the bank of england. there are five decisions today including ecb, which is just as important especially when it comes to rolling down qt. we have the philippines, switzerland, taiwan, norway and the ecb. i don't know whether we have charts. also have a look at what that means for euro-dollar, and the underlying concerns on inflation. the ecb decision guide is what they will do with qt to slow the recent pace of rate increases, but also today we are expecting an outline to shrink its 5 trillion euros of bonds to curb the inflation that is five times their target. we were speaking tom: two maria tadeo about this and she was saying the risk premium has come off of btp's. there has been concerns that the new prime minister in italy may not follow the rules set by brussels. those concerns have come off a bit. btp's are 3.88 on the 10-year, 2.74 on the two-year, so a move higher at the front end but in terms of the spreads between italian btp's and german boones, that has come in a little, too extent does that

i wonder whether the bank of england will do that next. it was also today an admission from the bank of england, and no pushback against market pricing. >> i think the absence of the pushback in the u.k. case is less significant than christine lagarde's comments on the market curve in the ecb's case. they never wanted to provide on the market curve. with us at the last meeting because the market curve was far out. i do think it shows the bank is more in line with markets at this o the decision today because it was pretty well te you asked does the bank of england just follow the fed and i don't think that they do blindly just follow the fed because they did it on the way in. they were very slow to join the fed going for 75 basis points. the telegraphed of this well so they clearly want to do 50 before the fed thought about doing 50. but i should just also say it's very confusing when the bank thing one starts commenting on the market curve. last time it said we would have this great big recession that predicated on rates following the curve

in a few hours�* time, the bank of england is expected to raise its main interest rate again — by a halfld be the banks�* ninth rate rise in a row — uk rates are already at their highest for 14 years. we are expecting a similar move from europe's central bank, too. that's piling pressure on businesses and many households who have a mortgage, but it's good news of course for people with savings. and here's what's driving it. inflation is close to a ao—year high. some good news though on wednesday — official figures showed the annual rate of price increases here in the uk slowed to 10.7% in november — down from 11.1% in october. that's raised hopes that inflation may have peaked — and the end could be in sight for interest rate rises. also on wednesday, the world's most powerful central bank — the us federal reserve — raised its main interest rate for a fourth time — but with a smaller rise of 0.50% this time. in the us, too, there are signs the soaring cost of living could be peaking. but the fed was clear there is still a lot to do to get inflation under control, as samira hussain report

you mentioned bank of england. the rates are relatively low end you will see the biggest disappointment in the bank of england. market higher, bank of england lower. the u.k. then has a problem with mortgages, right? a serious impediment to -- you mentioned a sticky inflation but there are these hundreds of thousands of people coming off the fixed rate deal every month and it really hampers what the bank of england can do and we may wind up with the stickiest inflation problem and a central bank that is curtailed, a perfect recipe for stagflation. guy: but then how are the -- alix: but then how are the markets playing at? the way it is phrased in terms of a recession, i wouldn't think that we would be seeing 124. eddie: absolutely. powell is coming back in a big way and as simon pointed out, it's a conundrum. bank of england in a sticky situation. they have the most work to do because of the tight labor market. and because of the knock on implications around brexit. at probably the weakest. the market is telling us

this is the challenge, the bank of england aims to keep this is the challenge, the bank of england aimsice rises, — of england aims to keep price rises, inflation at 2%, but look_ rises, inflation at 2%, but look at _ rises, inflation at 2%, but look at this. it is still close to a — look at this. it is still close to a four_ look at this. it is still close to a four decade high, but on the bank's _ to a four decade high, but on the bank's projections it has no peaked and should fall. in fact it — no peaked and should fall. in fact it should fall a bit quicker because of the extra summ— quicker because of the extra support offered by the government on energy bills. it government on energy bills. [11 was a government on energy bills. it was a little bit below where we thought it would be which is good news but there is a long way to go. and there is... we do expect that to happen, by the way, we expect inflation to start falling more rapidly, probably late spring onwards but there is a risk it won't happen in that way. what is interesting here is that— what is interesting here is that th

better than where we were for the bank of england that we were down at one of 3.50, 120. difference between this fed and the bank of england. this fed does not want to go there. how far can they take the terminal rate at the bank of england? >> i'm thinking 3.75. it micro four in a push. the most cautious of all of the central banks, for good reason. i don't think the u.k.'s in much of a recession. but europe is on the edge as well. the economic data for the last few months in europe and the u.k. has been pretty good. but still slowing down and inflation is not yet beat. it is still hovering around the top. four, 5, 6 months worth coming off the top of inflation. everything is muddling along and people want to buy bonds, they want to buy stocks, they want to get over this 2023 and a little more optimism to 23. we'll find out how that lasts next year. lisa: how much is this tied to the energy policy in europe and natural gas prices? marcus: less than it was but the whole thing can change so quickly. we see a sharp move, particularly upwards. it will derail the route which i

