our cleat is the latest bank to put in place plans to boost bonus following moves by j.p. morgan and goldman sachs as

bank of england. describe the surprise in the city this morning. marcus: i thought they might hike today. goldman sachs said it as well. it was a bit of a between cost because there's a bit of surprise that they have done it now, but at least you have done it. the inflation data and the labor market data is so strong, and the fed has given the green light. that is really what has happened here. the fed has cleared the path and the bank of england have said they've got to do is this -- they've got to do this. i don't think it makes any difference with rates. that is the standard. it mean if they do hike again in february, it is quite important because that means there won't be anymore qe. they have done it a month too late, but at least they will had a little bit higher. lisa: they also cut their fourth-quarter gdp forecast for the united kingdom, highlighting this concern that they are hiking concern -- hiking into weakness. you see flatness in the twos and tens in the united kingdom. how concerned ar

i do share that view but i think the bank of england i i think the bank of england will sit tight this week, and perhaps if we are looking at a rate rise, that might not come until february next year, obviously it could be kicked further back in the year, depending on what happens, surrounding 0micron. i think the key question, yes, it is not necessarily help i inflation rises but whether it will last. a lot of the pressure that we have seen on the index, as a comparison, is the index, as a comparison, is the cost remains quite low. that will disappear and inflation will fall back, and some of these pandemic related surges in demand and supply bottlenecks but have been pushing up on inflation, they should eventually ease. all of thatis should eventually ease. all of that is likely to push inflation back towards the 2% target and perhaps back towards the back end of next year. the big concern of course for the bank of england is that inflation remains longer lasting, either because the 0micron variant exacerbates existing supply issues or because perhaps inflation becomes a bit more ing

dilemma for the bank of england. caught between omicron and inflation, will the uk become the first major economy to raise the cost of borrowing? turkey's currency crisis deepens. is the central bank about to make it worse? plus, high hopes for denmark, as parliament clears the production and export of cannabis for medical use. hello there. we start in the us, where the federal reserve has signalled the era of ultra—cheap money is coming to an end — sooner and faster than anyone was expecting. the world's most powerful central bank says it will stop pumping money into the bond market next march and may raise interest rates three times next year, with further rises to come. the us economy has recovered strongly from the pandemic and for the fed the big worry now is soaring inflation, which has hit a ao—year high. samira hussain reports from new york. to know one's great surprise, fedi chairjerome powell is now saying that inflation is a problem he probably needs to address. now, the chair of america's central ba

the bank of england hikes rates today. the ftse is up 1.3%. mining stocks, energy stocks leading the charge. dax and the cac 40 higher as well despite the fact that we had a hawkish fed, a hike from the bank of england, and ecb at the margin sounded little more hawkish. the close is next. this is bloomberg. ♪ mom, hurry! our show's gonna start soon! i promised i wouldn't miss the show and mommy always keeps her promises. oh, no! seriously? hmm! it's not the same if she's not here. oh. -what the. oh my goodness! i don't suppose you can sing, can you? ♪ the snow's comin' down ♪ -mommy? ♪ i'm watching it fall ♪ watch the full story at www.xfinity.com/sing2 guy: a positive session in europe. we are wrapping up the day despite the hawkish and as for central banks, the stocks on the front foot. the ftse outperforming in terms of some markets up by 1.3%. usually when the pound goes up the ftse goes down, but mining stocks and energy stops up, the ibex up 1.5%. that is the equity market picture. a quick look at the session to give you an ide

the bank of england and ecb are two in a flood of central banks reporting today. the twin vectors of inflation and omicron loom large. england's chief medical officer warns of substantial numbers of hospitalizations from omicron occurring in the weeks ahead. warm welcome to the show. a soft landing on inflation, that's from headley global advisors. yet it was a hawkish pivot. the question is, how much and how quickly will the fed decelerate? that's what you need to ask yourself. the hawkish dilemma. it would panic over patients. you should sell your hedges and move on. that's the narrative. the stock market had a riproaring rally on the back of three hikes and a faster taper. the qualification of what is panic and patience. >> financial markets have been much too complacent in terms of how they view the risks of a boom bust cycle. i think you're seeing a bit more panic instead of patients within the ranks of the fomc on the dot plot as well. manus: complacency. let's have a look at the short end of the yield curve. we saw virulent moves on the short end. you saw t

