get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. annmarie: good morning from bloomberg's european headquarters. it is 6:00 a.m. in london. i'm annmarie hordern. >> i said i intended to get 100 million shots in people's arms and my first 100 days in office. tonight i can say we will not only meet that goal but we will beat that goal. annmarie: in his first primetime

address, president biden marked a year since lockdowns began, and hints at a return to normality by summer. u.s. regulator backed astrazeneca despite concerns of a bloodclot. a coronavirus outbreak in hong kong is causing concern for the financial industry. some banks are advising staff not to come into the offices. very good morning to you and happy friday. that's look at where we trade this morning. we heard overnight from the president of the united states, s&p 500 futures flat this morning. yesterday we hit another all-time high as president biden signed the relief spending. futures a little bit flat, but we are still in the green. msci asia holding onto gains, momentum continues even with trade tension. the biden administration is

issuing new them it's on huawei suppliers. some relief in the treasury market after the 30 year auction yesterday. for the most part it was relatively smooth, and we see dollar strength. the yen weaker for a second day. the dollar heading for its first advance in four sessions. yields a little bit higher. janet yellen saying stimulus checks will be deposited in bank accounts by this weekend. president biden marked the one year since the nation shut down due to coronavirus. pres. biden: i need you, the american people, i need you, i need every american to do their part. here is the truth, the only way to get our lives back, to get her economy back on track is to beat the virus. all adult americans will be

eligible to get a vaccine no later than may 1. we will not only meet the goal, we will beat the goal, and using every power i have as president to put us on a war footing to get the job done. i need you. i need you to get vaccinated when it is you're turn and you find an opportunity. if we do not stay vigilant and conditions change, we may have to reinstate restrictions to get back on track. we do not want to do that. if we do this, if we do our part, if we do this together, by july 4 there is a good chance we mark our independence as a nation and begin to mark our independence from this virus. we have made so much progress. this is not the time to let up. this country can do anything, hard things, big things, important things.

i promise you we will come out stronger. annmarie: president biden speaking last night, first primetime address since he took office. we will discuss this with derek wallbank. give us a sense of his tone. we saw some of it there, he is trying to speak directly to the americans, but how has it and received? derek: i think unless you are a paid republican political operative, you probably like that speech. most people that i saw were generally positive towards it. biden is continuing a little of trump's trend not trying to rewrite the gettysburg address, but to speak in ordinary tones. beyond that, the difference in tone really could not be greater. i do think the messaging is important. he is trying to get the people

to say, there is actual optimism. you have some steps to take, but there is optimism. i think that is a big message, a positive message, and one that comes on the back of the stimulus bill that got put through congress. biden has a win here, he is trying to sell it, and he very clearly said that the recovery economically is linked to the recovery from the virus. he is making that really clear. annmarie: he is setting a clear exit timeline when he talks about that optimism. i think putting dates in the mind of americans is important, but the question remains, is it achievable, the timeline he outlined? derek: i think the hardest thing is to reopen. it is easier to close than

reopen, because at some point you have to say the risk is not zero, but it is good enough. zero is not a risk that works. you cannot run an economy on zero risk. putting a swimming pool in your backyard is not inherently risky, but a lot of kids die from falling into swimming pools and drowning. nothing carries no risk. you cannot operate an economy on no risk. someone will have to say it is good enough. what biden is signaling is that especially, not just to people who are on the others of the aisle, but people in his own coalition saying, we are getting back to normal and we have to reopen. where that is really critical is within schools. we talk about restaurants and airlines, but it is schools, how you deal with teachers and students.

