ecb president christine lagarde says investors should prepare for new guidance on monetary stimulus. exclusively to francine lacqua in venice, lagarde it signals that new measures might be brought in steer -- brought in year. >> you could argue that to the extent the inflation aim was below book close, now they are saying to percent. it is marginally higher as a target, therefore might take a little longer. but frankly, i don't think this is what matters most. what matters most is the especially forceful or persistent and the acceptance and tolerance that it might result in moderate variation relative to targets. . >> what does it change for your july 22 meeting? >> we have a framework. we have a new framework that is unanimously approved by the governing council, and we are going to look at the circumstances. we are going to look at what forward guidance we need to revisit. we are going to look at the calibration of all of the tools we are using to make sure it is aligned with our new strategy. and i think that given the persistence that we need to demonstrate to deliver on our comm

christine lagarde out in front of all of this, putting investors basically on notice.he's basically saying that investors should prepare new guidance on monetary stimulus within the next 10 days. she signaled that fresh measures may be brought in next year to support the economy. she of course, as you can see, caught up with "bloomberg surveillance" anchor francine lacqua. ms. lagarde: we have a new framework that is unanimously approved by the governing council, and we are going to look at, as we always do, every six weeks we are going to look at the circumstances. we are going to look at what forward guidance we need to revisit. we are going to look at the calibration of all of the tools we are using to make sure that it is aligned with our new strategy, and i think that, given the persistence that we need to demonstrate on our commitment, forward guidance will certainly be revisited. francine: does it give you extra tools? it is not technical changes. ms. lagarde: it is going to be an important meeting because number one, we are going to communicate definitely -- co

manus: the ecb president, christine lagarde. we will have more of that exclusive conversation throughout the show and morning. our guest this morning is jane foley. something for everyone, but more for the doves. all in. we mustn't create the anticipation of emergency tools are near an end. why such a muted response from the euro this morning when madame lagarde says she hopes to deliver clearer, simpler and crisper guidance? why such a phlegmatic response? jane: i suppose simpler communication would be welcome but the actual met -- actual message hasn't changed that much. they've changed the target a little bit, a 2% inflation target, a little low -- instead of a little low. they have raised it slightly. we know it will be dovish. there isn't much change in that. we knew that before she spoke that they would probably continue until march she has more or less confirmed that. although it will be interesting to see, it will be nice for the commentators to see this clearer communication. i think the content won't change much. dani:

how high is the bar for this institution and christine lagarde to move to a more dovish stance? uber easing. >> we are extremely easy. looking at the strategy they announced, the stranger so that they will not target 2%. lagarde sounded extremely committed and determined to make this work while the ecb missed the target for the last 10 years. i think we could get a really dovish surprise today. forget about tapering and having the ecb announcing that we will be in a kind of qe, low for longer environment. manus: you've been calling out this forever. what could that dovish do you -- do you think they want to deliver a dovish shock? they are already running hot. what does the dovish shock look like? >> no tapering, no reduction of the pandemic emergency purchases program until march 2022 because it runs until march next year. there will be a heated debate today. we know that there were some members of the ecb already asking for a reduction of the asset purchases at the june meeting. i'm very curious how this will end up. the more dovish would mean, forget about any reduction of as

shery: warnings from christine lagarde that the ecb will not tighten early. haidi: the big day is finally here. the lippy opening ceremony hours away -- the olympic opening ceremony hours away. shery: it is a picture across wall street. nursing u.s. futures rising a quarter -- we are seeing u.s. futures rising a quarter of a percent. a record for a third consecutive session. we have the old playbook resurfaced. the cyclicals rally we saw in the past two days coming to an end. the 10 year yield falling. treasuries rallying. the dollar not moving that much. we are watching the euro given that it has failed to hold onto those gains after the ecb meeting and the revisions to the right guidance. wti losing 2/10 of 1%. this after rallying in the new york session. there has been more optimism about the recovery only here in the u.s. but broader globally . take a look at this chart on the bloomberg. i want to talk about the u.s. leadership. it is really interesting because we are seeing it at a record high when it comes to the ratio of the s&p 500 and the broader s&p

