this is bloomberg. ♪ alix: this is bloomberg markets. i'm alix steel.c-plus have agreed to revive some of its halted output. they will proceed with a 400,000 barrel a day hike beginning in february. let's bring in our energy reporter. what is interesting is the market reaction. oil is up 1.5% despite the fact that they are adding oil. what does that tell us? >> signaling that the market needs more than what they are willing to return to the market. inventories have been drawn down over time, over the last year, when we were battling with the pandemic. there has been a slowdown in production. all of that is still low. whenever opec and its alliance wants to return, the market probably thinks they need more. alix: i wonder if we are looking at a situation where opec-plus cannot actually hit that 400,000 barrel a day and not make up what they are hitting. >> there have been a lot of questions over the last several months about how the spare capacity available is not quite as robust as people expect. there have also been disruptions. we have seen over the l

alix: this is bloomberg markets. happy new year. i'm alix steel.continuing to outperform, up by .8%. the highlight is apple, yet again, $.50 away from the $3 trillion market cap. also the outperformer in the s&p. you are also seeing some bigger movers -- crews guys, norwegian cruise lines doing well, holding up that portion of the index. a ferocious rally to the upside -- the five year yield up, 10, 30 year yield, up by 11 basis points. the whole curve moving higher, but the two year yield not moving as much. we will get to what that means in just a moment, but for now, it is a risk on field -- risk on field despite those heels. still waiting on president biden's remaining picks for the federal reserve. we get the fomc minutes on friday. we get the real first time indicators of how the economy is dealing with omicron tomorrow. i want to bring in andrew 11 and our policy correspondent michael mckee there is a lot to digest and a lot we will find out -- can you give us a lay of the land as to what we are looking at? michael: i will throw two numbers

this is bloomberg. ♪ alix: this is "bloomberg markets ." i'm alix steel.g kong is going to ban flights from 8 countries including the u.k. and the u.s. and shut bars for two weeks as the city battles the omicron covid variant could want to bring in the bloomberg new economy editorial director. you see different regions in china with millions of people having to shut down as well with the zero-tolerance covid policy. why is that still the policy? >> one is locking down 13 million people. hong kong has gone into semi lockdown after discovering a single case suspected to be omicron. the priority for the hong kong authorities to align with mainland china is zero-covid strategy, which is the reason why xian is in the lockdown right now. this is going to imply a rolling series of lockdowns, quarantines, economic destructions by the way through this year and into next year as well. alix: are relearning anything about the efficacy of vaccines that remain in china? or vaccine take up? what is the logical excellent nation? >> -- explanation? >> couple things going o

alix: go, i am busy now. guy: alix has got work to do. we are waiting for the president.ing to be speaking theoretically in around 45 minutes past the hour. we will see when the president arrives, but we will hear from him talking about what happens today with the payroll number. we may also potentially get some news in terms of the fed as well. what are going to hear? annmarie hordern, bloomberg washington correspondent, standing by. annmarie: the president will likely talk about the fact that even though the payrolls number was a miss, there were importance of it -- there were components of it that were positive. the unemployment rate up into 3.9%, we are just a smidge off of where we were pre-pandemic. that is something the president is likely going to focus on, the fact that there is a recovery. he will probably try to take a moment to push through has economic reforms and the challenges he is having within his own party to get bill back better through. one of them is the child tax credit. if you look at what is happening with women in the part as a patient rate, much

this is bloomberg. ♪ alix: live from new york, i am alix steel. guy johnson in london.tal day, tech leading the retreat in the equity market. abigail doolittle has the market action. abigail: really is brutal, but we are seeing something interesting. moments ago, the s&p 500 down more than 1%, hitting that 200-day moving average, now off of those lows. so today has a little bit of a feel of panic, a real selloff, and options expiration could be contributing. we are looking for a capitulation bottom. was this it? it will be a very fast move back up if it is. this could be the beginning of that are there could be more selling. bigger selling in tech. nasdaq 100 down 1.4%, on the week down more than 6%, heading to its worst week since march of 2020. if this was the year, the worst year since 2008. that faang and asked on more, and even the banks are lower, down 2.4%. no surprise the resent tech is down so much has everything to do with netflix. netflix down 25% over the last two days. what makes this incredible is going into this report, the stock had already been down 25%

