yousef:do you have a rough idea? >> we know that we have enough at least to satisfy our energy targets and we have a program also for reserves. yousef: what about the usage of the uranium? would that get fed into a domestic power program? >> that is the plan. i talked about it at great manus: good morning from art length, that is part of the kingdom's movement toward 2030 middle east headquarters in dubai. this is "daybreak: europe." to have 50% of all our energy be with the stories that set the agenda. clean energy. yousef: will saudi arabia signed treasure shakeup, the biggest jump since 1982. the steepest decline since may. the nonproliferation treaty? james bullard as his voice to a >> well, that is not my area, we course of four rate hikes from the fed.

the central banks most important have shown a great track record task. tsmc blasts through the on a very hot topic worldwide estimates, asia's most valuable with the view that different entities will respond with that company. you got to go back to the 1982 decision. yousef: before we came on air we to the fastest inflation. good morning, dani burger. talked about some of the online issues the kingdom has. they were singing, don't you the chairman said 2025 to get a want me, baby? face-off in the bond market. factor going in the kingdom. which other major players retrospective 1982 and all of that. already speaking with and is it going to come to life in the mid the bottom line is the bond market shrugged. who would have thought we could have gotten the 1980's to come 20 20's, and who will be part of that? >> it is about their investment back. dani: i wish she would sing, but in saudi arabia. i understand why not. there's another that i cannot going back in time, the bond market shrugged, the dollar reveal now. already priced in all the hawkish in his, so big

superlatives. manus: don't panic. oems will definitely be an important part, but also we are let's have a look at it. looking at being located in it would be a mistake to go significantly deeper. relatively one location so they can benefit from what they can bring to each other. yousef: i'm just going to follow don't panic, calm down, that's up a little bit, are these domestic manufacturers? >> one is potentially domestic. the message from rick. dani: he might say don't panic yousef: german or american? >> no, it is domestic. in the bond market, but let me tell you, there is a buyer strike in this bond market. you can see it across the board, yousef: you said one is foreign. whether it's etf's, we've seen billion dollars flow out of not >> i can't talk about that. just bonds, but concessions from yousef: we talked about uranium, high-grade bond issuance have quadrupled just in the past what's going to be the priority week. for the ministry in 2022?

some say consider cutting out >> i would start with the bond exposure. put it into dividend yielding stock. manus: there seems to be a ambitions of the secretary. little bit of breathlessness over the dollar and the rates. we plan on 17 billion by 2030. credit is the one market that is that's a lot of money. yet to reprice. the last time we saw this extreme jp morgan positioning in it's almost -- these kind of the bond markets, we saw the bond market go on to reach much higher yields. dani: we are seeing a little bit emissions will need collaboration within the country and beyond. of weakness in today's session what we have seen so far is so far this morning. great interest, we know there's s&p 500 futures declining about .2%. the 10 year yield unmoved as a good understanding of the market and how they can get things done much faster. well and wti crude is down .4%. manus: let's talk about the

we see that we are actually inflation number, the highest in nearly four decades. moving in the right direction. but to your question of what it's due to a series of rate we're focusing on, how to link the material that we will have hikes from the fed this year. in the current is our -- enda in saudi with added value. curran is our chief asia yousef: we will leave it there, correspondent. talk us through the data. thank you very much for taking enda: you already mention the the time. we hope you will come and talk about this more. headline rate going back to 1982 levels there. the biggest gain since 1991. from a very busy event here in riyadh. manus: let's pick it up, this is it's all pointing toward the fed having to accelerate its past policy normalization. interesting. fed chair mary daly is singling the guiding forward for this out for takeoff. year, $44 billion.