students cannot necessarily get this vaccine yet. how do you get the schools open safely? if biden is saying july 4, you are looking at a clear signal that by the fall, most of this stuff will be reopening. biden said he wants in the next 50 days more than half of kindergarten to eighth grade schools in the united states open in person learning. that is a big thing, and that will be a major fight coming up. annmarie: it is something we are dealing with here in the u.k. with the first full week act for students. thanks to our bloomberg senior editor, derek wallbank. joining us now is philipp lisibach, head of global equity strategy, credit suisse. we have the one .9 stimulus hitting the united states. janet yellen says it will be in the bank account of americans as

soon as this weekend. what you make of the u.s.? do you want to change or allocation that it has so much money splashing around? philipp: there is enormous money. with 1.9 trillion, this is bigger than originally anticipated. this will have a huge effect and quick effect on the economy. not just in the u.s. but globally. when you look at equity markets, they have anticipated much of that. you look at inflation expectations, and consequently what yield has done, there are a lot of expectations priced in. this week the investment community thought the risks in our portfolios, we are in this awkward in between phase. the reopening as they but not yet active. the pandemic is falling behind

but very much with us and breathing down our next. just -- breathing down our necks. this can usually have an effect on markets. we de-risk some of our portfolio and we have reduced our equity position. annmarie: why emerging markets specifically? do you think the news flow will be more negative? the risks will be toward em? kind of like the biden administration taking aim at huawei suppliers? philipp: we do not know yet with the new administration, but china specifically had a positive view. we have decent profits in our position recently. however the situation has changed somewhat.

on one side monetary conditions have tightened in china. we thought growth ambitions, and then we are patient in the equity market overall which has been going against growth. china has quite a bit of exposure to technology companies. we felt overall the china case has weakened somewhat, and we felt we want to reduce emerging markets. when you look at the other agents outside of china, you have a lot of political idiosyncratic risk. recently we have seen political risks in brazil. we thought shifting around and reducing at this point in time. annmarie: i want to get back to the stim this checks.

interbank and j.p. morgan were commenting that we could see animal spirits back in the chat rooms that we saw in december when people put stimulus money into the stock market. do you think we could see that in the united states? philipp: definitely. when you look at household balance sheets, there is quite a bit of cash in them. there is decent availability in discretionary spending power. as long as economies are being shut down, some of the cash may go into markets. a good chunk could flow in that direction. we need to balance extreme behavior in some segments. annmarie: philipp lisibach, head of global equity strategy, credit suisse stays with us this friday morning. let's recap some other news. laura: japan's government is determined to hold the olympic games the ongoing debate whether

they can go ahead. there are a lot of questions about international spectators, quarantines and vaccinations. the president of japan's olympic committee said he wants to provide the best environment for athletes and spectators. >> it is easy to give up on things, but i strongly believe it is quite significant to hold the olympic and paralympic games when the world has to overcome hardships together. it will become the light of hope for everyone in the world. laura: the u.s. is putting limits on huawei suppliers. the move is a sign that the biden administration plans to move forward on tougher export controls brought in under former president donald trump. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. annmarie: coming up, astrazeneca may deliver less than half of the planned number of covid-19 vaccines to the eu in the second quarter. that story next. this is bloomberg. ♪

pres. biden: i said i intended to get 100 million shots in people's arms and my first 100 days in office. night i can say we will not only meet that goal, we are going to beat that goal. annmarie: the timeline was set last night, u.s. president joe biden celebrating the success of the vaccination efforts since he took office. in europe tensions are rising again between the eu and astrazeneca. the former giant runs into more supply issues on the continent. it may be only supplying half.

joining me now is bloomberg's maria tadeo. what is the latest? this bat looks like it will get worse? -- this spat looks like it will get worse? maria: based on some of our calculations, we could see a cut to european production. we would go from 170 million vaccines delivered to the european union to just 17 million. almost half what was promised. this is coming after another cut in q1 to the european union. astrazeneca was clear this would not happen again, that they would remedy the situation. they were working on wrapping up production. in q2 we see that cut manifest, and we are in for another one. yesterday there was a tweet by the commissioner in charge of the vaccine for the european union, who is now saying, i see

efforts from astrazeneca, but not the best efforts. the contract was signed on a best effort basis. he says this is not good enough from astrazeneca, and it needs to meet its obligation. it is up to the board to exercise its duty. he is bringing in the board of astrazeneca. members have been saying for weeks the country has to honor its obligations to europe, or we could be in for a legal challenge. annmarie: another story and a wrap up of vaccines is key for the entire economic recovery for europe. i want to play what christine lagarde had to say yesterday. >> the governing council expects purchases over the next quarter to be conducted at a significantly higher pace than during the first month of this year. there was consensus at the table of the governing council today.