bank of england hike. up next, the bank in russia. pandemic risks and tightening, become the new normal again. the united states pushes the eu allies from broader sanctions against russia as the block fails to agree on a solution to its gas prices. welcome to bloomberg daybreak, 6:00 in london. let's get things started with a look at a chart i wanted to focus on this friday morning because it's really important thinking about the omicron variant. markets are also focused on central-bank policy. let's spare a moment to think about omicron and keep focusing on what is going on in south africa. we have seen the numbers in omicron cases take up. that's not a new story. we are not seeing a big pickup in deaths. it is important to say because there is a lag. we see that in the charts. it's worth keeping that in mind and keeping our eye on whether we see the uptick in deaths. we do know is not the same age profile in south africa. we don't have the same. it has been different in south africa and not the same vacc

within 3 years, the bank of england will be no more. well, of course, i mean el salvador until it adopted bit queen as legal tender already has the u. s . dollar as its currency, as legal tender there. you know, this introduces anti fragility and individual sovereignty down to the level of the ordinary person, which is very important. all you have to do is go to wikipedia, look up the el salvador civil war and look up the role of the u. s. there. it's actually quite shocking, even what, what wikipedia is willing to publish. it's remarkable. and it protects, i think the ordinary person, the bottom, 98 percent of the salvadoran population from the school, whatever the future holds from america, what they decide to do in the region. and i think that's important for the long term viability of the ordinary person. and the economy there. that's my opinion, andrew bally, maybe his concern trolling is right. go listen to him if that's what you want, but my opinion is a bit different that has well, this concern about volatility is misplaced with

the bank of england will be no more. well, of course, i mean el salvador until it's adopted. bit queen as legal tender already has the us dollar as its currency. it's legal tender there. um, you know, this introduces anti fragility and individual sovereignty down to the level of the ordinary person, which is very important. all you have to do is go to wikipedia, look up the el salvador civil war and look up the role of the u. s. there. it's actually quite shocking, even what, what wikipedia is willing to publish. it's remarkable. and it protects, i think, the ordinary person, the bottom, 98 percent of the salvadoran population from whatever the future holds from america. what they decide to do in the region. and i think that's important for the long term viability of the ordinary person and the economy there . that's my opinion, andrew bailey may be his concern trolling as right. go listen to him if that's what you want, but my opinion is a bit different than hes. well, this concern about volatility is misplaced with fea

within 3 years, the bank of england will be no more. well, of course, i mean el salvador until it adopted bit queen as legal tender already has the us dollar as its currency as legal tender there. you know, this introduces anti fragility and individual sovereignty down to the level of the ordinary person, which is very important. all you have to do is go to wikipedia, look up the el salvador civil war and look up the role of the u. s. there. it's actually quite shocking, even what, what wikipedia is willing to publish. it's remarkable. and it protects, i think, the ordinary person, the bottom, 98 percent of the salvadoran population from whatever the future holds from america, what they decide to do in the region. and i think that's important for the long term viability of the ordinary person and the economy there. that's my opinion. andrew bally, maybe his concern trolling is right. go listen to him if that's what you want, but my opinion is a bit different. that has, well, this concern about volatility is misplaced with fear money are

the bank of england? caroline: so far, not much. governor bailey said from an economic perspective, is not worried about omicron. chief medical officer saying there is a risk that hospitalizations could eclipse the worst ratings we had prior in covid-19. clearly, there is a concern here. did you see the pmi data out of europe, out of germany? negative, falling into negative in terms of services as we see further restrictions. tom: the news flow, particularly for waking america, the news flow out of europe is extraordinary, where its restrictions on euro start into pairs, some of the draghi italian restrictions we are seeing as well. the jumble we have to sum in, help me with the data, because it's all we've got. i will take the easy part, equities surge. the nasdaq up 0.8%. lisa: the surge we see in equities, despite the fact that we heard a hawkish tone the fed, that's the standout. the fed c out and saida theyme and said they are going to hike rates, and stocks rallied. tom: we continue that rally. a qu

coming up, the bank of england making decisions today. the twin specters of inflation and omicron loom large. more on that next. this is bloomberg. ♪ tom: welcome back to the open, 22 minutes into the european trading day. solid gains from the action on wall street on the back of the fed decision around the taper. stoxx 600 gaining 1.5%. every sector is in the green. technology and autos at the top of the list. still with us is dr. nannette hechler-fayd'herbe, global head of economics and research, credit suisse. and joining us as well is jari stehn, managing director, chief european economist, goldman sachs. let's bring you in and get your views on the health of the euro zone economy as we look ahead to the ecb decision-making. the importance of flexibility if indeed the special purchase bond program does come to an end in march. talk about the importance of having that flexibility in how the ecb may engineer that? jari: that flexibility is important given the uncertainty around outlook. we think the base case, the hit to activity will