bank of england's across the uk. e its base rate to 3% to three and a half% rather than 3. the highest in 14 years. and the nine consecutive hike, what does it mean for you? we'll have the latest with our business and economics editor liam halligan. all those mortgage figures and the royal family refusing to rise to the bait, it seems after more accused in the last three parts of harry and meghan's docu, what's been claimed . did docu, what's been claimed. did the palace really block harry from seeing his grandmother the late . we want to hear your late. we want to hear your thoughts on and all the other issues of the day. email us as even issues of the day. email us as ever. gb news at gb news dot uk for the latest news with reaction . and comment. good it's reaction. and comment. good it's exactly 2 minutes pass to your top stories . the gb newsroom of top stories. the gb newsroom of thousands of nurses across parts of the uk are taking part in. the biggest strike in nhs history. picket lines have set up in england,

the us federal reserve the bank of england and the european central bank so already markets are pricingthe weekend in the united states where there are concerns that the fed may still have to be aggressive to control inflation. that is all for me, i will see you soon. hello. it's been a wintry weekend with many places struggling to get above freezing during the days, and we've seen some heavy snowfall for several areas. this is picture taken in gillingham in kent, before the sun went down on sunday, so there's been plenty of heavy snowfall — up to around 10cm in places. now, over the next few days, things are staying cold and we've got wintry hazards such as snow showers, ice stretches and freezing fog. 0vernight, this snowfall is pushing across the likes of east london, essex, up towards norfolk, even as far as lincolnshire, so 2—10cm of lying snow overnight and freezing fog that's going to be really quite dense for some areas, too. further north under those clear skies, we start monday morning with temperatures as low as about —15 celsius around the sheltered glens of scotland, so a b

all of that an on the back of the ecb decision and the bank of england and swiss national bank from the 50 basis point hike it wasn't so much in the rate hike that the problem was. it was more in the detail and, of course, the devil lies in the detail more interest rate hikes are on the way because the fight against inflation hasn't ended just because we're seeing a tick lower when it comes to those inflation figures. 7.1% in the usa. 10.7 in the uk yes, a drop off, but not at levels we like to see them and there needs to be a sustained drop off you are seeing weakness. today, .80% weaker continues from yesterday's drop. on to the european market. initially this was a mixed market you see all now in red having been good earlier on that is not to be. weaker for the ftse 100. we got data with retail sales numbers there. drop off in the uk retail sales numbers to 0.4% for the month of november one would, of course, hope you see a ramp up in retail sales as we head toward that festive season that is not to be at this time gives you a sense of how much the consumer is struggling at this poin

cnbc.com we will come back together, of course, for special programming and breaking down the bank of england and european central bank rate decisions today. you can tune in from 13:00 central european time for the beginning of that special programming. >>> the swiss national bank lifted interest rates by 50 basis points that was pretty much in line with the analysts. the snb cannot rule out future hikes as they try to fight inflation. having said that, i think the swiss have the lowest headline rate in the oecd clearly, thomas jordan at snb doesn't want to take his foot off the pedal when it comes to making sure that inflation is under control. we will catch up with the snb chairman later on this morning and we will ask about that path to higher rates. don't miss that interview at 11:30 central european time. frederick is the growth strat gr strategist and joins us. frederick, a lot of the rate hikes have been broadly telegraphed by the market. what do you think the potential is for a surprise from either the bank of england or the ecb >> thank you it is supposed to be a super thursday, but

erik, let's talk about the bank of england. eir economic forecast sounds grim, yet it comes with a tight labor market. we do not have the immigration that came as being a member of e.u. and we have significant portions of the labor market having left and no longer actively seeking work. the market is supertight. given the bank of england's current views, what do you see it doing it next week? there is a tight labor market but it will rapidly so the economy. does it deliver 50 basis points or is there a risk that it does deliver 75 because it is so worried about that labor market? erik: i think it is 50. the bank of england, like the ecb and the fed, is driving prices right now primarily because of a concern about their own reputation in terms of inflation going too far. there is not a demand story and there is no wage growth to write home about, but that leaves us with a strange situation in the labor market, particularly in the u.k. you have a tight labor market, but the u.k. is the only major industrialized country where the s

wage growth is a problem for the bank of england. but outside of the u.k., in europe, the more cyclical exposure, the more higher exposure to value. we think that will come good as risk aversion starts to come off. tom: the ftse 100 is up 1% year-to-date and it has now outperformed european and u.s. stocks. what is there not to like about the ftse 100? altaf: there are a couple of reasons why the ftse 100 tends to outperform in the more risk-averse markets. we saw the dramatic weakening of sterling post the mini budget and everything that came after that. secondly, it is the sector mix. the sector mix might continue to benefit the ftse 100, so you might have a point. if china comes back online, growth stocks rebound and more of those materials related sectors start to profits, then the ftse 100 could have another good year. but generally if you look at the economy and the feedthrough from the economy, it is looking like one of the most precarious positions. francine: how do you see two -- how do you see the risks panning out? we have