haidi: i know you are monitoring this closely, christine lagarde telling us a july policy change is possible for 2022 measures as well, it may be followed by a transition into a new format. we are also hearing from the ecb president lagarde that we should repair for monetary stimulus in 10 days. new measures might be brought in next year to support the economy after the current emergency bond program finishes up. that guidance will come from the july 22 governing council session, but she talks about interesting variations and changes happening. let's get you more of that conversation, we spoke exclusively with christine lagarde. >> we have a framework. we have a new framework that is unanimously approved by the governing council and we are going to look at, as we always do every six weeks, we are going to look at the circumstances, what forward guidance we need to revisit, we are going to look at at the calibration of the tools we are using to make sure it is aligned with our new strategy, and i think given the persistence we need, forward guidance will be -- francine: it was always a big me

that press conference from christine lagarde is starting at 8:30 eastern. also we will be getting jobless claims data. 350,000 is the print we will looking -- we are looking for. the fed is watching inflation, but also watching the labor market extreme closely. what i'm going to be watching closely after the bell, earnings. we will get a slew of them. intel will be interesting. we had texas instruments last night blowing it out of the water in the second quarter in terms of 41% revenue growth but a little cautious on the forecast. does that indicate that shift demand may be peaking and what does that mean for chipmakers investing so much in their production capacity? we are going to get snapchat and twitter earnings, looking for more engagement and advertising revenue for those guys. jonathan: thank you. here is a story for right here, right now. didi is down another 3%. the ride-hailing giant in china. more trouble. let me run you through the highlights. chinese regulators are considering serious, perhaps unprecedented penalties for this company after its

our exclusive conversation with christine lagarde. that's next.his is bloomberg. ♪ ♪ kailey: this is "fbloomberg markets." i am kailey leinz. christine lagarde says they should prepare for new guidance on monetary stimulus and fresh measures could be brought in next year. she caught up with my coanchor francine lacqua over the weekend. >> we have a framework. we have a new framework that is unanimously approved by the governing council and we are going to look at, as we always do every six weeks, looking at the circumstances, look at what forward guidance we need to revisit. we are going to look at the calibration of all the tools we are using to make sure it is aligned with our new strategy. and i think given the persistence we need to demonstrate to deliver on our commitment, forward guidance will be revisited. francine: on july 22, it was always a big meeting but is it a bigger meeting because it is not technical change? >> it is going to be an important meeting because number one, we are going to communicate differently. what analyst experts,

guy: do you think christine lagarde is in control of what is happening?s noise around the fed. when mario draghi spoke, he brought the rest of the governing council with him. alix just read out a headline, the ecb said to disagree on stimulus draft for july 22. has christine lagarde got this or do you think others will try to dictate the narrative? if so, what effect will that happen terms of fixed income? jim: oddly enough i think there is more consensus in europe than there is in the u.s. at this point. part of the reason is the cycle of covid that is going through, europe has been slower than the u.s. to start to pull out of this. i still think there is a lot of use that there needs to be stimulus -- a lot of views there needs to be stimulus in the market -- policy support, not stimulus. policy support in order to ensure proper recovery. that is what is taking place. most people are on board. i know inflation numbers have started to rise across europe and the u.k. to some degree. don't forget we also have a lockdowns across the eurozone currently slowi

tom: we are constrained with time because of christine lagarde.ant chart. with this data point it is not relevant -- it is not elegant. a little bit of movement from the constructive trend. will the politician see that in washington? michael: no. they will argue the way they want to. economists will say the data is lumpy. i would not worry too much about it overall. the total number of claims, 12,573,000 for july 3 is down by a little under one million. significant progress made towards getting people off the roles. jonathan: the wrong kind of upside surprise on jobless claims. let's head over to frankfurt, germany. christine lagarde said it will be an important meeting. let's take a listen. president lagarde: good afternoon. the vice president and myself welcome you to our press conference. at today's meeting the governing council focused on two main topics. first, the implications of our strategy review for our forward guidance on the key ecb interest rates. second, our assessment of the economy and our pandemic measures. in our recent strategy

of course, christine lagarde will be taking the podium at 8:30 a.m. eastern time.t the same time we are going to get some important economic data in the u.s.. anyone in a jobless claims for last week coming through. a fresh pandemic low is what we are looking for. you were talking about the chip conversation with texas instruments. that guidance coming and a lot lighter than analysts anticipated. are they just being conservative , or is that sending a signal to the entire sector that demand is peaking now? if it is in overshoot, what is that going to mean for the profitability of some of these companies like intel, which we will get after the bell, along with snap and twitter? jonathan: just want to check in on didi in the premarket, down off the back of news from our team at bloomberg suggesting chinese regulators are seriously considering perhaps unprecedented penalties for didi global after its controversial ipo last month. regulators seeing this particular company's decision to go public despite pushback from the side ride adminstration of china as a direct cha