the other part is what is happening with the bank of england. michael saunders, a hawk, the most hawkish policymaker at the bank of england, delivering a speech a little earlier on, talking about the idea that maybe there could be advantages and they waiting now for the data on how the omicron variant and delta may impact the economy before thinking about raising interest rates. take a listen. >> at present, given the new omicron covid variant detected quite recently, there could be advantages in waiting to see the possible effects on public health outcomes and on the economy. but continued delay also could be costly. guy: that was a little bit earlier on. he voted for a hike last time around. as a result of those comments and of what we have from michael saunders today, the market and traders have started to pay it back the idea that we do get a december hike from the bank of england, february looking increasingly likely. kallum pickering from berenberg is joining us to talk about this. will the bank of england start hiking rates in december? >

in the bank of england says now we _ borrow in the bank of england says now we will without omicron there would _ now we will without omicron there would he _ now we will without omicron there would be perhaps an easier decision to make _ would be perhaps an easier decision to make to— would be perhaps an easier decision to make to really start to move on interest _ to make to really start to move on interest rates and look at more sort of scrooge —like news over the christmas period. but omicron in terms _ christmas period. but omicron in terms of— christmas period. but omicron in terms of consumer sentiment, in terms _ terms of consumer sentiment, in terms of— terms of consumer sentiment, in terms of the future of many, many key sectors — terms of the future of many, many key sectors of the uk economy, like hospitality, — key sectors of the uk economy, like hospitality, like retail, it might 'ust hospitality, like retail, it might just be— hospitality, like retail, it might just be very difficult to move at this moment and we will know at noon tomorrow _ this moment

of england and the i m f and that's in the 1st have mine here. bank of england governor raises concerns about el salvador, bitcoin adoption. this is andrew bailey, is the governor of the bank of england and bailey was attending the cambridge university students union responding to questions during this test room, he called el salvador is bitcoin adoption. concerning as unsuspected consumers could be hugely affected by as volatility. he said, quote, it concerns me that a country would choose it as a national currency. what would worry me? most of all is do the citizens of our salvador, understand the nature and volatility of the currency. they have what the citizens of el salvador understand is the nature and volatility of central bankers who inflate and print their money into extinction. and as a way to transfer wealth and property from the masses to central bankers, that's what the citizens of el salvador understand. that's what citizens all over central america understand. remember, united states is overthrown. 15 countries in central america, and they use the dollar of their primary

the bank of england, they do have high inflation rates in the u.k. and they have taken small steps to address that come and i think inflation is the key concern. that being said we will see base effects coming through next year. we will see inflation down a bit . i think in the euro zone it is a little bit different when you look at some of the economic data out of the euro zone in terms of the pmi, after seeing the spread to deal with the virus. the bank of england wants to take a small step just to give themselves a little more flexibly going into next year. in terms of the u.s., it does remain on a very robust footing. if you look at other economic activity, the earnings backdrop, we think there continues to be a very positive backup going into next year when you look at the 10-year and the doubts around the virus and what might happen in the next few weeks. i think the u.s. economy does remain on a solid footing. taylor: collin, final question before we wrap up this segment focused on credit, and that is the balance sheet. some of the commentary

within 3 years, the bank of england will be no more. well, of course, i mean el salvador until it adopted bit queen as legal tender already has the u. s . dollar as its currency as legal tender there. you know, this introduces anti fragility and individual sovereignty down to the level of the ordinary person, which is very important. all you have to do is go to wikipedia, look up the el salvador civil war and look up the role of the u. s. there. it's actually quite shocking, even what, what wikipedia is willing to publish. it's remarkable. and it protects, i think, the ordinary person, the bottom, 98 percent of the salvadoran population from whatever the future holds from america. what they decide to do in the region. and i think that's important for the long term viability of the ordinary person and the economy there . that's my opinion, andrew bally, maybe his concern trolling is right. go listen to him if that's what you want, but my opinion is a bit different than hes. well, this concern about volatility is misplaced with fear money

the bank of england delivered this verdict. nothing expected, but given the communication we have seen out of the bank over the last two or three months, who knows? the u.k. two-year responding to that. futures a little bit calm creeping into that market. again, this is one of the narratives you want to watch for as we think about the ecb. gas prices have risen massively. could that knock the ecb of course? it is expected to say that it does not consider inflation being a problem. it is expected to say it thanks inflation will be transitory. but, gas prices are up, inflation is creeping higher in other parts of the world. alix, that could be a problem for the ecb as well. alix: at the fed, transitory most likely taken out, may be with something else. i don't know. stocks, bonds, currencies literally going away. we had the nasdaq 600 down yesterday. the cyclicals are getting beat out. energy and materials some of the worst performing sectors within the s&p. commodities are also under pressure. we have a stronger dollar and all o

