christine lagarde will be talking to francine.ery much, our macro strategist. that is it for the european market open. surveillance addition is up next, francine will be speaking with christine lagarde for her latest thoughts on the europe rebound. the fact that we see these lockdown support longer across various parts of europe. this is bloomberg. ♪ >> the rescue has more than $30 billion funded for public transit agencies. it is a matter of equity. >> low interest rates make it for borrowing and businesses and that adds the jobs in the economy. >> the second half of the year, we will see the european economy on a recovery path. >> this is bloomberg surveillance early addition with francine lacqua.

there is evidence. 12 months to the day i must when christine lagarde said -- almost when christine lagarde said they're not closing spreads. what did they do ultimately? they closed spreads. another issue the president has, something mario draghi managed to navigate block the whole governing council into a corner. paid the mentor corner inside this is what we're going to do, are coming with me. present lagarde needs to do that more. tom: interesting to see the press conference. we will have coverage on radio and television. jonathan: good morning. we look like this on the s&p 500. we drift higher by 29 points on the s&p. you might find in the on market, 149.53. lisa will rhyme you through the bond supply. lisa: there is a question who is driving the bus when it comes to the yields. christine lagarde will bring us a bazooka rhetorically today at her meeting. 7:45 am would get the ecb rate decision. the key will be 8:30 when christine lagarde gets her press conference and talks about what measures that could take. to put this into perspective, since the start of the pandemic, central banks h

annmarie: let's get into what we expect from christine lagarde.about the meeting, it's about the language that they use at the press conference. what are you expecting? tatjana: i'm hoping that she doesn't slip up, first of all. it will be extreme lead difficult. i don't envy her for that communication. in particular, when you look at the executive council at the ecb , there is such a varied view of what type financial conditions are. there are so many government bonds. it's the right level for germany where the level is much lower. you can see that the communication depends on which country you are in. bring that altogether, not sound to dovish. there's a recovery on the way. there's an expectation with the vaccine, the reopening is going to happen even in europe. slower but still it will happen. longer-term, the central bank is well and good to have loose monetary conditions. as we saw a year ago, if interest rates have nowhere to go, you are also in a difficult situation. i would not think that longer-term, a central bank wants interest rates t

guy: that was the esa be president christine lagarde asked the ecb president christine lagarde speaking with francine lacqua. you nice interview. she's taking on u.s. bond markets here, and i do wonder how big a challenge that is going to be. basically, she is saying the bond market can go up, yields can go higher, but we will keep yields nailed to the floor. i wonder whether she's got the governing council behind her. francine: and whether or not she has the tools come but the position of the ecb is such that, with the infrastructure package that may be coming, you see growth in the u.s., inflation in the u.s., but we don't have that kind of growth since we are getting lockdown in and out. so what choice does she have but to actually say don't test me? whether she will be able to is another matter, but she was firm. alix: in some ways, world leaders in europe are not making her job any easier, when you have micron looking to -- when you have macron looking to issue a lockdown. francine: the way that the vaccines work, they had to be negotiated, so now a lot of people don't want to be v

ecb president christine lagarde delivering a slightly more optimistic assessment of the economy today. she said downside risks are main in the short-term, but long-term inflation expectations were main subdued. ms. lagarde: preserving favorable financing conditions remains crucial. pepp is expected to be conducted a significantly higher pace and during the first month of this year. there was consensus at the table of the governing council today we are not doing yield curve control. we are preserving favorable financing conditions with a look at the inflation outlook that we have, and how one contributes to reducing the downward impact of the pandemic on the inflation path. guy: christine lagarde a moment ago. you're certainly seeing that in place like italy. joining us now, paul gordon, who leads bloomberg's coverage of european western and central banks down the road from the ecb. a short-term requirement to try to get yields back under control. the question i have to ask of of this, she has denied this is yield curve control, but it awfully smells like it. paul: yes it does. yields

with christine lagarde, the ecb president, just around the corner, euro-dollar $1.1960.isa: the idea of easier monetary support from the ecb will actually be supportive of the euro. trying to wrap my head around that logic because it has been the opposite for so long. that 7:45 rate decision is what we are watching, but that 8:30 press conference. " unwarranted tightening," that is the phrase people are looking for to see if the ecb will give whatever it takes in order to control the pace and even the direction of some of the yields that have been going up. at 8:30 a.m., we get u.s. initial jobless claims. this just shows the incredible ongoing pain. 720 5000 initial jobless claims. what i find interesting from a market perspective is that people have stopped caring unless there is a massive unexpected move either up or down in this data, despite the fact that we so have so much pain. people are looking to a future that is brighter. tom: can i get some auction talk? lisa: we are going to get to the auction talk. yesterday's 10 year auction was lackluster, but at least it

