♪ dani: -- manus: they break your with the story sites at your agenda. jay powell says inflation is public enemy number one. a roadmap for a faster rate hike. stocks surged on optimism that the plan won't derail growth. the bank of england and ecb are

two in a flood of central banks reporting today. the twin vectors of inflation and omicron loom large. england's chief medical officer warns of substantial numbers of hospitalizations from omicron occurring in the weeks ahead. warm welcome to the show. a soft landing on inflation, that's from headley global advisors. yet it was a hawkish pivot. the question is, how much and how quickly will the fed decelerate? that's what you need to ask yourself. the hawkish dilemma. it would panic over patients. you should sell your hedges and move on. that's the narrative. the stock market had a riproaring rally on the back of three hikes and a faster taper. the qualification of what is

panic and patience. >> financial markets have been much too complacent in terms of how they view the risks of a boom bust cycle. i think you're seeing a bit more panic instead of patients within the ranks of the fomc on the dot plot as well. manus: complacency. let's have a look at the short end of the yield curve. we saw virulent moves on the short end. you saw the spike and the role in the twos. the question is, will the fed manage to get three hikes in next year. there was a terrible shirt -- charging of the flat nurse. the one saving grace was the fed's lack of quantitative tightening, driving theon narrative. that's for the doves and the hawks to debate. let's check in on the data.

the stocks had a riproaring rally come after the federal reserve moved to indicate three hikes next year. the market doesn't believe it's going to do all these hikes. this was the cash clothed -- close last night. the futures market is what we want to have a look at. oil up just under 1%. two-year yields at 0.66%. there's been shifts in the turkish administration this morning. we will cover that in the moment. we are going for a 100 basis point cut. we will keep an eye on this. we are just for -- tipping 15 on the turkish lira. inflation is public enemy number one for jay powell. he announced a faster rate of tapering. >> supply and demand imbalances related to the pandemic and the reopening of the economy have contributed to elevated levels

of inflation. these problems have been larger than anticipated. we are phasing out our purchases more rapidly. with elevated inflation preference --, the economy known younger needs increasing amounts of policy support. i was at the fed when we lifted off the last time and the economy is so much stronger and closer now. there's a provision, the balanced approach provision. it's a provision that would enable us to move before achieving maximum employment. manus: one dong strong economy. -- dawn strong economy. ben ram, great to have you with us. more hawkish tone than the market was expecting. yet the market in the curve still doesn't believe we will get to where the fed is guiding us out of 2024.

your take? ben: good morning manny. the long and, we've seen the front and explode. that's going to be the case as the fed starts lifting rates. at the long end, it's not going anywhere. that's a function of the low terminal rate. the markets are saying, we plan to raise as many as eight times by the end of 2024. maybe you hike five times and see where you go. that's why the long and is anchored. manus: in terms of the belief in that dot plot, it could be the biggest move in the dot plot in the history of the dot plot. it wasn't. they've shifted up a guarantor 22. 3, 3, 2. still the market says negative rates in 2025.

ben: it's quite a bit of a hawkish pivot. it came up in the presser. powell said, this is a hawkish pivot. some people are looking at 2024 and going, to rate hikes only. i disagree with that conclusion. what they will do in 2024 is expanding on data a couple of years from now. there's still time for the data to play out. that's why the market is not factoring in three rate hikes in 2024. not too many people were expecting three rate hikes and 2020 -- in 2022. the fed told us last night that we will get three hikes last year. that's a pretty accelerated timetable. the fed is saying, we are in the camp of urgency here.

we are not in the camp of complacency. we are in the camp of extreme urgency on rates to quell inflation. they are behind on the inflation juggernaut and they want to get ahead of inflation. that's the narrative here. manus: ok. think very much. it's amazing how everybody chips in. i live -- love diane swanson. thank you very much. a bit of breaking news coming in across the bluebird terminal. novartis with a buyback on the way. driving the buyback is a belief in the forward guidance, highlighting the confidence in topline growth, the pipeline of the business, sales expected to grow by 4% through 2026. and you are just seeing this buyback. it's going to be funded by the proceeds from the recent sale of 53.3 million shares. this is interesting in terms of how novartis has cross holdings.

