banking section and the ability of banks globally to pay out. we have had plenty of news lines around all of that in the last 24 hours. the bank of englandextraordinary measures brought in during the pandemic are no longer necessary. the rollout of vaccinations and the results bolstered the central bank's view that lenders could return to a standard approach of spending. joining us now is simon french from penn be our -- from panmure gordon. let me get into the banking conversation with you. it is interesting to see what is a bit of a divide. u.k. or the bank of england suggesting that banks can return to deciding what to pay back. the ecb says they might still want banks to pay out an average dividend. nothing record-setting. what are you expecting? simon: later this morning, he can be forgiven for feeling a little bit smug. the last 16 months, financial stability and the tightening of financial conditions is at the dog that has not barred in the crisis. we saw an aggressive's like. -- we saw an aggressive spike. it contrasted sharply with the 2009 experience and again in 2012. in terms of how it translates to dividends, i don't think i

government including five in the central bank of canada with the global financial crisis and then because that wasn't challenging enough became governor of the bank of england and is advisor to the british prime minister the us special envoy and vice chair of brookdale asset management men mentioned as a potential candidate prime minister of canada and is only 56. mark must have decided he would only write one book in his life so the new one is called values is several books in one. it is a history of money and a discussion of what markets can and cannot do well or what to do about it i'm probably one of the few people that read all that came out over the weekend i think his book has a background briefing on all of those chapters. if you want a question then type it into the question box. >> and then that with value in the market determined something or other and values with the moral being in can you talk more about what were you trying to do to put things together and how they should run in society that is market-driven but not market controlled? >> first of all thank you for having me and thanks to brookings for putting on this event and all the great wo

i do think this does set up for potentially more hawkish bank of england when they meet and the firstntrast with other central banks. that has led to the u.s. yield premium between the u.s. treasury market and the gilt market falling. why do you view that contrast, the timing difference between the fed and the bank of england? laura c.: i think there are two key components. the average inflation targeting by the fed which is in contrast to what the bank of england is saying but again, it is the puzzling price action we are seeing and treasuries suggesting bond markets are already pricing and heavy p growth and a heavy peak inflation narrative. as we do see fed chair powell continue to have that dovish stance, we do still see inflation pressures as transitory largely reflecting this reopening and the supply constraints that should eventually ease. they do expect that to ease so they won't have to reverse that bond buying anytime soon. that is why we are seeing the contrast across the atlantic. anna: and the ecb on a different page. we will hear more from them next week. lara cooper, th

for that reason, the bank of england is unlikely— that reason, the bank of england is unlikely to — thathat really does _ through next year as well. that really does illustrate _ through next year as well. trust really does illustrate how interlinked all of these things are. linda, thanks for putting all of that into context. so many different implications from inflation rates. there are lots of bearings also on interest rates and unemployment and how the economy functions. it is trying, after 18 months of unprecedented change, to get back to some sort of normality. but until we resume all of our old habits, that will take a long time to come to fruition. but here at the market this morning, the shoppers are out, with business in full flow. it is busy, but it is still a long way from normal.— busy, but it is still a long way from normal. �* ., , ., from normal. ben thompson in north london, from normal. ben thompson in north london. thank _ from normal. ben thompson in north london, thank you. _ from normal. ben thompson in north london, thank you. we _ from normal. ben thompson in north

the bank of england most recently. there are other central banks turning more hawkish of late.ight against covid stealing news in both of those jurisdictions. what are you anticipating from the central bank story? viraj: i think the next move potentially is when we see a dovish repricing. especially where central banks tightening -- central banks' tightening expectations are. i think the growth scare could turn into growth concern. a lot of central banks will be pushing out the timing of the tightening. and what we see priced into the markets at the moment, the risk is that gets downplayed. anna: what are your expectations for august if you say it is time to take chips off the table heading into august? what does concern for policy missteps look like when it comes to reaction? i'm looking at stocks falling this morning in europe by more than 1%. they were under pressure during friday's session as well. how much do we need to lose? viraj: we have seen a huge underperformance in cyclicals, banks, materials, and energy stocks. a lot of the bad news is to some extent already in the