alix: which feels reassuring.laughter] joachim: it doesn't sound very reassuring, but that is the situation that we are in. the dinosaur stocks are down. in fact, as you look at it today , energy as a sector in europe and the u.k. is not one of the best performing sectors, which is what you would expect if ukraine and russia would be the top driver of stock markets. alix: we have also seen some price action in ecb market pricing. a 10 basis point hike is pushed back to december from october. was going to be the readthrough from the selloff of potentially tighter financial conditions and the central bank reaction? joachim: at the moment, markets are really freaking out and kind of going into the extremes in terms of central banks hiking 50 basis points or hiking more than previously expected. in the end, we are already seeing first indications of declining wage growth and declining inflationary pressures. also in the energy space over the last couple of months. that means that we think the central banks will probab

alix: we are transferring.t know what that means, but it sounds like we are cool or robotic. coming up, we will transfer to mark. -- we will transfer to merck with rob davis, the ceo. this is bloomberg. ♪ alix: this is the european close . you're lucky to live shot the principal room. coming up, jane harman at 12:30 in new york, 5:30 in london. this is bloomberg. guy: let's get back to the virtual jp morgan health care conference taking place this week. we have always had a solid lineup of ceos. israel adding to the list of countries getting their shipment of merck pills for covid treatment. it december the u.s. fda authorizing the pill for emergency use for mild to moderate infections. joining us from the jp morgan conference is rob davis, the merck ceo. thanks for spending time with us today. you have taken over mid to endemic -- mid pandemic. how is it looking? what are the challenges? rob: thank you for having me on the show. it has definitely been an interesting ride. it is all good. we are performing quit

alix: you have timing for that?l like opec-plus cannot even reach the target it is setting for itself. i wonder how tight the market is right now and how that evolves, particular into the maintenance season for the winter. caroline: outnumbers suggest market -- our numbers suggest the market will balance in the first quarter. that is a conservative production forecast. it is a slowdown in the growth and demand. it is coming from a much higher base in 2022. our current forecast, even with lower production from libya, which now seems likely for a month or so, still points to a small surplus in the first quarter of this year. we forecast prices will be falling over the course of this year. guy: can you plug in higher natural gas prices into what you are seeing at the moment? huge moves, well off our highs. half what we saw midway through december. nevertheless huge volatility. how much of a wildcard is this in terms of your thinking? caroline: a certain number of power generators can switch between natural gas and oil,

alix: so what do you do? as an investor, you are looking at the price action and the volatility, what do you do? >> to some degree, people had already started changing some of those positions we had last year. we were never really all in on some of the very high evaluation tech stocks to begin with. there's going to be a bifurcation between those profitable companies and those struggling to generate any kind of cash. in that environment, a higher rate backdrop is not particularly good. i think that is going to be true across the board. valuations are finally going to start to matter and cash generations are going to be very important as we navigate what is no longer a very easy fed policy going forward. guy: there has been this narrative while alix has been out, i would like to point out, that we shift the value. the value was going down-perform. my question to you, i some of these companies with cash flows that looked relatively well-valued prepared with some of these tech names, are they going to out-perfor

this is bloomberg. ♪ omberg. ♪ alix: this is bloomberg markets. i'm alix steel. with jon erlichman.s of citigroup are rising partly with higher yields, but there is also a vaccine mandate that line that will see employees without the jab he put on unpaid leave and terminated at the end of the month. jenny, what was behind is very aggressive move? citigroup has always been ahead in terms of this. what was behind this particular move? jenny: they announced they were planning to make this step in october. they have given post a few months. the mandate is you have to get a vaccine or you can also lie for certain religious or medical exemptions. they have seen pretty broad compliance. at least 90%. that is a figure that is rising every day. it will be interesting to see where they end up next week. they have separately try to work with folks, introduce different programs, but they have said this is a mandate we have. if you cannot comply with an exemption or getting the shot, this is the step we are taking. jon: you wrote a really exit piece on this with requiring shots. it is one thing