we saw an ecb meeting where christine lagarde addressed this and they are going to increase the pace of their emergency purchase program and essentially, what we have to understand with europe is as yields rise, they don't have the capacity to do a lot of fiscal stimulus, whereas the u.s., we can say we are having these relief packages going through, which are good and that can get other asset prices moving higher, but europe does not have that. they cannot do as much fiscal stimulus, so a rise in yields in europe is a tightening of what they call financing conditions. they are going to have to play pretty safe and try to increase purchase programs such that those yields in europe do not rise too high and create a premature tightening. jonathan: i'm trying to understand the optimal way of thinking of this. either treasury yields keep drifting higher and take the rest of the world with it, or we get that dispersion turning into divergence. how do you think about it? >> good to be with you. i think it is going to be divergence and the reason for that is these fundamental drivers behind

don't mise -- miss our exquisite conversation with christine lagarde. down with francine lacqua. very good morning to you. 90 minutes until the start of european trading. this morning, it's all about risk. are these banks taking on too much risk? at the center of that is credit suisse. credits -- s&p is down lighting their outgrowth -- outlook. at one point, they described it as a dream client. turbulent times ahead for the bank. manus: yes. if your goal is a bank, your job is to grow the books, grow the leverage. who drove that proclivity for risk? we are seeing the names out. they build up a number of years of risk appetite within the institution. is it the lady who was promoted by gob steam into the lead position on risk? either way, the market is looking across the spectrum of names. buybacks at risk. dividends at risk. a whole plethora of issues for the bank. we want to get benham on in just a moment on this one. s&p futures are higher. $2 trillion worth of stimulus coming down the pike. the market has already absorbed that. the dollar is rising th

fed chair jerome powell, ecb president christine lagarde.eantime, norway is seeing signs of a faster recovery and is moving closer to raising rates. the norge bank today kept its main rate unchanged, but is basically looking to hike by the latter half of this year. it could be the first developed nation to do so since the pandemic broke out. joining us now from oslo is the norge bank governor -- the norges bank of an -- bank governor, hoisting olson -- governor, wasting olson -- governor, oystein olsen. is it a risk being this hawkish this early? mr. olsen: we are not out of those problems. we have fx rates going up in our country. but more importantly, as regards the outlook, the economy is in recovery. given the prospects of having access to vaccines, we assume that a large part of the population will be vaccinated by the summer, we focus on opening up society for the summer. given that, we foresee strong growth and normalization of activity. we will have unemployment going down. and in that prospect, there is a time to start normalizing p

european central bank christine lagarde -- european central bank president christine lagarde says theyon't shy away from their powers if investors are to push bond yields higher. >> they can test us as much as we want. we have a mandate and aim. we will do what is required in order to deliver and we have exceptional circumstances to deal with at the moment and exceptional tools to use at the moment and we will use them as they are needed in order to deliver on our mandate and deliver on our pledge to the economy. >> global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> lower interest rates make it easier to finance borrowing it -- thin businesses and others do. record low mortgage rates. that makes it easier to make those payments or to buy a car or to buy a house. jonathan: keeps rates low for the government. that was the federal bank -- reserve bank of new york president. this wednesday morning, counting you down to an address from the president of the united states on a spe

fallback in the market's that came out and the policy statement was then confirmed by president christine lagarde. what they didn't get was any detail. lagarde said don't expect a big bump up in the numbers, which is somewhat surprising in the sense that we've had two weeks of no real increase in purchases. clearly it is going to be a while longer before we get some. but the promise is there, the ecb will steer against higher bond yields. guy: they are not happy with current yields, so they want yields to go lower. but i don't know is what yields with the ecb be comfortable with , and why this isn't yield curve control or yield curve control lite. paul: yes, most analysts would say this is very much like yield curve control. the ecb is being somewhat pedantic when they say they are not doing it because they haven't announced a number, for example, like the bank of japan's 0% on 10 year bond yields, but it is clearly controlling yields, not just government bond yields. they stressed that red across the curve, what they referred to as downstream interest rates from government bond yields right thro

annmarie: christine lagarde at the ecb press conference. walk us through what this means.ignificantly higher program, what is that? maria: what i would say is you look at that statement, she said this is a more dovish ecb. she suggested that it is explicit, this is not a hint, we will increase the program. it is reassuring on that front. the market has been questioning why the purchases are flat. the other issue is how much money are we talking about. she was put a specific question when asked if she had a number. she said she did not have an answer and cannot put a number on that. that is where the tension will be in the next few weeks. what does significantly higher mean for market action and purchases on a weekly basis from the european central bank? annmarie: maria tadeo, thank you. philipp lisibach, head of global equity strategy, credit suisse is still with us. what does significantly higher mean? where do you think the ecb should bring bond purchases? philipp: we are at the point that monetary policy that has been uniform through the pandemic will probably be betwee