juliette: ecb president christine lagarde says, investors should prepare for new guidance on monetary10 days, signaling new measures might be brought in a year. lagarde spoke exclusively to bloomberg's francine lacqua. >> we have a framework. we have a new framework that is unanimously approved by the governing council. and we are going to look at, as we always do, every six weeks, we are going to look at the circumstances. we are going to look at what ford guidance we need to revisit. we are going to look at the calibration of all the tools we are using, to make sure it is aligned with our new strategy. and i think that, given the persistence we need to demonstrate, to deliver on our commitment for guidance will certainly be revisited. francine: do they give you extra tools? on july 22 it is an even bigger meeting because it is not only technically, it is not technical change. >> it is going to be an important meeting because number one we will communicate differently. what analysts, experts, journalists are going to see, is a different presentation of our monetary policy decision. a

thursday, ecb rate decision, news conference with christine lagarde. friday, u.s. and u.k.ata. final word with our guests. mark, a lot of ink will be wasted on the ecb next week. when we are talking about tapering, i want to talk about the size of balance sheets. they are huge at the central banks and will remain that way for a long time. what will be important for the next several years? mark: you are right, central bank balance sheets are large and they are not done growing yet although the pace will slow. but we will focus on in particular is the amount of cash available, liquidity in the banking system. right now in the u.s., certainly, it is too much. we heard that in bank earnings. some are trying to manage the size of their deposits, they don't want additional inflows, and they are try to push out a way either to other banks or other parts of the fed's balance sheet, maine and the overnight repo facility. this is the environment that we will be in for a very long time, likely years. the new york fed asked market participants when you think we will start to shrink our

christine lagarde speaking after the ecb decision that hit markets yesterday.the first ecb meeting since the central bank strategic review. it offered renewed guidance. it also said they will not necessarily react if inflation exceeds the target. nigel bolton is still with us. we had christine lagarde giving a lot more detail on how she wants this to be interpreted. under your assumptions about how loose the policy remains at the ecb given what we now know about the strategy? nigel: i think it is a clear message we are getting, not only from the ecb, the fed and also the bank of england and that is the policy will remain very accommodative. it is why you still see equity markets continuing to reach new highs. the underlying environment is going to remain very supportive. interest rates are going to remain low for longer and you want to move into real assets and equities rather than the bond markets at this stage. mark: part of the european equity performance story was the great china recovery story. how much of a headwind is it for european stocks given the sli

coming up, christine lagarde says the ecb has learned from past errors and will not derail the currentconomic recovery. details from that next. this is bloomberg. ♪ rishaad: european central bank committing to ultra dovish monetary policy. the economy-bashing pandemic has ended, and this has created risk , and we have people saying the policy is too aggressive and may well push it -- end up pushing inflation higher than they intended. yvonne: i have always had tensions between the bundesbank, so there were questions about what this means. are they just delaying raising rates out of negative territory, or is there actually more qe in the pipeline? here is madame lagarde. >> it is not intended to keep interest rates low for longer. it is intended to deliver on our objective. it is intended to reach the target of 2%. this is what we want to do. frankly, the quicker we can do that, the quicker we can use those other tools that we have not used a lot in the last two quarters, which is interest rates, but we are not there. david: you're looking at movers. bund yields are actually down for a

investors watch for any tweaks to christine lagarde's toolkit. we speak to the ceos of abb, and roche on this program. good morning from london, welcome to the european market open. 7:00 here in london. mark is with us from singapore. what are the markets saying to you? mark: it is follow-on sentiment from the incredibly strong sessions in the u.s. it is the same as yesterday, a big day in the u.s., so asia was positive. thursday morning has taken a risk on sentiment. we are very focused on asia, but that is an asian story, and in the european session we will focus to the ecb. anna: we will talk more about the ecb shortly. let me get to corporate earnings. helping us recover from the angst from monday. numbers from the consumer products giant here in the u.k. and netherlands. unilever sales up 5%. that is basically in line with what was estimated. the tea business, we heard they were considering options and what to do with that. the tea operations, the separation of that is substantially complete according to unilever. they expect the future of t