alix: let's talk about labor.he labor index hit the highest level in about eight months, rising to 54.2. can you give us some insight as to how easy or difficult it is for manufacturers to hire workers and what they have to do to get them? timothy: i ratio was about 10 to one, so everyone is really trying hard to hire. they are dealing with 30% return -- with 30% turnover related. that will probably continue. the opinion about month-to-month improvements is flat compared to the month of december, so 10% indicated it was easier to hire in november versus october. the same comments came through in december. in january, that number is going to decline. so labor is continuing to be the issue, and we are going to have to battle our way through it in 2022. but overall, our forecast indicates the same thing. business forecast indicates we will see 7% revenue increase in manufacturing. the optimism around business conference for 2022 is very high. this is another bump in the road . the good thing is it is not as lethal as

alix: what is the offramp, then?he number one concern for putin and russia is the expansion of nato. first and foremost of those concerns centers around ukraine and them not joining nato. he is asking for a written guarantee. he is not going to get that. but there are other things that potentially the u.s. and allies can offer with respect to troop movements, exercises and things like that. but we are really going to see what putin is willing to be open to once the u.s. and the europeans give their written response to the demands from last week. guy: those are the demands. let's talk about the deterrence to taking action. we are clearly divided in our approach in the west on how to deal with this. as you say, europe has more economic exposure than the united states does. what do you think the package of deterrence needs to look like in order to deter military action? andy: first is the debate on whether we should impose sanctions now versus having the threat of sanctions as an overhang over negotiations. i don't thin

alix: oh, i am going huge.e, i can't say online because it is for my husband's birthday, but anyway, europe's debt market rigging records. we will take a look at what more we could see. this is bloomberg. ♪ alix: get cash now while the getting's good. that is the theme right now and the european sovereign market and the corporate market. this takes a look at primary issuance and takes into account both of those things. the yellow line is what we are seeing so far -- the yellow line was last year. where is my 2022? anyway, the point is you're looking at the yellow line, looking at the fastest pace in the last five years in terms of issuance. huge amount. wizz air, spain, portugal, italy, you name it. you see the bund trending near that zero line. you wonder how much more supply is going to come online. guy: absolutely. everybody is pulling every thing forward, trying to get everything done. great chart. let's go to somebody else that is very colorful. very nice. you blend right in with the chart. let's talk abou

alix: thank you very much.im asked gave a pretty stark warning. >> this is going to be a pretty proper war if it happens. putin will want to do some very serious military operations to force the ukrainians to concede a new treaty in terms of their relationship with russia. this is a major conflict. alix: we will continue the conversation with magdalena polan, a principal economist. do you agree with that, that we are looking at a proper war and we are nowhere near something like that? magdalena: i think neither of the sides will acknowledge what is going to happen and what they will have to do. they are saying the leadership will be much more dynamic and tactical, and deciding on the next step as a situation develops. i was thinking before that any innovation would be in a difficult taught -- difficult conflict, this is not an easy challenge for the russian army. but even the military challenges that we saw were a little bit easier, both the invasion of georgia and the involvement of russian troops in syria,, t

alix:t is 30 minutes into the u.s. trading day on this monday, january 10. here are the top market stories. goldman sachs sees the fed moving four times this year as the hawkish predictions mount and push the yield to prepend met highs. tech -- to pre-pandemic highs. tech's terrible, no good monday. risk on assets getting trashed -- getting crushed. novak djokovic gets the green light to compete in the australian open. we will talk to an all-star lineup of drugmakers to get their take on covid treatments and shots. we will talk to the moderna ceo, roche ceo, and merck ceo all in the next two hours. if you are long tech, it is a no good monday for you. guy: plenty of people out there expecting we would start to get a bounce in tech. that is not happening. i think is down to these calls we are getting. jan hatzius at goldman sachs, we will talk about that. bill dudley as well earlier on talking about the fact that we have a long way to go in terms of what the fed has got to do, and for a mond