matt: that of course was ecb president christine lagarde speaking with my surveillance early editionoanchor francine lacqua. you can hear more on wall street week. it starts on 10:00 p.m. eastern friday and heirs all weekend, but if you just want to chill because it is easter, check it out on bloomberg.com right now. to how the u.s. central bank may address president biden's $2.2 trillion infrastructure plan, bloomberg's international economics and internal economics policy correspondent michael mckee with those. michael: it does not mean i will balance your checkbook. we are joined by dallas fed president robert kaplan. we would like to welcome you. i know you do not want to comment on the politics for pieces of this biden infrastructure plan, but let me ask you about the economics. $2.25 trillion over eight years being spent. what impact does that have on the economy and the possibilities for stimulus -- for monetary policy?going forward ? mr. kaplan: on infrastructure, we have had a lot of fiscal spending that's been necessary to emerge from the pandemic, but a lot of that spendin

simon: i think christine lagarde is the only person who believes that statement. an explicit target like japan and governor kuroda, but a flexible rate of purchases based on signs of tightening financial conditions. it is an acknowledgment that they may not quantify it, but there is a lesson learned from the bank of japan's experience to keep qe. other banks, the fed, the bank of england are doing yield curve control but not in the same explicit way that the bank of japan has done it. they want the discretion to respond in real time. you can trace this back to march last year when financial conditions tightened. they want the flexibility to respond. anna: they want the flexibility to respond and what they seem to be communicating now is the speed they will use that pepp envelope. but the message this morning from a reporting seems to be this does not mean it is new stimulus. it is not increasing the size of pepp, but bringing forward the money. how did udy german those -- how did you determine those? simon: there is still one trillion euros of firepower. i do not

it will be fascinating to the exact what christine lagarde does. alix: here in the u.s., markets rolling over, getting a little bit softer. we do have that tenure auction coming on. yields pushing a bit higher ahead of that. we did see strong demand, so a little bit of calmness. idiosyncratically, i wanted to point out gamestop is still gaming on here. is it fundamental? is it still the reddit crowd? that still seems to be determined. i did want to highlight american airlines, down 0.2%, but massive debt auction for the company. coming into the market again, they had to raise the size of their offering. the original read was going to be yields higher than 6%. guy: you do wonder whether or not they are worried that yields are going to go significantly higher. you get it done now rather than getting it done later with those higher yields. let's get back to the story of tomorrow and so anyways. the euro -- tomorrow in so many ways. the euro has a $1.18 handle on euro-dollar. to date in march, we are down by 2.5%. the euro has been fighting. but given

for our american viewers, it is about christine lagarde moves the bond market. jonathan: it is. and the european drug agency is set to recommend the j&j vaccine. good news for the confident on the vaccine rollout. yields are aggressively lower in italy now, down by eight basis points. we break 60 basis points. it is a pledge to take the pandemic emergency purchase program and do more with it up front, quickly, over the next quarter. tom: i have never seen this polarity between the you and america. we have the shock and mark -- between the eu and america. we have the shock denmark/astrazeneca headline. jonathan: you get a bid into the european market, yields lower on treasuries, and the nasdaq accelerates a little more as well. the ecb president in a small way, just a small part of this story, offering a lift to big tech this morning as well. tom: lisa, what is your take on all of this news from america, the challenges in europe, and what it means for the view forward? lisa: i am struck by the global nature of the bond market right now and how much of a conundrum that presents th

who is in support of the effort of christine lagarde? an: i think the chief economist is in support. i do not want to say they have clashed, but what they have seen is a cleanup act with philip lane following president lagarde. that cleanup act we have also seen in the united states. tom: fair. the cleanup act has been vice chair clarinet. jonathan: what we have seen is a tremendous -- the experience of leading a central bank and not being an economist and not having your hands around monetary -- around monetary policy in the same way as clarida and lane, i think lagarde has struggled and i think powell has struggled. tom: is it a cleanup act of the politics or the non-politics of the united states of europe, or is about christine lagarde? jonathan: it is a cleanup act about the economics. for many people i have spoken to, they are much more comfortable talking to me on background and not on the record. they would like to see philip lane in the press conference on those thursdays in frankfurt. lisa: there is a larger point, which is the c

christine lagarde's every word will be watched at today's ecb decision. good morning. just gone 7:00 in london. welcome to the european market open. singapore a little bit ahead of us all in europe. i wonder what it is the asian session is saying to you? >> chinese stocks have finished very strongly. the best session for the csi 300 since january 12 in almost two months. the afternoon session has been quite negative. that is an anomaly. i think ahead of the premier's speech, that is probably a good sign, a risk on session today in europe. it is not about yields in the dollar, it is more about stocks. they say it will be a positive session. anna: we will return to the things it is and is not about shortly. let's get to the corporate earnings. wpp is one of those. fourth quarter comparable organic sales down by 6.5%. it looks a little bit better than anticipated. still a very negative number. wpp plunging 20 million pounds canceled share buyback. one of the focus is going into this report was what we would see from them on shared buyback plans. now we have more detail. t

