♪ >> good morning from bloomberg headquarters in dubai. i'm manus cranny. it is daybreak europe. china is warning of asset bubbles. u.s. and european futures point lawyer. the debate continues. jamie dimon tells bloomberg he is not a buyer of the 10 year treasury.

and oils 2021 rally hits a pause. we will get the blackrock view. that is on the super cycle. 6:00 a.m. in london, 9:00 a.m. -- it is 10:00 a.m. in dubai. i pause for the chinese regulators. if we were not in a fever enough state in these markets, you've got the regulator warning the financial market froth is risking a burst. china's property bubble is relatively big. they are warning of an overseas financial market bubble. head-smacking craziness in markets. good morning. annmarie: good morning, manus. the timing may be very pressing it as global investors debate whether or not stocks are

overvalued. what i find notable with chinese regulators coming out is the timing of it. china trying to flex its muscles as it heads to the npc later in the week. a little bit of geopolitics for my thinking, but a lot of people will say this is easy for china to point the fingers elsewhere. we should look at how it is impacting the chinese equities this morning because they are lower. csi 300 is lower and that is feeding into the futures market in europe as well as the united states. csi down nearly 2%. s&p 500 futures down .5%. and then you have oil, below $60 a barrel on wti. this comes ahead of the all-important opec-plus meeting. 1.4% 10 year yield. i put that on the bottom because jamie dimon yesterday spoke to bloomberg and he says he is not touching treasuries with a 10 foot pole. jamie: i would suspect there's a good chance you will see rates going up and people start to worry about that at one point. i whatnot by 10 year treasuries -- would not buy 10 year

treasuries. annmarie: we will have plenty more to come from that exclusive conversation this morning. manus, you pointed out to me this morning that what was it, august 2018, it was dimon warning that the yield could hit 4%? manus: yeah, 4%-5%. you know what, when you have been warning like that for two or three years ago, it goes to the principal. he is more worried -- we will hear from him in a moment -- he is more worried about covid. focus on that, and nuclear war. annmarie: yeah, and fauci overnight worried about these variants in new york where you have a reopening of restaurants, etc. we also heard from richmond fed thomas barkin. here's his take on the move in yields. thomas: i think we have control of the yield on the short end. on the longer end, it depends on the driver. if the driver is normalizing inflation expectations, that is

welcome. if the driver is news about vaccines or health of the economy or news about fiscal stimulus, i think it is a natural reaction. manus: joining us now is ellen higgins. good to see you got up early for us. great to have you with us. let's set the stage. the chinese say they are overseeing -- overseas bubbles in overseas markets. they are concerned about leverage. do you think there are huge bubbles in equity markets, first of all? >> in equity markets over all, the bubble is too dramatic. by the way, good morning to both of you. it is a great pleasure to be back on the early show. bubble is overstated. why? because interest rates are still very low. like finance 101, discounting

those cash flows at these very low interest rates still work. that is why this move-in in bond yields is so important. it is quite important that it stopped to mitigate some of the damage it was doing. it is very easy to use the word bubble now. gamestop, i would argue. bitcoin, yes, bubbles. general equity markets, no. you can support the valuations in this ultra low interest rate regime. annmarie: at what point does a 10 year yield, what level does that start to stress out equity markets? bank of america says 1.75%. what do you say? alan: it is hard to say. i thought tom barkin was spot on. the short end is going nowhere. the fed is going to do nothing about interest rates, nor is any central bank. then, you're talking about the yield curve. well, if you look at the yield curve, if you pull up on

bloomberg -- for those using the bloomberg terminal, you will see 200 to 250 basis point spread a peak. we could easily get back there. for more, you are talking more like a 2% target for 10 year treasury. then, you put credit spread on top of that and that really starts to compete with equities. then, you are talking about corporate bonds in the 3% area. sometimes it is as simple as that. i would look for somewhat higher yields, which i would expect later this year. what we have seen so far is like an entree. the main course will come when we see how inflation -- higher inflation and really strong growth later this year. manus: jamie dimon talked about gangbusters growth to come. so, if there is gangbusters growth to come, the other note that we've got is bank of