the bank of england are telling us this will— the bank of england are telling us this will be temporarym not sure the extra production— higher. i'm not sure the extra production of oil is necessarily something to be celebrated, the way temperatures are going at the moment. _ temperatures are going at the moment, but opec has released the valve. _ moment, but opec has released the valve. if— moment, but opec has released the valve. if you — moment, but opec has released the valve, if you like. russia have started — valve, if you like. russia have started to _ valve, if you like. russia have started to produce more. so this has the potential to maybe reduce prices a bit and _ the potential to maybe reduce prices a bit and lower some of the inflationary pressures. if the bank of england is wrong about this, and inflation _ of england is wrong about this, and inflation stays high, then it will have _ inflation stays high, then it will have to — inflation stays high, then it will have to stop putting interest rates up, have to stop putting interest rates up. and _ have to stop putting intere

that headline number at 2.5% mast with the bank of england the peak. nemployment report, fastest pace of hiring on record. when we look at for the scheme data, it's showing 5% of the workforce are still on support. i think together, it's the inflation backdrop alongside ongoing an employment recovery underpinning the need for these bank of englert members to see the scaling -- bank of england members to see the scaling back. we know fed chair powell is maintaining that dovish tone. dani: what is the impact of markets if we get this diverging of markets? laura: certainly we're already seeing that play out in terms of money market. if we look at what's happening in the u.k., markets are priced in for 15 basis points of hikes by next may. that's quite a material move from what we saw a week ago, about a year ahead of the u.s. we are beginning to see that divergence, and that is playing out in terms of the tenure spreads. dani: laura, thank you so much for joining us. that's it for bloomberg daybreak: europe. we have the european open up next. mark and and

well, it says that it and the bank of england _ claim. ad - claim. well, it says that it and the bank of england were sad seems l claim. well, it says that it and the | bank of england were sad seems to claim. well, it says that it and the - bank of england were sad seems to be sceptical as to whether that was on offer. —— this bank of england seemed to be. it was right for the treasury to have seriously considered the approach, given what was going on in the economy at the time. as i say, the main lesson here is not that anybody acted with impropriety within the treasury and the bank of england, because we do find that the ministers and the civil services acted with personal integrity. there were no favours done, no backscratching, nothing of that nature at all. however, the nature of the approach should have been put on a much more formal basis right at the beginning. that is the key lesson for the treasury going forward. ,, w' , key lesson for the treasury going forward. ,, a , i. key lesson for the treasury going forward. ,, ., ., , .,

of the bank - for inflation. a flavour of the governor of the bank of - for inflation. a flavour of the - governor of the bank of england'sabout 5% smaller than 18 months ago but he says the gap was closing quite rapidly and there were a couple of key questions he said need to be asked going forward, including when the bounce back is done, what sort of economy are we likely to be in in the uk? he asked whether supply and demand will recover in single or not. we will come back to the mansion has when the chancellor rishi sunak begins his speech and we expect that to happen pretty soon. let's bring you other main news whilst we wait for that. the clothing retailer, gap, has announced it's closing all 81 of its stores in the uk and ireland and will trade only online. the company has not disclosed how many employees the closures will affect, but will shortly start a consultation process with the staff. ben boulos reports on what's behind the decision. this is part of the problem. heavy discounting is something that gap has relied on to get customers spending money at its stores — even before the pandemic. so when lockdown hit

of the market, banks. the u.k. bank of englandmuch more benign attitude towards the reintroduction of dividends, basically taking the guardrails away. the ecb -- you are seeing differences in terms of the way the banks are performing. energy is down, real estate and trading lower. let's talk about some of the single stocks. nokia kept cost under control. demand starting to pick up. they are talking about raising four year guidance. a real pop higher for nokia. will be talking about volkswagen later. a historic opportunity in the united states to reestablish itself in that market. we will talk to herbert diess, the ceo volkswagen later in the hour. then let's talk about the u.k. banks. banks generally on the back foot. as they say, difference of opinion between the bank of england and the ecb in terms of the way dividends will be paid. alix: let's dig deeper into that. alison williams joins us now. on the one hand you have the ability for as much capital as you want for banks and the u.k. and the u.s.. what will be the competitive

the fed or the bank of england? jim: that is a good question. could it be a tie? i think about this is it is more likely the bank of england could hike interest rates faster than the fed. the reason i say that is because i'm coming from a place where i believe the fed is going to be extraordinarily patient. also we have to think about the u.s. in terms of what is going on on a year-over-year basis affect level. inflation in the u.s. is peaking right now. it peaked in may, it is peaking in june. inflation across europe is probably not going to peak until sometime later this year. when it does, i think the bank of england is going to be more reactionary than the fed will be. the reason is for structural reasons within the economy. i think the inflation feeds through the more people faster in the u.k. than what it does in the u.s.. in the u.s. you have pockets of this, but i think it becomes much more systematic in the u.k. more quickly. guy: great to have you on the program. we appreciate your time and your insight. jim caron of morgan stanley investment management.