alix: here in the u.s., we are waiting for those fed minutes. think the question becomes where and when do we actually move. the s&p a little heavy here. i should say flat. but the health care really underperforms. text still underperforming. the growthier names coming off. you can see that with the ark innovation etf which has gotten hammered over the last few weeks. i'm going to skip the real yield for a second. the russell 1000 value index is up 0.6%. growth has now trailed value by about 1.5%, the worst lag for growth to the start of the year since 1995. so is this move into value real, or are we going to see growth continue to pick up? the growth argument is going to come when you get to the real yield at -94 basis points. if that stays negative, do you still need to buy attack? this conversation definitely percolating when we get those minutes today from the fed at 2:00 p.m. guy: absolutely, and all of this against a backdrop of what is happening with omicron. prime minister boris johnson saying within the last few minutes that the u.k. is

alix: how does wage inflation take into that?i: i think ultimately it comes down to pricing power and the ability to manage through that challenge as well. it is interesting. as we have read earnings transcripts for the past year, this labor issue continues to come up. we find that companies are managing around that the same way they are managing around supply chain pressures, with creativity in terms of hiring and finding other ways to suck costs out of the system that aren't directly related to labor. that is another thing companies are going to have to manage around, and they have been pretty successful at it so far. dani: one of the things that stood out to me in your note you published this morning, you talk about positioning in u.s. equities being high, but retail investor sentiment has been intriguing. what are you seeing their? lori: we talked about this a bit before the holidays. if there's a disconnect between what is in people's portfolios and what is in people's heads, if you look at the weekly survey, we really think

alix: i don't really know.n the meantime, we are seeing this big rotation in the markets, out of growth and into value. value outperforming growth for the most in about eight months. can that actually continue? is this the time where we should be investing in europe? we will talk about that for the next couple of hours as well. guy: we've heard that narrative before, haven't we? there was a piece earlier on talking about the idea that actually, european equities are highly correlated to what happens with u.s. bond yields, less so with european bond yields which i think is interesting. interesting. we are counting you down towards the fed minutes. 2:00 p.m. eastern time. that takes us to our question of the day. it is straightforward. what moves on the minutes? maybe nothing does. maybe we see a massive move. trying to answer that question i think is going to be an interesting challenge today. obviously, foresight is a useful commodity in these markets. michael mckee here to help us out, bloomberg international

alix: in my head all day.s a massive challenge for president joe biden, and a throwback to the 1980's, when then president ronald reagan battled inflation close to 9%. >> a majority of americans correctly had enough i'd as harassing your most pressing long-term problem, inflation. inflation and high interest rates are the real culprits. they create the economic climate that leads to unemployment. pres. biden: i want to be clear, i am confident the federal reserve will act to achieve their dual goals of full employment and stable prices, and make sure the price increases do not become with the independence that they need. guy: volcker, powell. start thing about that one. is higher inflation now fully priced are we near a peak? how quickly does it come down? rent is another factor that could be more sticky. omair sharif, founder of inflation insights, joining us. what did you make of today's numbers? omair: it is obviously largely as expected. i think we are probably right at the peak on headline inflation now.

alix: exactly, and therein lies the dilemma.re waiting for the president, waiting for the european market close. the european market closes going to happen in around three and a half minutes. the dax is down, the cac is down. some of the metals lifting the london market, though. the close is next. this is bloomberg. ♪ ♪ and there you have it. woah. wireless on the most reliable network nationwide. wow. big deal. we get unlimited for just 30 bucks. sweet, but mine has 5g included. relax people. my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one-upping itself. take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. guy: we are wrapping up the date in europe. it is payrolls date in the united states. that is a significant factor. there interesting lines coming out of europe. we have a negative session broadly. the cac 40 down .5%, the dax down .7%. the ftse

alix: what changes the german 10 year to reach zero?andice: i think what you are seeing is a lot of spillover. just last week, stemming from the u.s., we saw that global bond selloff really ripple through all of the markets. this is consistent with that outlook that we do project for the coming years. stronger growth, higher inflation. bond yields need to move higher. yield curves are steepening now. particularly for the financial sector versus the growth space. alix: super appreciate it. really appreciate you coming on for that. coming up, we will follow the energy story even more. citi says europe is facing a $100 trillion energy bill. we will break that down more with the founder and president of gas vista, joining us next. there u.s. tanker is headed to europe. is it going to be enough? this is bloomberg. ♪ >> -- are clear about the prospects for progress in these talks. they express serious concern about the russian military buildup in and around ukraine and called on russia to immediately de-escalate the situation and to respect t