across the central banks, the fed, the bank of england? >> bailey, the way i see it, indicating there would not be similar stresses we saw in march 2020, and i agree that nobody expects that. i think when you look at it under that light, it makes a lot of sense, what he has said. does it give away what they are likely to do on thursday? probably not. think they are evenly split. i would go probably with the rate hike being delayed and not just the rate hike we were to pointed disappointed -- disappointed six week ago, so let's see. manus: the unreliable boyfriend comes back. i want to bring you what paul krugman said, he talked about inflation and he said it's going to be more like a minor league version of the 48 inflation spike. do you see a painless carry through next year coming off the top of this inflation or do you sense something more enduring, and how do you prepare for that? >> i am on the enduring side because covid has caused some of it and some of it is supply-side issues, especially out of china, they've been cracking down on

the bank of england will be no more. well, of course, i mean el salvador until it adopted bit queen as legal tender already has the u. s . dollar, as it's currency. it's legal tender there. i'm, you know, this introduces anti fragility and individual sovereignty down to the level of the ordinary person, which is very important. all you have to do is go to wikipedia, look up the el salvador civil war and look up the role of the u. s. there. it's actually quite shocking even well what wikipedia is willing to publish. it's remarkable. and it protects, i think, the ordinary person, the bottom, 98 percent of the salvadoran population from whatever the future holds from america. what they decide to do in the region. and i think that's important for the long term viability of the ordinary person and the economy there . that's my opinion, andrew bailey. i may be his concern trolling as right. go listen to him if that's what you want, but my opinion is a bit different. that has, well, this concern about volatility is misplaced wi

we have the fed, we have the ecb, we have the bank of england. aditya bhave, bank of america cut securities global economist joins us now. he expects the fed to double the speed of the taper with two hikes in 2022. let's talk about what a slightly more hawkish fed might need to do. we just had the survey from the fed in terms of consumer expectations on inflation. it is running 6%. there are plenty of areas running hotter than that. if the fed decides he needs to be a little tougher, what does that look like? aditya: the most likely scenario for more hawkish fed would be reflected in the dots. you might see three rate hikes penciled in for next year and you might see four rate hikes penciled in for 2023. that is in line with our forecast. we expect them to hype three times next year, four times in 2023, but we think the dots will lag. if the dots do not lag, that will be a hawkish the prize. alix: we have a curve that gets flatter and flatter. the new york consumer fed survey says next year inflation expectations are over 6%, flatter, flatter. wh

silvia: the bank of england is in a difficult situation. inflation surged well above the forecast they had early in november when they released the monetary policy report. however, on the other hand, we have uncertainty with the labor market after the expiration of the furlough scheme. the impact on the market has been limited but we might see some strains going forward. more importantly, more concerning is the omicron variant, which is rampant in the u.k. at the margin, the bank of england will remain on hold on thursday, and will look for more time to get more clarity on the full implications of the omicron variant. tom: they stay on hold is the marginal call, and hold off to the new year to hike rates possibly. does that leave them vulnerable of being behind the curve on inflation that is looking more and bedded in the u.k.? silvia: there is that risk, and the meeting thursday will be a close call. we also have to take into account there will be no press conference thursday, no new round of forecasts. the bank of england will lack the op

in the last hour, the bank of england has raised interest rates. they've gone up from the historic low of 0.1% to 0.25%. it follows yesterday's news of inflation going beyond 5%. live now to our economics correspondent, andy verity, who's outside the bank of england. was this unexpected ? not really. the city and economists venerall not really. the city and economists generally have _ not really. the city and economists generally have been _ not really. the city and economists generally have been expecting - not really. the city and economists generally have been expecting the | generally have been expecting the bank of england to raise interest rates soon but not this time round, the main reason being we still don't really know how the omicron variant has hit the economy. the economy was already slowing down before the variant came along and there is a risk we have an economic contraction at the same time as we have the highest inflation we have had in more than ten years. nevertheless, what the bank of england has been saying in its monetary poli

the bank of england has decided it is now time to act to try to stop inflation getting out of control. since the bank of england's monetary policy committee first slashed interest rates to emergency lows in the wake of the financial crisis, they've had well over 100 meetings and they've only raised interest rates in three of them. there's a straightforward reason why they're doing it now — they're predicting that inflation will get up to 6% next april, that would be the highest it's been since 1992. we are seeing further upward pressure on wholesale gas prices. having seen them come up, they went up a lot, obviously, post—august. having seen them come off a bit, they are now going back up again. and i think this is directly related to some of the tensions we are seeing on the border between russia and ukraine, where a lot of europe's gas supply comes through. and of course, that will feed through, i'm afraid, when the next price cap is set. we have to take the action that we think will do the job to address and tackle the inflationary pressure, particularly in the medium term. we

