the bundesbank has an extremely important role in begins where the prices are stable.so have a very important mandate when it comes to financial stability, so financial stability is really the backbone for price stability and for all of the other policies to work as intended. maria: and this is always the image, that the number one focus is inflation. this is, for you, your core mission, and this is where all of the efforts go, to maintain price stability. claudia: take the example of climate policy. for all of the climate policies to work, we need stable prices because in the end, what is climate policies and co2 prices? it tries to change relative prices and steer the economy towards a cleaner, greener production of goods and services. so for that to happen, we need stable prices. that is why it is always important, and more important these days. maria: so whoever gets at, that is still very much the message that the german central bank says, that priced ability should be front and center. claudia: absolutely -- price stability should be front and center. claudia: ab

the bundesbank morning we could see a spike in inflation up to around 6%.nflation is not welcome in germany. there is an expectation that maybe inflation in germany stays at 3% plus for a long time. what kind of tension is that going to create within the governing council? peter: i think the governing council is more uncertain than it was a time ago because the high figure you mission, especially in germany, but in a few other countries, are probably going to last until the middle of next year. even if you believe inflation is going to go down in the second half of next year, it is clear that during this 67 month period, there will be high pressure on governing council members to tighten. i think they are going to resist that broadly, but it is an element indeed, and the communication sometimes shows that there's divergent views within the governing council. but i think the view that has been expressed by christine lagarde a few days ago is going to dominate. that means you start from a position which is very different from the u.s., with too long a time, a

it seems what we are hearing, that the spv could secure the right to nominate people bundesbank chiefand scholz is taking the position that in the end, it is not germany who should dictate your opinion inflation policy, monetary policy, but the european central bank. so we are actually all waiting for who is going to be nominated by this coming government because that will largely determine the future tone on inflation. guy: jens weidmann warning about a possible spike to those numbers that would certainly have a big impact in germany. thank you very much, indeed. joining us on this new coalition. the traffic light coalition, never been tried in germany. let's talk about the petitions of this. bilal hafeez, macro hive ceo, joining us on set. good afternoon. nice to see you in person. talk to me about what that coalition means. it is at the heart of the european project. it is going to have a huge and outsized influence on what happens in policy going forward in terms of europe's spending plans, its ability to manage the covid crisis, and what happens with inflation. what are the subtl

paul: that is the bundesbank vice president speaking with bloomberg's maria tadeo.r technologies will enable disruption in the decade ahead. artificial intelligence, big data, and cybersecurity. we will discuss more on that and talk more about the outlook of chinese markets. this is bloomberg. ♪ ♪ >> good friday morning from hong kong. counting down to the last session of the week here in hong kong. let's get to your top stories today. asian stocks slipping at the end of the week on predictions of a quicker tightening cycle from the fed. rate hikes starting from june.

the bundesbank believes we could see german inflation spiking up to around 6%.rms of the economic recovery that germany and the eurozone have been experiencing. and lately, he tore a -- ben laidler, etoro global market strategist, joining us now. how do you think about this from a market point of view? ben: i think markets are pretty resilient. we are more and more resilient to it. more of us are getting vaccinated. i think you are seeing this in the numbers. we had european pmi yesterday 56. i think that is a very resilient number. i think this dampens a recovery. i'm not sure it derails the recovery. corporate's are showing us time and time again how resilient they are. margins, despite the cost pressures, despite the supply chain issues, despite the sort of fourth wave run right now, corporate margins, all-time high , and europe just reported six to percent profit growth for the third quarter. guy: do i favor the united states while europe is going through this? ben: probably in the very short-term, but i think the u.s. is just following on from behind her ge

guy: coming up, the bundesbank warned about it.erman inflation surges 6%, far exceeding the ecb's 2% goal. similar story in spain as well. what is the latest uptick in the virus do in terms of our thoughts around inflation and the ecb? we will talk about that next with simon french, pen your -- pen your garden -- simon french, panmure gordon chief economist. this is bloomberg. ♪ guy: a few days ago it was all we were talking about, inflation. now that seems to have been surpassed by the news on covid. the two definitely connected. let me run you through the data we have out of europe today. for many, they will make alarming reading. germany's latest inflation process coming through at a staggering 6%. that is up from a 4.6% the previous month. spain also grappling with above target inflation, lee above target inflation, high .6% -- 5.6%. the ecb is very much making that point time and time again. germany, for instance, has had a shift in its value-added sales tax. that is likely to work its way through the system. europe is having

. >>> bundesbank could lift to prepandemic trends and warned that they could be exposed to a heating market i caught up with the president and asked about the interest rates and whether a move would be helpful in easing risks posed by excess liquidity. >> one common denominator of all of our forecasts that the increase in inflation we're seeing is going to be temporary. this is what all the forecasts are saying i think the differences are in terms of interpretation and policy needs the differences are to the elevated upside risks that we see for inflation going forward. so inflation rates will decline. the question is to what level and how persistent will this be? i think what monetary policy has to do is be prepared for all future contingencies and act accordingly, and what we can do to support monetary policy when it comes to these decisions is make sure that the financial system is able to deal with policy changes >> coming up on the show black friday kicks off again but the shopping celebrations are dampened by supply chain disruptions and another wave of covid cases. >>> a quick

paul: the bundesbank vice president speaking with bloomberg.p next, we hear from aco about how the italian power company -- from a ceo about how the italian power company is looking for midsized opportunistic deals. this is bloomberg. ♪ paul: you are watching "bloomberg daybreak: australia." a check of the first word headlines. the u.k. is adding six southern african countries to its travel read list as it investigates a new coronavirus variant. the cites a health minister saying flights will be suspended from midday friday from countries including south africa, namibia, and botswana. south african scientists say the newly identified variant carries a large number of mutations. the european union is said to propose a time limit for the validity of covid vaccinations for travel within and into the block. it will give priority to vaccinated travelers. the eu governments are pushing for the block to smooth out internal deficits -- out internal differences. goldman sachs economists expect the fed to tighten policy faster than expected next year. go

the bundesbank has warned that the low rate of these business failures during the pandemic should notseen as a guide for future risk. we spoke to the central banks vice president. >> what is pretty clear in all of our forecasts is that it is a strong temporary component. no one knows the long-term evolution but certainly there's higher upside risk in that something monetary policy has to take care of. that is not the issue we are discussing in this report. obviously monetary policy -- we have to make sure that the financial sector can deal with future contingencies. and one of the things with increased inflation is higher interest rates. if the increase in interest rate comes more abruptly then we have the cost of the financial sector. an abrupt increase in interest rates can also -- risk premium can change. we are making sure everybody manages interest rate risk as well. >> there's a huge debate as to whether this is a one-off or if it is permanent and how it feeds into all of this. just from a policy perspective, how are you able to -- it seems the debate is not settled. >> it is ve