we know that profits have been a little lighter than expected, chairman powell earlier in the they were expecting six straight week spoke about the need to be quarters of records. mindful of not injecting more 17.2 is what they see in this pain into the rest of the economy. first quarter. interest rates are going up in the u.s., it's a question of at the capex is the other what rate. critically important thing. dani: thank you so much. dani: i love what was written in let's switch to the corporate story. one blog, they just threw a hand we have results from asia's most grenade into the battle. valuable company, let's get the what is now the move from intel and samsung? details with juliette saly in coming up, we'll talk about the dollar pausing after it steepest singapore. how blockbuster were these earnings? juliette: we know we are in the decline since may. and the reaction are perhaps middle of the crunch with strong lack of reaction with our guest, demand, iphones, everything from next. this is bloomberg. ♪ tv's two cars. a 16% increase in their income for the fourth quarter, and

there are another -- number of other factors as well. this is leading a lot of analyst to say they will increase in spending with the current projection of about $100 billion. you can see over one year we've seen it responsible for a huge spike in what we saw in the broader index as well. is it too expensive? this is the share price in the month of december. we got the earnings multiple remaining two standard deviations above the tenure. with got the fed in arizona expanding there globally. a lot of analyst out there very bullish on the stock. manus: thank you very much, juliette saly in singapore. coming up, we speak to eight

minister inside the industry about the outlook for the country. dani: we will also look ahead to earnings season, what we can expect from some of the big banks tomorrow. this is bloomberg. ♪

manus: this is "daybreak: europe." with the hottest print on cpi in years, the bond market shrugged. there is the dollar rolling over. let's bring in a chief investment officer and see what he makes of risk 2022. the bond market shrugged, and facing a 40 year high of inflation. stocks flopped. give me a first assessment, what will drive you to take risks in 2022 in the face of a rate rising fed? >> thank you very much, manus. we think we are in the middle of the economic cycle and indeed

the fed will hike rates. there much below where we'd assume they should be at this point in the cycle. i want to point out that inflation is not worried about dani: welcome back to bloomberg too much in europe or china at this stage. "daybreak: europe." you look at the core cpi numbers saudi arabia is hosting its first major mining conference this week. and we see the price of energy the country is trying to exploit copper, gold, and other metals normalizing, although we do it thinks our work five point $38 trillion. expect inflation to stay around. -- things are worth trillions. dani: you are more positive when >> let's get to the meat of the it comes to risk assets, but at the same time you talk about conversation around the

recommending investors build up their cash buffers. actionable plan around that. why? >> that's correct, because as we were joined by the minister of mineral resources, coming back on the program. progress in the cycle, it's give our global audience a bit of a big picture view on how going to be a little more this ambition can really take difficult. off, what can happen in 2022 in we want to take advantage of terms of getting global capital on board. some volatility events to create >> thank you for having me, it's a great opportunity for us to a profile in their portfolios. come to this event where we can manus: when it comes to the bring all stakeholders to talk about the future of minerals. shift in equities, there's a couple of big things we've been is becoming more and more pursuing across the show. essential, it could be a one is how we run before we can walk, so to speak. i want to see what you think nutrient and energy, so it's an about the value proposition. we are looking at a chart from opportunity for us and also the our opinion team called dry region as a whole to come together and bring the country powder.

it's about how much the average balance sheet of the average man different opportunities and how and woman in the united states, we can all benefit from a social relative to the last time we came out of a pretty bedtime. we are seeing a serviceable point of view. level of household debt at 75%. saudi arabia has great ambitions so the consumers going to drive , we tentatively came in a bit the value proposition in terms of equity exposure. >> i think in terms of equity, late, but we have a full-fledged strategy for 2030. what is important is the value so many activities will support the sector from mining to the in typical sectors. it's been concentrated on a few way we tend to deal with -- the names, some veteran stocks in way we plan to deal with the environment and social aspects with added value. france and so on. yousef: that is the groundwork you prepared for the new year in it's a good sign for the equity 2022. what kind of timeline is there market versus gross yield. for options? >> it's an opportunity for us to