then we have the ecb and the bank of england later in the week. the data are hot on both sides of the atlantic. the u.k. labor market in particular continues to show signs of strength. companies adding jobs a record pace. unemployment fell sharply despite the end of the furlough scheme. bloomberg economy reporter joining us now. why are we interested in the jobs numbers? i thought we had moved on to the inflation story. this is a post-pandemic number and it is unbelievably strong. >> this was meant to be the deciding factor in whether the bank of england would heights in december, but that seems to be off the table because of the new omicron rules. policymakers have said they will hike in the coming months. we will see how the end of furlough hits the labor market. even if on the face of it the data seems like good news, more than twice as many vacancies as there were last christmas, if you take the october unemployment figure, not the three-month average, you can see that is the first four months after furlough ended and a rise in economic inacti

a big decision for the bank of england tomorrow on interest rates. that's right, and if you remember, we have had emergency low snout for around 13 years. they started to edge up just before the pandemic, and then they dropped to a record low of 0.1%. but as we were hearing there, it is quite unlikely they will raise them tomorrow, and the city is betting 2—1 against that possibility because the bank of england doesn't yet know what effect omicron has had on the labour market. at the markets are betting that rates will rise in the new year, getting up to about one percentage point, so ten times what they are at the moment by the end of they are at the moment by the end of the air. but there is a limited amount they can do anyway to curb inflation, which is mostly driven by global commodity prices, as i said in the report. if you have surging demand from a reopening global economy and supply doesn't keep up, thatis economy and supply doesn't keep up, that is why prices rise. the bank of england's hope is that that is transitory and supply will catch

francine: this complicates matters for the bank of england. they may not be able to hike until february of next year. lizzie: goldman joining jp market -- morgan and barclays. even the most hawkish members of the monetary policy committee are saying they want to wait for clearer data on omicron before hiking, so with these new restrictions, it seems like that is the nail in the coffin. francine: it does seem like it. let's talk a lot more about the u.k. and the fallout. johnson's former press secretary also stepped down as the government spokesperson after a video of her joking about the party. >> does anybody have any questions today? [laughter] i went home. [laughter] >> with the prime minister condone having a christmas party? >> what is the answer? >> i don't know. >>'s cheese and wine all right? it was a business meeting. [laughter] it was a business meeting. it was not socially distanced. [laughter] >> people were doing everything to obey the rules. i will regret those remarks for the rest of my days and i send my profound apologies to a

this is andrew bailey, he's the governor of the bank of england and bailey was attending the.

i think the bank of england want to see what the bank of england want to see what the reaction is going to be to this because while as i said the outset of this interview, it is still very, very loose interest rates very low interest rates by any historical measure. there is the psychological impact here as to whether companies are more reluctant to take on, you know, investments, take on debt, the households are going to be more cautious with property prices with credit card spending. they will want as much information as they can in six or seven weeks will tell us a lot more on omicron. it may not tell us not a lot more on consumers response to today's interest—rate decision. response to today's interest-rate decision. . ~ response to today's interest-rate decision. ., ~ , ., , . decision. ok, thank you very much indeed. decision. ok, thank you very much indeed- that _ decision. ok, thank you very much indeed. that is _ decision. ok, thank you very much indeed. that is simon _ decision. ok, thank you very much indeed. that is simon west, - decision. ok, thank you very much indeed. t

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tuesday and wednesday, a host of central rate bank decisions with the ecb, bank of england, bank of japan all the policy decisions. lisa, we have talked so much about the federal reserve. can i get your thoughts on the rest of them? lisa: double markets will continue to go slow. that is one of the issues that may be underappreciated, the extent to which u.s. dollar strength in the short-term is going to continue to assert itself. that, in and of itself, will be a deflationary force given the role in consumer imports of currency prices. that strong dollar will really help bring that cpi under control. this relative dispersion in central bank policies is at the root of that. jonathan: do you think that can make a difference next year? dollar index just short of 96. jim: i agree with lisa. the trend will continue to be higher. that goes more into the strength and stability of the u.s. growth profile. i think that will continue to lead into both the perception of the direction of travel for policy at the fed, as well as providing support on the dollar side. i don't think it makes that big of

