>> good morning from our middle east headquarters in dubai. i'm manus cranny with dani burger in london hq. bonds again on the back foot as markets weigh the risk of tighter monetary policy. christine lagarde insists any adjustment to the ecb will be gradual. president biden says chancellor schulz says nord stream 2

pipeline would be stopped if moscow invades ukraine. earnings bonanza. bnp, softbank, and bp all hit the tape. 2.3 one billion, a third of a billion higher than market would have expected. we penciled in 2.0 5 billion. they pay up ratio of 60%. the payout ratio will be raised to 60% from 50%. this potentially music to the market sears. we know that buybacks and dividends were the alpha of response mechanism for the bank last week. good morning. dani: good morning. it is a race to higher payouts. thank after bank reporting they are attempting to lift their payout. a key measure of profitability,

up more than 11% in four years time. we also spoke to the cfo who spoke with bloomberg in paris. >> [indiscernible] if you do this, you will see that bnp paribas has increased revenues in 2021 versus 2020. >> you are raising your dividends to 60% payout ratio. that mean you are confident this kind of performance will continue? >> listen, if you look overall, you will clearly see we have very diversified activity and it is following the client's needs. we are steadily growing. that is what we do and why we feel confident to step up the payout ratio. >> you are talking about the flow of the business, we are two

months away from the french presidential election. you see any interest from french clients, international clients? do they inquire about these elections and is that having an impact on flows? >> listen, you are talking to the cfo of bnp paribas, so i don't have the crystal ball to predict the outcome, but we do see the pickup and the economic texture, particularly in the sectors we are serving, has been very solid. >> what concerns you the most of the european level? is it the future of interest rates or is it geopolitical tensions at the moment? >> if you look at the uncertainty that hangs a bit over, it is indeed the interest-rate. you see different positions unfolding. in the end, when you look at bnp paribas, what is important is that we can accompany the growth in europe and therefore even if the rates would go up, that is

what we will do. intrinsically, we have taken a very conservative stance when we made our objectives and our plan. if the rates would go up showing even faster growth, that will be the cherry on the cake. >> the bank said it wants to become the top equities trading bank in europe. how do you plan to achieve that? >> we are not only an investment bank. we have three different pillars in our strategy. what we really want to do is continue with our plan. we want to foster organic growth in a disciplined manner and all of our businesses. we want to gain market share and at the marginal cost and therefore create and develop new opportunities and doing this while having economies of scale. it is not just on one flavor, we want to do things and all of the slivers. we want to have an ambitious

bottom-line growth of 7% per year and a payout stepped up. we want to be the first europe based among the global tier one with an international reach and a comprehensive offer suited for the financing of all needs. be it equity, be it corporate, be it security, that is what we want to do. manus: the cfo of bnp paribas. just a line on that. global markets revenue down nearly 11% in the fourth quarter. the equities rising 17%. that was not enough to offset the drop in the fixed income business of 24.6%. it is that battle royale between the equity traders. and the bond traders. dani: it is all about the ipo.

they are confirming officially the sale of arm is off. this was supposed to be to nvidia. they are now planning to list arm within the coming fiscal year. they are seeing just a sliver of net profit for the third quarter. ¥29 billion. vision fund profit coming in at just over ¥108 billion. manus: there was a breakup fee involved in this unglamorous breakup, nvidia withdrawing from the arm deal. softbank will retain $1.25 billion deposit from nvidia as expected. third quarter sales fall by 98% year on year in the third quarter at 29.0 5 billion. vision fund and gassman gain -- investment gain.

we have to talk about spreads. european spreads. they were well behaved and decided to channel that challenge christine lagarde. i think you to the credit spreads, the global credit spreads. you can argue all you want that they are not exactly exploding, but they are beginning to rumble and grumble. the highest price since december 2019. the credit markets have been very well behaved in january, but they are beginning to turn into naughty school boys and girls. dani: is that the first rumbling of a temper tantrum in europe? look what happened to greece yesterday, italy. 35 basis point move, 20-plus basis point move. then you get the credit spreads widening. i'm a little less convinced of the story in the u.s. peter says the look in the u.s.