novartis today announcing the shar buyback and its through the funded proceeds from the sale of 53 million shares. that will be a mover on the opening for sure. let's get back to the top stories. we've seen the fed decision but there's more to come today. we will hear from the swiss central bank. the norse bank when they step back from their hawkish tone. it's down to turkey. by midday, it gets a bit sweaty. the bank of england is when you want to be holding onto the seat. christine the guard will thread the needle between asset purchase programs and the pandemic purchase program. the reporters are here, standing by for every region. in london, lizzie britton.

his temple. good to have you with us. let's get straight to the bank of england. with the rise in omicron, the warning from the chief medical officer on the pandemic, the rates market has priced out zero probability of a hike today. is that folly? >> we are back on the knife edge in the u.k.. if we go back to after the november decision, it seemed like all the bank of england needed was stronger labor market data. as you say, along came omicron and the new restrictions. even the most hawkish member of the committee said that he wanted to wait for clearer data on the new variant before they raise rates. and then, just when we thought that the december rate hike was off the table, along came yesterday's cpi print. the highest in more than a decade. it pushed past the 5% mark much

sooner than the bank of england expected. that pushed economist to raise their forecast for peak inflation. bloomberg economics says you can't rule out a rate hike today. it's not what markets are expecting. even if we don't get that rate hike today, it only marks a delay. it's not a trained of strategic direction. it puts the military policy into 2022. manus: my favorite phrase, delayed, not denied. a bit like my life and my travel plans. thank you very much. let's get to frankfurt. great reporting on your scoop yesterday. about the latitude that some of your sources say the ecb will have going into this meeting. what does christine the guard have to do today? >> good morning. we are expecting an announcement

that the pandemic program will come to an end as planned in march. another three months of purchases until that program is phased out and we moved to reinvestment of maturing bonds only. the really interesting thing is what the ecb will do with its regular asset purchase program. their economists have quite a few ideas, most of them expect a temporary increase in the purchase pace to soften the blow, to make sure that there's no effect, that markets will be able to adjust to a new normal, a new pandemic world. that got a little bit more uncertain because of omicron. inflation is also quite strong. unlike in the u.s., the ecb still expects inflation to slow. what they have described this bike as is a hump.

christine the guard has said, we've probably seen the most of it and inflation will slow in the course of next year. the ecb is getting new forecast today which takes the outlook until 2024. it will be very interesting to see what those numbers are. how she will actually explain what's ahead for the ecb. manus: let's see whether their thinking is as magical as the u.s. projections are. the consensus is for a 100 basis point cut. we've seen changes of the guard again in financial leadership. >> that's right. we expect the central bank to cut rates by 100 basis points. that would bring the main benchmark rate down to 14%.

ever since the easing cycle started in september, the central bank has cut rates by 400 basis points. this was pressured by president everyone. he believes that high rates actually spur inflation rather than prevent it. that's why he's been pushing the central bank to cut rates. he also wants to transform turkey into an export driven economy. an industrial powerhouse. he believes that lower rates will help them achieve this. of course, turkey has high inflation. it's currently at a three year high. inflation at almost 22%. this is really hurting the lira. it's been hitting multiple record lows over the past few weeks. despite the central banks fx intervention with muted results. also of course, impacting the lira is the fed and its decision

to quicken its tapering and also expectations of more rate hikes next year. the lira has lost on most half of its value since the begin of the year. manus: you're right, under a lot of pressure and it's broken through. the 15 level this morning. let's see what is delivered today. team bloomberg, thank you very much. markets are moving in the post fed rally. is it a rally built on folly? we have the jobs numbers in australia. sally is in sydney. as usual, how are you doing? juliette: not bad. certainly seeing a big spike coming through in ozzie yields. there's quite some rhyming going on there. things are coming through in ozzie yield after we saw the jobs data blow out of the water, suggesting australia's economic

recovery is gathering pace. increasing the likelihood that the rba will taper its bond purchase program sooner than expected. we are seeing asian stocks higher for the first time in five sessions, being led by strong gains coming through in japan today. weakness in the chinese tech players over concerns of about u.s. sanctions on chinese firms. we heard from the bank of korea governor, not ruling out a rate hike possibility in the first quarter. a big session in asia today, asian stocks snapping that four-day drop. manus: thank you very much. coming up, the fed pulls off one of the most hawkish policy pivots in your -- years. we dig deeper into the taper timeline in the market reactions. central bank super thursday. we discussed expectations from the boe. this is bloomberg. ♪