bank of encland keep them. the governor of the bank of england was _ keep them. r of the bank of england was saying this _ keep them. the governor of the bank of england was saying this is - keep them. the governor of the bank of england was saying this is an - of england was saying this is an uneven recovery and you will, undoubtedly those in the night—time entertainment business, feel you are at the rough end, so what more support would you like to see from the government? the support would you like to see from the government?— support would you like to see from the government? the government of ours that we — the government? the government of ours that we have _ the government? the government of ours that we have in _ the government? the government of ours that we have in this _ the government? the government of ours that we have in this together, . ours that we have in this together, but the disparity is not the same, we are being left behind, we have not been able to open as quick as some of the things. you watch what has happened, you'll understand we cannot

we had bank of england warning that the u.k. and that could potential he prompt early tightening of monetary policy. i think we will see broader inflation narratives continue to play out in earnings and policymakers radars. anna: tell me more about the commentary from the bank of england, is that moving u.k. assets? the pound is trading, down a little bit. it has not moved that far. is there something moving expectations? this commentary about how high inflation will get? laura: that does not appear to be the case that markets are rooting much into the inflationary warnings. we see the unemployment data this morning, but what money markets are telling us, they are not ramping up expectations for rate hikes. they are pricing in 10 basis points of hikes over the next year, that is little change from before the inflation report yesterday. i think the pound is taking more guidance from the dollar move. markets are watching inflation risks but not too worried about it. anna: and sending that u.s. 10-year yield lower. laura: surprisin

the bank of england might align more closely to the u.s.. if they will mention it in this report, but certainly in the next few weeks, we are hoping some kind of announcement , along the loosening of restrictions. manus: tom, thank you very much, tom at calf there -- tom metcalf there. you know what just clicked on? london beats new york to the office. i have trained everybody in dubai how to make my coffee. the latte index is up, you got to get out there and amongst it. in just under 45 seconds, we get that reporting. dani: the index showed people in london were willing to come back to get there latte, but maybe not back to work. a lot of europe is offering flexibility. manus: there was an american bank ceo, i can't remember who it was, who said if you can go out for dinner and be in the center of the city, get to the office. it is a boomer thing, dani burger. it is a boomer thing. dani: we want to know the boomer thing, that is for someone else. that is it for us. european open is next. ♪ ♪ ♪ look, if your wireless carrier was a guy you'd l

the bank of england governor addressing concerns about rising prices. xpect this rise in inflation to be a temporary feature of the bounce back. it's important not to overreact to temporarily strong growth in inflation to ensure that the recovery is not undermined by a premature tightening in monetary conditions. the bank of england's message is that it will carry on supporting the economy. it doesn't want people to panic about inflation above target and due to go higher. and that's because it assesses that these rises in prices are temporary one—off factors that arise from the reopening of the economy, but also because of the uncertainty, uncertainty about the pandemic and its variants, but also about the overall impact of this gradual rollback of the government's support to the economy, especially the furlough scheme. back at newmarket holidays, pippa is one of the government's great hopes. having decided to go long and offer support into the summer, pippa was straight off the furlough scheme, back into herjob, prepping the new travel brochure. the tra

the bank of england governor, addressing concerns about rising prices. t this rise in inflation to be a temporary feature of the bounce back. it's important not to overreact to temporarily strong growth in inflation, to ensure the recovery is not undermined by a premature tightening of monetary conditions. the bank of england's message is that it will carry on supporting the economy. it doesn't want people to panic about inflation above target, and due to go higher, and that's because it assesses that these rises in prices are temporary one—off factors that arise from the reopening of the economy. but also because of the uncertainty, uncertainty about the pandemic and its variants, but also about the overall impact of this gradual rollback of the government's support to the economy, especially the furlough scheme. back at newmarket holidays, pippa is one of the government's great hopes. having decided to "go long" and offer support into the summer, pippa was straight off the furlough scheme, back into herjob, prepping the new travel brochure. the travel i