one of the big surprises is the bank of england has raised interest rates. we've got that call right. but real yields, the inflation-adjusted real yields for the u.k. have recently really shot higher, and that has boosted sterling significantly in the past few weeks. that is because of cooling inflation expectations and the u.k. the natural gas selloff has helped sell that story. january, the u.k. will be facing new customs rules. the u.k. could heighten restrictions as well. we've got currently very few restrictions come about for january onwards, there might be changes to that. so a sentiment change will take place for sterling in early january. kailey: those factors outweigh potentially more hikes coming from the bent of england because yes, they hike, but i know jonathan ferro wasn't all that impressed with a 15 basis point move. at what point, to what degree will a more hawkish boe and more hikes coming down the line offset some of those other factors you are talking about? jordan: listening to my research over the past six months has been weird, not no

the bank of england raises interest rates for the first time in more than three years, amid warnings inflation could hit 6% by april. honestly, i can't remember, actually. and coming up on the bbc news channel... another bad day at the ashes for england. good evening, and welcome to the bbc news at six. the number of new covid infections across the uk hasjumped again to a new record — more than 88,000 cases in the past 2a hours — 10,000 more than yesterday. as the 0micron wave accelerates, the uk's chief medical adviser, professor chris whitty, has told mps that he expects the peak to come "incredibly fast" but subside more quickly than previous variants because of the boosterjabs. more than 745,000 people had their booster yesterday — a new record — as the long queues continue. here's our medical editor fergus walsh. what do you want for christmas? for millions it is a booster. these people in newcastle today were prepared to wait for hours or a covid vaccination bus. it was a record day for boosterjabs, but also covid cases. boosters offer the best protection against 0micro

the bank of england delivered this verdict. nothing expected, but given the communication we have seen out of the bank over the last two or three months, who knows? the u.k. two-year responding to that. futures a little bit calm creeping into that market. again, this is one of

curious to see balance of risk and where inflation falls ahead of the bank of england meeting thursday. a couple weeks ago people were pricing in a nearly 100% chance of a rate hike. now it is at 40% because of the omicron variant and risks of downside to growth. today we get the opec monthly report. interesting after the gains we have seen in oil, the biggest in several months, how much do they look and reflect with the iraqi oil ministry which said frankly the omicron variant has not affected materially demand? at 9:30 p.m., antony blinken will get a policy speech that may be a formal description of what the administration strategy is when it comes to the end of pacific. -- endo pacific. they are very concerned about the idea of supply chain disruptions. how much do they try to fortify that moving away from china and get some leverage in discussions with that nation? jonathon: you have some company. one wrote it in the final week of the year? caroline: -- lisa: just because it is vacation time for you doesn't mean it is for everyone else. i think that you are right and i would say it

of england. dani: that is a great point when we look at the boe, the first to act a step ahead of the fed. the u.k. economy is still feeling some of the effects of omicron especially if we get another lock down after christmas. stephen: tightening 15 basis points, in my day you would go 0.5% when inflation is above the mandate. it is a tiny baby step. this time next year we could be at 75-100 basis points. these are minor headwinds. let's talk about fiscal policy for a second. we note in the u.s. that building back better is being held in its tracks. i believe they will get something through. in europe, yesterday, we had a letter written to the financial times by the prime minister of italy and president macron. we have a new administration in germany. they are looking at more creative ways of breaking germany's historic resistance to fiscal spending. and all of this is in the system. the money is being put to work stimulating the economy. that is changing the dynamics. dani: that is a great poin

feeling confident now, it is not because the bank of england has put up because the bank of england has put up interest rates by 0.15%, it is because the government has... it is because the government has... it is because of what is happening with the pandemic and what i think everyone would agree has been a somewhat chaotic and mixed messages from the government. iairti’heh somewhat chaotic and mixed messages from the government.— from the government. when you consider what _ from the government. when you consider what is _ from the government. when you consider what is going _ from the government. when you consider what is going on, - from the government. when you | consider what is going on, energy prices, thejob market — which many people are saying is looking all right at the moment — the growth forecast had been downgraded. is this move truly likely to make a significant impact on inflation? i think, as you said in, oras significant impact on inflation? i think, as you said in, or as eddie said in the report of this move in itself will affect very few people have almost no