alix: thanks so much.t to give you perspective on what is happening in the market right now, 10 year treasury yields rising 10 basis points, 1.61%. we have been asking all morning, how does omicron affect asset prices in 2022? it seems like your playbook of risk on and reopening is definitely the playbook of the beginning of the year. a lot of the losers like the cruise lines, the airlines, they got beat up last week, and now they are starting to really outperform. i should also point out that new york governor kathy hogle says -- kathy hodel says cases will be skewed a little bit by the holiday weekend -- kathy hochul says cases will be skewed a little by the holiday weekend. bridgewater is naming co-ceo's of the world's biggest hedge fund. a huge change at the world's biggest hedge fund. erik schatzker joins us with more details on this. did it surprise you? were you prepped for it? erik: we knew something was in the works because david mccormick told staff weeks ago that he was interested in pursuing a

alix: that is the optimism part of it.n the flipside, used to have the market aching all of the data we are getting relatively in stride. guy: i am genuinely amazed how little reaction we are getting. the market seems to have fully factored in the idea that we will get three hikes. the market i think still has some degree of ambiguity around what is happening in terms of qt. what causes a shock here is my question. we are trying to figure out exact a how forward go -- how far we go. would it be a more aggressive qt strategy? i don't know at this point, but everybody seems super calm with the idea the fed is about to hike three times. i think if you said six months ago the fed is about to hike three times, they would have freaked out. the one area that we are getting a reaction is in the dollar. i find that fascinating as well. what is the dollar signaling? what is the dollar telling us about this story? is the dollar basically signaling the idea that maybe the fed is going to make a policy mistake? my question is a low bit

alix: i wonder where the catch up actually is.t is great if my car can drive me to work, but it feels like buses, mass transit, huge trucks transporting goods, that is where we need lidar, that is where we need to see the opportunity. austin: absolutely. from a commercial trucking perspective, we see that is a huge opportunity. we are working with the largest producer of commercial trucks, which is daimler trucks, which is separately operated and separately run then mercedes, their parent company. it is absolutely important. the volume of consumer vehicles is a multiple of what you can have even on trucks. that is why the significance of something like this is very high when it comes to being able to put it on different vehicles is the intent for what we are doing is the collaboration and develop meant for. ed: elon musk and tesla believed in a camera-based technology approach to fully autonomous driving. luminar and many others, general wisdom says you need a center suite of many sensors, lidar, radar, camera. why is elon musk wr

alix: it is 30 minutes into the trading day on this tuesday, january 11. the nasdaq, the wannabe comeback kid. the tech rally fizzles after the worst start to the year since 2018. fed chair jay powell faces the senate banking committee at a reconfirmation hearing as he warns of a different world post-pandemic. and ready, set, hike. loretta mester is the latest official to support tighter policy. welcome to "bloomberg markets." it really felt like yesterday's rally and the close, we would feel some bond buying, but we just could not hold that. guy: you've seen this kind of price action before. the idea that we come in, we selloff, then we rally in the clothes. -- into the close. we are not getting that today. it is fairly average on your side of the atlantic. it is fairly average here. let's see what happens with powell today. let's see what happens with cpi tomorrow. those are two things we need answers to. alix: all of that was in the narrative of why we actually rallied. guy: our question of the day, do you buy the dip? the answer today appears to be no.