guy: some are suggesting we may get the bank of england hiking next year. today, how credible is that? fabrice: the interesting thing about market expectations is that you have hi-fi before the end of -- you have half a hike for the end of next year. that is usually not what we call a hiking cycle. it is most likely an average between the cycle, and another cycle will have some, possibly not at all, or much later. in your camp we are clearly on the more hawkish side. we think the number today clearly gives more time for central banks to assess the situation, and clearly the u.k. is not in a hurry to send any signal. taylor: fabrice montagne of barclays, we really appreciate your time and your comments. this is bloomberg. ♪ ♪ ritika: it is time for the bloomberg business flash. i'm ritika gupta. eyewear brand warby parker is betting its future on hundreds more stores. that is quite a turn for a company that last decade ignited a boom in digital brands. warby parker has 140 stores now and plans to a pu -- plans to open another 130 before the end of the year. i

. >>> the bank of england scrapping pandemic-era curbs on dividending on hsbc and barclays the bank of england says the sector was well capitalized enough to deal with witthe fall. risks to the recovery remain. the government support measures unwind over the coming years watch the big banks. all higher in the uk in early trading. >>> now yoto the ongoing story china as they crackdown on the tech sector and the ride hailing giant didi investigations against the company grow and now its rivals are swooping in to lure drivers to gain market share in the ride-hailing free-for-all. eunice yoon is joining us now from beijing eunice, what are the rivals now doing? >> reporter: brian, i want to show you a list of the didi competition that are starting to become more and more popular by the day. these are some of the names of the challengers backed by established players in the car industry as well as the tech industry as i said, they are becoming more and more popular as i found out. with didi under pressure, this man's orders are up ten times. he drives for the app backed by the carmaker that

the bank of england's commentary was hawkish until yesterday, and then suggesting the central bank shouldlaura: it is a couple of interesting weeks in the u.k. with hawkish comments from the bank of england around the potential of pullback of stimulus to hamper sooner than expected. that came after a strong inflation print. this week we are seeing the doves, and that is because they see the recovery as fragile, and we could see consumers change their behavior if this virus risk reemerges with restricted lockdowns reinstated. we could see a full hike over the coming year, so we could see that potential he pare back, and that could seed through further. the fact we had ubs this morning provide stronger-than-expected profit forecasts sets a high bar for the rest of the earnings season. i think banks will look in europe for more of a rebound after yesterday selloff, but then we have the ecb potentially coming out thursday and being more cautious. we have them potentially capping the dividend payout later this year. there are headwinds still ahead. anna: thank you very much, laura cooper. we a

was that previous to the central banks or some autonomous and obliged to perform in the interests of the countries that they were in the bank of japan, bank of england, federal reserve bank, european central bank of the precursors to the paying central bank and all the various european countries would be involved in policies that were seen as beneficial to those countries after the nixon shock in for the past 4050 years of deregulation, we see inclusion as no prince writes in her book. com collusion. and this is about our central banks now work in concert with the same expansion, those policies, and so the same problems are now being experience in all countries. here's a headline that to me that the 2 words know resistance. that's a fantastic way. i think to describe the results of this experiment, what this experiment has caused in terms of the psychology of the population. and this is the headline from wall street dot com, no resistance to price increases. reports are coming from all directions from small mom and pop operations to large corporations. input costs are surging. wages that companies have to pay to attract, workers are rising, transpor

was that previous to the central banks or some autonomous and obliged to perform in the interests of the countries that they were in the bank of japan, bank of england, federal reserve bank, european central bank of the precursors to the pain central bank and all the various european countries would be involved in policies that were seen as beneficial to those countries after the nixon. shocking for the past 4050 years of deregulation. we've seen collusion as knowing prince rights in her book. com collusion. and this is about our central banks now work in concert with the same expansion as policies and so the same problems are now being experienced in all countries. here's a headline that to me that the 2 words know resistance. it's a fantastic way, i think, to describe the results of this experiment. what this experiment has caused in terms of the psychology of the population. and this is the headline from wolf, st dot com, no resistance to price increases. reports are coming from all directions from small mom and pop operations to large corporations, input costs or surging wages that companies have to pay to attract workers arising, transportation