european central bank president christine lagarde's shy away from using their powers if investors --hristine lagarde says policymakers won't shy away from using their powers if investors -- >> we are going to do what is required in order to deliver enough, and we have exceptional circumstances to deal with at the moment and exceptional tools to use at the moment. we will use them as they are needed in order to deliver on our mandate and deliver on our pledge to the economy. ritika: the ecb has accelerated its emergency bond buying program to push back against a rise in borrowing costs. hitachi has agreed to pay for a u.s. software developer and company, global logic. the deal could help the japanese firm expand its business. the conglomerate has begun investing in providing for the internet of things. shares of delivery service deliveroo plunge in the first minutes of trading. investors had concerns about shareholder voting and pay for deliveroo riders. -- for deliveroo drivers. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and a

when christine lagarde has it, that is what they will talk about here now that the month is ending, they set the purposes every month. it will be how you will execute and give the ranges and where you are going to come in and what would you look at if you were starting to move the discount rate. it will be about where is the point where you will step in. jonathan: the public commentary has been one thing. what you look at the data, they may not have stepped in, why? >> you have to set those purchases at the beginning of the month and they did that. and then the markets got wobbly and they were out of 32 by bonds. march 1 came and they can out reset that authority to buy bonds once more. it is unfortunate that they have a difficult bureaucracy. a lot of people may have misread that because it happened to come at the last week of the month when they were out of authority. jonathan: let's get to the rapidfire round. the first rate hike, i want to understand where you -- when you think that comes. krishna: i think 2023 earliest. gershon: mid-2023. jim: 2022. jonathan: interesting to see how

christine lagarde looked -- discusses monetary policy with eu lawmakers.e will bring you highlights of that conversation that starts at 8:00 a.m. london time. this is bloomberg. ♪ anna: welcome back to the european market open, 40 minutes until the start of the european equity trading sessions. european futures on the upside. we underperformed yesterday in europe compared to the u.s. nasdaq features inching to the downside. there is a lot of central-bank action to talk about today, we will come to the bank of england later on, we talk a lot about the fed, the bank of japan, interesting reports there after being focused with the yield curve, the bank of japan has been reporting flexibility they might allow around certain yield. mark: they did talk about widening the window of their yield curve targeted band to 25 basis points, which did cause shock reaction. people eased off and realized that it may not be to consequential, but it is a likely move. i think it again sense that sentiment that central banks, at least mental -- many central banks, are willing t

christine lagarde my predecessor at the ecb at the world choice organization the very first woman president of the multilateral development tank at cbs d. we have two women across chief economies of the world bank. we are very proud with our own and we are very proud to come to the other side of the street and confirmed the deputy director of fantastic. dynamic woman and we have grown our women engagement like 20% over the last five years. janet i admit we still have some way to go to reach priority the priority we will reach. now, this being said we cannot rest because one, there is still a ways to go for women and economics to be equal to men. two, this crisis is affecting women disproportionately and we may hear the results that we need more women in economics and unless we act and that is what this conversation is about, what is it that a leader like you can do with your power to move economics and to make it so bad it is rich and productive for the benefit of all? so, welcome. and if i may i want to go to the first question janet and it is how you made your choice to study economics? t

you, as the minister of finance of the united states, christine lagarde, my predecessor at the ecb. the very first woman president of a multilateral development bank. we have two women across the streets, the chief economies of the world bank and of the imf. we are very proud with our own -- and we're very proud of carman on the other side of the street. at the fund we have a deputy managing director, fantastic dynamic woman, antionette and we have grown our women in management by 20% over the last five years. janet, i admit we still have some way to go to reach parity, but parity, we will reach. now, this being said, we cannot rest because there is still a way to go for women in economics to be equal to men. this crisis is hitting women disproportionately. and we may see as a result, actually, fewer women in economics, not more. unless we act. and that is what this conversation is about. what is it that a leader like you can do to use your star power to move more women in economics and to make it so that the field is rich and productive for the benefit of all? so welcome. if i may,

jerome powell in the us, christine lagarde in the european central bank, saying don't panic, we ate unitlieved? —— we are in it. that be believed? -- we are in it. , ., ., �* ., it. jerome powell, the ecb and the bank of — it. jerome powell, the ecb and the bank of england _ it. jerome powell, the ecb and the bank of england have - it. jerome powell, the ecb and the bank of england have all i the bank of england have all focused on the fact that they expect it to come higher, we have seen inflation, higher quicker than what we expected. that doesn't mean we're going to start removing, though, because if we look at where we are, and we look in the uk this week with the budget. the chancellor is still going to be adding things into the economy, because lockdown has not finished stopping the measures are not over. the economy isn't back working on its own with everybody back at the same time, and this goes for any country. we don't know the overall damage until everything returns to a little bit of a sense of normality. that could be a long way off for many places stopping briefly, james, t