at least is a case of credit reassessment -- rather repricing, not reassessment. that move in europe really breathtaking. manus: it was. we also have a note from j.p. morgan on your bloomberg. they can't win, can they? kelly says there is a risk of destabilization by the federal reserve, frankly, he is worried that you are going to have a flatter curve and that the fed's impatience to normalize could indeed mean they ultimately flopped. they really can't win, can they? one moment they are behind the curve not doing enough, they are slow, they are slack, now they are to destabilize the world. who can win? not the fed or the ecb. dani: who doesn't love a lose-lose scenario on a tuesday morning? let me give you the scenario.

maybe i oversold it a little bit with the sending this. we are nowhere on s&p 500 futures. it is this bond market story that continues to capture attention. we are looking at yields three basis points higher. it is the dreaded hedging we might be headed toward. 1.95 is the level some analysts have flagged. steel also on a tear this morning, up or than 2%, with the u.s. dropping tariffs when it comes to japan. finally, the euro giving back some of the gains we saw over the past few days with christine lagarde making some comments that might have suggested we have gone too far. to that point, christine lagarde sit in the adjustment to monetary policy will be gradual. the euro area faces inflation and the debate over the first interest rate hike in more than a decade. that debate has started to heat up. we are joined by our asia economics correspondent, and the

current. is this a market that has gotten ahead of itself? >> it is one thing to be sending a message about being flexible. she said flexibility is more important than ever. she made the point about being doubted. you can read that two ways. you could say, of course there has been a big shift by ecb, inflation is over 5%, we have had some hawkish comments. at the same time, you hear president lagarde not necessarily saying rates aren't going to go up, but certainly saying let's just take this one step at a time and see what the data tells us. she was not working purely on expectations. the bigger story remains the ecb is shifting toward tighter policy and that is in line with a global shift among developed economy central banks around the world. manus: that might have just

tipped this morning, but it does not believe the shift in the boldface from lagarde. enda curran, our chief asia economics correspondent. u.s. president biden says controversial nord stream 2 gas pipeline between russia and germany would be stopped if moscow invades ukraine. a plan that russia has denied. the comment came at the press conference alongside the german chancellor. for more, we're joined by our european correspondent maria tadeo. the united show of force. they are set to debrief in berlin. what tangible achievement can we turn to? maria: yes, they are meeting today in berlin. this is really a diplomatic shuttle mission that is nonstop. what i would say is if you take a step back, these are two diplomatic trips that are very different in nature. i coming to d.c., olaf scholz

wanted to send a message that germany is standing fully behind nato, that germany is a reliable partner, and that germany is not too friendly with the russians. yesterday to some extent, he did get to that point, saying everything we hear about germany perhaps not being reliable is neat -- complete nonsense. where it gets very complicated is with nord stream 2. president biden was very clear, if there is an invasion into ukraine, nord stream 2 will be canceled. the same question put to olaf scholz, he was much more ambiguous. when you look at the trip for emmanuel macron, this was a delicate exercise diplomatically. he did say, i hear some of the concerns when it comes to russia, i will put it to the ukrainian prime minister. vladimir putin was completely brutal and the press conference where he said russia is not the problem, the west is the problem. i would note behind the scenes

the french are saying, but this is not confirmed from the russian side, that russia has committed to not taking more military initiative in eastern ukraine. i do want to stress this is coming from the french. the russians did not confirm this on the record. dani: thank you so much. maria tadeo updating us on all things russia-ukraine tensions. let's get over to the first word news. juliette saly standing by. >> hong kong is set to announce further social distancing requirements after daily infections soared to more than 600 as the omicron variant spreads. carrie lam has pleaded with residents to stay home at the city battles its worst outbreak since the pandemic began. hong kong is existing with a dynamic covert policy, which aims to keep cases test cases at zero. -- keep cases at or near zero.

a transatlantic data deal was struck down in data security concerns. europe and the u.s. have been in negotiations for months to replace the agreement. 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. dani: juliette saly, thank you so much. coming up, we will speak with a guest about the global bond rout stoped by expectations for aggressive rate hikes. manus: the demand for the drinks and the supply chain problems. this is bloomberg. ♪