america. they say the fed is simultaneously losing control of both the u.s. front and the back end. is the fed really losing control of the curve? alan: the front end, no. not really. there's a little bit of a risk premium built in. you can envision a scenario where the fed raises rates a little bit in a couple years time. the 10 year is determined by the market, unless the central banks come in as we saw in australia a couple of days ago. if the australians come in, if central banks come in like the australian central bank comes in, that could support the long end. if long yields are rising because we've got an economic boom coming, that is good news. that is what we have been waiting for. i think that is too dramatic to

say lost control. annmarie: doesn't the fed or boe, they don't seem particularly worried -- do you think at some point there should be a little bit of verbal angst coming from either of those central banks? alan: well, you see it in the fed from various officials, don't you, as your article showed. i think the bank of england has got a long way to go. remember, the mortgage market -- if you think of where it really impacts the consumer and the corporate sector, the bond market, corporate bond market in the u.k. is not that large. so, what impacts the consumer? it tends to be two and five years, the classic mortgage market. in the u.k., really, rates would have to go up a whole lot higher before it really impacted. it is more about the front end. again, if we get higher

inflation in the u.k. which i expect later this year, what is the npc going to do? nothing. 2011, 10 years ago, u.k. inflation went to five and a bit. u.s. inflation went to three and a bit. what did the central banks do? nothing. it will be the same this year. annmarie: alan higgins stays with us this tuesday morning. thank you for getting up early. let's get a recap of the first word news with laura wright. laura: a single shot of the pfizer or astrazeneca vaccine can cut hospitalizations by around 80%. that is the finding of a new study from public health england. the health secretary says it is a sign the is working. france is also going to allow the astrazeneca shot to be used in the elderly. the u.s. is preparing junctions against rush over the poisoning and jailing of alexei navalny. sources tell us the measure could be unveiled as soon as today and involve the state,

treasury and commerce departments. it would be president biden's first move against russia since he took office. dublin is pulling ahead of the top destination for u.k. finance firm moving to the eu after brexit. according to a study, about three dozen companies are considering the move or already made it. luxembourg comes in second, followed by frankfurt. about 7600 finance jobs are leaving the u.k. global news 24 hours a day on their and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. manus, annmarie. manus: thank you very much. coming up, talk about a possible revival of operation twist. what is the latest from the fed on raising yields? we hear from thomas barkin who plays down the market swings in our interview. this is bloomberg.

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>> patient recovery is not acceptable. we need a recovery that affects everyone and the most rapid recovery for those at the very bottom. manus: talking about the need to ensure that no one is left out of the recovery from the covid pandemic. rounding expectations about inflation in the unraveling of market positions, trading turmoil in the treasury market last week, the fed has so far played down its concerns sending a message the u.s. central bank is not yet troubled by the increasing yields. richmond president thomas barkin spoke to tom mckee. >> you do see this situation. a lot of them closed down for a couple of months last year.

when we came back, the amount of excess savings from people's pockets led to people rotating on spending on goods. there has been a lot of demand. they have been behind the curve trying to catch up. when you are in a manufacturing job, it is not as easy as saying why don't you just open up another line? that takes a lot of money, a lot of investment. people have been working at 110%, but demand has been extremely strong for anything related to time at home, outdoor recreation, those kinds of extend the truce. -- expenditures. i hear the same thing you saw in the survey which is the manufacturing sector is very busy and working hard to keep up. what that does for prices, i do think we will have priced pressure in the spring because i do think we will have pent-up demand as vaccines are rolled out and warmer weather approaches. i do think we are going to see that price pressure. tom: some of your colleagues,

including the chair dismissed the bond market move as a sign of confidence in the economy and said the inflation moves we are expecting will be short-lived. but, traders say it is not that simple. yes, maybe at the longer end, you have some of that, but at the shorter end, there's a lack of repo collateral, overnight treasury negative a couple of times. do you see anything in the markets that the fed will have to address? mr. barkin: i focus on some of the fundamentals. you talk about price pressure, we will see that in the short-term. not to the least of which we are rounding over the next few months that were deflationary last year. the twelve-month the numbers look a little higher than normal. but inflation is a longer-term phenomenon. it relates to expectations. what people expect prices to be. i have to say as i am speaking to businesses in our district, i am not hearing a sense of