guy johnson and alix steel. ♪ guy: let's talk about the price action. thanks weighing on the market right now. the german 10 year going positive a little earlier on in the session. we are just below that line now, 0.3 of a basis point, to be exact. the pound finding a little bit of traction today, despite what we have seen when it comes to the u.k. economy and u.k. politics. we will talk about the politics and just a moment. we had a superstrong inflation number a little earlier on. how strongly will be bank of england have to react to that? kailey

alix steel has the day off. welcome everybody to "bloomberg markets."e've got some data to get through. kriti: we do. michigan consumer sentiment coming in at 68.8. the estimate was 70. we are starting to see that consumer confidence really wayne as you continue to see in elation or pressures at record highs. this is important because in december, we saw a bump up in consumer sentiment after six months of that dropping. those inflationary pressures in december were a little bit more calm, but that has turned around again, and it comes at a pretty bad time when you already see fiscal stimulus waning, savings waning as well. the question is how does this really affect that in consumer story, that growth story that had been powering 2020 and 2021? guy: the pickup in five to 10 year inflation has been stable, but the consumer is definitely expecting significant inflation going forward, and expectation may be that it fades throughout this year. consumers are not quite so sure. we had a long discussion this morning about what our question of the day was going

alix steel is off today. welcome to "bloomberg markets." it has been a week that has felt like a month and a month that has felt like a year. thank god it's friday. guy: that certainly should be the tagline for today. one more day to go for this month in terms of trading. this talk about the data breaking on the bloomberg terminal right now, the university of michigan consumer sentiment survey out. . a little fade. i'm surprised it is not more, given the narrative around inflation right now. consumers still feeling relatively perky. 6.2 is the number, down from 6.8. current conditions, 72. a fade from 73 .2. expectations onto 64 point one from 65.9, so across-the-board, both current and future, we are seeing the consumer beginning to back off a little bit in terms of how they are feeling about the world around them. this is where things have changed the least, on the front page of every single newspaper out there at the moment. the president is talking about it day in, day out. when you're inflation expectations, 4.9%. five to 10, 3 .1%. ka

alix steel is off. from a clock p.m. -- 12:00 p.m., new york.ind the podcast on spotify and itunes. kriti: we have to catch that. we will get the highlights, next. this is bloomberg. ♪ >> this is bloomberg markets, the european close. you are looking at a live shot of the principal room. this is bloomberg. ♪>> in the u.k., boris johnson's office has a porridge iced -- apologized to queen elizabeth the second after allegations of partying. that adds to a string of allegations that broke covid rules. australia has revoked the visa of novak djokovic. for the second time. it was in the public interest to do so. they were in court hours later and there might be a hearing on sunday. global news 24 hours a day, on the air, on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. kriti: thank you. cities earnings calls is on the way. we also have j.p. morgan and wells fargo. charlie sharp talked about the impact of the pandemic on their business. take a listen at what he had to say. >> we are watchi

guy johnson and alix steel. ♪ guy: let's talk about the price action.uropean stocks fading. thanks weighing on the market right now. the german 10 year going positive a little earlier on in the session. we are just below that line now, 0.3 of a basis point, to be exact. the pound finding a little bit of traction today, despite what we have seen when it comes to the u.k. economy and u.k. politics. we will talk about the politics and just a moment. we had a superstrong inflation number a little earlier on. how strongly will be bank of england have to react to that? kailey: stocks off the highs and europe. they are also off the highs in the u.s. we have been asking all morning whether it was time to buy the debt. the nasdaq 100 index is essentially flat on the day after being much higher earlier. the nasdaq composite flirting with correction territory. it is earnings season. we've got bank of america and morgan stanley out earlier today. he beat expectations. both stocks are higher. broadly, the banks are lower, down about 1.7%. in the bond market you are

alix steel is off today. "bloomberg markets bochum to -- welcome to "bloomberg markets." on a macro global yeah, it seems to be -- global level, it seems to be yields driving the headlines. guy: you've got everything in there. you've got the corporate results , the energy story and what is happening on the m&a front. we got a little bit of that out of europe yesterday with the unilever/gsk story. looks like it could still be an interesting year for m&a. there's lots of ways looking at this market. let's talk about the data we are getting because while last week was packed, this week a little light as we build up to the fed next week. we are getting the housing market data from the national association of house builders number. a little light, but not much. we come through at 83 versus 84. a little while ago we were trading in the 90's. we faded that move and then we started to pick back up again. it is going to be interesting to see what a higher-yielding environment is going to do to the housing market. is it going to have an impact as we start to see mortgage rates cree