>> the rate hike will not occur

before our net purchases finish. moreover, there are three conditions that will has to be satisfied before the governing council feel sufficiently confident that our policy rate is appropriate. all of the three conditions are meant as safeguards against a premature increase in interest rates. any adjustment to our policy will be gradual. manus: the ecb president christine lagarde on policy changes as the euro area faces record inflation. our guest, good to have you with us. it is ironic, isn't it? here is lagarde having to roll it back slightly in terms of re-impregnating the word

gradualism to the news conference. i was standing freezing outside the ecb, she said the spreads have been well behaved, there is no worry. good morning. the spreads are rumbling, they are wrinkling, they are certainly not believing of gradualism. good morning. >> good morning. good to be back. the market moves very strongly on thursday on the back of her being far more hawkish than what we had anticipated. everybody knew there would not be a rate rise, similar to the bank of england which rose rates. raised rates. what was the difference was there was an acknowledgment that inflation may be more persistent than what they had admitted to in the past and clearly that is what i argued over for quite a while.

you would think that one would consider maybe to tighten monetary policy somewhat, but that was not the case. think a lot of people thought they would wait until march because clearly the asset purchase that ended already. that was actually earlier than necessary. i had become so pessimistic. dani: if i could jump into what you thought, manus called me cruel because i like to play tape back to people. you thought they would wait. take a listen to what you said last time when you were on the program with manus and me. >> when i look at the ecb, their inflation story, it is so strong in my mind and why is that?

it seems to me they are putting their head in the sand and missing the reality. dani: do you still have visions of disney castles when you think of the ecb? >> yes, it is now the sleeping beauty that woke up. you know how it goes with the sleeping beauty. you sleep or so long and everything around you has changed so much. there is this acknowledgment that inflation is here to stay with us, than that is really what i see. not acknowledging and then from one day to the next it is blowing up in their faces and they say, actually, look, there is high inflation, it is more persistent than what we had anticipated, and may be our models cannot forecast this new inflation environment.

this is where we are now. sleeping beauty has woken up in the world around her has changed. so what do you do now? manus: and this was the accusation by the way of one of the reporters in the press conference was your models are not fit for purpose. if sleeping beauty has woken up, we've got to decide whether she kissed the prince or a frog. so what happens in credit? i want to understand what happens next in credit. what happens in european high-yield? it is beginning to pop, but not below. what happens next? >> that is really a very difficult question. it has moved a lot. this is a great chart you are showing. this is what people do and even going further back, so when you looked at the five-year average, we are not that far from the

average other than what we have seen in 2020 and nobody is anticipating that. the spread market has moved significantly over the last 10 days or so. it has started to widen a little bit early on already. it or -- there was a bit of an overreaction yesterday. by the end of the day, it came back most. there is nervousness in the repositioning. i felt she did not speak to the european parliament, she spoke to the market, clearly. she was trying to rein in a little bit of what she had done last week. dani: ok. >> i thought last week was an

honest conversation. yesterday, the reigning in, i see why she did it. dani: ok, tatiana? tatiana, we are going to talk u.s. next, so we are going to take a pause so we have time. sticking around with us. coming up, i've never seen commodity market pricing in the shortages they are to the degree now. jeff curry. we will bring you that story next. this is bloomberg. ♪

manus: [indiscernible] she is our guest this morning. let's talk about the u.s. inflation swaps are rolling over. that means the fed will have to revise down there eric --

inflation expectations. the gulf is widening. explain. good morning. >> good morning. i think a lot of it is to do with technicals than with the actual data. the data, we clearly have to wait for the next few months. there is an anticipation that to the extent that central banks behave forcefully to rein in inflation, they could then, inflation is coming down, and then with that, so why would inflation come lower? it is the anticipation that may be driven by a slowdown in growth. dani: if it is all about the data, powell said data dependent and about 10 ways, have markets

got ahead of themselves on the front end of the curve? >> on the front end of the curve in terms of how quickly the fed may be raising interest rates. yes, the narrative has shifted significantly. there is even an idea that a rate rise [indiscernible] to that extent, i think the market is chopping quite a bit t o really position for the volatility and hopefully gain from the volatility. i think a lot of it is more to do with where the rates could be going then what the underlying data may suggest and how central banks are responding. from what i observe, a lot of market participants are often

less attuned. dani: tatyana. apologies. have got to jump in. so great to have you another program. sleeping beauties and all.