how much capacity do you think they have at this point, you see christine lagarde come out next week. torsten: this is something that has been in the background for many years but continues to pop up every once in a while. not only are we talking about the pandemic and the rising yields but also the sold issues of what's going on between the periphery on the bond -- bunds. the key issue for policymakers as the euro area recovery fund, getting the fiscal policy response out into the economy and getting money into the hands of people who will spend it. and unfortunately there still some time before we get to the impact of that. with that backdrop it's difficult to see any strong aggressive response from the ecb in terms of what they should be doing. i think their focus will continue to be on supporting the fiscal policy rollout and everything to make sure that the yields don't go up too much. alix: how much could those two things divert, you can have the two tens and the five 30's steepening. guy: as long as the -- torsten: as long as the recovery is continuing, as jay powell was talkin

it is interesting to hear christine lagarde talking about financial conditions need to be better in the. it is really -- lisa: was the ecb successful yesterday? there our questions on it actually eases monetary policy. tom: you have the government-funded conditions. the ecb lowered cost of tunes -- of bunds. that will keep pressure down. we are keeping it lower, we don't want to overheat the economy. there needs to be a period where it does overheat above 2%. we are still below the inflation target. we still have a lot of things to unwind. we are going to continue to see a lot of yields being lower. that spills over to everything, the credit world and these spreads and yields are going very low on that side. that will be the narrative for the next few years. lisa: do you think there will be a boom in europe in the way there is expected to be in the u.s. once we get the vaccination schedule rolled out? tom: there will be, it is the timing. we will have a huge physical boost in europe. the other issue is that it will only be a temporary period. you have a long period where the government

. >> not a single rate hike and in the months christine lagarde has had at the ecb then will we saw with president mario draghi's unreal. lisa: they are accelerating purchases to frontload the potential stimulus in advance of the vaccine delays we have seen in the euro region. i don't see an exit strategy. jon: there are problems in europe, you can click that and keep playing it. tom: like a pendulum. jon: coming up, jen suzuki, richard bernstein advisors. muted price action this morning, futures unchanged, bond market unchanged. euro-dollar 11932 and this is bloomberg. ritika: president biden's plan to reform taxes will hit people making over $400,000 the hardest. the president said to be planning the first tax increase since 1993. the first tax increase includes repealing trump admin tax cuts that catered to corporations and wealthy individuals. a sign of the crackdown on the internet sector in china is just beginning. the president warned beijing that it will go after what it calls companies that have amassed data and market power. they have set their sights on tencent holdings after

christine lagarde is very focused on climate change at the ecb. still has policy measures to put in place, but certainly she and mark carney are part of that new generation. coming up, we take a look at the rise in u.s. mortgage rates after a year in which housing prices saw dramatic increase. huge story on toronto home prices yesterday. today, we talk to former fannie mae ceo tim mayopoulos. this is bloomberg. matt: i am matt miller with amanda lang. u.s. mortgage rates on the rise after a year in which housing prices saw dramatic increases. what can we expect in the months ahead with attractive rates, vaccine distribution and rebounding consumer confidence? we want to bring in tim lippert -- tim mayopoulos, he has a software application that serves mortgage lenders and buyers. and of course, former ceo of fannie mae. tell us first off what you are doing at blend. tim: we provide software to lenders to better serve their consumer customers, their borrowers, to get mortgage loans. we try to make that process as simple and efficient and digital as

christine lagarde of the ecb talks, -- tom: great scope and scale. when i look at the equity, beside -- the way it went up, the persistency and went back. i do not want to give my opinion here, but a massive what if when we get out to april. lisa: it was by the depths. very much and forth, the idea that any sellout whatsoever is coming with this idea that we are going to get the fiscal stimulus, getting better than expected data, earnings coming in that have come in higher than expectations, not just the base earnings, but the forecast going forward. jonathan: it is hard to be bearish. can you? give me a reason. lisa: the big conundrum is, how can that how hard can the economy run in the short term before exchanging the long-term. because the fed will be forced to hike, forced to act more aggressively without changing the underlying structure of the labor market. this to me is the conundrum that has gotten an inverted. we can talk about that more later. jonathan: never change. he had to cash it in whenever it happens. in the meantime, you have to tak