the bank of england to lend money to commercial banks. it's the lowest interest rate in the economy. all other interest rates, a benchmark of that. so by definition, they're higher. until quite recently, tom, we're expecting another big three quarter% interest rate rise, the same as the bank of england did at its last meeting. but in recent days , i think the recent days, i think the consensusis recent days, i think the consensus is chain and we're now expecting less of an interest rate rise, maybe a half, possibly even a quarter of 1. one reason, tom, is that inflation is easing, even though it's still very high . as you it's still very high. as you mentioned, the inflation number for november that was out yesterday was lower than the october obr number was that people were expecting. yes, but people were expecting. yes, but people thinking that inflation's peaked. yeah because because the economy is slowing and that naturally lowers inflation. another reason why inflation seems to be easing and bank of england may not need to raise inter

>> the bank of england is expected hike by 50 basis points but what is really interesting as nomura andof america have notes out pointing to the possibility of a four-way split on the monetary policy committee. you have the big dubs of the committee who could vote for 25 basis points or no hike at all because they are so concerned about the recession risks in the u.k.. when you have the 18 month monetary policy lag, they say we don't need a big hike in the grips of a recession. but as you say we have this raft of data this week, the gdp figures in 10 minutes are expected to show that the economy bounced back in november, the jobs data tomorrow expect to show -- expected to show inflation is past its peak, any surprises on any of those fronts could move the needle for the bank of england. what is less likely to move the needle is since the last boe meeting we have had the fiscal statement from jeremy hunt and what is interesting will be the bank of england assessment on whether this is a loosening or tightening at the 18 month horizon. of course in the short-term it is a real boost in te

the pullback in inflation may provide some relief to squeeze british households but also the bank of england. they will raise interest rate again this week. that is happening tomorrow but economists expect a smaller 50 basis point rate hike the bank of england announced last month the no doubt this fall in inflation numbers will be welcome. we're still sitting at 10 percentage points down from 11 percentage points. perhaps the pressure is still on them to hike i would say, arabile, yesterday, the wage growth numbers came in very strong, 6.1 percentage points, and that is more of a concern, in my view, for the bank of england, than the headline number. >> having heard them, of course, point toward that extended recession basis, that data kind of gives you a sense of how dire it certainly could be. i'm also wondering on the other side whether this easing inflation could be supported with the economic outlook and also the pound as well i know convention would tell you it kind of works the other way around, but at a time when you have such a weak economy, could the pond actually benefit from hav

we will talk more about the nurses�* strike in a minute, but let�*s go back to the news the bank of englandosage from the jumbo dose we had last month. having said that, they do fear, continue to fear we are at the start of a prolonged recession, albeit that downturn in growth is going to be a bit shallower than they had originally expected. 0ne be a bit shallower than they had originally expected. one reason for thatis originally expected. one reason for that is the autumn statement extra support put in by the chancellor, jeremy hunt, which both increases growth from where they thought it was and it means that inflation, well, that is a little lower, although still very high. so when you put all of this together, you have anticipation of, yes, further rate rises to come, we are at 3.5% now, it had been anticipated it would go 5%, 5.5% a few months ago, but it now looks like where that is heading is probably closer to 4% when they are done with these rate rises at some point next year. and the reason for that is that there have been some concerns that the economy is slowing sharply. some si

guy: here in london, we have got the fed, the ecb, the bank of england. e has the biggest inflation problem do you think right now and which of those do you think needs to be the most hawkish? bill: looks to me like the bank of england has the biggest inflation problem with ecb getting the hardest job. we know there's a huge energy risk out there for the european continent, depending on how cool the winter is and what vladimir putin does about energy supply. they got the harder job around inflation and the energy price shock around economic growth and i wouldn't want to be in their shoes alix:. -- shoes. alix: definitely not. differentials widening out, what do you think? bill: the fed has an equally tough problem in terms of overshot where they earlier thought it would bounce back and they would generate more room to grow, but that hasn't happened. the ratio is still really high, 1.7 to one. it just shows you that the federal reserve has a lot more work to do. alix: yes, definitely. bill, looking forward to spending time with you later. that was bill dudl

lizzy: this is bittersweet for the bank of england. sn't really move the needle after all the data we have heard. inflation looks to be past its peak as in the u.s., but it is still five times above the bank of england target. so it might embolden some doves on the committee because it has fallen lower than expectations. they are worried about the recession risks of a big hike when there is a 18-month lag in monetary policy, and the hike would take place right in the eye of the recession. but the hawks are saying how high this will become so it looks like a half point tomorrow as we expect from the fed and ecb. tom: and it looks like tightness in the labor market remain significant here. lizzy: we have had a bold report from the chairman of the treasury select committee overnight. the committee says that perhaps the benefits that have been given to deal with the cost-of-living crisis are putting people off work and contribute to labor market inactivity. when there are labor shortages it adds to the pressure on wages, which as of the inf