the bank of england doing a u-turn. they were looking at a real rate hike right here right now, but -- immediate concern of an omicron variant. lisa: in the meantime, people are looking to apple to become a $4 trillion company. i'm looking at the next bull to get more bullish than the next. the issue i have is how much do we ignore the failures? do we ignore the missteps in our trajectory upward, given that is all we seem to be seeing these days? -- recently wrote a piece about the survivorship bias, how we certainly focus on the winners than the losers. you are talking about legos. are you very interested in legos for this christmas? >> it is not just legos. it is anything you could put money into and pretend is an investable asset class. it is collectible wine, artwork, cars. we see the winners, we see the ferrari 275's that go for $13 million. it is easy to look back in hindsight. you forget all the other investments that didn't pan out. legos is a great example. the whole beanie baby bubble craze from the late 90's,

i major love is in washington counting at the bank of england becomes the 1st major central bank to raise interest rates breaking from the tradition. how since the beginning of the pandemic will take a look at how the markets are reacting. plus, we have free marketing time and should be able to participate in that. that was how speaker nancy pelosi defending the members of congress who buy and sell stock while in office straight ahead. will discuss a debate running the controversial practice. and the supply chain was, are showing no signs of flowing down as a back up thing. a call, an auto sales in the industry at large. later on we get an insider's perspective on what lies over the horizon for global card fail. get a lot to get to go. we leave the program with the world 1st major central bank to raise interest rates since the pandemic began. in somewhat of a surprise moved the bank of england confirmed on thursday that it would move forward with its plans to raise rates from point one percent to point 25 percent. now governor andrew bailey acknowledged that the decision comes as th

is the fed, is the ecb, is the bank of england even still behind the curve? here's what they have been saying today. >> under the present circumstances, as i have said before, it is very unlikely that we will raise interest rates in the year 2022. that still stands. >> we are phasing out our purchases more rapidly because with elevating inflation pressures in a rapidly -- market , the market no longer needs support. guy: michael kushma joining us now of morgan stanley. michael mckee also joining us. the market reaction to the fed implies that the fed is still, on balance, still dovish relative to expectations, relative to where we are in this cycle, relative to the inflation narrative we are talking about. does the market reaction till us that the fed is still behind the curve? michael m: that is going to depend on your view on inflation. there is a camp that says inflation is going to stay high, maybe even accelerate. that puts the fed the hind the curve because it takes a while for policy to get into the economy. others buy the jay powell line that we are g

he also sees advantages of the bank of england waiting for the data. the rate rise will be limited if we do not delay too long. tom: the bank of england unleashed. and this was unleashed on arsenal. jonathan: did you see that first goal? if you where the referee would you have allowed that first goal, we do -- we want to know. tom: i do not understand it, it is your support. jonathan: it is your support too. it is a very inclusive sport. tom: i am in mourning. jonathan: it is payrolls friday, 5:50 the estimate. this is bloomberg. ritika: with the first word news, congress has averted a u.s. government shutdown on thursday night. the senate passed a stopgap spending bill and sent it to president biden. it will pay for government operations through february 18. without it, the government would've been forced into a partial shutdown. it is a stunning reversal, didi that went against beijing, and the company has begun preparation to delay state shares in the u.s. will start work on a hong kong share cell. they said that the u.s. listing would lead to a lea

in focus for the markets today the bank of england and the european central bank also out with their policy decisions in the next couple of hours, let's get more let's go to our friend in london, julianna tatelbaum good morning >> brian, good morning european markets so far following wall street higher we have a strong rally under way in europe, about 1.5% worth of gains for the german market. the ftse trading about .9% higher the swiss market also getting a boost this morning as you mentioned, it is a big central bank day here in europe. we have the bank of england and the european central bank and the swiss national bank delivering decisions this morning. but the european central bank today is expected to confirm the end of its pandemic emergency purchase program by march next year with omicron fast becoming the dominant variant here in the uk and inflation at a ten year high the bank of england needs to decide whether to pull the trigger on its first interest rate hike since the pandemic began. we're moving at slightly different speeds here in the uk and the u.s. but people are ca

which is way higher than the bank of england's target. so ijust think higher than the bank of england's target. so i just think there higher than the bank of england's target. so ijust think there is a lack of urgency here and this could be a real quiet thing that sneaks up on them if they don't address it pretty quickly and it bites down hard and of course we have got the local election in the new year and we will see how much of an issue thatis we will see how much of an issue that is then. we will see how much of an issue that is then-— that is then. sticking with the yorkshire post, _ that is then. sticking with the yorkshire post, the _ that is then. sticking with the yorkshire post, the saving i that is then. sticking with the i yorkshire post, the saving grace might be actually that we are in for a quiet balmy new year's day. 15 degrees i never know whether to enjoy a warmer to richer us as i always feel guilty now because of course we have climate change and we all worry about that. but it's only to be the warmest new year's day