followed by the bank of england on thursday. r round of jobless claims on friday before the payrolls report. marilyn watson, lisa coleman, ashish shah. china, huge focus on china when it comes to ipo's on the equity side. maybe this starts to bleed out. the transmission mechanism for what is developing in china into dm, u.s. credit, what is it? marilyn: overall, there will be a mechanism between china and the rest of the global economy. i think it is less in the short term that we were expecting. a huge amount of volatility this week. china grows at a decent pace. we know they have the 6% gdp floor. we have seen them come out and be more dovish in terms of rating back the language, regulation in certain sectors. we have seen the pboc is prepared to loosen monetary policy in the short-term. actually what we are seeing is china is shifting, shifting the economy into a longer-term stable position. while there will be a bleed into dm and more so em, it will have an impact in the commodity producing countries. jonathan: lisa, your rea

that is a important and difficult question but essentially, the bank of england thinks inflation will rest of this year to about 3% before it goes back to 2% next year. that is consistent with where they think the rebound is coming from. growth this year could be 7%. that sounds impressive until you realise we lost about 10% of output last year. so you expect prices to go up when you have this big rebound in growth, but that rebound is not going to last. in other words, once you get back to pre—pandemic levels at the end of 2019, we expect growth rates to come down and price pressures will come down. so for the most part, it looks like it could be temporary but there are some economists who worry it could be more permanent because of lots of things. we can't work out how unusual a pandemic lockdown is. you have touched on what the economy did last year, but give us an overview of where we are now. how long will it take for us to get back to something that is more normal, like 2019 before all this began? probably next year, but a lot of this depends on what happens globally in terms of

it was almost his farewell on his exit to the bank of england.e put some of those thoughts out there. do you think we will get further talk on that? cluadia: i don't know about jackson hole, but we are moving to a space where it isn't big picture ideas only, we are hitting nuts and bolts. financial services had a big good hearing yesterday on central bank currencies and the people that were there, people like julia coronado, they are getting down into the details of how we do this. that's what happens when we start moving towards this not being just a pipe dream. it might be something that we do. romaine: of course we talk about that overton window and append -- pandemic has provided a big opening for a lot of the experiments around monetary and fiscal policy, but with regards to like i guess what sort of gets us there, claudia, there is a sense that the moment has passed. that if we aren't in a crisis people are not willing to consider big, bold moves. coming out of a crisis and into a more stable economic environment, how do you think this can

the bank of england seems to be accelerating its view of when it may need to taper. it is starting to see inflation data which i would argue is in some way similar to the data we are seeing in the united states. there is a keen emphasis from the senators today on the inflation impulse and strong hands starting to emerge from the bank of england that maybe we are going to see tapering being brought forward. the market is starting to price in rate hikes. powell sticking to his line. i wonder if you get a few more prints of the kind of data we have seen recently if that line starts to come under pressure. alix: i never thought we would have senators turn into commodity experts, but i can count on multiple hands the number of times they were talking about, or lumber. it is like they are talking my language. guy: which is not something alix can normally say. alix: [laughter] something i never say. guy: if you look at lumber story, you can argue the time the senate starts talking about it the story as ever. that commodity has seen a significant decline in prices. chair pow

well, my lords, analysis has been done by the bank of england that showed 40% of people had visited afigure of around 15%. we're taking forward several measures. as part of this consultation, we will help businesses to continue accepting cash by ensuring reasonable access to cash depositing facilities as well as cash atms and withdrawal facilities. lady penn. parliament is scrutinising legislation that confirms, in law, the principle that animals have feelings. the animal welfare sentience bill, which only applies to vertebrates, would also establish a committee to assess whether government policies are taking animal sentience into account. the environment committee has been investigating whether the measures will help australian sheep or spineless creatures, such as lobsters. how can animal sentience be treated seriously if we've just agreed a deal with australia that allows farmers there to basically sheer off the backside of sheep to avoid flystrike causing an enormous pain? and if that is the precedent that is legal and is bound by international treaties, what hope is there to hav

the concern emerged at a special meeting this week of the bank's first strategy review in almost 20 years. a study by staff at the bank of englandmpanies perform better when more women are in senior positions, but that too few are being promoted to the highest ranks. women in authorized roles of u.k. banks doubled in the last two decades to 20%. however, that is a glass ceiling when it came to more senior positions. the research is based on novel data constructed from regulatory information. former south african president jacob zuma has been taken into custody to begin starting a 15 month jail sentence after failing at a last-ditch attempt to avoid incarceration. zuma is said to have handled himself in prior to a midnight deadline. last month he was found guilty of filing -- testifying before a judicial panel probing his nine years in power. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna: thank you, laura wright in london. the global death toll from covid-19 has reached 4 million as disparity in vaccine access

