manus: good morning from our middle east headquarters in dubai. i'm manus cranny. it's daybreak europe. these are the stories that will set the agenda. the fed is the highlight of a massive week for central banks. markets watch as powell is expected to kick off tapering, and lay the groundwork for rate hikes. boris battles. the prime minister warns the u.k. faces a tidal wave of omicron cases as a poll shows

opposition leader party the biggest lead in several years. plus, support from beijing. asian stocks rise and economists predict china will add fiscal stimulus early next year. warm welcome to the show. dani burger has left me to not only steer the car, but change the gears at the same time. we could be in for a bumpy ride. confidence is the key word, confidence in the fed. confidence in omicron will not derail the global economy. and companies there will be a hot war on the borders with ukraine. here's a man with a mission, mohamed el-erian, is op-ed. the fed, it can either continue with its gross mishandling of inflation, or start regaining credibility and control the narrative. this is the message from mohamed el-erian, and it is about moving faster and more aggressively. what would that double the taper

really mean? that's what we need to ask ourselves. i want to show you markets, stimulus coming from china is what's in part boosting the asia session. juliette saly will take you through that. again, building on a strong week from last week. you're looking at these markets, which are, i suppose some way trading with impunity, trading with immunity on the equity side, even if you get a faster taper. 132.50 on this wave of omicron cases set to hit the economy. the currency is under pressure. ok, that's the state of play on the markets. it's a massive week for decisions from central banks. who will diverge the most? i can see robert frost coming on for the end of the week. juliette saly, let's see what poetry she can give to you this morning. good morning. juliette: yeah, that's the key question, all about divergence. you mentioned the boe, ecb, bank

of japan, together, central banks responsible for almost half the world's economy. we note we're -- know we're expected to see from jay powell when we will have a faster taper. the other question is how much the impact the omicron variant is going to have in terms of changing some of the past. we don't think that the ecb president christine lagarde will change from her policy. she's likely to end that emergency stimulus. over at the bank of england, that can be the wild-card, and you barely cooling on the need to hike rates, having not long ago flirting with a shift. we are expecting a dovish tilt coming through from the boj, as always. when it comes to what we have been seeing in terms of market action this week, this today, i should cite, we can have a look -- say, we can have a look at some of those boards. we had gains in the asian equity

session, fourth out of five for this past week or so. we've been talking about the china progrowth policies giving a big boost to commodity prices. iron or here in singapore now up 7%. china csi 300 slipping below that level. a lot of growth suggesting this progress, we heard from decision-makers over the weekend, those evaluations rising. he still got the strong onshore yuan even though we had a weaker than expected we once again from the, pboc manus, trying to curtail some of the strength we've been seeing in the currency. manus: jules, thank you very much. the prime minister, boris johnson, is warning the u.k. faces a tidal wave of omicron cases this winter, running forward the timeline of people to get out and get their booster. laura wright has been tracking this story. so, this is johnson's response. we're in the middle of

implementing plan b, work from home. this is an addition to plan b, the warning. how serious is this from johnson? laura: it's series. that's why the u.k. government -- serious. that's why the u.k. government is boosting their booster shot targets by one month. they will be able to receive a booster shot before the end of the year, and eligible adults, someone over 18 years old, three months after their second dose, you can see the u.k. is above europe and the united states in terms of booster shots, with almost 30 and 100 adults having received one. 20 million adults in the u.k. have gotten their booster shot so far. there is another 23 million to go. boris johnson wanted to assuage concerns in the scientific community. omicron cases stand under 31,00 and total cases came in at almost 49,000 yesterday.

time is really of the essence, manus. manus: and it's the rate at which omicron is almost doubling every two days, listening to both the u.k. news flow over the weekend. political pressure is mounting, laura. labor are in the ascended. just how ascended is labor -- ascendant is labor? laura: a number of opinion polls show the gap between conservative and labor is widening, with a pull in conducting -- conjunction with the newspaper shows the labour party has the highest lead over the conservatives since 2014. public tolerance is shifting. there has been a myriad of scandals surrounding the conservative party, but photos emerging over the weekend of boris johnson partaking in a christmas quiz at a time when households could not mix. the lobbying scandal agree just allegations, setting on patterson. boris johnson --.