kickstart some of the reserves dani: apologies for interrupting we know about. you there. we plan to do one by the first i did want to bring in the view quarter and we are now trying to of cliff who will forever be the get interest in other locations. valued one. he tells the team at bloomberg that it's too early to gloat, we already sent out the information on the location. because we've seen this before. last year we saw a little bit of it's about 130 kilometers from value resurface. what is convincing you this time that it's not a head fake? riyadh. we estimate about 26 million >> the markets will be volatile tons of reserves. so it's a great location where and there will be cases where it investors can come and kickstart will outperform. the operation of the mining. at the same time, also we have a lot of work to do with regard to because we are positive on the direction, there will be some growth. the georgia survey. there might be other forms of growth but we have economic

that's a huge opportunity for us also. today we believe that technology forecast for most of the economic areas in the world. manus: everybody is trying to is also going to help lead the mining industry and we are very grapple with where to allocate money. open to new technologies. technology provides that also. you are interested in high yields in china. >> the yield is about 30%. we think the chinese authorities will do whatever is necessary to secure economic growth. it's not to the interest of the chinese authority to have a bad economic environment for that

sector. we've seen some measures already so there may be some interest from developers in china. of course you have to be very selective to pick the best companies in that field. dani: a call not for the faint of heart. thanks so much for joining us. coming up, a christmas miracle, u.k. retail sees strong sales, but what every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers

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dani: good morning from

bloomberg's headquarters in the city of london. manus cranny is live in dubai. this is bloomberg "daybreak: europe." treasury shakes off the biggest jump in cpi since 1982. the dollar pauses after it steepest decline since may. james bullard as his voice to the choir for a fed rate hike. plus, tsmc blaster estimates, the chip crunch boosts asia's most valuable company. we are going a little retro today, bringing it back to the 1980's. the hottest cpi inflation rating since the beginning of the period. i know you want to do karaoke today but we will try not to bring it to the top of the charts maybe. manus: i won't give you a rendition of the human league.

you had all these counterculture bands coming to the fore. this is one of those tragic moments. the point is, it's about risk. dani: it is so true. one of the interesting risks creeping into portfolios is what happens with your bond exposure right now. jim said if you have bonds as they had you been losing money on that last year. this year as well. he recommends reducing your bond holdings by 50%. everybody is fleeing bond etf's. it is buyer strength in the bond market. manus: inflation is the hottest in 40 years and i like the mentality, people screaming at

the tv, you're no good, you've lost control, you lost credibility. now you are screaming, you have returns, pull it up. this is what rick has to say, calm down because you could make a mistake. you can go significantly deeper at this point, put pressure on unemployment, the financial markets can overreact. that's the risk. more than you need to bring down inflation which is going toward a lower trajectory in the coming months. can you get that kind of rollover in the space of six months? dani: we have to have rick on the show to go head-to-head. even with what's projected he thinks it should go even faster.

so very diametrically opposed opinions. manus: the nasdaq whipping around yesterday. there's a lot of leverage going into nasdaq and equities. the dollar flopped and rolled over yesterday. you know there's the intellectual path of the bond market, at the long end it's the intellectual proposition but we will see if that fed is fast and furious at the short end. the retail sector has to reimagine itself, during lockdown is perhaps the biggest theme around the world. let's bring in charles allen from bloomberg intelligence.

good to have you with us. >> we had the u.k. trading results this week. how did it fair at the end of last year? >> i think it is better than everyone expected, consumers have money to spend and they choose to spend it. so we had good results and yesterday much stronger sales than people had thought. we're probably expecting tesco to suggest that they had a strong christmas as well. dani: i really feel like i can't

walk around london without seeing a million ads for delivery comp's at this moment. how has the mix for delivery and in person shopping for groceries shaped up as we continue throughout this pandemic? >> there's the on-demand grocery sectors potentially attracting the most new money at the moment. online shopping was a smaller percentage than last year. a lot of people couldn't go shopping last year or were encouraged not to. actually in person shopping seems to have picked up in december but i think we've seen a bit of a rebalancing between the stores and online at the end of that period. whether that will continue, i don't know. but i think as we go into 2022