overwhelming desire or intent to be escalating prices beyond normal levels. i think we will see some pressure, but i do still expect the medium and long-term for it to be moderate. annmarie: richmond fed president thomas barkin speaking to michael mckee. from one central bank to another, the bank of france governor says the ecb "can and must react against any unwanted rising bond yields that threatens to undermine the euro area economy." his comments are among the strongest yet but ecb officials. alan higgins is still with us this morning. what strikes me is the data we got last week about the ecb. they slowed their bond purchases. my guess is that timing is bad, but what did you make of villeroy's comments? should we take them at face value? alan: yeah, it was surprising because step back a bit, bond yi elds in your, in most countries

are deeply negative. in contrast to what the central bank of australia has done, via actions, the ecb has not come through. really, do they really need government bond yields to be deeply negative to support the corporate sector? i don't think so. again, europe is different from the united states. the corporate market is less important. borrowing on a spread is less important. it is all about bank lending. and cast rates at deep negative, as we know. i think that is a bit misplaced. he's an expert, he's a central banker. i just don't see that at all, the fact that bond yields have gone from deeply negative to still quite negative in most countries. manus: even central bankers can make mistakes. i think you will find history has proven that in the past. in terms of cyclicality, i was

listening to peter oppenheimer talking about global growth of 6%, next year 4%. he wants cyclicality, he wants any drawdown met with buying. is europe a ground zero for cyclicality? it is what a lot of people have told annmarie and i. how does it play to you in terms of allocations? alan: i think that's right. i think rather than focusing on countries, the big divergence last year and what we expect this year's so-called quality companies and growth companies. the amazon, apple, faang's obviously. it just so happens that when you come to the europe and u.k., you find a lot of these cyclical companies. yeah, we don't need to over complicate it. there will be a strong likelihood of very strong growth this year. we know that from last year, from last summer, and with the vaccine. it's time for cyclical shares to have their time in the sun.

we think this rotation has legs. i think that came on in november and december. look, we will still have some exposure to quality and growth, but we are tilting the portfolio more towards cyclical stocks definitively. annmarie: quickly, you and i both know sitting in the u.k. that we have done well on the vaccine front. what is your outlook on the pound? it is starting to soften against the dollar and the euro. alan: yeah, it has come off its highs. we are pretty positive on the pound still. look, it has come a long way, but one, it is undervalued. i suppose if the interest rate differential that supported the dollar has gone away, the large interest rate differential we saw prior to the pandemic, that has gone away. so, the u.k. rates are just average. vaccination is a good story. the fact that u.k. plc is very

open for m&a flows, we are seeing property flows as well. the current account is not as bad as it was. yes, sterling, we will be bullish on. manus: give rick a call of the road. he's looking for 1.55 in the medium-term. alan, thank you for being on the ship. stick with us. he's committed to the early shift. conversations coming up with jp morgan chairman and ceo jamie dimon, and he makes the case for a broader return and touches on stimulus and the pandemic. don't miss the conversation. that's next. it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? delegating? oh, good one.

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annmarie: good morning. i'm annmarie hordern with manus cranny. jp morgan's jamie dimon would like the bank's employees to get

the vaccine, but will unlikely require the shot for now. ed hammond spoke to him exclusively. jamie: getting through covid is absolutely critical, and we are still in it. looks like there is light at the end of the tunnel by the beginning of the summer or some thing like that. it is not a binary subject. i think democrats and republicans are like ships passing in the night. there are legitimate complaints. there are a lot of people suffering who need help. if you want to go through it, you need to go through all the details. unemployed definitely need help. small businesses definitely need help. people at the lower end definitely help. women who had to go home to take care, they definitely need help. i don't know if you know this but half the states, revenues went up. we are just throwing people at -- money at people. they should be cautious about overdoing it. get the country going but don't overdo it too much.