lizzy will be outside the bank of england ahead of that decision. china's economic activity worsened in november, before the government abruptly dropped its covid zero policy. bloomberg's jill disis joins us with a closer look. a challenging set of numbers, backward looking in terms of the data out of china. the retail sales number jumped out to me, a drop of close to 6%, and this was before the relaxation of covid zero. but the challenges on the ground in china remain acute. >> yes, there is really no good news in any of this data. as he said, retail sales contracted significantly in november. we also to determine to slowdown in industrial production growth. investment really dropped off and the jobless rate is now at the highest since may. this is really not good news for china right now. as you said, this was while covid zero was in effect. the question is now that china appears to have although demanded covid zero is letting covid run like wildfire through the economy, it is going to be a question of how well china's able to cope with unchecked

the bank of england has announced another rise in interest rates. pidly from the late spring onwards but there is a risk that it don't happen in that way, as the labour market and the labour supply in this country is so tight and that is why really we had to raise interest rates because we have seen that really quite pronounced. what i would says i think in terms of looking at the history of the bank of england and half a percent rise is quite a big one. we only did the first half a percent rise earlier this year. and we will have to judge as we will do in a few weeks' time when we have the next meeting, what is appropriate next time. i am not going to speculate on where they may end up all what we might do next time. they will be a lot of information that we will get before we get to that point. i'm joined now by our business correspondent, marc ashdown... the bank of england policy committee meet every month and there are nine members and they all have different views on the way forward for growing the economy and bringing inflation under control.

i don't envy the bank of england . don't envy the bank of england.has a very difficult task of trying to control inflation that's largely being imported from . it's been driven by from. it's been driven by factors like problems with the global supply post pandemic as well as geopolitical trends with the war in ukraine which has sent commodity prices sharply higher. and of course , rates higher. and of course, rates target borrowing . it looks at target borrowing. it looks at raising mortgage rates to try to curtail economic activity in the domestic economy , whereas what's domestic economy, whereas what's really driving inflation factors that bank of england doesn't have much control over at all. and of course, we had that squall off of the so—called mini budget, when liz truss was prime minister, kwasi was chancellor suddenly . everybody in the suddenly. everybody in the british media had to try and understand what a gilt market is, recalls, you know, well , is, recalls, you know, well, it's the market for government debt. it's the market for govern

if you look at the bank of england, they are hiking rates to normalize inflation, but that is in lieua recessionary environment. i think sterling stands to experience more in terms of weakness. i'm looking for below parity in 2023. dani: in terms of this call, how it extends to bonds -- it sounds similar to something we have heard from blackrock. philipp hildebrand avoid long-term bonds. debt levels are going to rise. government borrowing costs are going to climb. inflation is going to keep climbing and the central bank, the fed, it ain't coming to the rescue. would you avoid long-term sovereign debt? >> the sweet spot is in the two to five year phase. we are moving the paradigm here. the paradigm over the past 14 years is that central banks are there to provide liquidity. the true mandate is employment. the fed, the bank of england, the ecb have to make an issue of credibility. they cannot move back to liquidity. the underlying mandate is inflation and unemployment. the equity market is not ascribing to that theory yet but as we see recession slip in and earnings drop, that test will

interest rates rise again by another 0.5% to 3.5%, as the bank of england says rising prices may haveeaked. two young brothers and their cousin are named as three of the four boys who died after falling into an icy lake in the west midlands. the white house releases thousands of documents relating to the shooting ofjohn f kennedy in 1963. and he says he was screamed at by his brother. she says she considered taking her own life. the latest revelations from harry and meghan�*s netflix series. later on bbc london... and coming up on the bbc news channel... scottish football returns with hibs looking to upset second in the table. tens of thousands of nurses in england are on strike for the first time in the history of the nhs in a dispute about pay. there were also strikes in wales and northern ireland — with members of the royal college of nursing union wanting a i9% pay rise. the government has called this demand unaffordable. emergency care, and critical services such as chemotherapy and kidney dialysis, were maintained. and not everywhere was affected by strike action. in england, 44

with importing inflation from the macro picture with the week down and then it is harder for the bank of englandse off the interest rates. sterling recovers and makes the bank of england's job easier, interest rates could come down. we might see an outperformance on domestic stocks that i mentioned like retail, restaurants, homebuilders and domestic inks as well. the pound is really important going forward. francine: inks joe easton. coming up, it has been a wild year of market moves with lightning fast inflation and recession anxiety. we will come back with some of the biggest moments of 2022. that is next. this is bloomberg. ♪ >> january, the federal reserve lay the groundwork to raise rates to tackled the fastest inflation in a generation. adding to global -- global inflationary pressures russia attacked ukraine in february and dominated headlines. destruction on the ground. by march, attention zero day in on the specific risk that russia opposed, natural gas to europe and attacks to a power plant in ukraine. corporate drama started pickup in april when elon musk made a $43 billion offered to