we will see more people back in offices. it makes it much more difficult with fewer people at home for that. dani: charles allen, senior analyst for bloomberg intelligence. our guests joins us. thanks so much for joining us. we were just laying out how is a very strong christmas, but one thing stood out to me, a lot of the strong volumes were due to low pricing into the holiday season. what is occurring right now with u.k. grocers and margins? are they not able to enjoy strong margins like many other industries have in this era of price hikes? >> clearly last year was the

story. we were talking about it a lot last year, really was only the later months we started to see prices at an industry level pickup. at the same time, they're focusing on lower prices in the core basket and have shown dated's that effect. i think inflation will come through more this year than it did last year, even though we obviously didn't talk about it a lot last year. manus: what is the biggest headwind, we've got wage pressure, supply chain shortages and omicron causing all kinds of havoc. do those risks fade in 2022, in your opinion? >> 2022 is a really interesting year, actually. 2021 was the year where we started expectations going lower. the pandemic went lower -- went on longer and you had inflation

starting to come through as well. 2022, much more complicated. it looks like we might see some normalization so some volume comes out of the market. inflation present some challenges. overall are feeling at the moment has been quite constructive on the sector. the sector is behaving relatively well we see a lot of momentum coming into the year but there are some challenges around it. dani: it feels like there's a lot of m&a momentum as well. are there any natural fits within u.k. retail or do you see it going to have private equity firm? >> that's difficult to say. we've seen the stories about potentially selling that asset. i don't think there are any natural fits anymore but some

have fallen away from health and beauty. it will be interesting to see how that develops. manus: in terms of who is best placed to grab market share, that got something like 27% of market share. who grows in this market? is there any masthead leader that you want to bank on for online growth and delivery that has the goldilocks combo? >> we have a saying in food retail that the right combination of scale and skill, you've seen tesco have the scale but mismanage the position. i think now what were seeing around the new cfo is they've got a clear value proposition and it's evident in the market share data last year, they've got tremendous amounts of

momentum. the christmas trading update very shortly, consensus is around 1.6%. could be more like 1.5 or even higher than that. so a lot of momentum in tesco and we back that industry. dani: i'm also thinking about all these online delivery services which tesco tries to utilize as well. but there is so much competition in this space. is there more consolidation to come for the industry? andrew: we saw these delivery companies burst to life last year. there were probably 10 or 11 of them in and around london. then as we expected, we saw a lot of consolidation there. i think that was natural, there was just so much competition. this year is going to be seeing how that develops more so than

consolidation. we will have to see how that develops this year as we move back toward more normal conditions. manus: let's see what that new normal really is. that's the other big debate. we've seen tesco evolve over number of years, they had these huge mega centers just outside of town. they were underpriced as a result of that. here we are trying to understand what the pandemic result is. good luck if you do. the real estate competition at many of these companies, the result of the huge real estate that had built, and here we are

trying to understand what is the right fit. do you want small city stores or -- to what extent will property and location play in the landscape? andrew: location is always the biggest driver of choice in food retail. we go outdoors to go shopping and we turn left or right depending on where the market is. so it's important to have those strategic locations. one of the interesting things about real estate and how companies use those asset basis is, you are absolutely right, they will invest in having these big stores, but we are seeing steps to bring automation to the stores. tesco have a number of urban fulfillment centers now using robotic technology to take some of their online orders. efficiency comes with automation.

therefore upsizing what has previously been a difficult channel in online groceries. so real estate could become much more of an asset in the future. manus: thank you very much, andrew. our guest this morning. we'll bring you those numbers as they break across the bloomberg terminal. juliette saly has the first word news from singapore. juliette: switzerland suggesting an endemic phase of covid, interior minister saying the company is on the cusp of transitioning out of the pandemic. the u.s. says russia may result in a standoff over ukraine. a second round of talks concluded without a clear path forward. little progress was made between

the u.s. and russia in geneva earlier this week. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: juliette saly there in singapore. coming up, trading revenue tumbled. we look ahead to the earning season and what to expect from u.s. banks. this is bloomberg. ♪

manus: this is "daybreak: europe." dani burger is in london. revenue fell 50% from last year. the company's performance is closely watched, let's get to