ed: isn't the risk of exactly that? if you have places and states, people that don't need help, you over pump the system, you create this risk of inflation? jamie: the system already has that. it looks like there's $1 trillion that is unspent. that is before this $1.9 trillion. there will be money. there's a good chance you will have a gangbusters economy for the rest of this year and easily into 2022. the question is does that oversee everything? we don't know yet. i wouldn't worry too much about it. i would worry about covid and nuclear war than that. i would suspect there's a good chance you would see rates going up and people start worrying about that at one point. ed: let's talk about covid. jamie: i have been clear, i would not buy 10 year treasuries. ed: on covid, we are obviously doing this in person which is fantastic. in new york, but still largely

empty. how important is it to a businesslike jp morgan to have people coming back to work? jamie: it is very important. i do think we will be part of the world where a certain event of people will work from home permanently. i think there will be a large portion who permanently work in the office. think of our branches, cash management, most of the trading floor, etc. there will be some hybrids were you spent two weeks at home or three weeks in the office. two days, three days. i think it will reduce the need for commercial real estate, but there are huge weaknesses to the zoo moral -- zoom world. seeing mistakes, going on trips, how to handle the client. it is hard to dislocate culture and character and all those things when you have the zoom world. spontaneous combustion goes away. hard to be very critical. you have 15 people on the screen. before, a deep dive question

and i will look through. i met 100 people all outside, all wonderful. it's amazing how many own their own business, their own bankers, products. i met with snowflake. we learned about technology. you are not going to do that in the zoom world. bankers' relationships is very hard to build and develop on the zoom world. there will be more zooming. ed: as when the vaccine becomes available for your workforce, will you make it mandatory? jamie: it is hard to make it mandatory. there are laws about that. we would like to have carrots and sticks. we want people to take it. you certainly cannot make it mandatory before it is fully accessible. that answer cannot be fully answered until june. i do think you will see some companies do it. i can see an airline doing it, a hotel company doing it.

so, there will be pressure. i would say carrots and sticks, not mandatory. manus: great conversation. very broad narrative. jp morgan chairman and ceo jamie dimon speaking exclusively to ed hammond. you can catch more of the conversation through the day. annmarie, for you and me, bond and risk trader, you wouldn't buy 10 year government bond yields. he has not been buying them since 2018. the burning question was how high can they go? jamie dimon needed that line to fly on bloomberg. annmarie: 100%. i wonder what level or when he potentially would get his hands on some 10-year treasury yield. the other thing i thought was interesting is he talked about the real estate. you and i have this conversation with standard chartered saying they will trim by 40%.

what does this mean for cities and corporations around the world? manus: yeah, and he wants to maybe have a carrot and stick approach. let's reset. hong kong financials -- no jab, no job. we will hear from paul right here on bloomberg. ♪

♪ annmarie: good morning from bloomberg's european headquarters in london. i'm annmarie hordern with manus cranny. china's warning over asset bubbles sours the rally. yields stabilize and the 2021 rally for oil hits's. we will get the take on the

super cycle. good morning to give. 10:30 a.m. in dubai. we need to start with what's going on in china when it comes to the regulator, really sounding the warning about potential bubbles in overseas markets. that is what spooked to the rally we saw over on wall street last night into the chinese equities, really stumbling this morning. i personally think it is an interesting timing as we had towards the npc, china kind of flexing their muscles. manus: yeah, people have cautioned the pboc might be,

relative to pcb. i love the line from paul singer a couple of days ago, head smacking craziness. he wrote that in the american equity markets back on january 28. whether there is a bubble or not, that will be tested. we've got the chinese market reaction, csi 300 down. s&p futures were in the green this morning. now firmly back in the red. down .25%. jamie dimon just said we will have a gangbusters economy. the growth and cyclicality trumps any narrative. 1.41%. i don't think we have done yet. jimmy buyer is not a buyer of 10 year government bonds -- shock headline. he has not been a buyer is 2018. there narrative from bank of america's unique operation twist back in the mix, which is regaining control of the short end of the curve. to hong kong, the decision on stock trading. it won't harm its competitiveness as a financial hub. >> we remain very confident on the competitiveness of the hong kong stock market in the unique