and if you think about the forecasts for inflation for some of the bank of england and policy membersuld he a — are saying for scent. actually this would be a pay rise for nhs staff if you believe what they're predicting stop -- _ you believe what they're predicting stop -- for— you believe what they're predicting stop —— for present mac this strike action— stop —— for present mac this strike action that's — stop —— for present mac this strike action that's going to be really damaging if there is another wave of covid _ damaging if there is another wave of covid. when you've already got record — covid. when you've already got record long waiting lists. but you can understand why they are saying it's a _ can understand why they are saying it's a slap— can understand why they are saying it's a slap in— can understand why they are saying it's a slap in the face when already 100,000 _ it's a slap in the face when already 100,000 vacancies in the nhs, given this how— 100,000 vacancies in the nhs, given this how does it expect to fill them? — this how does it expect to fill them? l _ this h

in the past, the bank of england has tended to ignore short—term rises inflation, which hasn�*t reallyt inflation of wages and you raise expectations of people, and there is the danger that this becomes more of a cycle, and we need to start thinking about inflation, particularly from the perspective of an investor. we know inflation is a danger for the long—term investor. for retailers, they say you need to be more honest with customers. is that a real issue that if you are buying something online, it could be delayed, that retailers probably aren�*t being honest and upfront about that? our expectations are very high. as consumers, having had a year at a time for most of us, we have expected deliveries to arrive very, very quickly, often for the essentials in life. if we compare it where we are now to where we were a couple of years ago, we are expecting a lot more from delivery companies, retailers, but of course that requires people. the more people, the more consumers are happy to spend, then the more people we need to deliver. that is creating the squeeze. of course, for all retail

i'd like to mention on the bank of england's actually projected that growth in the u. k. this year will be 7.25 percent, which is the fastest growth since 1941 with re altima for world war 2. so definitely also the city of london last week just re claimed its crown as the financial capital over amsterdam. now the great data point and also lives trust who currently is over here. she's the trade representative from the u. k. she's currently over here to negotiate a u. s. trade deal. she has now completed 68 of the 70 trade deals that the, the person had with the rest of the world through the e. u. they used to be 70 now she's completed 68. we're almost back to where we were before she just completed one with norway and licks and science. so the answer to your question is absolutely, bryan is temporary and remember, these numbers are good and that isn't. that's including coded the adjustment off the brakes. it all of the customs and all the red tape, the people who are whining about so it's actually a really incredible number. while they're not wasting any time in this post w

somebody has done a bungee jump, since then we are supposed to be surging back according to the bank of england was 0.8%. on a normal year, that would be amazing growth. that would add up if you had that every month to more than 10% over the year. but actually economists expected more or less twice as much as that, 1.5%. may was the month when we had restaurants opening up so you could go inside and the same with hotels and pubs. and of course accommodation and food did do well, the activity was up by 37%. but then you look at other things, so we had the shortage of silicon chips and some car makers had to send workers home and you saw car and truck making down 16%. although the services sector, two sectors, first manufacturing shrank, partly because of the cars, down by 0.1%. and also construction was down by 0.8%. that is the second month in the row that it has been shrinking. if you look overall, our economy has performed one of the worse in the g7. although we are recovering, it is still looking pretty weak.- we are recovering, it is still looking pretty weak. the time is 1:15. our top stor

so the inflation rate hitting 2.5%, which is above the bank of england target of 2%. ben is doing a brilliantjob, and people ijust completely ignoring him and getting on which is how it should be stoppe that they have got things to do, life goes on! prince charles has warned that the uk is in danger of destroying britain's rural communities by letting small family farms "go to the wall". he said the focus needs to move away from producing cheap and mass—produced food and to put nature back at the heart of farming. here's our chief environment correspondentjustin rowlatt. superefficient, intensive agriculture is a dead end, prince charles said today. he warns that the pursuit of cheap food has damaged our soils and water courses as well as producing emissions that have driven global warming. such has been the damage to the natural systems we depend upon, we must achieve profound and rapid change to reverse it. we must put nature back at the heart of the equation. the prince is adamant that small farms must be a part of that effort. he has been deeply concerned with foo