♪ manus: it's daybreak erupt. so the dot plot has shifted 3, 3, 2. was it the biggest singular step change in the dot plot in the history of the dot plot? some people say no but the market doesn't believe that we will be as aggressive as the fed believes. when it comes to the forecast, let me paraphrase. mr. dudley thanks it is slightly magical. >> if you look at the fed forecast, it doesn't really hang together. they have the unemployment rate below their estimate for three whole years and inflation magically melting back towards their 2% objective.

in 2024, the median estimate was 2.1 percent. that's within a whisker of their target even though they haven't made monetary policy type. it's a little bit of a magical forecast. manus: that's bill dudley, the blumberg opinion columnist. his reaction to last nights messaging from the fed. just how serious a shift was this? let's bring in david cole. thank you for joining me. we put it into the library. if i take you back to the last series of heightening cycles in 2004, nowhere near those 17 hikes that we had in that time. is it really that furious a shift in the outlook for rates? good morning. david: good morning. it's definitely a shift.

you are completely right. when you look at the rate of the fed at 2.5% with eight rate hikes over the forecasting horizon, just using this simple measure, i would say the fed still signals to financial markets, we will say accommodative for the next three years. therefore, you cannot say that the fed is in the mood to really reduce the expansion, to do something against inflation, if they really can. they are still accommodative over the course of the next three years. manus: what would shifted to a more hawkish stance? would it be discussing the balance sheets, perhaps a quicker shift in the balance sheets, quantitative tightening? david: not really. the balance sheet is mortar test how much liquidity really needs.

when powell said balance seat reduction is on autopilot, that was not well received by financial markets. somehow, financial markets need a bigger balance sheet than they used to have before the great financial crisis. really testing how much liquidity for an orderly economic expansion. this will be a test. it's not really contributing to dovish or hawkish. this is something which will be needed when the fed wants to normalize the monetary conditions. not so much with signaling with the balance sheet shrinking what the direction of policy is. once they ended qe, it's basically interest rates which will take over the role of signaling were monetary policy is going. manus: when you look across assets, we had a snapshot of a

moment together. we talked about rapes -- rates ripping and rolling. stocks went higher. it's a very much risk on. we know that equities have traded higher at around 3.5%. tell me your view on risk going into 2022. david: stocks are trading higher . they concentrate very much on reducing qe. the fed has been overdue to get rid of this connotative easing in a situation where the economy is expanding, where the implement goal has been reached, where the inflation goal has been reached. there'sredoing quantitative easing in the situation. produce -- reducing that and their risks, which are coming from the ongoing quantitative

easing, the money has to go somewhere and it goes into bubbles. this money is definitely used. most of it goes back to the fed. this was in the fed's own interest. bond markets and the asset markets look at the dot plot. frankly, they don't buy it from the fed. they don't think that the fed will hike rates three times next year. that's probably too aggressive. they are signaling without addressing inflation which is not anymore transitory. frankly, look at what the reason for the inflation is. it's mostly driven by supply bottlenecks. you don't address them by hiking rakes. you can do that. you can bring the economy down. the supply bottlenecks are not borne by that. in terms of risk for next year, is that the fed is too aggressive in terms of hiking

rates, in terms of trying to slow the economic expansion which is the wrong answer to the inflation which we see right now. the inflation which we see right now needs more capacities, complete expansion of inventories, all that stuff. you don't achieve that when you having -- have a slowing economy. you achieve that when you have proper financial conditions. these plans will be put into practice to slow down inflation, not so much hawkish policy by the central bank. manus: so you don't believe that they will go full monty in terms of the dots. who knows where the world will be? never mind 2023 or 2024. i find it hilarious that anybody wants to do a theoretical projection onto there. i have something which janet yellen says isn't much use to anybody.

even mr. powell warned us last night that the yield curve, don't worry about it. there are two new things that move it. it's a terrible charge flattening. does it worry you? david: i think it's always right to look at the yield curve. again, in the yield curve and the bond space, that's the area of the market which is most sensitive of asking the question, if the fed with premature hiking, premature tightening of monetary policy conditions, contributes to the right answer to the current backdrop, which is growth slowing to a more normal rate next year and inflation is high because it calls for an expansion of capacity. if you can't address supply bottlenecks by tighter monetary policy and bond markets are very sensitive. manus: thank you so much.