position that we are in. people are interested in the market are more the mainland economy and mainland companies. and if international institutions want to put their money into chinese companies, here's the preferred choice. annmarie: paul chan did refer to further hikes on stock trade. china's top banking regulator says he is very worried, manus, as we discussed, about risks emerging from bubbles in global financial markets especially overseas. let's get reaction what this meant for asian assets with juliette saly in singapore. juliette: yes, it certainly has been a flat tuesday as the dump out of equity markets and futures for u.s. and european markets. he says he sees bubbles for european and u.s. equities as

well. these comments came in before the lunch break in hong kong and china. at one point, we had the csi 300 down over 2%. a lot has been flowing through into property stocks in hong kong and china after paul indicated he's worried about the nation's property bubble. saying a lot of people are buying homes as investments or speculation. when we talk about the shift toward safe haven, the dollar moving higher. chinese government bonds benefiting, sending yields to a nearly three week low. we have seen the on and offshore you want weekend. they will be in a tight range ahead of the npc on friday. the communist party leaders expected to approve its five-year policy blueprint to cut dependence on the west. the other crucial factor is whether or not the pboc will turn the caps off. china's interest rates are relatively low and will likely rise this year as market lending

rates are increasing. it is further suggesting the pboc could be scaling back its stimulus. the trouble is we have been preparing for some tightening from the pboc for a while now without much actual action from the central bank. manus: yeah, such as the boy who cried wolf. last week, the chinese bond market moved incrementally, like one or two basis points. keeping it real. from singapore. laura wright keeps it real everyday with the first word news from london. laura: global virus cases rose this past week for the first london almost two months. the world health organization says it is due to countries easing restrictions and people letting their guard down. in the u.s., infectious disease expert anthony fauci says health officials are closely watching a new variant detected in new york city. at a time when public officials

were taking vaccines on camera to boost public confidence, sources say former president donald trump was privately given his first dose while still in office. he and his wife have had their second shots as well. this sunday, trump told everybody to go get their vaccine. police raided one of the world's most famous soccer clubs, arresting former officials of fc barcelona. it was related to last year's scandal where officials were accused of a smear campaign against players who are critical of the club. global news 24 hours on air and on bloomberg quicktake, powered by more than 1200 journalists and analysts. this is bloomberg. manus: thank you very much. let's turn the conversation now to another story. it is about china, the center of the commodities rally.

blackrock says historically natural resources, equities have performed strongly in absolute terms and broader to -- and relatively to broader equity markets with rising inflation expectations. joining us, it is evie hambro for blackrock. great to have you with us. let's set the stage because we are debating this. super cycles, you have lived through a few of them. there have been four in the past 100 years. does this look like a super cycle, seem like a super cycle, and does blackrock say it is? good morning. >> good morning. a pleasure to be able to speak with you today. this is one of the topics that everybody wants to talk about right now. having lived through a few of these cycles, there were clearly

a lot of signs this is building up to be potentially one of the most enticing ones we have seen in modern times. we have a situation where the resource companies very successfully on boarded reputation of capital discipline and that has led to other investments into new supply over at least the last five years. we are now coming out of the pandemic and many of the trends we have spoken about before, they are being accelerated by the impact of the pandemic the lower carbon economy, increasing gdp for commodities. all of this is very exciting. we are building into a demand environment, probably more synchronous that we saw in the previous super cycle in the first decade of the century which was driven exclusively by china. we now have globally coordinated spending that is commodity

intensive which is lifting commodity demand to higher rates than you'd expect and we have a supply-side that is relatively constrained. with the absence of growth in supply over the next few years, commodity prices should beell supported. annmarie: but not all commodities are made equal especially because of the energy transition. things like lithium and cobalt and copper are very much needed but we will not need as much coal or oil. is this a divided super cycle? evy: yeah, i think what we have today as we have a generally buoyant demand environment for commodities. we have seen that play out. most commodity prices are trending higher. some will be on a spectacular demand driven economy increased. the ones that are the biggest beneficiaries are this transition to a low carbon economy. we think the rollout of electric vehicles come away from combustion engines, the power generation to renewables, that

is very copper intensive. the batteries with lithium, cobalt and nickel. there are some commodities that will move a lot faster. you should think about it like a river. the fastest flowing part of the water is the area where commodities will receive the highest rates of growth at the edge of the river will see the slow demand growth. we are in general seeing a significant economic recovery coming through and that will lift demand for most commodities. manus: certainly that green stimulus from bite it is almost going to be a super overlay are on the narrative. going back to the first and second quarters of 1998, you talk about an inflationary period. still, oil and copper are absolutely china infant -- triumphant. can you see $100 oil as we have been talking to some guests?