_ it's interesting because the bank of england is— it's interesting because the bank of england that was to — and that has been for 20 years now that was to take away the politicisation from what have you and frustration within the government about responding and i'm not sure _ government about responding and i'm not sure if— government about responding and i'm not sure if this intervention will be viewed _ not sure if this intervention will be viewed that kindly from within the government but it is highly political— the government but it is highly political to make these kinds of comments. political to make these kinds of comments-— political to make these kinds of comments. ., ., , ., , comments. how a do you liberalise, 'ust comments. how a do you liberalise, just briefly. — comments. how a do you liberalise, just briefly, without _ comments. how a do you liberalise, just briefly, without causing - just briefly, without causing financial institutions to make so much risks. i wonder why andrew is making this intervention. we are very much not pass the crisis, not pass the fina

interest rates rise again by another 0.5% to 3.5% — as the bank of england says rising prices may haveked. two young brothers and their cousin are named as three of the four boys who died after falling into an icy lake in the west midlands. and he says he was screamed at by his brother, she says she considered taking her own life — the latest revelations from harry and meghan�*s netflix series and coming up in sportsday later in the hour on the bbc news channel... we will be live in qatar. after france's win last night against morocco, we have the dream final. they will be facing argentina. good evening. tens of thousands of nurses in england are on strike for the first time in the history of the nhs in a dispute about pay. there are also strikes in wales and northern ireland — with members of the royal college of nursing union wanting a i9% payrise. the government has called this demand unaffordable. emergency care, and critical services such as chemotherapy and kidney dialysis, are being maintained. and not everywhere is being affected by strike action. in england, 44 of 219 trusts s

thank you for your time tonight. _ more now on the bank of england's decision to raise interest rates the first glimmer that, with the figures that were released this week, that it's not only beginning to come down, but it was a little bit below where we thought it would be, and that's obviously very good news, but there's a long way to go. and we expect that to happen, by the way. we expect inflation to start falling more rapidly, probably from the late spring onwards. but there is a risk that it won't happen in that way, particularly because the labour market and the labour supply in this country are so tight and that's why, really, we had to raise interest rates today because we see that risk as really quite pronounced. what i would say is that, if you look at the history of the bank of england's monetary policy committee, 0.5% rise is still a very big one. i mean, we only did the first 0.5% rise earlier this year, so i would put it into that context. we will have to judge, as we will do in a few weeks' time when we have the next meeting, what's appropriate next time. so i'm not go

would you be -- we missed a great opportunity, because he should have said not a sequoia. >>> bank of englandpoints, the bank raised by 50 basis points it's now raised rates for six straight meetings. it was 6-3 two members voting in favor of keeping rates unchanged. that, of course, was a day after the fed announced a half point rate 6-3. the two that said no, do they say what's the interest rate >> maybe they would have said 25. >> 25. >> or 75. >> they said 75. we need to know. maybe leisman knows. >> let's get straight to him steve liesman has more on the boe and the fed. steve, enlighten us? >> yeah, the third person was kathryn mann, somebody we know, head of economic citigroup, and was the former chief economist for the oecd he's on the bank committee and she wanted to go 75. she wanted to go 75 to break the inflationary psychology. i'll break down the vote 6-3, two went, out of the three dissenters, two wanted to go unchanged. one, kathryn mann wanted to go 75 basis point seven of the nine wanted to increase rates andrew bailey, the governor of bank of england saying inflation has pea

kathleen: let's start with the bank of england because there is a little bit more of a debate there. they have got inflation still over 10% year-over-year, so they've got plenty of reasons to be aggressive but of course they do have a question about what is happening. they have some signs of dark clouds hanging over their economy. so it is a question. they will do at least 50 basis point, that is the forecast and may be due 75. again, i think the messaging here is going to be important. for the central bank, another 50 basis points. it still a good sized rate hike. the thing there is one to they start quantitative tightening? running down the balance sheet, removing that source of stimulus to the economy. and what are their concerns? well, i think both the boe and bank of england, anybody in that part of the world is concerned about the winter. they are concerned about the war in ukraine, they are concerned about energy costs. so that is another thing we will be hearing about from the heads of the central banks, something we will closely listen to and watch at their press conferences

bank of— people as well? you're right, on thursday, the bank of england i people as well? n, people at the bank of england have been signalling that we may be getting close to the end of these rate rises, and certainly if you look at the financial markets that is what they are saying. there was also a thing which, if you want a rate of light for your viewers... rays of light are good, absolutely, will. ,, ., ., , ,, ., , will. simon from the irish sea 'ust before i came fl will. simon from the irish sea 'ust before i came on i will. simon from the irish sea 'ust before i came on the i will. simon from the irish sea 'ust before i came on the air�* will. simon from the irish sea 'ust before i came on the air was h will. simon from the irish sea just i before i came on the air was making the point that the average car on british roads is ten years old, at some time in the next 18 months people will have to start renewing our cars, you know, economies do a natural buoyancy, you think things wear out and you have to replace them, like the cars, so there will be a moment, i think