we are not doing yield curve control, we are preserving favorable financing conditions with a look at the inflation outlook that we have, and how one contributes to reducing the downward impact of the pandemic honor inflation. headline inflation is likely to increase in the coming months. once the impact of the pandemic fades, the unwinding of the high level of slack provided by commodity, fiscal, and monetary policies will contribute to a gradual increase in inflation over the medium-term. annmarie: christine lagarde at the ecb press conference. walk us through what this means. significantly higher program, what is that? maria: what i would say is you look at that statement, she said this is a more dovish ecb. she suggested that it is

explicit, this is not a hint, we will increase the program. it is reassuring on that front. the market has been questioning why the purchases are flat. the other issue is how much money are we talking about. she was put a specific question when asked if she had a number. she said she did not have an answer and cannot put a number on that. that is where the tension will be in the next few weeks. what does significantly higher mean for market action and purchases on a weekly basis from the european central bank? annmarie: maria tadeo, thank you. philipp lisibach, head of global equity strategy, credit suisse is still with us. what does significantly higher mean? where do you think the ecb should bring bond purchases?

philipp: we are at the point that monetary policy that has been uniform through the pandemic will probably be between the different regions. in the u.s. the fed is more relaxed that rates have risen. in europe the ecb, it is a different ballgame, and they will be key to make sure rates will be anchored low. what that means, i cannot tell you, it depends on the conditions that will be met. it depends on how the pandemic will develop. our impression is they will be managing rates quite clearly. annmarie: the thing is, the ecb did some verbal intervention. people are talking about the rise in bond yields. when you look at purchases, they

are relatively weak. if they ramp it up, why don't they lead with action? philipp: i cannot answer that. i think maybe they were surprised by how quickly rates and inflation expectations have risen. maybe i am speculating but i imagine going forward that she wants to make sure rates will be controlled. rates have behaved rationally. it seems that now they have put their foot down and will make sure rates will be controlled. annmarie: if you like this cyclical tilt, do you want to boost exposure to europe, or is the vaccine story too much of a risk? philipp: i think as mentioned, neither in the pandemic,

everyone is looking forward to the reopening phase that is not yet here. i think you have to be cautious and nimble about what you take as an exposure. we have taken the approach for several months that we are chasing toward more cyclical exposure. we are into u.k. equities and cost related currencies. you have to be careful. this whole rotation, growth into value, you have to remember value eventually is under attack of being disrupted. and growth is the one that disrupts. you do not want to go into value blindly. there are tactical opportunities , but you have to be selective. annmarie: picky, i like that. philipp lisibach, head of global equity strategy, credit suisse, thank you for joining us.

coming up, new limits on 5g. bloomberg learning the u.s. has proposed further limits on huawei. trade tensions continue. this is bloomberg. ♪

annmarie: 6:25 in london, good morning. we have a bloomberg scope overnight. the biden administration proposed new limits on some huawei suppliers. trade tensions continuing. juliette saly has more, and the market implications in singapore . as i look across asia pacific, it does not seem like trade tensions are taking hold. juliette: they certainly are not, it is more back on the stimulus momentum. it is risk on for assets in asia, but this latest concern

about the huawei implementation is coming on the back of the meeting between the u.s. and china. tech is at the forefront. bloomberg learned the biden administration will be building on restrictions that were already in place. rules create more of an explicit restriction on batteries but some of huawei's 5g devices. the chipmaking stocks are a little under pressure in the afternoon session to make hong kong off by about 0.4%. reuters says india is likely to block some india is about to block some huawei equipment as well. the company says repurchases will demonstrate its confidence

in its business outlook. these concerns are coming through at the same time we heard warnings of mourn chip shortages that could spill into -- more chip shortages. the front runner in hong kong, we are seeing a downbeat day across the region. and we see the virus flareup, more cases in hong kong, linked to a gym. 17 cases, 30 preliminary cases. schools closing in hong kong just as the city was beginning to relax some restrictions in place. annmarie: very scary, and a reminder that even though we are seeing a lot of efforts, optimism around the world, we will still have pockets and be dealing with this virus for months if not years. juliette saly in singapore, thank you for the update.