for example, the former governor of the bank of england, mr. sted the need for neutrality from the financial side, and the governor of the bank of japan would understand that. and now a member of the board of the trustees of the world economic forum, former governor carney was also a member of that to discuss this issue. it is very good that the central banks and central bankers will understand the need for carbon neutrality and the strong support is expected and will be done. shery: advisor to prime minister yoshihide suga, heizo takenaka, speaking exclusively to bloomberg. staying on japan, the ioc president is promising not to bring new virus risks to the country as it hosts what he calls the most followed olympic games ever. our deputy tokyo bureau chief, sophie jackman, joins us now. days to go until the olympics. what is the mood like in tokyo given we have seen so much opposition so far? sophie: the mood here is lukewarm with a touch of trepidation as well. the olympics are certainly no longer the big party in tokyo and spectators have be

of central banks moving anywhere towards a hawkish tilt. we have seen the fed perhaps go more hawkish at the margin, bank of canada, bank of england, etc. the ecb we think will very plainly mark themselves out as being at the back end of that. so tolerance in inflation, much more symmetrical target, probably pushing a little bit of cold water on any idea that you could see a lightening up of qe coming forward anytime soon. alix: really good to catch up with you. great to see you. john bilton, jp morgan head of global multi-asset strategy. coming up, brexit is back as the u.k. seeks to renegotiate the northern ireland protocols. they will not leave it alone. we will break down what the implications are politically. this is bloomberg. ♪ >> we want to sort out the issues in the protocol. we think there are practical steps we can take to do that. alix: u.k. prime minister boris johnson talking shortly before his brexit ministers inform parliament he will seek to renegotiate the northern ireland protocol. the response from the eu? we are not going to negotiate. where does this leave everything? bloomberg brexit editor edward evans joins us no

market wants to know that the central bank is on a slightly different trajectory to bank of canada, rbnz, the bank of englandeven to the non-autopilot status that bullard talked about last week at the fed. dani: thank you so much. you will be outside the ecb covering the decision day for us throughout the remainder of the day. that's manus cranny outside the ecb in frankfurt. let's get into this further. joining us now is derek halpenny. thank you so much for joining us this morning. in your view, is the ecb meeting today alive one or is it just a technical implementation of this new inflation target? derek: it is certainly a lot more significant than what it was before we had the announcement and the details of the monetary policy strategy review. when we listened to christine lagarde and press conferences explaining the outcome of the review, she tried so hard to emphasize this as being a major event, a very significant change in terms of the monetary policy strategy going forward. markets didn't really buy it. i think the effort will be there again today. we are certainly going to get some changes that we

the bank of england more concerned and ready to act. t there are some sort of signals toward tapering. that is the main area he needs to address. he will touch on covid and delta variants. and then inflation is it transitory? at this stage, i think they will stick with that mess allen. they have beaten on the upside. that is where the risks are. anna: on that inflation theme, i think transitory inflation is still the base case. what does that really mean? how quickly do we drop from high inflation levels that we have seen of late. not as high. how can we drop down from there in your base case? elevated for longer inflation rates? john: the year-on-year numbers which everyone normally talks about. they are elevated all the way through. but month for month will fall off for quickly and fall off pretty rapidly from here, we would expect. you'll get very high year-on-year rates but a subdued pattern coming through in second half of the year. we were short u.s. inflation last week. as inflation expectations fell. it was really a reflection ab

tony chang al jazeera bank of england will allow fully vaccinated european union and us travelers into the country without the need to quarantine. the restrictions will be lifted from monday and this john hall explains this could be an important step and reopening england to tourism. the big change here is that since the 19th of july, when travel restrictions began to be used in this country, along with the wider reopening people who received their vaccines in this country were allowed to travel out to post the countries and elsewhere and travel back without having to quarantine, if they had received the vaccines in this country, those who received vaccines elsewhere on the other medical authorities still had to undergo quarantine. the big changes i say is that they are now the government, recognizing people who had their vaccines in the u. s. and e u countries and allowing them all except those in france for the time being to come into this country and escape quality. it's a big, big deal for the tourism industry effectively is the firing gun on the resumption of international tourism

the bank of england governor addressing concerns about rising prices. nflation to be a temporary feature of the bounce back. it's important not to overreact to temporarily strong growth in inflation, to ensure the recovery is not undermined by a premature tightening of monetary conditions. the bank of england's message is that it will carry on supporting the economy. it doesn't want people to panic about inflation above target and due to go higher. and that's because it assesses that these rises in prices are temporary one—off factors that arise from the reopening of the economy. but also because of the uncertainty, uncertainty about the pandemic and its variants, but also about the overall impact of this gradual rollback of the government's support to the economy, especially the furlough scheme. back at newmarket holidays, pippa is one of the government's great hopes. having decided to go long and offer support into the summer, pippa was straight off the furlough scheme, back into herjob, prepping the new travel brochure. the travel industry in particul