the bank of england has rescue. the bank of england has raised its base, rent base interest rate from 3% to three and a half% as the level in 14 years and the ninth consecutive hike. chancellor said he acknowledges that times are tough but that the government's working with the bank of england to reduce inflation . meghan to reduce inflation. meghan markle has revealed she thought about taking her own life in the final episodes of . the docu final episodes of. the docu series released today on netflix. prince harry, meanwhile, suggests the media, which blamed for his wife's miscarriage and speaks about the breakdown , his relationship with breakdown, his relationship with his brother . breakdown, his relationship with his brother. he breakdown, his relationship with his brother . he recalls it being his brother. he recalls it being terrifying to have prince william shout at him and says his father and his father says things claims aren't true . things claims aren't true. buckingham palace and kensington palace declin

the bank of england in some respects have been one of the more forward-looking and the way they have rates, they have not just gone super aggressive at the last minute. they have kept the long-term growth of eu in place. there is room for sterling to do better. what makes me more bullish as everybody is still bearish on sterling, so it is counter-consensus to be looking for sterling strength. it is tricky the next few months but heading into 2023, there is room for upside. francine: and yen, not many people were expecting it. dominic: the timing was sooner than expected, we thought q1 or q2 next year. francine: for when he stepped down. dominic: that was the obvious point, but it happen sooner. it is probably downhill if you look at the initial relationship between jgb yields and dollar-yen, that is reflected in the price, but they yen is still cheap. talking about the dollar being quite overvalued, the yen is the cheapest currency in the g10 space. as you see u.s. stock rollover, the dollar has room to correct. if japanese investors change their hedging strategies which is plausible

first of all of the bank of england has put up the rates and there is a feeling that the monetary policyix site only six people voted for that increase. and the office of national statistics show that the inflation rate has fallen. so, maybe next time around they might not have to raise the rates. the problem is, and they have spoken to people it is quite clear it is going to affect the people who want to buy houses. they have been under the clash ever sings the rates started rising and inflation started rising. there seems to be no release for them. as to what they can do and how they can get their dream homes if they are so expensive. shit if they are so expensive. all right, last story i — if they are so expensive. all right, last story i i _ if they are so expensive. all right, last story i i will _ if they are so expensive. all right, last story i i will ask _ if they are so expensive. all right, last story i i will ask you _ if they are so expensive. all right, last story i i will ask you about. last story i i will ask you about this one in a minute. let us put it to second orfirst

the bank of england raised interest rates by 50 basis points to 3 and-a-half percent. we're waiting on the european central bank. the bank of england made the move. face masks, are they making a comeback, which cities are ready to bring bac back mandates dee warnings against it. you're watching "mornings with maria" on fox business. ♪ i'm walking on sunshine. ♪ i'm walking on sunshine. ♪ i'm walking on sunshine. ♪ and don't it feel good.nu ♪fa all right, now pt your busin. and fuel the search for what comes next. so...what are you waiting for? what should the future deliver? (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com. ♪ [christmas music] ♪ ♪ ♪ weathertech gift cards have the power to wow everyone on your holiday list. offering a variety of american made products. weathertech! nice! like floorliners... cargo liner... tablet holder... boot tray... cupfone... sink mat... pet feeding system... anti-fatig

dani: the bank of england also raises even as it says inflation may have peaked. governor andrew bailey warns a tight labor market may keep price growth elevated. the eu package of sanctions over vladimir putin's invasion of ukraine targeting moscow's access to drones and banks are now at the richest tycoon. happy friday. humidity the end of the week, and the weekend, which we are all going to be watching the world cup to help us set up for the weekend. we have someone very special in qatar, is it lionel messi, no, it is our very own manus cranny practicing his football skills i see. manus: i have got skills you have never seen, dani burger. we will let you see those a little later on. 45 billion bucks to fill that up. 80,000 people will descend on the final between argentina and france. there are two more flights getting here to support lionel messi. we will have the facts, the figures and the $300 billion trade. see you in a while. dani: coach, put manus cranny in the game please. we will get back to you in a moment but first let's get you set up for the market t

francine: there is a divergence between ecb and bank of england, do you play it through pound or giltsniall: the diversions is there. but actually both banks are trying to do the same thing in different ways though. the bank of england is being much more dovish in his commentary, the ecb is being much more hawkish. francine: niall o'sullivan, neuberger berman chief investment officer. engie announced a hit to its bottom line following the price cap, we will look at the french company next. this is bloomberg. ♪ francine: welcome back to the open. 24 minutes into the european trading day. stocks and bonds dropping, yen jumping as the boj saw a shift in yield curve control. let's get to the bloomberg business flash. >> a house committee has recommended donald trump be prosecuted for his role in the january 6 assault on the u.s. capitol. the committee voted unanimously to refer trump for prosecution on four criminal offenses, including insurrection. it is the first such referral of a former u.s. president, adding to the legal trouble plaguing his 2024 reelection bid. european nations have