alix steel is off today. i am trying to understand what the motivation is.'m trying to understand what is driving these markets. we've got the fed tomorrow. gotta earnings. we've got what is happening around ukraine. there seems to be a model of factors driving these markets. kriti: we thought that was in the rearview mirror, hitting that 10% technical correction yesterday, but it turns out the selling still continues. this is contrary to the wall street consensus that we won't get a 15% to 20% correction anymore than a 10% correction, unless you start to see growth decelerate. so is growth decelerating? is the consumer in the united states actually becoming less competent? we do have in summer confidence numbers out for the month of january at 113 point eight. the estimate was 111.2. this is a good sign when it comes to consumer confidence because a lot of economists were estimating that this would be a mess, just given the omicron impact and the fact that initial jobless claims had spiked. but it looks like even in the face of those inflationary pressures,

alix steel is off today. welcome to "bloomberg markets." i think a lot of people are excited to see this january come to a close. guy: it has been a bit of a rocky ride. we certainly had a lot of bumps we hit. you will see some incredible numbers being posted in terms of equity markets. foreign exchange, may little less so. -- maybe a little less so. it will be interesting to see what february looks like. i should probably flag a little piece of news just crossing the screen right now. the canadian prime minister justin trudeau announcing with them the last few minutes that he has recently tested positive for covid-19. i think this is the second time he's had it. i could be wrong about that. but i certainly have a recollection of him having it in 2020. let's get back to the question of the day. what a month january was. we are nearly done with it. what is february going to look like? how bumpy a ride is it going? to be to discuss that -- going to be? to discuss that, we are joined on set in london by kristine aquino and ira jersey. do you t

alix steel is off today. welcome to "bloomberg markets." just about four hours until we get that for decision. what is that going to mean for this equity market? guy: i think we are going to keep a careful eye on what is happening, but in some ways, the main event is happening right now, the news we get out of the back of canada, which has decided to leave rates on hold, despite the fact that the bank of canada is saying economic slack is now "essentially absorbed." it's likely lowered its gdp forecast to 4% in 2022, 3.5% in 2023. inflation forecasts are higher, 4.2% average in 2022. i think we are at 4.8% right now. the main headline is that we do not have a rate hike. the market expected a rate hike. economists thought we would see a story of what we got basically, which is a hold. but the bank of canada removing its exceptional forward guidance, basically saying slack has been absorbed, but we are going to keep benchmark overnight rate at 25 bps. let's talk about this because in some ways, this was going to be the second major g7 central

this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: certain minuteso go in what has been a wild week for european equities, for global equities. let's talk about where we are as we come through to the end of trading this friday. 46 d4 is the number, the stoxx 600 down by 1.27 -- 464 is the number, the stoxx 600 down by 1.27%. in the bond market, this is pivotal to what is happening in equities. we continue to see this big move up in front end yields. we got to 1% a little but earlier. we cited that, but nevertheless, the front end of the curve coming up. single stocks worth paying attention to. we saw blowout numbers from apple, also from lvmh. both of those stocks in a turbulent market. these were sensational numbers from both companies. lvmh really delivering. the stock was initially up 5%, then it fell hard into negative territory. popping back up 3.5 percent to the upside, but nevertheless, very strong numbers. kailey: apple blowing it out of the water, and yet that has not consistently lifted sentiment for the technology sector today. granted, ri

. >> this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: european stocksff session lows, trading for 80 on the stoxx 600. technology leading the losses. energy probably having the best day. we are flirting with flat when it comes to the german 10 year, one basis point, two basis points away from zero. are we about to have a positive german 10 year? what impact will that have on treasuries? another factor impacting treasuries right now, brent crude trading $87 26 cents. it appears to be the energy market leading the rates market which is leading the equity market. we will discuss that further. we need to throw earnings into the mix. we need to throw the m&a story into the mix as well. all of these factors impacting the u.s. markets. abigail doolittle here with more detail. abigail: it is a bit of a bearish day in the u.s. as well, not exact a what you would expect after a long holiday weekend and the u.s. stocks are down. the s&p 500, the dow, the nasdaq all down more than 1%. truly underperforming, the sox, that chips index, on pace for its worst day in ne