dani: good morning. we have just gone 6:30 a.m. in london. i'm dani burger alongside manus cranny live in dubai. this is bloomberg daybreak: europe. bonds again on the back foot as the market weighs the risk of tighter monetary policy. christine lagarde insists any adjustment will be gradual. president biden hosting german chancellor schultz. he said the nord stream 2

pipeline would be stopped, claimings moscow denied. we get figures later. this is a bond market in turmoil. it is a global bond market in turmoil, but have we gotten ahead of ourselves? this is something i hinted at when we were just talking to tatyana. powell said data-dependent in about 10 different ways. there is no reason to doubt that , so unless you think inflation is guaranteed, you may want to take a step back on how aggressive they will be. have we gotten ahead of ourselves for the expectations for aggressiveness? manus: there in lies the point. look at your bond futures at the moment. on treasuries mated to the highest yield since 2019. what is really driving markets

today is the bond. you are seeing she spoke the truth last thursday. she was speaking to the market yesterday when she was trying to use the word gradualism and we would be data-dependent. it looks like the euro and the bonds are beginning to buy into that. maybe we have run up to the bumper to this ratchet higher on the yields. dani: i have to say tatyana, the best metaphors we have of anyone on the program. she was with us before saying it was a disney castle and now she says it is sleeping beauty woken up to a different environment. very evocative. manus: absolutely. there is the two year yield on germany over the past year. over the past day, it is rolling over. futures are flat. 10 year yields are at the

convexity, most will be at convexity hedging. i have my crystal ball out. the five-year average on tenure paper. steel futures trading up. the euro-dollar rolls down as there is the beginning of a big leaf that christine lagarde may be rolling back her posture. the euro down by 0.2%. dani: i think i get a little too excited by convexity hedging. a nerd at heart. french wine and spirits manufacturer remy cointreau benefited from changing habits during the pandemic. consumers became more adventurous in their tastes during lockdown. to talk about this, we are joined by the remy cointreau ceo for the americas. great to have you in our time zone.

we heard from jeff curry of goldman sachs yesterday who said, i don't care if it is oil, gas, aluminum, you name it, we are out of it. what are you short of at remi cointreau? what is hard to source? >> over the last two years of the pandemic, the trends that were there before exploded. the consumption was unprecedented in terms of the trends. it was hard to forecast. we have seen consumers trading up. the supply chain was a challenge over the past couple of years and for the foreseeable future will be problematic. overall, we are performing well. we are high double-digit growth. we are exceptionally pleased with our performance and in investment mode in the americas, which is our largest region across the globe. manus: welcome to the show. in the break, we were talking about what is the most profitable part of the business

and it is yours. how are you able to raise prices in this environment in the states? where are you able to raise prices the most and will they stick? good morning. >> the trend i mentioned earlier about trading up is not necessarily consumers drinking more, but drinking better all of the. -- better quality. if you have brand power, the consumer is willing to pay more for your brand. we have been quite aggressive in terms of our price increases. we have had two over the last 12 months and we have another coming the first of april, which is public knowledge. we believe that our brand has the ability to charge a premium. we continue to invest behind our brand. dani: i love this idea that everybody stuck at home has become more picky about what alcohol they drink. do you expect that to reverse as we exit lockdown?

are consumer habits going to revert back to what they were pre-pandemic? >> i think that habits have changed. the positive is that our drinks cabinet has widened, so the number of alcoholic drinks that you have in your repertoire that you consume regularly has gotten broader. pandemic has fueled that. the old premise was hard-hit during the pandemic. it is starting to come back. it is probably a 90% of what it was before. a number of outlets have closed. the pandemic is not over, however the consumer has started to go out. the consumers willing to spend more on premises. the average check is about 15% more than before the pandemic. the brands performing well or brands about $35. we see in number of categories that have done exceptionally well, cognac being one. premium gins above $35 have a

tremendous opportunity. that is one of the things we are super excited about. the premium gin category with the brand we are launching called spirit of community, which is about supporting the on premises and the bartenders in the restaurant doors across the u.s., and we believe this trend you have seen during the pandemic will continue. mythology at home will continue. more importantly, we are not generally good at it. we let the professionals, the bartenders do it for us. manus: and we get a lot worse at it as the evening finds -- one finds. mixology takes on a whole new level of adventure. wanted to know in dollar terms, how much, what are you doing in the u.s., how much you putting in, what is that in terms of

that depth of donation -- destination? >> i've been in this role for over three and a half years in the investment behind our brands has doubled behind that time. our investment is growing ahead of our sales. we believe that our girl bull priority brands -- global priority brands, we believe the investment is paying back and we will continue to invest heavily behind our brands. the more that we can make our brands front of mind and understood in terms of the story, each of our brands has a very unique story in terms of where we are from. we believe that tarawa are matters. we believe that time matters. the vast majority of my products are age. we have patience in terms of building our brands. dani: the america story stands in stark contrast to china, where they have a zero covid policy, where you continue to see lockdowns and restrictions of movement.