david kohl. this is bloomberg. ♪

manus: good morning from our middle east headquarters in dubai. i'm manus cranny. it's daybreak europe. the fence jay powell signals inflation is public enemy number one. stocks the surgeon of the optimism the plan won't derail growth. policy dilution. the bank of england, the ecb,

just two of the central banks that will flood us with reports about inflation and omicron looming large. plus, inevitable surge, and warning that a substantial number of hospitalizations from omicron will occur in a matter of weeks. what did the fed achieve from markets last night? i think in one line, a soft landing on inflation, that is the view from [indiscernible] there was more panic than patience in this market. ask for risk markets, truck on. 3.5% gains in the equity markets thereafter. is there a hint of complacency in the markets? >> my own view is that financial

markets have been much too complacent in terms of how they view the risks of a boom bust cycle, something i have been warning about. i think you are seeing a bit more panic within the ranks of the fomc and the dot plot, as well. manus: that panic could multiply itself for faster taper, but even into a live meeting for a rate hike in march. have you priced that in? have you thought about that? let's have a look at the equity markets. double the taper, double the pace of the taper, and six rate hikes in two years did very little to assuage the two year yield. as far as the rescue of the risk markets are concerned, the economy can handle it. it is not going to roll over. you will have a fiscal dragon to 2022. brent is up over 1% this morning. you are seeing risk assets perform quite well.

two your notes are off their high. they ripped and rolled and rolled over. maybe because the fed's lack of quantitative tightening drives the risk in move. mr. powell said he would be thoughtful and manner in terms of how he moves on rate. lira is in our sightlines. over another hundred basis point cut from the central bank of turkey. let's focus in on jerome powell declaring inflation as public enemy number one when it came -- comes to keeping the economic expansion on track. the fed sped up the taper, laid the roadmap for a series of rate increases in the coming years, starting with three hikes in 2022. >> the reopening of the economy, have continued to contribute to elevated levels of inflation. these problems have been larger

and longer lasting than anticipated. we are facing up purchases more rapidly, because of a rapidly strengthening labor market, the economy no longer needs increasing amounts of policy support. the economy is so much stronger. i was here at the fed when we lifted off last time. the economy is so much closer to full employment. there is a provision, the balanced approach provision, it is a provision that would enable us to because of high inflation move before achieving maximum employment. manus: i would call that fighting talk from mr. powell at the fed. they could move on rates before we had full employment. that is perhaps the most hawkish of it all. let's take it to the senior fx strategist at hsbc. good morning. there are many things to discern in this meeting. good to see you. king dollar remains resplendent.

does it remain strong for you? how hawkish was that line to you? good morning. >> good morning and thanks for having me on. i think it was a pretty hawkish statement, a pretty hawkish set of numbers. everything i could see from that whole package was more hawkish than we have been expecting and a bit more hawkish than the market was expect in. but still very much supports ongoing dollar strength. everything is priced in. there is still a bit more room at the front end of the curve for some of the pricing to get pulled forward relative to the terminal rate. i think what he said encapsulates the story. everything looks good. growth story looks good. they need to start tightening pretty soon. that is still going to be pretty positive for the dollar. manus: is march live for a rate hike? dominic: absolutely. i think that was the key to changing that speed of tapering,

basically to get it done, to give them that flexibility. we don't think they will go in march. we think that will probably have enough room. but giving themselves the optionality to deliver in march if inflation remains higher than they have been expecting or employment makes even more rapid gains in the new year just gives them the option to go in march. i think it is probably about more likely they wait a little bit and we think they will deliver the hike next year. march is definitely a live meeting and i think that was the key about the accelerated taper program. manus: let's broaden the fx discussion. what i was looking at yesterday is volatility in the market. volatility cascaded down yesterday evening after the fed. this is the cost of hedging for

the euro into the ecb meeting. we will come to that in a moment. it is a volatility chart that i wanted. let's have a look at that. vol has dropped off. what do you think for volatility going into next year? dominic: i think generally speaking a lot of what has been driving fx has been happening on the rate side. we have moved from a world where everything was about risk appetite, the virus, and the recovery, and generally speaking we have moved away from that. we have gone back to a world where fx is being driven by heavy rate movement. i think there is a bit more room for volatility to pick up a little bit versus what we saw during the very boring recovery, effectively. i think that could pick up. what you were going to see is more divergence across central banks. i'm sure we will speak about that.