-- on patterson. boris johnson initially defending him. that is seen as a referendum on boris johnson's leadership. there is a feeling on the ground here in the united kingdom that this government is portraying a narrative, one rule for them and another for everyone else. manus: certainly going to make implanting plan b a lot more difficult, isn't it? thank you so much, laura wright with the very latest on the u.k. to the g7, the ministers have want russia to de-escalate its military near the ukraine or face "massive consequent is." -- consequences." what has the g7 threatened? what have they put in front of putin to perhaps stymie the escalation here? >> well, we don't have specifics, manus. at the moment, we do have a lot of heated rhetoric. we have the g7 warning of massive consequences. we have president biden warning

what he calls devastating sanctions against russia if it were to invade again ukraine. we have the new german foreign minister. she used the word enormous consequences, both financial, economic, and political consequent is. s -- consequences. so, we do seem to have a lot of leaders talking from the same book, which is that they are trying to warn russia and russian president vladimir putin that they would be united in acting if russia were to follow through on what the u.s. says it its preparations to launch a big invasion in the spring -- sorry, not in the spring, sometime early in the new year. manus: i mean, the one thing that everyone coalesces around is that this is not about boots on the ground. you and i touched on this last week. this is about, i suppose, the

presence of nato, the size and the scale and presence of nato in ukraine. and that seems to be the crux of what putin wants to de-escalate, isn't it? bruce: yeah, so president putin is concerned about nato's eastern expansion, and he wants guarantees that nato will agree not to ever include ukraine, which is something that president biden and others have said. well, russia doesn't get a vote in determining nato. russia also wants the nato alliance to take a step back from further expansion in the region, adding other countries in addition to ukraine. and in return, the russians would then talk about, let's com e up with a new order for europe. this is something that vladimir putin is interested in. however, it's still unclear whether that will be enough.

there's a lot more that we're going to say between now and early next year about what's going to happen, whether there is indeed going to be a hot war. manus: indeed. from asia to the borders of ukraine and russia, if you thought taiwan could be the hot button, maybe we're all mistaken. bruce, think very much, bruce einhorn with the latest on the russian g7 standoff. let's get the first word news. juliette saly is in sydney. juliette: south african president has tested positive for covid-19, and is receiving treatment for mild symptoms. the nation is in the midst of a fourth wave of infections of the omicron variant, with more than 8000 new cases reported on sunday. president biden has approved help for the state of kentucky. tornadoes ripped across the south and midwest late friday, killing at least 70 people.

biden has now issued an emergency declaration, mobilizing federal assistant efforts to 15 counties. kentucky's governor has warned the deaths could top 100. saudi arabia has boosted revenue forecasts next year, following higher oil prices and production volumes. the kingdom now sees its first surplus in more than eight years, and the fastest economic growth since 2011. in an exquisite interview, the saly finance minister told us excess revenue will be used as a buffer for the future. >> i wanted to make sure that we have the stability so that our budget does not fluctuate based on a sustainable fiscal framework that would enable us to land better as government, but also enable the economy and the sector to plan that. so regardless of revenue, you know, the budget ceilings are set based on a formula that will not fluctuate in the future. juliette: global news, 24 hours a day on air and on bloomberg

quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: it's a mega week for central banks. get ready for divergent power evident. we discuss. plus, omicron spread. the u.k. calls the biggest airlines call on the u.k. government, support new travel restrictions. they threaten to upend the peak christmas season. we speak to john stricklin at gls consulting. this is bloomberg. ♪

manus: it's daybreak europe. i'm manus cranny in dubai.

divergence of the past will become more evident. jerome powell is expected to kick off the fed tapering at a quicker pace than predicted just a month ago as inflation surges to the highest levels in 40 years. the bloomberg opinion columnist, mohamed el-erian, has some strong views. let's take a listen. mohamed: the categorization of inflation as transitory is probably the worst inflation call in the history of the federal reserve. and it results and a high probability of a policy mistake. so the fed must quickly, starting this week, regain control of the inflation narrative, and regain its own credit ability. otherwise -- credibility. otherwise, it will become a driver of higher inflation expectation that will feed onto itself. manus: stern warning from mohamed el-erian about the federal reserve, head of strategy for g10 rates at the bnp paribas. thank you for joining us.