how concerned are you about china and dropping consumption? >> i don't directly manage china, so i can only comment on americas, but across my zone i still have countries that are locked down in latin america and the pandemic is by no means over, but if i look at the americas, what has happened has been good for our business. clearly, the health and safety of our employees and our customers and our consumers is the most important thing, but overall in america, the pandemic has been good for our business. i can't comment on china specifically. manus: that negates my next conversation which is about the french election, but let's give it a go anyway. you are headquartered in france and you have a very french flavor to the corporate. you are at the board meetings. how worried are the board about the upcoming election being a disrupter in any way to the core of remy cointreau?

what is the conversation in the boardroom? >> as a northern irish person, i don't get involved in politics is my quick answer. manus: as a northern irish anchor, i would expect nothing like the repast i grew up in. politics is critically important. what happens in france is going to be important. just give us a flavor, are we anxious? are we relaxed? take it away. >> i think there is an unpredictability across the world in many elections in many countries, whether that be the u.k., france, the u.s., etc. our job is we have to make the most of it and try and predict what could happen, the different scenarios, but i'm not overly concerned in the americas. manus: there is a job for politics i'm sure somewhere in the longer term for both of us. great to have you with us and a

great conversation about the business in the states. we wish you well and i like forward to joining you, me, and dani on a mixology course. the whim recon -- remy cointreau ceo of america's. let's get the first word news with the queen of mixology, juliette saly. [laughter] juliette: president biden says russia's nord stream 2 gas pipeline would be halted if president putin orders an invasion of ukraine. speaking at the white house, german chancellor olaf scholz says his country stands with the u.s. on the issue. >> we are acting together. we are absolutely united and we will not be taking different steps. we will take the same steps and they will be very hard to russia. juliette: the u.s. and japan have reached a truce on trump

era tariffs on steel. they will be suspended. the solution mirrors the accord struck with the european union in october. japan is the fifth biggest steel exporter to the united states. blackstone is exploring a combination of its european building materials retailer with a similar business. it is discussing a possible merger of building materials europe with cvc's group alongside pressure to list the companies. the business is valued at almost $7 billion in any deal. 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: thank you so much. juliette saly in singapore. coming out, meta falls 5% as it threatens to pull facebook and instagram from europe in a row

over data. peter thiel stepping down to support donald trump's agenda. we have all the news next. this is bloomberg. ♪

dani: welcome back to bloomberg daybreak: europe. i'm dani burger with manus cranny and dubai. shall we talk about the problem child of this u.s. equity market that has a habit of wiping billions of dollars off the market? manus: 33 billion dollars to be precise. we are talking about meta's level of angst. peter thiel is going to step down from the board after the annual shareholder meeting in may. the tech investor plans to focus on supporting the former president donald trump's agenda during the 2022 midterm election and does not want his political activities to become a distraction to the company.

meta threatening to pull facebook and instagram from europe, if it is unable to keep transferring your data back to the united states of america. bruce einhorn joins us now. what is the latest regarding this dispute? the german trade minister's responses amazing. my life is been just fine, four years i haven't had facebook, i'm grand. [laughter] bruce: yes, on thursday last week when we all were focused on the other news that meta announced, they also said in their annual report that they may not be able to continue offering facebook and instagram and other services in europe because of this issue about the transfer of data back to the u.s. paul because of a ruling from last year in which the european union's court said the existing

agreement was not adequately protecting data that was getting sent back to the u.s. so the two sides are in negotiation. negotiations have been going on for a long time and they are not in agreement yet. meta seems to be getting impatient. that said, the french finance minister yesterday reiterated that they have no intention of backing down on this. dani: at the same time, peter thiel, who has been an advisor to mark zuckerberg for at least two years, is stepping down from the board, going after political activities. two decades, rather, quite a bit longer than two years. two decades. how consequential is it to see peter thiel step down? bruce: well, as you point out, he was there from very early in the company and has been influential. he had to year of mark