inflation the spending out of the federal government continues this morning learning european central bank raised rates half a point happening right now breaking news bank of englando raising interest rates raised earlier today half a point about what federal reserve did yesterday you've got central banks of the world trying to head off inflation but the federal government in the united states continuing to throw more dollars chasing too few goods how we arrive at 40-year high inflation do they not see it that way. >> you are right. i think that they are so focused on taking more of the taxpayers' money putting it into growing big government, that they are really not paying attention to what is happening in the economy at large. people in d.c. want to fund their programs, and by the time the bill comes due on this with our kids and grandkids to having pay for this these program will have out lived usefulness this is a shortsighted way to run a country when you look at fed rate going up and growth projections going down much of it is because of this elevates government spending, you know you are on the wrong track. and maria, as i have told you there are three thin

of central banks in europe report on policy rates this morning the swiss national bank kicked off a fresh day decision with the .50% hike. warning inflation pressure has increased and spread the bank of england will be up next next we are looking for a 50 basis point move from the bank of england as well bringing the base rate in the uk to 3.5% which would be a 14-year high for us then we get the european central bank which is set to follow with its own 50 basis point hike. investors looking for clues as how the central bank will begin to reduce its balance sheet. that so-called qt announcement as you can see, it is not helping the mood of the markets. european stocks at the moment following wall street into the red and many of the greater china markets. all major indices are lower right now as you can see with the median loss of 1% across the markets. in corporate news, it is lower despite beating the forecasts. unicredit in the green after confirming it reached the cap requirements and hsbc expects its quarterly dividend to be reinstated at a lower level than historically. back to you, brian >> geoff cutmore, thank you. we await the rate decisions in a couple hours. >>> now we get to the h

some of the bank of england people did not want to raise rates at all. a major shift of the euro against the pound. the room for the euro to rally is quite significant against the pound. with the ecb making it clear they are ready to start bringing down their balance sheet, which is a positive signal for the euro because they will keep interest rates very high in europe and they may go above u.k. rates. >> it is not just the fed now. all the questions from traders about how can they do this, how can they cause a recession? you kind of wonder, and i think there was a valid question, are they going to do too much? and now the ecb is joining that list. >> it is almost certainly the risk is pretty high. we have seen in the past were central banks willing to hike interest rates even though the recessions had already started. it was only after a series of data show them the economy was in serious pain that they started to lower rates. the fed and the ecb will continue to tighten policy even though the economic data will tell them the slow has already started.

this time lester, the bank of england put their first rate hike in. have already moved ahead in quantitative tightening, but aggressively on active, as well. they are pretty much out of the bonds they had to buy back in late september and october. it was a nice profit -- in that context, there will be a lot of supply next year. probably a record ever, that will be the same story in europe. perhaps a slight less degree, but across all of europe, we've got more pain to come. they wish to hike a probably full 1% or more, where is the u.k. is coming close towards the end. obviously, inflation states sticker, they will be forced more. i do not see rates going much above more than 4%. we are in a recession in the u.k., but a mild one at the moment. things can go badly wrong. i think the strike action is less effective than past unions would've wanted. the government is for once sticking with its line, i do not think they can back down now. there can be a deal and a one-off payment with high percentage deals, there is -- guy: you think we will not get a deal

daniel, that the bank of england just seized ben as well as gold that was sitting there in the london bolts. is this a case of failed western regime change, or perhaps i'm wrong? you're out of the same, correct, rory. they've had nothing but disdain. since hugo chavez won the popular election in 1998, they've tried every type of terrorism in economic sabotage to oust nicholas me a little. so i was the boulevard in government. they don't want to see a tele sword. they don't want to see, and in the south it speaks to the people of the so they don't want to see medical sure. sued or a say lock. they don't want to see economic agreements. that length itself. so then as well as long as thorn in their side, certainly we saw we've been as well as able to do through internationalists, oil diplomacy and job in years. but when rocco bomb in 2014 implemented these very cruel sanctions, and put ben as well as cuba onto this superficial made up list of terrorists. this is the very intention of richard nixon and henry kissinger in 1973 when they bothered to make the chalet in economy scream. when w

it seems to me the message from the central bankers is, we are talking about the bank of england and s, we can slow down a bit. we feel we have gotten to a certain point in our amount of stimulus, and amount of tightening we have done. we have more to do. look at where the inflation rate is. they think it will start falling. they think this could happen over time. the risks according to andrew bailey, the governor of the bank of england, still remain to the upside. that is why they did another 50 basis point rate hike to three and half percent. 3.5%. we move on to the european central bank, again, a 50 basis point rate hike, downshifting from 75. christine, i love when she said, don't mistake this from a pivot. they are up to 2% now. they are expecting to get that up. they will start of the quantitative tightening, running down the balance sheets in february. steen also says there is more rates to come. they also have a very high inflation rate and they need to bring it down. this is the way they see doing it. it was interesting talking to dani, a former member of the bank of england'