it's about credibility, doubling the pace of the taper is a building narrative and building consensus. what, in addition to doubling the taper, should they do to regain credibility? good morning. >> good morning, manus. we expect doubling of the tapering. it has been well communicated by the fed. now what we also expect to become the focus on this week will be how the new set projections are evolved. and we expect them to crystallize as we have seen recent communication. and we expect, therefore, to see it show higher inflation, lower unemployment, and an earlier and more aggressive tightening up. so we're seeing that the fed will show two hikes in 2022 and six more through 2024. so, just short of the long run,

up 25%. but where -- sorry. manus: sorry, go ahead. finish your thought. excuse me. >> where we see the market most different from the fed is that it's basically what's already priced in the markets. so the market has already shifted quite aggressively, except for the year 2024 and beyond. if you look at what's priced in terms of what you can assume to be the terminal rate priced by the market, looking at the five-year, for instance, the peak across the curve is around 1.6%, which is way below the terminal rates of 2.50%.

so therefore, we like to position by paying the five-year. but you will also see that around the 2024 perry bought, the projection from the fed that is most likely to be more elevated than what the market is pricing in. manus: it's interesting how there is this divergence, as you say. .6% is where the market is. 2.5% is the more normalized neutral rate. but yet if i look at the euro-dollar curve, it's already turning negative in 2025. so, it's a very difficult one to work out. but in the very, very near-term, do you want to be short of god these or long on tips? how deeply on perhaps shallower than accepted hiking cycles? >> well, i have to say we are quite bearish across the board. and in fact, different from our previous global outlooks is that

even in the euro zone, we expect 2022 to mark the start of a strength. and when euro is set to rise in 2022, we expect them to rise for longer. so that's the big shift. even though, indeed, we expect some divergence between the ecb and the fed, for next year, looking at the ecb rates, we expect 2023 then to mark the start of the hiking cycle at the ecb. manus: so let's just talk about the consequences for that potential because christine lagarde's got a fine line to walk. does she bend transitory? does she not bend transitory? and how does she take us into 2022? we have greece over germany, italy over germany. given the scenario that you have

just expounded in terms of the ecb for next year, how much more widening and spreads do you think there is to come on these peripheries, if there is a little more tightness than perhaps we presume? >> indeed. i think the market has been repricing credits in the october. we see that trend widening. it is going to continue into the end of 2020 with you -- 2022 at the very least. having said that, a lot has been pricing in over the past few weeks. we cannot exclude either the so-called price actions. so it is a possibility that near-term, we see some consolidation, especially as we go into the end of the year. and you know, we could see short to exacerbate the move. but over the long run, the

pressure will remain because the end of the flexibility that it was allowing will mean that spreads have to reprice, because political risks or just general risk premium will have to reprice. and that is even in spite of the very positive fundamental picture on the country's -- for instance. manus: yes, and there is a great deal more optimism on the economy of italy, relative perhaps to northern part of europe. a quick line on currencies because obviously rates and currencies, they have that symbiotic relationship. the dollar is triumphant. the fed is the author in this tack. but when you look at where the dollar is going to be the strongest going into 2022, we talk about divergence between the fed and the ecb. will that be demonstrated in a demonstrably lower euro?

>> that is indeed what we expect. we expect the dollar to continue to strengthen into 2022. in fact, we have a target of 109 on the euro-dollar at the end of next year, which indeed is a consequence of this ongoing divergence between the fed and the ecb. manus: camille, think is so much. pretty they call, 109 on the euro-dollar trade, so three big figures, no fear in camille, head of strategy for g10 rates at bnp paribas. coming up on the show, chinese stocks extend the recent rebound. the yuan rises, yet beijing signals policies may become more progrowth in 2022. this is bloomberg. ♪

manus: it's daybreak europe. i'm manus cranny in dubai. chinese stocks extend the rebound and you want advances as the nation's top decision-makers signal policies they may become more progrowth in 2022. what does that mean? our chief asia economics correspondent and very nearly put a limitation around the bed with of your experience -- bandwidth of your experience joins me now. they want to ensure stability and they about to frontload. please explain. good morning. >> good morning, manus. it is significant. let's remember china had a v-shaped rebound early on in the pandemic, so he didn't have to go gangbusters with stimulus the way other countries had to go. indeed, they were quite critical at times of the western approach to stimulus.