can you see $10,000 copper? evy: i have been listening to many of your commentators over the years now, in particular recently, a lot of people talking about the much more buoyant market. we are likely to see new highs in the number of commodities. that is a typical feature of a strong bull market in commodities where we do see things move to new peaks. copper, we are not far away from that at all. i think that is a very reasonable expectation. i think the demand recovery we are seeing in the oil and gas sector is driven by opening up the global economy. we are going to see people traveling again, people who are desperate and want to go on holiday. we are going to see demand from oil. i think it is going to be an exciting time for many of these commodities and maybe we see some new highs in a mixture. annmarie: when you talk about oil, i have to ask because we have an opec-plus meeting this

week, we have seen some softness ahead of this meeting. do you think the prince and his russian counterpart are going to maintain pedal to the metal when it comes to having their finger on supply? evy: i think we are obviously in a long, long play out with regards to many of the copperfield speed clearly, the world needs to consume a number of these fossil fuels. i think for the people who have large capacity within the ground and infrastructure above the ground, they are going to be playing that long game. they will try to maximize market share to monetize many of those natural resources they have while the world still needs them during this transition. the question of making sure prices are good enough to encourage demand but not so good that it encourages new supply into the market. one of the more interesting things in the oil space today, the very large historical

decline. when you combine that with a huge amount of capital that was not spent in 2020, these massive cuts many producers have announced an ongoing brands of their own business models to transition away from exposure to oil into other sources of energy , you have to question whether supply will come from the medium-term before we get that demand. manus: we will dig into some of the big names in a moment. interesting to see a shift in the and australia. i'm looking at gold. there is this ongoing debate. i know that gold stocks -- we'll touch on that. when you see this drop in gold, is it a serious warning or just a natural repricing? evy: last year, we saw some very extreme moves in the range of the securities in the market.

we saw the u.s. 10 year get down to an interest rate of about .6%. that was a big low point for the yield on the 10 year. we saw gold prices go to new all-time highs. the link between those two is extremely well correlated. when you think about that, between its recovery and yields to where they are today, it is natural the gold price has given up some of those gains. longer-term, it is our view that gold prices are likely to remain well supported. we have strongly negative rates in most countries around the world. inflation does show signs of recovery. gold has been for thousands of years the natural protection of people's purchasing power and wealth, and i don't see that role disappearing. today, we have access to gold in ways we have never had before with gold etf's and other products that move people to move and and out of the sector. there's no surprise to see some volatility in the markets, when you see such huge swings in the

u.s. 10 year yield. annmarie: we are at $1721 for gold this morning. what is your year end price? evy: we don't use short-term price, but we look at medium-term price trends. we see a number of these commodities trending higher. gold is obviously very well linked to the u.s. 10 year. if you can give me a number of what the u.s. 10 year yield will be by the end, it is easy to predict. annmarie: i am definitely not in the business of forecasting 10 year yields. maybe manus and jamie dimon no. evy stays with us. coming up next, has the pandemic halted progression toward sustainability? what this all means for green investing. this is bloomberg. ♪

annmarie: good morning. this is daybreak europe. i'm annmarie hordern.