shery: that was the ecb president christine lagarde.as been rewarded by bond traders with traders pushing down bond yields. now it confronts a fiscal pullback that could complicate its job school. they are said to complete its qe after tuesday's policy meeting and will follow up with another program of the same amount. the governor philip lowe is expected to keep the yield target at .1%. shery: let's get a check of the latest business flash headlines. chinese regulators have approved a restructuring of sinochem after years of speculating about a merger. the two firms will become a new subsidiary of a new holding company. sinochem says it will aid the development of china's chemical industry. both companies were added to the pentagon's blacklist for having links to the chinese military in 2020. goldman sachs have closed that has closed off vehicles to assets of its pregnant investment unit. it plans -- has closed off vehicles to assets of its private investment unit. the largest u.s. maker of memory chips expects revenue of $7.1 billion,

there is a christine lagarde speech that has just hit the tape.will get some headlines from that over the next few minutes, but the comments from the governor of the bank of france certainly having a market impact already. alix: all of that setting the stage and europe, particularly the u.k. for wednesday, and the budget relief. u.k. chancellor of the exchequer rishi sunak will really set on wednesday. he is potential he going to announce 25 to 30 billion pounds of emergency support. bank lengthy -- bank of england governor mervyn king told bloomberg he should be cautious about moving too quickly. >> what he needs to do is to make quite clear there will be a framework for public finances, but not to commit himself to a particular date and number when any measures to raise taxes or cut spending will be necessary. we may get surprisingly good news, and if we do, it would have been a mistake tupolev taxes and cut spending. there is no need to take action now. alix: still with us, marvin barth. for wednesday, are we going to get whole we will get a lo

annmarie: when you think about their communications, what does christine lagarde need to say on thursdaynvince marcus at the ecb is going to -- markets that the ecb is going to keep financial conditions easy and loose? henrietta: they have a fair amount of flexibility with their purchase program. it's been more words than actions. i think if rates move too fast and there's too much volatility, because it is not just the level, it's also the speed at which they move and how people can plan around that. if that gets out of hand, than i suspect they will come and heavier with their purchase program. but at this moment, they are trying to use words to soothe the markets and it has worked to a point, because we have had these lower growth prospects on the european side. we will have to see if that lasts. manus: and, i mean, we have easy credit conditions in the euro zone at the moment. what do you think is the trigger point for them really to do an awful lot more on bond buying? is there a bund level that you think is particularly important? is there a spread that you think is most manifest f

european central bank president christine lagarde's has policy makers won't shy away from using theirestors try to push bond yields higher. lagarde spoke to bloomberg's francine lacqua. >> they contest us as much as they want. we have a mandate. we are going to be riveted to that, and we are going to do what is required in order to deliver on that, and we have exceptional circumstances to deal with at the moment, and exceptional tools to use at the moment, and a battery of those. and we will use them as and when needed in order to deliver on our mandate and liver on our pledge to the economy. ritika: the ecb has accelerated its emergency bond buying program to push back against a rising borrowing costs. bloomberg has learned france is headed towards a nationwide lockdown to contain the pandemic. the measure includes school closures and extending a ban on intercity travel. president emmanual macron will address the nation tonight. pfizer says it's coronavirus vaccine was 100% effective in a final stage trial in kids aged 12 to 15. that could pave the way for shots for teens and preteen

coming up tomorrow, our exclusive interview with ecb president christine lagarde.loomberg. ♪ let's check in on the bloomberg first word news now. president biden is planning to take on the nations challenge of inequality with a massive expansion of government spending. the president also plans a rebalance of the tax code. he will start to outline his plans tomorrow in a speech in pittsburgh. the remarks will lay out the infrastructure part of a $3 trillion pending package. social spending programs will be unveiled next month. a battle in the supreme court tomorrow could determine whether the ncaa's grip over college athletics is loosened. the organization will ask justices to overturn a ruling that would let number schools offer student athletes more in the way of education related compensation. the ncaa is trying to shield from tough antitrust scrutiny. a setback for the astrazeneca coronavirus vaccine. your many to recommend its use only to those over 60. new data emerged of potential side effects from the shot. canada has already suspended plans to get the vacci

these are the two key players on that front, jay powell of the federal reserve, christine lagarde ofn bank. they have both said inn flugs will go up, the u.s. example of 2.4% to december, that's above the target but the ecb and federal reserve says it goes up and in early 2022 it comes back down again and that's why they're confident they can keep rates where they are. the but is if it goes up they're ready to act nd and that's the signal to the markets. >> all right. we'll see. thanks so much john defterios in abu dhabi. >>> there is a new fight over an oil pipeline in the u.s. but is it already past the point of no return? we will show you when we come back. stay with us. when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just

coming up tomorrow, an exclusive interview with ecb president christine lagarde at 4:00 a.m., 9:00 a.m. in london. this is bloomberg. alix: president biden will unveil his next economic recovery proposal, and this time is really stimulus. it is expected to focus on infrastructure, and markets are starting to anticipate the impact on growth. if you look at what is happening about breakevens, fives, tens, 30's, they are all rising to the highest level since 2011, particularly the shorter-term. the white and the blue line. the question is is it a head fake or is this real? joining us is one who thinks it is a head fake. joachim fels, pimco managing director writing in acute to outlook investor should be prepared for an inflation head fake and look to prepare portfolio flexibility and liquidity. you think what we are seeing today is a head fake? joachim: what we are seeing is a head fake, particulate when it comes to inflation. inflation will move higher over the next few months and i think the markets have started to price that in. we think it is going to be a spike and not a sp