well, that story is changing now, the economy is slowing down. we know there's a drive -- drag on consumption. we know there are expectations on the manufacturing story. so when you consider what's happening with the real estate sector, policymakers are changing gears. it's all about the ability and support for the economy now heading into next year. we don't exactly know what form that will take, but most likely we'll be on the fiscal side of it rather than the monetary side of it. some more spending, maybe some more infrastructure for inverse structure projects, for example. and of course, it's worth of memory, you have the all-important party congress, where president xi jinping is expected to get another term as leader. when you consider what's going on on the political side and the real estate side, it's probably no surprise they have shifted. but it is significant at the same time. manus: so, is the global impact

here, and this is about a global policy slower. can i extrapolate that? i look at markets this morning. i know that the chinese market can gorge on oil, on iron ore, on copper, on aussie trade, the high data traits. but enda, to what extent does, this policy issued by china help create growth slow for the world? enda: well, this is a big question, manus, and a lot of academics are debating just what is the growth spillover to the rest of the world? but the very least, you have to say, if we're talking about stabilizing the economy and making sure the real estate sector doesn't take, one has to assume it's a clear story that those who do sell iron ore and other materials to china, south africa near brazil, we'll see some dividend there. at the same time, we're not talking about gargantuan style stimulus either. it's discipline more about

support for the economy. manus: ok, enda, thank you very much, the proclivity for stimulus in 2022 from china. coming up on the show, u.k. airlines call for the this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities.

manus: this is "daybreak: europe ," i am manus cranny in dubai with the stories that set your agenda. the prime minister once u.k. faces a tidal wave of omicron cases as polls show the opposition party with the biggest lead in years. the fed is a highlight of a

massive week for central banks, but powell is expected to kick off a faster taper to lay the groundwork for hikes. plus, asian stocks rise in economist predict china will add fiscal stimulus early next year, and that permeates across the global market map from asia to the futures in the united states of america. we are seeing a risk on narrative across these markets, rising equity and commodity markets. let's have a look at the risk radar for you. china giving back a lot of the initial swoon on the upside. iron ore up 6%. you're seeing a little more of a move in the equities futures on the far right-hand side. let's just move along from that. some of those futures are not open yet. we will keep an ion those, s&p futures up one third of 1%. the uk's biggest airlines have asked the government for economic support as new travel restrictions threaten to up and

the p christmas season for second year. -- peak christmas season for a second year. they are deeply concerned about the disproportionate approach the government has taken to travel restrictions. is there merit in the criticism? john strickland is with me, from jls consulting. is there merit in the body content i've just shown? john: absolutely. the airlines are beside themselves with frustration of what is going on right now. we have uncertainty around the world as became -- as we became aware of the omicron variant and we are still waiting on scientific data to find out what that variant means. of course, we now have increased transmission in parts of the world, so restricting travel

does not help how we tackle this right now. what does do is massively impact air travel, it is normally peak, and if we get to christmas and still have restrictions in place, we can have down demand for next summer. the reason for these challenges from the different government policies is they bring enormous uncertainty and cost for travelers. the confusion about testing regimes, which are not common in each country, some require testing before departure, some while you are there, some before you come back. i have heard stories from friends these last weeks who are stressed out, many don't know what to do. many say let's not bother, let's not go at all. and this is at a time when airlines are just recovering

demand. manus: let's touch on a few points. one thing that went through my mind, everything we are all going through has potential for the airlines -- let's start with that. how difficult is it for the ceo's at virgin, etc., to take capacity out of the system, and what is the danger in doing that? john: it is a real challenge. it might seem easy to make a decision to fly or not fly, but it requires the airplanes to be in storage, they have to have checks to get them into a serviceable state. some are trying to keep their fleets flying even though it is costly. pilots and cabin crew have to be up-to-date. in terms of who is going to fly,

airlines would normally no months in advance what the expectation is of load, bookings would have come in. they would have clarity about the number of people flying. uncertainty has started to come back in with regulation and we are seeing some drop-offs with people traveling. i spoke with an airport last week who got passenger figures from the airlines to plan manpower in the airport, and they were seen drop-offs of 30% or 40% from figures booked to people actually traveling. this is throwing into disarray the process, and it is a hand to mouth exercise. if you have people booked and you can't fly, you need to rebook, and where you put them?