our asian finance reporter. shares slumping on a big drop in fixed income revenue. what is behind that? >> as you say, fixed income revenue tumbled about 50% from a year earlier. to put it into context, this time a year ago these banks were reporting record numbers, they were shooting the lights out. that is part of why this drop is so hard this year. jeffrey's declines were primarily due to market conditions which led to lower volumes compared with the prior year quarter which benefited from high levels of client activity. in the slump ended up contributing to a 28% drop in overall revenue, which is very good for shareholders. dani: i do wonder, the rest of

wall street will also have tough comparables. what can we take away from jeffrey's as it portends to the rest of the big banks? >> as you know, jeffries has always been seen as a bit of a bellwether for the rest of the big banks. jp morgan, citigroup and wells fargo reporting tomorrow. analysts are saying the weaker trend in fixed income is a general trend that we will see at these other banks as well. remember the jp morgan copresident last month said that on the trading side they were expecting results and for the quarter to be down about 10%. that included fixed income going down and equities to be about flat. but the saving grace for these banks obviously will be that m&a advisory, saying all last year

we hit a $5 trillion worth of deals and the banks are very much expecting overall about 15% hike in the fourth quarter on m&a but about 10% down on the fixed side. manus: the market lived through some of these, so get ready for a pretty stupendous first quarter. they want to kickoff the sale of their retail -- mexican retail banking. what do we know about the interests on this? >> she came out last year and said they're getting rid of 13 retail markets across asia as they focus around wealth hubs.

this week they announced the sale of the retail operations in mexico. already we're hearing of interest from various parties, including santander and bank of nova scotia. it's a lot of money for sure. dani: thanks so much, a busy week ahead for you. thanks so much for joining us. coming up, boris johnson apologizes for attending a work party during the first covid lockdown. he faces calls to resign. that story next. this is bloomberg. ♪

dani: welcome back to bloomberg "daybreak: europe." i'm dani burger in london with

manus cranny into five. here in the u.k., boris johnson has bought some breathing space for pollen -- by apologizing for attending a party during the first lockdown. his grip on power is precarious. at this point, just how damaged is the prime minister? >> i feel like his position just remains unclear. it seems to be really unclear more so than ever today. he did apologize for that garden party yesterday but he also said it was a work event and didn't realize it was going on here he faced a lot of heckerling in prime minister's questions due to that. he has really doubled down and we've heard other people saying they want him to go. others calling for his resignation. but we don't know is if mps are

waiting for the investigation before any massive decisions are made. manus: and johnson through back at the leader of the labour party and said wait for the investigation. he is rambunctious, to say the least in parliament and he is a dispatch box winner. is he now turning into a ballot box risk? >> that is the question a lot of people are asking and a lot of people in the conservative party. will know that when local elections, but we see how people feel when they go to the about box and boat. some saying why doesn't he get back to the constituency and see how people are feeling about his

party gate scandal. it's also really important to note something here. boris johnson is facing all of this backlash for the scandals, but we arecing a crisis in the country with rising inflation, and we will see a huge spike in energy bills. so what is down the track for boris johnson, that's what many in the country are asking themselves right now. dani: there's just so much right now, is not just inflation, not one specific scandal. why does it seem that this party gate scandal seems to be what is really capturing the attention of his constituency? >> this is so interesting. in may 2020 we were all in the strictest lockdowns and couldn't see our friends. we could meet one person outside but we had to do two meters

distancing. a lot of people were really angry because some people went through such hardships, they couldn't go to funerals and could not even have weddings. at the time the people making the laws were actually having parties in downing street, and some people were saying why is there one rule for us and one rule for them? where are going to meet in the middle and move forward with that? so we will just have to wait and see. manus: challenges for the prime minister boris johnson. we will handed over to blue move -- bloomberg markets europe. this is bloomberg. ♪

>> good morning. "bloomberg markets: europe." welcome to"bloomberg markets: europe." . the cash trade is less than an hour away. here are your headlines.