some state on hold, some stay hiking. there are so many different policy levers. whether it is stopping the balance sheet expansion that i do think we will see a little bit more room for some of these currencies to move about a bit more. we did not get massive news in terms of trends, but some of that intraday volatility to pick up because you were getting more differentiation across the central banks and that has been what is been driving the main focus for fx markets in 2022. manus: there is no doubt about the liquidity in the dominance of the flow is going to be euro-dollar, dollar-yen, euro-yen. in terms of the divergence trade and i started talking about king dollar, is the biggest divergence of them all into the euro? it is costing you the most to hedge today, tonight, in the past 24 hours, as the u.s.

election. is that going to be the biggest divergence trade for you? dominic: it is definitely one of our highest conviction views in terms of euro-dollar heading lower. i think the scale of that move is probably going to run out of steam at some point, relatively soon, if all of this fed pricing does get pulled forward more aggressively. when you look at both sides of the coin, the fed is more hawkish, that is very positive, but what we found in the past, once the fed starts hiking, it can actually start to slow the pace of those dollar gains. on the euro side, we don't think they are going to do anything anytime soon, but they will be edging closer to that. i think we will get to a pivot where the ecb is turning a bit more hawkish or certainly less dovish. it hasn't gotten to that point

yet, but it might be a lot later next year, but we will see the euro-dollar trend evaporate. manus: very quick, i'm going to ask you something on sterling. your near-term target on europe on the downside and then we will move on briefly to the pound. dominic: i think we could possibly even overshoot 1.10. the euro does not look especially cheap. we have often needed much marvin structural type risk to emerge before euro got down to 1.05. 1.10 is in play. manus: i'm looking at cable. i told james foley to go away and come back with new homework on sterling. i don't think jane listens to anything i say. i went on to thing about the conversation and this is where i thought about speaking to you

today. jane is bearish on sterling. there is not a chance at the moment of a rate hike. maybe there is. what i want to know from you is when you look at sterling, euro-sterling, do you not think a lot of both the rate negativity view, the health negativity view, and eco-negativity view is in their? or is there much more deep downside to come that we are not pricing? dominic: i think it is a question of time horizons. in the short-term, your view is probably correct. there is a lot of negativity, the shift away from hiking i think has damaged the market. it has to some extent damaged the way the markets perceive the bank of england. going into this meeting, people don't want to be set up with the same risk of disappointment. the positioning numbers we look at and some of the flow data we get to see does suggest that the

community has gone into this meeting or are going into this meeting pretty short sterling. there is a risk of a surprise hike, the jobs numbers are really strong. the inflation numbers are absolutely skyrocketing. from a pure economic perspective, we could definitely make the case they should be hiking. there is uncertainty around covid and everything else, but i think in the very short-term term, there is a little risk of a short bounce for the bank of england. we can't keep waiting, we've got to get away from this zero bound. i think short term, there is a bit of a room for a bit of about. 1.34 would be in our target range and the shorter-term. as we go into next year, the reality is that the u.k. growth story is still much lower than the rest of the world getting back to pre-pandemic growth rates. the long-term rate story in the u.k. is still much lower.

even when the bank of england does start hiking, it is going to be gradual, slow process and they are not going to get as far as some were like the u.s.. that will be the longer-term problem. manus: dominic, thank you very much. i think it would probably be a bit of a political clash, but then central banks are independent of political's considerations. my guest this morning. first word news, let's get to juliette saly. >> germany is rationing covid-19 vaccines to the rest of the year and made a surprise a surprise shortage of shots. the country's health minister says it has about 3 million doses of the biontech vaccine and 10 million modernity shots. -- moderna shots.

u.s. health officials say that existing booster shots do hold up well against the omicron variant of covid-19. private companies are already racing to prepare additional vaccines targeting the variant. infectious diseases expert anthony says he currently sees no need for specialized doses. >> our booster vaccine regimens work against omicron. at this point, there is no need for a variant-specific booster. juliette: apple is delaying its corporate returns in the face of surging covid cases. the fed giant has said it has not announced a date for workers to be back. global news 24 hours per 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. coming up on the show, hitting fresh highs. the european natural gas rally continues. inventories drawdown. this is bloomberg. ♪

manus: it is daybreak era. i'm manus in dubai. european natural gas prices closing at record levels. putting further pressure on already low stockpiles. it is a toxic combination. our energy reporter, freezing weather forecasts, more pressure supplies. we are looking at the european contract. up 700% this year. at what juncture will we see