most lights on paper are booked full. -- flights on paper are booked full. then you have to deal with refunds as well. manus: i want to cast forward because all of the leaders of airlines from emirates, ryanair, virgin, etc., the one thing that comes to my mind -- are we entering a period of where there will be a structural change in our behavior? in other words, the risk is we enter a period where there are so many changes, nuances, rules, regulations, testing, etc., all for our own good we are told, that we enter a real risk of -- dare i say it -- don't get back to 2019 demand levels? john: there is a risk. we have forecasts from different organizations talking about

recovery by 2024. we are just getting into 2022. if we look at the levels currently. -- levels currently, it is nowhere near 2019 levels. sue and from asia, very minimal levels. -- to and from asia, very minimal levels. and we want a consistent testing from all countries instead of this random patchwork. also cost-effective as well. quit quarantines, isolations, pcr tests, waiting while results come through. these all add onto costs. it has people wishing whether they will ghosn a trip at all.

the industry is still very much in the doldrums. manus: i will give you a trip coming up, manchester, it was a trip before you go, testing manchester, a test in dublin, will i need another when i leave ireland? boosters, the european union wants to limit vaccine validity to nine months. that is european union. pfizer has said two shots get you 23% efficacy. is this the next evolution? in other words, your booster duration is now going to be the in the sand -- the next line in the sand? john: we don't know how this is going to pan out. of course the industry would like to see validity of the

booster as long as possible. but again, based on scientific evidence, not a political decision, we will eke out something explainable customers, can be managed. not only in terms of cost and process but also technology. we are all in using mobile phones and downloading apps, locator forms, and it is massive stress. there is a risk of errors as well. people are turned away from flights because something was wrong of the paperwork. we need to make it simple and consistent, change it as little as possible when it is in place. and they can develop the technology to make it easy to use. we have to continue with some kind of framework like this. manus: thank you very much, john strickland, director of jls

consulting, reacting to the open level -- letter to the prime minister of the u.k. let's get the first word news. juliette: foreign ministers from the g7 have warned russia to de-escalate activities around ukraine or face massive consequences. in a joint statement, the ministers said they join in condemnation of aggressive buildup of the military on the border with ukraine. president putin has denied intention to invade. -- in early contact with germany about building a new chip plan. we are told the company will consider various sectors, including government subsidies in the talent pool. this comes as the eu and others look to increase domestic a semiconductor production to mitigate future supply chain disruption. finance has -- binance has

decided to wind down operations of part of their business by february. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus? manus: thank you very much. the turkish lira falls for the fourth day in a row, another record low. three major interventions by the central bank have proven very little to stop the drop in the turkish lira. can see a very aggressive selloff as europe against to calm. emerging-market chief economist said very little. stop this unless a shift in rhetoric from mr. erdogan. coming up, saudi arabia expects its first budget cuts in eight years.

we have the finance minister in an exclusive from bloomberg. ♪

manus: it is "daybreak: europe." want to check on the lira again, building on this narrative, the new turkish finance minister reassuring businesses on the market and economy. he had a meeting over the weekend. of course he reassured them the government won't retreat from free-market principles amid the currency rout. this is a six-hour meeting he had with them. of course he favors rate cuts. unlike his predecessor who quit. the market grasps a hold of that line. he favors rate cuts, unlike his

predecessor who quit. the lira has dropped over 50% this year. saudi arabia poised to deliver the first budget surplus in a decade, and the finance minister says the kingdom wants to diversify the economy and revenues. >> we have been working on this for an extended time under vision 2030, where we want to diversify our economy but also our revenues, and we want to make sure we have the stability so that our budget does not fluctuate based on revenues but provide a sustainable fiscal framework that would enable us -- as a government and also the private sector to plan better. the budget scaling offset by a formula that will not fluctuate in the future. >> and 2020 two, you are

forecasting a budget surplus, the first in eight years, i think. how much of that is due to higher oil prices and also how are you going to allocate that additional cash you have in the treasury? >> the budget will likely show a surplus of about 90 billion saudi riyals. that is a factor of more efficiency in the government, spending is less than last year. but also, a lot of it comes from additional lower revenues and revenues we have achieved the past several years. there are the three factors really. less spending, more oil revenue and more nonoil revenue.