coming up, could we see a stampede out of neutral funds and into etf's? more on that next. this is bloomberg. ♪

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bloomberg headquarters. 6:30 in london. i'm annmarie hordern. pres. biden: i said i intended to get 100 million shots in people's arms and my first 100 days in office. tonight i can say we will not only meet that goal, we will beat that goal. annmarie: in his first primetime address, president biden marked

a year since lockdowns began, and hints at a return to normality by summer. the eu regulator backs astrazeneca despite concerns over blood clots. a shortfall for second quarter deliveries. a coronavirus outbreak in hong kong is causing concern for the financial industry with some banks advising staff to stay-at-home and not enter the offices. good morning to you, happy friday. let's see where we trade. the s&p 500 hit an all-time high yesterday. president biden signing off on the $1.9 trillion relief spending. janet yellen saying stimulus checks could be in your bank account by this weekend. we are a little softer now and have trade concerns coming in, but for the most part of the session, the u.s. is adding new limits on huawei suppliers. the 10, 1 .5%, a little higher

on the yield but relief in the treasury markets. then the yen this morning, second day of weakness. the dollar heading for its first advance in four sessions. the stimulus checks will be getting into american bank accounts as soon as this weekend. resident biden marked one year since the nation begin to shut down due to the coronavirus. it was his first televised address since taking office. pres. biden: all adult americans will be eligible to get a vaccine no later than may 1. we will not only meet that goal, we will beat that goal come i using every power i have is president to put us on a war footing to get the job done. i need you. i need you to get vaccinated when it is your turn.

if we do not stay vigilant and conditions change, we may have to reinstate restrictions to get back on track. we do not want to do that. if we do this, if we do our part and do this together, by july 4, there is a good chance we not only mark our independence as a nation, but we begin to mark our independence from this virus. annmarie: the u.k. economy is in focus with a host of data points do this morning. the monthly gdp reading for january will give are a first official glimpse of how badly the economy was hit by the lockdown. that comes in 30 minutes. we are watching out for industrial production for the month. they are expected to show contraction. today's numbers will feed into the bank of england's rate decision that comes next thursday. joining us now is josie dent, senior economist, centre for economics & business research.

looking through your notes, you say we will have the economy go 6.8% this year and 6% in 2022. you are more optimistic than the consensus, why? josie: we think there will deftly be a contraction. at combination of the lockdown means that january and the first quarter will be difficult for gdp statistics. the u.k. vaccine rollout has been focused. we have seen a high percentage of populations get vaccinated. it suggested u.k. economy will be fairly open in the second half of the year. some restrictions in the second half of the year remains to be seen. we expect consumers to go out and spend a lot of money. there is a lot of pent-up savings and households.

savings accounts, we estimate in 2020 is about double what households normally save. there is a lot of spending that will go on in the second half that will allow significant rebound. we are forecasting more growth this year than other forecasters might be forecasting. annmarie: a lot of savings accumulated over the lockdown. in england we are in the third national lockdown. where will people be spending the most? josie: areas like tourism remain to be seen. we may not be able to travel abroad, but there will be a lot of home spending tourism in the summer once you can travel. in the u.k. there might be lots of spending.

[indiscernible] there are areas like restaurants , we are expecting a sharp rebound as consumers take opportunities that they have not had. annmarie: there is this idea in the united states with the extra stimulus checks some people, especially 25-35, will put that money into the stock market. is that a u.s. phenomenon, or could we see that in the united kingdom? josie: that is interesting, not one we have spoken about much in the u.k. i think there is hope they will put it into the economy. right now it is going into savings accounts. some people have more interest in the stock market will be

investing. people who are probably already interested in markets will have taken that extra cash and have probably already put it in the stock market. we did have that shock with people not spending as much or going out. in the second half of the year, if they are going to spend it instead. annmarie: i want to get your take on inflation. it was compared to a tiger and it might be hard to tame. do you share that view? josie: i think inflation is definitely a concern, and there are risks of rebounds that