italy step in to help the consumer? talk me through the scale of this. will this endure? dan: it will. this cold weather that is coming will only make it worse. european gas storage is only about 62% fall right now. normally at this time of year, it fills up all summer long to prepare for the winter, it is about 79%. the cold weather is going to drive heating demand and currently deplete supplies. the high prices are signaling to world gas producers to send all their excess supplies to europe, so they will be bringing in lng tankers, hopefully more pipeline gas, as well. in the near term and possibly the next year, europe is going to face a really tight market. manus: interesting, we have seen jacob send talking about a delay

to the decarbonization is one of the most outrageous prediction and that nuclear would move up the scale as part of that solution. geopolitical factors at play over russia, german, nord stream 2. what are the main geopolitical factors at play behind that? is nord stream 2 part of the price ride? dan: there is a lot of debate about that. certainly, nord stream 2 would be able to help bring more supplies in, but even existing russian pipelines into europe are not necessarily running full out right now. it is unclear exactly and putin has claimed it is not the case that russians are withholding gas to try to bend europe's arm on the project. the other thing that is going on is you have lukashenko in belarus who has threatened to

stop supplies of gas coming through his country from russia if the eu does not bend to his will on some political issues. natural gas is not normally a geopolitical commodity like oil, but it is definitely in the headlines right now. manus: and when we look at the european gas price, which is where i started, is there a contagion effect to the rest of the world? joe biden has been apoplectic about gas prices at the pump, to the consumer. but does europe contage at a global level or is it in isolation? dan: we're definitely seeing contagion into asia. the price of lng is jumping up to $40, where it had traded below $10 for the longest time. that is because europe is so high, pulling lng tankers away

from asia. if you are a chinese or japanese buyer, you have to jack up your price to draw them back. the u.s. gulf coast, it has never been a better time to be in natural gas exporter. these lng companies down there, they are buying u.s. gas unless than four dollars per btu, putting it on a ship, and selling it for 10 times as much in europe. it is definitely having an impact on gas producers worldwide. manus: ok, thank you so much. our energy reporter on the gas crunch in europe. coming up, omicron spreading rapidly. the u.k. is likely to see a surgeon hospitalizations. more on the story. this is bloomberg. ♪

manus: it is daybreak europe.

i'm manus cranny in dubai. the phenomenal pace at which omicron is spreading across the u.k. will trigger a surge in hospital he messenger over the holiday period, according to the top medical advisor chris whitty. >> there will be an increasing number of omicron patients going into hospital, into intensive care. at what ratio, we don't yet know, but there will be substantial numbers and that will become apparent in my view after christmas. i think that is a reasonably, i'm afraid, nailed on prospect. manus: joining us now is laura wright. very severe level of warning from chris whitty in terms of the reality for health. what were the key takeaways for you? laura: omicron cases are rising exponentially and covid cases reaching a record yesterday, the

highest and's january, when we were in the depths of an intense lockdown. the prime minister wanted to paint a more buoyant tone, talking about vaccination record, booster inoculation records, 12 to 15-year-olds can get their second booster shot next week. chief medical officer chris whitty admitted that it was depressing, the speed of the onset. he talked about the reduced efficacy of just two vaccines against delta and other variants, encouraging people to step forward and get their boosters. chris whitty also worried about over interpreting data from south africa, because it is still unclear when we will see hospitalizations picking up at the same rate as cases are rising. manus: and when it comes to the impact on markets, since the discovery of omicron, this -- we've got inflation in the u.k.,

we've got perhaps some debate abound the trade, we have people working from home, mobility -- there are many aspects to the potential that omicron can have on the british economy. what stands out? laura: it paints a barometer of the picture. down 16%. weatherspoon, mitchells and butlers. it filters down to consumers and wider society. whitbread down 13%. substantial selling even before we see further restrictions. manus: ok, thanks a million. laura wright setting the scene from chris whitty's press conference last night. that is it for me for this 2020

-- 2021. it has been a long, enduring year. thanks to everyone who has worked from home tirelessly, who has worked in the office, who has battled through covid and this pandemic, we will battle on in 2022. a very festive greetings from dubai. ♪

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>> good morning, welcome to bloomberg markets europe. i'm anna edwards live in london. mark cudmore joins us from singapore to take us to all of the market action this hour. the cash trade is just less than an hour away. the fed's jay powell signals inflation is public enemy number one, laying out the roadmap for faster rate hikes. stocks surgeon optimism the plan won't derail growth. the bank of ecb are