>> what does this mean for the kingdom's borrowing plans? it has been a frequent issue the last several years -- as you go into a surplus, will you be looking at markets? >> we will be looking at the markets and maintain relationships with investors good -- investors. we will also be looking to finance some green initiatives that have been announced. we will also have opportunities to increase our reserves. their opportunities but we will be careful and we want to make sure we borrow at -- there will be opportunities but we want to be careful to make sure we borrow at the right price. manus: the finance minister of saudi arabia. let's bring in the man who did the interview. great interview, matthew. very at ease. this is a good news story.

what caught my eye and ear is the shift, the surplus will go to reserves and the central bank. how important is that shift, matthew? good morning. matthew: good morning, this is the first surplus saudi arabia has recorded since 2013. part of that is due to the government diversifying revenue and introducing these new taxes the last couple of years. it is also a result of higher oil prices, which is helping to feed into building a buffer of reserves. they want to rebuild the foreign exchange reserves held at the central bank that have been eroded the last seven or eight years whilst all prices have been low. there is also, if there is more cash left over than expected, they will also be transferring money into the pif, the sovereign wealth fund with

stakes in uber, and also investing in domestic infrastructure fund as well. manus: where is the elusive breakeven? i've got the imf at 172. i think you did the math in terms of where you think the breakeven is. you asked him but he would not answer. matthew: yeah, the saudis never want to comment on their oil prices which they are using in the budget. what you can tell is from just three months ago when they published the topline figures for the budget, they have increased the revenue assumption by around 100 billion riyals, and that takes it into this surplus. clearly they are feeling bullish on the oil price going ahead. the minister said the oil price and the budget is far more

conservative than most analysts will tell you. as you say, the imf earlier put it around at 72. other economists we have talked to put it in the 70-75 range. i would say that's the kind of rice they are expecting to see next year. -- price they are expecting to see next year. they are expecting to average 12.7 million barrels per day. this is sustained throughout 2022. this will be one of the highest production levels the country has ever had, and that all helps to bolster this reserves position and surplus. manus: in terms of the bond issuance, i was quite taken by the fact that obviously he will come back to the market, he wants to do it at the right price. but green bonds, obviously we have a net zero target out from

saudi arabia and a number of other major gcc countries coming on board. how important are green bonds and issuance of green bonds to saudi arabia? matthew: i think one of the things the government is very keen on trying to do now is change the narrative around itself. it doesn't want to be seen as a bad actor in the global environment or energy transition going on as well. it wants to do these green bonds, and the sovereign wealth fund wants to do green bonds, and they have a lot of projects in the pipeline that will be entirely based around renewable and sustainable principles. proceeds from that could very easily be earmarked for those kind of investments the government wants to do. i guess it remains to be seen how much investors will buy the idea of the world's largest oil

exporter raising green financing. that's a question we will see the answer from in the markets in the months to come. manus: indeed. make sure you get a green b for that. matthew martin, the green b hunter. looking for my job, matthew martin in saudi arabia with the finance minister. we should watch out. coming up, what could possibly go wrong -- i asked myself that every day and i am always surprised. by how well it goes. we look at the bloomberg big take, the biggest risks in the economy for 2022. this is bloomberg. ♪

manus: this is "daybreak: europe ." let's bring in our executive editor. the big take this morning, what could possibly go wrong? good morning. >> good morning, how are you? manus: we are good. what could go wrong, simon? simon: a lot could go wrong as we have learned in recent years. omicron emerges as a new

as the coronavirus continues to be the number one threat to the world economy. the economy is the virus, as many have said. that remains the big challenge. also some byproduct that continues to undermined economies -- obviously inflation, the response of central banks and what china might do with its property sector. lots of risks abound. it looks like we will have continued economic growth next year, which is pleasant given last year's recession. but there are risks and the virus tops them. manus: absolutely and every day we are struggling with what the variants mean. simon, i have your shock go up. that is simon kennedy. it is amazing, you can go in and interact whether you content inflation, local demand, policy rates. i cannot advocate shock go enough. bloomberg markets is next. how will they deliver when it comes to the potential stimulus from china? they want to frontload the

stimulus. you are looking at a live shot of the united kingdom. future indicators of one quarter of 1%. this is bloomberg. ♪

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>> good morning, welcome to bloomberg markets europe. markets live managing editor joins us from singapore to take us through all of the market action this hour. the cash traders just less than one hour away. here are your top headlines. the fed is a highlight in a massive week for central banks. markets watch as powell is expected to kick off tapering and lay the groundwork for rate hikes.