this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: quick price checks we head towards the close in europe. the stoxx 600 up by 0.9%. a final flourish on what has been a brutal month. less so over here in europe. some markets, the fizzy 100, actually positive on the month. euro-dollar climbing back above 1.12. the market is pricing in 25 basis points of hikes from the ecb this year. how much of a pushback are we going to get from christine lagarde as we await her press conference thursday? are we going to get the five rate hikes that are now priced from the bank of england this year? the german five-year certainly responding this year from a selloff taking place. yields are higher. we have also seen german inflation today stronger than anticipated. it was expected to drop to 4.3%. that is going to be something where the ecb to think about. kailey: inflation some thing for the fed to think about as well. he repricing of fed expectations is really what has driven the market action over the month of january. it has been a brutal month for u.s. equities. th

>> i am alix steel. welcome to bloomberg commodities edge. let's get to the data. the top market stories of the week. the oil inventory numbers had golden nugget's, one jet fuel demand. it is below average but the highest since november. if demand picks up, will supply be enough? let's talk about supplies more and look at metals because the rally is heating up. aluminum may be the next to set records, alcoa warning of stronger demand. nickel has been on a tear, blasting through $44,000 a ton for the first time in a decade. oil has been trading around its seven-year high, which is why some think there is more fuel to the rally, lack of spare capacity from nigeria to russia. opec is supposed to pump 4000 barrels a day but have not been able to meet that, and the orange line shows a shrinking buffer. as that shrinks, oil could push higher. wait till we get to the summer months. let's get into the ring. the u.s. and germany saying today that any aggression against ukraine by russia would trigger a serious response. president biden addressed that situation as it relates

this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to thelose, this is what the price action looks like in europe. stoxx 600 i .66%. energy stocks leading. not much reaction here in the u.k. to the political shenanigans taking place in westminster. we are expecting news from sue gray at some point that may determine the future of boris johnson. does not look like it is going to come today. brent crude the real reason why european stocks are surging today, now north of $90, $90.11, up by 2.2%. kailey: three hours to go until we get that federal reserve decision, and equities are higher. we were up as much as 2% or more in the case of the nasdaq 100 at one point about an hour ago. right now we are down to about 1.7 6% gains. yes, it is a strong rebound. the question is, will it last after two days of incredible volatility in the equity market? lifting the tech sector today is the result we got out of microsoft, growth in its cloud business lifting that stock about 4%. we are waiting and watching to hear from jay powell and the rest of his team

this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to thelose here in europe. european equities back on the front foot. 459 is where we are trading, but context is important. we closed in europe at session lows in the united states yesterday, so around this time yesterday, we were down circa 3%, 4% in the united states. then we got that monster rally priced in. that is why european equities are higher. european foreign-exchange, different story. the euro is down i around zero point 5%. we are trading back below 1.30%. we've got weakness on every currency against the dollar. the dollar up zero point percent as we continue to watch that geopolitical tension develop around ukraine. kriti: the selling pressure perhaps easing in europe, still coming in hot and heavy in the united states, and really the best example of this is the russell 2000. we have seen the s&p 500, seen the nasdaq, the dip buyers show up. we have not seen that pressure be relieved for the small caps. we know some all caps are kind of the proxy for broader economic growth in t

alix: you have been listening to fed chair jay powell testifying before the senate banking committee in his renomination. you can follow live on bloomberg live . there's a narrative coming through that jay powell was not as hawkish as the markets had been pricing in. you can see that within the nasdaq, up by 0.8%. the nasdaq 100 outperforming. the s&p 500 up by 0.2%. the bond market relatively stable. take a look at the two-year, off the the session at 90 basis points. up by one basis point. a large part is powell says look, we are going to hike if we need to. we don't have the right balance sheet. $9 billion, not the right balance sheet, saying nothing about reducing that size, looking for a runoff at the end of the year. nothing in terms of reducing the huge pile of liquidity. it feels like that is calling the markets a touch. >> absolutely. you are seeing that reflected in europe, as we come through the close. a sea of green, we have been watching the nasdaq closely. it was down, then up, then down. now you can see, up to the upside. that is reflected in the sectors are perfor