markets will debate inflation. that sheer amount of borrowing the government has done poses a significant risk to high levels of inflation. it is a worry but one of the hardest things to forecast. if demand does not bounce back as quickly, inflation could stay low. the level of government borrowing we are seeing in recent months poses a significant threat to inflation. if we see inflation jump quite high, it has many consequences to the bank of england and its interest rates and for housing markets. it poses a significant threat to the economy currently if we see inflation rise. annmarie: this is the point that was made yesterday, the worry about the rising interest rates and how it could destabilize

public finances. how do you expect the boe to act next week, and the language they may use about these worries and concerns? josie: they will not be immediately looking to raise interest rates. but they will control inflation, so if it gets too high, they will have to act. they are aware and the government is able to -- partially because interest rates are so low they are able to take on debt and it is not an immediate concern. looking forward, higher interest rates means the public purse will spend so much more on repaying debt rather than public services or being able to reduce taxes. inflation is a significant threat.

and supporting economic growth, it will not be interested in increasing rates. as soon as we see inflation rise, we could see the bank of england having to make and tighten monetary policy. annmarie: josie dent, senior economist, centre for economics & business research. thank you for joining us this morning. laura: president joe biden is accelerating the u.s. vaccine rollout. he made his first primetime address since the inauguration. he wants all adults eligible for vaccinations by may 1. he says the u.s. will reach his goal of 100 million shots in 100 days before only his 60th day as president. the ecb pledged to increase bond

buying does not mean more stimulus. policymakers intend to spend more now but plan to pull back and slowdown purchases later on. the pandemic bond buying program is due to run until the end of march 2022, and has almost one trillion euros a firepower left. the u.k. government is intervening in a planning decision over whether the build a controversial coal mine. the move holds up planning for the mind which has been considered by the local counsel three times. it has attracted criticism from environmentalists. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: if and when the fed starts to withdraw support, there may be a disorderly stampede out of junk bond etf's and neutral funds. it is a new warning, and it is

compared to that taper tantrum. >> a big part of the market in the daily liquidity vehicles, we estimate around 40%. those will be more equity linked or correlated when we see messaging around the fed. i am not worried about going back to volatility that we saw in the spring. any fear around the taper tantrum, it is probably more of a net buying opportunity. my worry is making sure we have liquidity to play offense when others are playing defense. annmarie: joining us is dani burger. sheldon talked about the risk and liquidity a bond etf's. what is the fear surrounding them? dani: as long as bond etf's have existed, there is this fear. the idea is that an etfs so

liquid you can buy and trade in a day, but the things they are tracking our less liquid. if we see a stampede out of the bond etf's, the underlying liquidity will not be there for redemption. so you see turmoil in the bond market. i talked to blackrock who has one of the biggest junk bond etf's, and they say these fears are unfounded. the etf act is a relief valve and they can buy and trade without having to redeem. we do get a hint of what could have happened last year when we had turmoil in the bond market. the price of etf's very wildly from the underline, and it was not fixed until the fed stepped in. the question proposes a fair one, what happens if the fed steps back? without that support do we see bond market liquidity issue become bigger when these etf's are so huge and popular? annmarie: how likely is it we

will see investors pull money from these funds? dani: at the moment they are doing well. a lot has to do with the fear of inflation. if you get higher interest rates, you do not want to belong duration. jump bonds are a good short duration bet. we saw the second highest ever inflow into one of the biggest jump bond etf's this week. they have been popular with investors at the moment. there are plenty of risks on the horizon that could make investors pull out and had a cascading effect of liquidity people are worried about. simply global said currently corporate debt -- s&p global said corporate debt and defaults could reach the highest level since 2009. if we get a bunch of defaults and there is risking corporate credit, the etf space and mutual funds will be highly scrutinized. annmarie: thanks to dani burger

digging into the etf world. coming up, and 2020 a spotlight on racial inequality creating pledges for more opportunity, but has the finance world taken up the cause? we speak to sir john parker. he is coming up next. this is bloomberg. ♪

annmarie: this is "bloomberg daybreak: europe." let's look at the state of play in the world of finance. ethnic minorities made up 12% aboard directors in the ftse 100 index in november, largely unchanged from a year earlier. this highlights a continued lack of diversity.