zuckerberg. his departure could really help avoid embarrassment for the company because the political interests of peter thiel and his candidates sometimes don't go along with that of meta and facebook. he is supporting a senate candidate in ohio whose political action committee supporting him has run ads critical of mark zuckerberg. similarly, other candidates that peter thiel is supporting are pushing the line that facebook helped to steal the election with no evidence to back this up. that they supported biden in 2020 and helped to defeat trump. peter thiel's candidates are pushing that line pretty hard,

with peter thiel no longer part of meta/facebook, it might make it easier for him to double down on that. manus: when you see people like peter thiel as it were doubling down on his commitment to whatever this next trump move might be on a presidential, do you think you were going to see more big names move behind trump? is there a new momentum here in the trump run? bruce: well, i think there is a long way to go. first, we have to get to the midterms and see what happens. trump is certainly facing a lot of legal issues in courts in georgia and new york, elsewhere. there is the january 6 committee that will be having its public hearings probably sometime this spring in the u.s. i think it is too early to say that there is any sort of consolidation. there is a lot that could be happening between now and the

midterms, let alone between now and the 2024 elections. dani: if there is anything we've learned over the past few elections, time seems to not apply. bruce, thank you so much. coming up, japan's softbank releases third-quarter results and confirms that arm is going public. more on that next. this is bloomberg. ♪

dani: it is bloomberg daybreak: europe. i'm dani burger in london with manus cranny and dubai. let's take a look at some of the events we will be following. first at 1:30 p.m. u.k. time, the latest u.s. trade deficit figures. growth in imports expected to slow. this afternoon, we are expecting poland's rate decision. consensus is for a rate hike of

50 basis points. to 2.75%. dani: then you've got the pfizer earnings at 3:00 u.k. time the drugmaker's performance has been mixed. beating earnings expectations and three of the last four quarters. finally tonight, it is peloton's second-quarter results as nike and amazon are weighing separate bids for the at-home fitness business. volatility is a byword in peloton, a battering as we come out of the pandemic. softbank has released its third-quarter numbers in the last hour. we've got the news about the deal with nvidia and arm falling apart. juliette saly has the details. good to have you with us. they have confirmed what we suspected is they are going to take arm public. what are the nuances we need to know about that? juliette: absolutely. a bit of fireworks to kickstart

the trading deal when we heard that confirmation that in the was walking away from the arm purchase, which would have been the largest, worth some $40 billion. softbank have confirmed in their earnings report that they will be going to market most likely in the fiscal year ending 2023 and launching an ipo of the unit. they have seen their vision fund unit rebound from a record loss. this is a very volatile unit. it had the record loss in the second quarter. it has come through with a profit of $940 million. the net income came in at around ¥29 billion. importantly, as we look to the arm ipo, they have managed to keep the $1.25 billion deposit they had received from nvidia. that will be reflected in their fourth quarter numbers. dani: the next thing to look out

for is mush aoc son holding a briefing in the next hour. what will investors be looking for? >> you could imagine there will be questions about the arm ipo. that has kinda been delivered to the market. the other thing will be about leadership. bloomberg reported the coo was leaving the business. he had had some butting heads particularly over his role in helping to turn around sprint and we work and he is reportedly seeking as much as much is $1 billion. questions over leadership and questions about the tech crackdown in china. what does that mean for china? given that you have seen other high-profile blowups. investors are looking as to whether or not there might be share buybacks. we someone trillion yen over the course of last year. you have seen softbank shares decline since then.

that was the worst performance since 2006. investors wanting to know, where is the cash coming from? where is the strategy for softbank? still bullish when you look at analyst recommendations. dani: thank. juliette saly on all things softbank. i think our producer sarah is going to kill me if i don't give us a read on what bitcoin is doing. bitcoin on its longest rally since september, now trading nearly get $45,000. i know you want to talk about bonds, take it away. manus: i just hope sarah is happy with herself that she got bitcoin into the show. much to my chagrin. let's see whether she can deliver on the show. the bond futures are dropping. my chagrin. my angst. dani: chagrin? manus: i don't know.

gradualism is back from the ecb. she tells the truth. sleeping beauty has woken up, they say. according to our guest. bloomberg markets europe is up next. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: europe." i'm anna edwards. mark cudmore joins us for the market action this hour. the cash trade is less than an hour away. bonds again on the back but as markets way the risk for monetary policy. christine lagarde says a steady adjustment at the ecb will be gradual.