probably within a few months the fed might be the first big bank, the bank of england has already goneat the market does with that. it will be a rocky road for a while. anna: you are thinking on policy decisions made by central banks, broadly speaking, do you have reservations about the message or policy decisions they are making? kallum: across the board central banks are likely to tighten policy, normalize policy faster than they currently signal. in the u.k. we should expect rate hikes as soon q3 next year. there is a chance they will surprise us and and qe in august. the fed will start tapering early next year to make way for a rate hike next year. the ecb will start to sound hawkish next year. that is 12 months ahead of what central banks are currently signaling, and what we expect is that once this peak inflation pressure passes toward the start of next year, it will become obvious that fundamentals will keep inflation above central bank targets, and that will prompt adjustment by central banks to force them to normalize than -- to normalize faster than they currently signal. ann

the bank of england recently called out some companies for secrecy for the concentration of too much power in the hands of too few. how concern should we be about cloud security and the concentration of that power among cloud giants like yourself ? >> there are a couple dimensions to that. one is the security dimension. one of the most important things coming out of the pandemic, which needs to be a priority for all of us, is implementing zero trust architecture, whether at the application layer or identity layer. this is not even about having the security technology, it is the operational security posture to recognize threats. we are investing a lot, building a lot of technology, evangelizing, making sure our service is there. that's one dimension. when it comes to concentration risk, the biggest issue is sovereignty. the question every business needs to be asking is, whatever data i have, do i have control over my own data or is somebody leaking the value of my data to benefit themselves? that is more the bigger issue versus where it is residing, one cloud, the other cloud, or with

thing helps the currency is everyone is doing it so we have the federal reserve, england has the bank of englandn, europe has the european central bank so they are all printing and printing and printing and the only reason we still have any value with so-called currency, the others have gone down equally. don't even know it but look at bit coin, crypto currency and others that will tell you something is wrong and people are understanding that currencies are losing their way and they may go all the way up government can't stop crypto currencies like bitcoin. mark: you are terrific and thank you. i want to thank you for what you do every day on fox and try to educate the american people about their economy and country. >> i always wanted to come on your show, appreciate it. mark: will be right back. ♪♪ .. .. mark: the top of the program i talked about jim crow joe. now i want to talk about tax loophole joe. he has multiple homes, a largest state in dell wear worth several millions of dollars. how did he do it on a senate payroll earning $180,000 a year at best. the bidens have brought in an enormo

this bank is in a different addition to the fed, the bank of canada, the bank of england and to the taperinghat is going on. she does not want to say that they are anywhere near that consideration. they have more slack, higher unemployment, they have an inflation differential which is wider to where you and jonathan are sitting. nothing is so permanent, john and tom, as a permanent government program, a bond buying program. that was part of the note from a couple of weeks ago talking about stimulus. in essence that is it. what are the flexibility they have? they want to communicate that. the flexibility in the emergency buying pandemic program that they have. they want that to hopefully outlive beyond march of next year in size and scale enough to keep the euro and keep those yields above 4%. jonathan: that is the big question. the emergency. how do we transition away. i wonder whether that new interpretation of their inflation mandate from close to 2% to just 2% enables the doves to get their own way. is that enough? manus: language is not enough in this case. language is something we have

focusing on is the banking sector there is a lot going on here not just because of the more positive results coming out of jpmorgan and goldman sachs, but also we had the bank of england announce the financial stability report that they are lifting some of the dividend restrictions so they now have the ability to pay out as many dividends as they want which is positive for the sector. hssc up 1/4. some of the other european banks traded lightly a little bit of green as far as that cyclical basket is concerned. however, another sector that is not doing well, travel continues to languish as we have these ongoing covid restrictions and things seem to be getting more onerous. i'll throw it back to you. >> thank you very much. >>> back on the home front, senate democrats unveiling a new multi-trillion dollar spending program. >> good morning to you senate democrats announcing late last night they reached a budget agreement amongst themselves that calls for 3.5 trillion in new spending over the next decade it will create a huge pool of resources all of which were in president biden's original infrastructure vision. president biden is expected to head to the hill to discuss