we will see what christine lagarde says today.ou know, in terms of the supply of debt, the ecb is buying a lot of it so it can act more forcefully or more easily to try and calibrate a little bit more so i would not expect the same size of the move in terms of steepening in europe as in the u.s. and elsewhere. annmarie: i'm glad you brought up the ecb because last week, we had a lot of verbal intervention but now, we are learning that they are downplaying concerns over the rising bond yields. do you think they will step up bond buying or is this all going to be verbal intervention? esty: it will probably be verbal intervention at this point but i think they will mention again that they want to keep an eye on yields. they want to keep them relatively capped. we know they have flexibility in the bond program to extend maturities or to change which segments they are buying. they were buying a lot of italy earlier in the year and now, that has quieted down with mario draghi coming so they can easily play around with that. i'm not sure

less maybe that's the way you are supposed to think about it if you are jay powell or you are christine lagarde. but at the end of this dance, when the music stops, and the gasoline starts to come bust throughout the global economy with the u.s. leading the way, they are going to have one heck of a time finding enough fire engines to keep things contained. >> yeah. we are going to find out and listen, i also tweeted out last night rick i think we will have 5% unemployment almost full employment bythe end of the year as long as the variants don't take over and we all get out. the economy could boom we are going find out. it is going to make a lot of rich people even richer over those years because of these rates. rick santelli thank you. >> it is not rich or poor. >> go ahead. >> it is about people that haven't each been born yet that haven't cashed a check yet that already have a bill. that's what it's about. >> the deficit has never been this high except for maybe a brief period in the revolutionary war and world war ii as a percentage of gdp. in only as percentages, yeah the numbers with the

ecb president christine lagarde warns that europe's economy isn't clear of the dangers posed by the pandemict yet. >> the balance of risk is still tilted to the downside in the short term because we are seeing a degree of uncertainty. we are seeing renewed lockdowns. we are seeing a vaccination rollout that is sort of what we had expected. but it is much more balanced in the medium-term, and we expect the vaccination rollout to proceed. we expect sufficient herd immunity to be reached at a point in time in the future. ritika: the ecb spend a back bond program is set to run until the end of next march. hitachi is expanding its technology services business. it is a conglomerate that has become investing in gear for the internet of things. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ ♪ jonathan: from new york city for our audience worldwide, this is "bloomberg surveillance." alongside tom keene and lisa abramowicz, i'm jonathan ferro. with your adp report, let'

eastern ecb president christine lagarde will hold a news conference at 8:30 eastern back here in thenomic reports, weekly jobless claims a number of first time filers expected to drop from the previous week and sends us to 275,000. at 10:00 a.m. eastern, my favorite indicator, the jolts survey, a favorite of well known investors and economists, more on the markets and your day ahead. let's bring in our friend, jeff, a member of the advisory board at capital wealth planning i was looking at something you said recently, and it got me thinking, you asked investors or your clients, quote, do you have the mental fortitude to accept huge gains okay fortitude to accept gains, sure, whine, why is that a hard question >> well, a lot of people, brian, you know, think if they make $10,000, that's all they're really entitled to when if they stayed long in individual stocks, they can make $100,000 so i think it's a mindset with a bunch of investors that were only entitled to make so much, and i think that's a huge mistake. >> and do you think that we should stay long and strong here, jeff, becaus

shery: ecb president christine lagarde speaking exclusively with bloomberg's francine lacqua.rch manufacturing print out of asia, next picture in southeast asia because of record highs for manufacturing pmi's, vietnam at the highest since 2018, myanmar falling to a record low as we see clashes between the people and the military to. -- military junta. taiwan at its highest level in 11 years to read south korea coming in steady. in japan, bank any factoring pmi looking like this. let's cross our global economics and policy editor kathleen hays. let's discuss japan pmi, because we saw this acceleration at a time when we are also sing japan's largest manufacturers turn optimistic for the first time in years. kathleen: let's step back for a minute -- this is a broad, regional move. i think we are going to see more and more of this globally, because two big things are happening. like the international monetary fund said yesterday, next week with our report at the annual spring meeting, we are going to update global growth, update the u.s. and china. and they are pointing to the sti

carolina, how much do you expect christine lagarde to address this head-on, this rise in yields we have in some of that into europe? carolina: we expect her to be very direct and how she addresses the topic. this is something that the ecb will not be particularly comfortable with, not necessarily because the rising yields per se, but because of conditions, a concern for any central bank wanting to manage monetary policy. anna: the euro is actually a little bit weaker than it was. how much relief will that be providing? carolina: definitely. a weaker euro at the margin again, very much in line with what the ecb and currently the major central banks will like to see. having said that, it really depends on the context in which the euro might or might not appreciate. in the context of a strong economic recovery in europe or even acceleration of growth compared to the u.s., it is really not a concern for them. anna: is that something the ecb is willing to do? carolina: there is room. they could potentially frontload some of the bond purchases in their plan. they have the flexibility. i would