the data comes on the parker review, set up by the u.k. government to examine the ethnic makeup of boardrooms. joining us now is sir john parker, chairman, parker review. thank you for joining us. it is relatively unchanged when you look at 2021 and 2020. why are companies so slow and acting this change? sir parker: i'm not sure which figures you are looking at, that is not the case. i am happy to say we set the target in 2017 for each ftse 100 company to achieve at least one ethnically diverse director by the end of 2021. our survey at the end of 2020 shows that 74 companies have achieved those appointments, and another seven subsequent to the end of the year. we have now 19 companies to go to meet our target by the end of

2021. actually this is significant progress. i should say the review we set out in 2017, we made the business case based on two pillars. we were living in a world with fast changing trends and demographics, and secondly, we should be aligning our boards more carefully with our customer base. i am pleased to say the significant progress that has been made in the ftse 100 all by aspirational targets, there are no quotas involved, no legislation involved, but i do commend the commitment of the leadership of the ftse 100 companies and the headhunter community and the government and investor support for the

achievements that have been made to date. that is not to say we should remain complacent, far from it. there is more to do, and the ftse 250, we set a target for the end of 2024. that is a big task still to be done. but i am deeply encouraged by the progress that has been made. annmarie: on that progress, the way i calculate the data, a 1% change on the year. it is a change to the upside, but it is relatively small. in that data you find there were no positions in the ceo spot held by ethnic minorities, or women for that matter. why are there so few of the top top positions not held by ethnic minorities or women? sir parker: i think we are on a

journey. i served on the davis committee that set the target of 25% by 2015. we just made that. right now there are 35% women on british boards across the ftse, which is a tremendous achievement. we are starting to see as a result, the apprenticeship that women are serving on our boards, they are coming to a stage where they have the experience and our big coming into chair and ceo positions. i would hope over time that will be the same journey for ethnically diverse candidates. annmarie: there is a lot of momentum from you and the parker review committee. what about investors, shareholders? are they doing enough to change what is going on on the corporate side? sir parker: i am very happy with the dialogues we have had with

investors. i think particularly in a public position that lng have taken, very positive. making it a voting issue in 2022. i am also encouraged by the investment community as a whole better discussing on annual reports if diversity targets and diversity explanations with regard to policies etc. are not made. annmarie: companies that have not been able to meet targets, what is holding them back? what is their response? sir parker: you have to remember boards of 10 on average across the ftse 100, no executive directors in the u.k. have nine maximum service contracts. vacancies do not occur every

year, that is the first point. the second point is you have to match the skill set against the director position you're endeavoring to fill. it could be the chair of an audit committee, sustainability committee, renumeration committee. therefore it is quite a long drawn out process on a practical sense. that contributes to the timing, and we find at the same when we were changing the composition of women on boards that when we started in 2010, it was only by 2014 that we got real momentum going as more vacancies occurred. it is the same for us. annmarie: thank you so much for joining us. the research is so important. having the data is the only way you can enact change and hold

corporates responsible. sir john parker, chairman, parker review, thank you for your time. coming up, president biden plans to beat vaccination targets. this is bloomberg. ♪

pres. biden: i said i intended to get 100 million shots in people's arms in my first 100 days in office. tonight i can say we will not only meet that goal, we are going to beat that goal. annmarie: a clear timeline set up by president joe biden after he celebrated the success of the vaccination efforts since he took office. that nearly does it for me. we are one hour away from the start of trading, and in a few moments we will get numbers on manufacturing production and january gdp for the united kingdom. anna edwards will be bringing you through those. s&p 500 futures are flat.

it hit another record yesterday. ftse 100 futures down 0.2%. a little weaker, but that does it for me. anna edwards with the data in just a moment. this is bloomberg. ♪

♪ anna: good morning. welcome to the european open. mark cudmore joins us from singapore to take us through all the market action this hour. the cash trade is less than an hour away in europe. here are your top headlines. signed, sealed, delivered. biden makes good on his stimulus bill in his first primetime address as president.