of england is. this to raise rates as the bank of england is— to raise rates as the bank of england is. to raise rates as the bank of enclandis. a ,~ england is. as you say, they are still putting _ england is. as you say, they are still putting the _ england is. as you say, they are still putting the stimulus - england is. as you say, they are still putting the stimulus in. - england is. as you say, they are l still putting the stimulus in. they flooded the us economy with cheap money to stop the recession becoming a depression. but they are tapering it down to march. it was going to be tapered tojune, so they're doing and twice as quick. can you tell us in lehmans terms what the significant is?— in lehmans terms what the siunificant is? , ,, _, significant is? the shock coming in, the shock that _ significant is? the shock coming in, the shock that is _ significant is? the shock coming in, the shock that is at _ significant is? the shock coming in, the shock that is at the _ significant is? the shock coming in, the shock that is at the economy, i significant is? the shock coming

and andrew bailey the head of the bank of england — bailey the head of the bank of england was criticised for fuelling speculation of the interest rates rising _ speculation of the interest rates rising. unlikely the paper tells us to rise _ rising. unlikely the paper tells us to rise or— rising. unlikely the paper tells us to rise or tomorrow because of what's — to rise or tomorrow because of what's happening with people very concerned about omicron and very concerned — concerned about omicron and very concerned about omicron and very concerned about where the economy is lloii'i concerned about where the economy is going to _ concerned about where the economy is going to go _ concerned about where the economy is going to go and pressure on businesses and no further with a moment— businesses and no further with a moment and no extended support. so all of these, _ moment and no extended support. so all of these, the whole mr will make the back— all of these, the whole mr will make the back of— all of these, the whole mr will make the back of england monetary policy committee mo

that is andrew bailey, the governor of the bank of england. most travellers from the uk will soon be banned from entering france — as the government there tries to control the spread of the omicron covid variant. tourism and work trips to the country will no longer be permitted. french citizens and their immediate families won't be affected, but they'll face stricter rules on testing and isolation. joining me now is paul clifton, our transport correspondent is there a rash as people tried to get to france ahead of these new rules coming in? aha, get to france ahead of these new rules coming in?— get to france ahead of these new rules coming in? a few people are t in: to rules coming in? a few people are trying to do _ rules coming in? a few people are trying to do that. _ rules coming in? a few people are trying to do that, yes, _ rules coming in? a few people are trying to do that, yes, there's - rules coming in? a few people are l trying to do that, yes, there's been an increase in bookings today, people trying to get out of the last mom

the bank of england, the fed,, the ecb and the bank of japan together, those, four make up 40% of the world economy. that's it for the european market open. "surveillance: early edition" is up next. we look at omicron. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. >> there is a tidal wave of omicron. >> this is not a one time thing. >> the characterization of inflation is transitory. >> this is bloomberg surveillance: early edition with francine lacqua. francine: welcome to "bloomberg surveillance: early edition." european stocks rise as

and i merge of love is in washington. counting up the bank of england becomes the 1st major central thanks to rate interest rates breaking from the traditional health and the beginning of the pandemic. we'll take a look at how the markets are reacting. plus, we have free market economy. we should be able to participate in that. that with house bigger, nancy pelosi defending the members of congress who buy and sell stock while in office straight ahead. will discuss the debate to running the controversial practice. and the supply chain, whoa, is, are showing no signs of slowing down to back up and taking it on auto sales in the industry at large. later on we get an insider's perspective on what lies over the horizon for global car sale. going a lot to get to go we leave the program with the world 1st, major central bank to raise interest rates since the pandemic began. in somewhat of a surprise, move the bank of england confirmed on thursday that it would move forward with its plans to raise rates from point one percent to point 25 percent. now, governor adria, bailey. acknowledge that the d

the bank of england, some are in between. this bank of england, i cannot depend on it. i have no idea what they will do tomorrow. tom: will you turn to west ham halfway through the press conference? jonathan: i will watch arsenal-west him. tom: we look forward to that. -- jonathan: i will watch arsenal-west ham. tom: right now, alan ruskin, chief international strategist at deutsche bank. congratulations on your note on the terminal rate. what is the terminal rate and why should jay powell focus on it? alan: the terminal rate is seen as the peak rate in any particular cycle. it is critical at this point because the market is expecting a very low terminal rate, 1.5%. if you think the fed's peak will be 1.25%, if the 10 year yield is not backup particularly sharply, conditions will not tighten very much and the equity market will prove resilient, as well. asset markets are tied together with were the terminal rate is. tom: it has been one of my great themes. alan ruskin, do we underestimate the overlay of technology on engaging where the terminal rate is or should be? do