, we will have all the headlines for you as soon as we get the news on any stimulus and then christine lagardeozone economy. that could move markets. the cac is up 13, dax lower by 1. asia overnight, green across the board, best performer in china, shanghai composite off 2 and a third percent. apple is taking another swipe at free speech. cheryl casone with the he details. cheryl: apple has reportedly denied parler's application to return to the app store, claiming the site's recent policy updates were not enough to satisfy their guidelines. parler relaunching its website last month after being kicked off amazon web services in january. boeing reportedly ready to close a deal to sell dozens of 737 max jets to southwest airlines. this would be the largest order since the aircraft safety ban was lifted. this proposed of deal said to top 100 firm orders, plus options for more jets and this follows intense competition between the smallest member of boeing max family and the airbus a-220 of. 220.boeing up 2% in the premark. roadblocks seeing a rise in the market this morning, it soared more than 54

should christine lagarde ask the ecb to do something?: i think over the years, we have seen words used as the main weapon to try to talk markets into where we want them from the bond market perspective. potentially, yes, but as you say, the yields have not risen by as much as the u.s. what spooked the market is the rapidity in the rise of yields. the u.s. 10-year treasury yield is only where we were at the end of 2019, so it is not proper for equity investors, but it is the rapidity and the inflation outlook that is causing people problems at the moment, i think. anna: when is it a problem for the discount rate when it comes to equities, david? when we see those yields go higher, we see stocks sell off as if many are expecting it to be a problem with the further discount rate. what is your assessment? david: that is the million-dollar question. from the absolute level, discount rates right now are not a problem. it is the rapidity, how quickly they rise, which tends to spook markets. from an absolute level, if we look at the 10 year trea

kailey: christine lagarde and team are keeping a lid on the european bond market area.he new york area, new york city mayor bill de blasio has asked governor andrew cuomo to pause re-openings to stem covid cases. of course, new york is dealing with the threat of a specific covid variant spreading very quickly, and this follows new jersey governor phil murphy saying that state is going to pause reopening and rolling back of restrictions as its case count is the highest in the nation. coming up, president biden's pledge to tax the rich and why the pandemic may be helping his case. this is bloomberg. ♪ ♪ kailey: live from new york, i'm kailey leinz, along with guy johnson in london. this is "bloomberg markets." president biden is looking to make good on his promise to tax the rich, and new data is helping support his case. the richest 1% of u.s. households added more than $4 trillion in wealth last year. that is happening as stocks hit record highs fueled by record low interest rates. the bottom 50% saw their net worth game by as much as $470 billion, bolstered by fiscal s

is it time for christine lagarde to say something, or is it past?saw a calmer picture in the bond markets yesterday. chris: as a central banker, just trying to use words to go against the bond market feels a bit like trying to hold back the tide. i thing what you have to do if you are in the ecb and are really worried about high yield is you need to back it up with action, whether that is tweaking qe purchases, speeding up the pace of purchases, for example. however, i do not think we are there yet. i would argue that some of the increase in european yields probably is warranted, even though those worries about the pandemic in the midterm are there. we do have the vaccine rollout for a bounceback. in terms of expectations going too far, yes, they ecb should be talking about it, but in terms of action at this stage, i don't think it is warranted yet. anna: chris, thanks for joining us. coming up on the program, we get back to the conversation around the u.k. budget. we will speak to the cbi chief economist, rain newton-smith. what does business want

back to the squawk stack the german 10 year bund, yields on the 10-year bund just plunged after christine lagardesn't going to be raised japan down today you can see that immediately happened we're going to head faster to bond purchases the 10-year on the squawk stack all the way down to 148. the squawk stack one more time what it was created for. it was created to get sponsor. so if you are out there and you're thinking about, wow, what would -- >> ihop. >> no, but that's an idea, ihop, can you hear me? >> denney's. >> fruity tutti fresh and fruity from denney's? >> no. we're not searching for a sponsor here that's really good andrew, do you have any deal book money would deal book sponsor a squawk stack? do you have an expense account >> we have a little bit of marketing dollars we could put towards that >> can you think of a better place to do it >> i can't >> other than squawk stack. >> perfect synergistic audience. >> give them a freebie see what it's for. the deal book stack for the hour >> how quickly can we get sponsored by ars deal book i bet you they could put that up complementary init