the combination of consumer pressure, increasing regulation and corporate response seeing that progress is continuing. the company's report highlights technology is a key driver in says plastic can be a solution as well as a problem. we are back with evy hambro from blackrock. it's technology, plastic, health care and fast fashion that you are seeing these trends. what kind of companies in this fund would you want to be exposed to? evy: yeah, you are completely right. we are seeing this huge trend amongst companies to think about their impact on the world. how are they doing business and how does business work with life? and sustainability is the key to unlocking that. business can only coexist with life is businesses thing about

life in a more sustainable way. when we are think about that as a general policy, one of the things we have picked up of the last few years is the increasing adoption of business practices around circularity. companies thinking about what they consume, how they sell things. customers and regulators are thinking about the same thing. it is this entire concept for businesses across the range of different sectors. the role that they play. regulation is having a huge part in this as well. we are seeing the moves against plastics, the plastic taxes coming in. we are seeing changes in the way people consume food. we are seeing customers want to change their behavior as well. i think it is a combination of everything. what is really exciting is the impact of technology during the last two years that has provided solutions for many of the problems of companies, regulators and consumers are looking for. we can now all go to the supermarket and see a variety of different packages types as an

example. many of the products that we want to consume. that is no longer in that single use plastic we are thinking about admitting of these things are recyclable. it is happening really quickly. there's an enormous amount of value being created. manus: just give us a sense in terms of the power and might you might bring to bear that is a major investor in terms of pushing that agenda, the circular economy, and pushing companies to adopt better practices. evy: yeah, a few years ago now, we signed an agreement with the ella macarthur foundation. they are knowledge partner for blackrock. they provide us with the information we need to help inform us toward some of these trends and what companies are doing. that obviously helps us build the portfolios we put together

for our clients. blackrock itself is a partner of the ella macarthur foundation so it is our job to advance the understandings. we are now thinking about this and the way we engage with companies. we are thinking about it regards to how we vote as well. how businesses behave, how they e behaving in doing commerce, how they are engaging with regulators and customers. all of this plays a role. i think this is a really exciting trend in a trend we are seeing other financial institutions also start to look at. annmarie: i know this report is fresh and brand-new but what are you seeing in your mind, you know this space so well, 5, 10 years out? evy: it wouldn't surprise me to see -- when we started doing this, i think we were one of the first funds to come out in the market. i think there might have been a couple of tries before but it is

the only one at real scale today. what we are now seeing is lots of other groups try to bring products that are similar to the market as well. it is definitely happening. this trend is very real. in addition to that, we are seeing it play out in terms of -- you can go onto the internet and search for circular business practices and you will find millions and millions of records. you do searches through earnings transcripts and the concept is there. you look at the sustainability report. this is really being adopted very rapidly and i would hope for the benefit of the world, for the benefit of my children that we do start to see business behave in this way. manus: thank you so much for being with us this morning. about to do a huge esg discussion with some of your counterparts next week. we will dig into the whole concept as well. evy hambro, global head of the medic and sector investing a

blackrock, thank you for your conversation. coming up, we bring you the events of the day ahead. one destination, daybreak europe. this is bloomberg. ♪

>> emma kratz and republicans are like ships passing in the night. there are legitimate complaints in this bill that has nothing to do with covid. there are a lot of people that are suffering that need help. you have to go through all the details. unemployed definitely need help. small businesses definitely need help. people at the low end need help. half the states, revenues went up. they need help. we are just throwing money at people at one point. there will be other sides. they should be cautious about overdoing it. get the country going, but don't try to overdo it. manus: jp morgan ceo there with his take on the u.s. stimulus.

stay with bloomberg. we will hear from jamie dimon throughout the morning. coming up on the show. the favorite line from him was he cannot inculcate culture. i cannot even say it. annmarie: he wants people back at the office, it is obvious, yes. manus: what do we got? annmarie: we have a reading of the euro area cpi for february and a look out for target fourth-quarter earnings. revenue strong for the retail giant. later on, the latest inking from the fed. the san francisco fed, daly, she will be speaking as well. it is full on week for a speak leading up to powell on thursday. manus: it is absolutely. the question is, bank of america seems to think that they have lost control of the long end and the short end. we like control on this show. the producer loves to control

you and i. it doesn't work. daybreak european market open is next. this is bloomberg. ♪

♪ >> welcome to bloomberg markets: the european open. today, the markets say beware the bubble. a warning from china's top banking regulators sour the rally. u.s. and european futures point lower. here are your top headlines. yields stabilize but the debates continue. jamie dimon tells bloomberg he's not a buyer of 10 year treasury. the