it feels as though the fed is the main central bank people are watching we pay a lot of attention to the bank of englande to what extent is the u.s. cpi number impacts the calculus for the day after? >> i think the fed is clear they are interested in a medium-term or longer-term stability as well as getting asset prices down and taking out some of the excess in the economy. one print won't change this view the forecast is for that to go down to low 7 which is a better print than the high 9 we saw early in the year and also compares favorably with the european and uk interest inflation numbers of 10 or so. i think the big sort of tension in the market is the expectation for rate path in 2023. you got this very inverted curve between 2/10 which tells you the market is saying the fed will raise quite a bit more 75 or maybe another 50 hard to know exactly what those numbers will be. starting next year they will cut of th cut. they said they will keep continuing >> the fed says they might have to keep raising interest rates, but we have seen a loosening of financial conditions in the last month. we have seen

with coinage bearing the king's image already entering circulation, the bank of england is announced the next phase of its currency transition. following the death of queen elizabeth. and here it is, the new bank note featuring the image of the king. it is a pretty young looking king. it's not an instagram filter. rather, this is based on the photograph that was transferred from the royal family to the bank of england nearly 10 years ago. in preparation for this event. i was looking at my youngest son in law regal. you can have a look so handsome. i just have you been using much cash. i know you guys only called me this might be the last note. we see money facing it. always go with the cash, you know, he's looking a bit young man i suppose is especially is he's allowed to have a touch of artistic license slide. i was the food quine. what you're not saying what has to happen? you know, but you know, i'll leave on, you know, it's on expect it to hit the streets until 2024 after a 1st print run early next year. that's because the economy needs to be adapted for them. things like cast mac

it would be easier if the bank of england came out with a long-term inflation forecast of 3.5% or 4%nd the bond market would go into a total meltdown so you can excuse them for anchoring the end of their forecast. what is interesting is earlier in the year of the bank of england was at pains to tell us how uncertain the outlook was and therefore you should not place too much weight on any forecast. in its last meeting it hinged its entire signal and policy message around its forecast. there needs to be a little bit of consistency. of course they will always try to anchor around target. how much can you take from the forecast? not a lot. alix: we have seen a lot of money pumped into europe to help ease the cost of living crisis with energy. if they have to keep doing that, how does that offset any strong hikes we will see from the ecb? at some point doesn't all of this cancel each other out? simon: two good points you raised. the first is everyone is so focused on pay growth. a lot of the pay settlements we are seeing look modest and then they have a one time payment as well. unless w

tip; bank of england governor really difficult to keep up.- bank of england governor has really difficultancial pain aired we — there could be more financial pain aired. we will get their decision at midday— aired. we will get their decision at midday today but before that at 8301 will be _ midday today but before that at 8301 will be speaking to a personal finance — will be speaking to a personal finance expert, so sending any questions _ finance expert, so sending any questions on credit cards, loans or worries— questions on credit cards, loans or worries you — questions on credit cards, loans or worries you have over affording christmas _ worries you have over affording christmas-— worries you have over affording christmas. . ., ., ~ ~ worries you have over affording christmas. . ., ., , christmas. thanks, hannah. mike is here on the — christmas. thanks, hannah. mike is here on the sofa. _ christmas. thanks, hannah. mike is here on the sofa. welcome - christmas. thanks, hannah. mike is here on the sofa. welcome back. i christmas. thanks, hannah. mike is. here on the sofa. welcome back.

rate hikes today from europe, the bank of england, norway, switzerland. central bank in latin america too. regardless of whether inflation has peaked or not, borrowing costs are still going up. >> bloomberg's chief asian economics correspondent enda curran there. chinese -- china's exit from covid zero. a key chinese planning meeting will go ahead from beijing this thursday despite the spike of covid infections. sources earlier told us the central economic conference would be postponed due to the spike in covid. for the latest let's bring in our chief north asian correspondent stephen engle in hong kong. would we know? >> we don't have confirmation whether the central economic work conference will go as planned today. sources close to the situation are telling us they decided to go ahead with it. no reason has been given. obviously, we have not gotten a comment from the state council information office when we requested them as to whether that will go forward today. or, the reasoning why it did a u-turn on that. again, we have u-turns in china on covid zer

very rare to get the bank of england governor coming out and talking to you on camera, but he did dohe wanted to get the message across that the support they put in place had to end. we are doing everything to preserve financial stability. you know, you have my assurance on that. i think there is an important task now for the funds to ensure they are done. but they are — sterling has fallen in response to what you have said, they have three days... no, i'm afraid this has to be done for the sake of financial stability. over the course of a weekend we get a new chancellor who decides to do things differently. plans that have been laid out a few dozen days before, and all of them that hadn't already been legislated for were wiped off the slate. it lists all the measures and their costings, and it is basically, that's kept, gone, gone, gone, that's kept, gone, gone, gone, gone, gone, gone ,gone right? extraordinary stuff. we have never seen anything like that. when you see how economic changes are like a giant wrecking ball changing everything, and it must be said primarily, individuals