christine lagarde probably did not want to phrase it that way.: taking a look at this chart that shows the 10 year bond yield cratering, did we hear anything about the bond purchase program? kathleen: not that much. people are waiting for them to reveal all sorts of details about how they might make technical changes but yields across europe really did fall again today because in their long-standing regular asset purchase program, no changes. they will keep buying the same amount until the economy does not need it, until they no longer need accommodative monetary policy. really interesting to me is christine lagarde said they did not talk about the emergency bond purchases because they will not do anything like that while the pandemic is still threatening the economy. you mentioned the two dissenters and the majority are really on board with this new policy, but the majority also apparently agreed on the new guidance only if it applies to interest rate changes, not to bond purchases so it seems like maybe that door is still open to tapering befor

what to get you some lines coming in from the ecb president christine lagarde. to a publication in france. and in that local media, giving some thoughts on inflation. the euro did seem to drop a little bit on some of these lines. ecb's lagarde's says the recovery is getting underway but remains fragile. we're not there yet, says christine lagarde. coming up on this program, more competitive, more green, and more technologically advanced. that's what the u.k. chancellor wants the u.k. to be. we hear more from my exclusive interview with the chancellor. this is bloomberg. ♪ ♪ anna: welcome back to the european market open. this friday morning, nine minutes into the last trading session of the week, european markets making modest gains, up .2%. with look at the movers, and its an entirely finished affair when it comes to m&a in the valve making space in finland. that's the story moving things around. we'll all show -- valnet is doing the buying. as a result of the share deal, we see valmet moving. valmet managed to fight off competition from sweden that also wanted

christine lagarde urges patients and ties a rate move to an lesion forecasts. fast -- faces the fastest inflation since 2008. and ubs shows me the money. the bank is lifting salaries for junior bankers, associates, and directors in the u.s., the latest firm to boost pay. let's get right to that market check. you had the ecb confirming this dovish bias, really tying rates to inflation forecasts, and yet not a lot really changed. european stocks up by about 0.6%. lagarde preaching

we heard from christine lagarde.ilmember, saying this new goal is unambiguously clear. steven: yeah, it was coming. and most in the market expected the ecb to move something more symmetrical. and to me, it's part of the global rates story. in the space of a few weeks, we've had these developments in europe and signs that rates could even be going in the downward direction in china, for example. and we were discussing the u.s. earlier. so it's not part of a global picture. in some ways, the ecb and the eurozone were out of line with other big central banks. the bank of england, for example , they are all looking at targets which they are happy to overshoot and under shoot and balance things out. i think it was fairly clear this was going to happen, but it's still report for the dovish view on rates. in my opinion. selina: -- anna: we're all hearing comments that it aims for this to be emphasized. i suppose it might make the ecb in line with central banks but wouldn't necessarily lead up to what reaction function it is

saed: when i heard christine lagarde speak, i walked away thinking this is a different ecb.he policy has shifted somewhat the past few years. however, i have a feeling this ecb is not going anywhere anytime soon. a very big change relative to the policy that -- i think this ecb is seeking inflation to stabilize the market over this unknown period over the next six months. manus: that was the view last week, and it puts the taper debate to bed in europe. thank you very much, saed abukarsh, chief portfolio manager / co-founder, ark capital management. he is joining us from poland. coming up, tesla ceo elon musk warns the global chip shortage situation remain serious. more on this story, right here. this is bloomberg. ♪ >> regarding chips, we are pretty good because we bought ahead for the near term. longer-term the problem will go away. the medium-term planning, the beginning of next year, we have risk mitigation strategy, including alternative sourcing for some chips and alternative designed to accommodate those. i think we are in a good position. we have a number of backup p

christine lagarde announced they are inflation targets. just under 2%. and sustaining it there.her central banks, saying it is going to be just below -- excuse me, symmetric around 2%. does this mean for policy? does it mean for guiding interest rates? how do we know what is going to make them make changes question bloomberg economics, look bring -- let's bring this drink -- screen backup, the governing council will commit in its forward guidance to keeping interest rates unchanged until inflation is forecast to reach or slightly surpassed 2% and remain there for some time within the central bank projection period of two to three years. more specific than the federal reserve, everybody is wondering, averaging of 2% above, how long, a moderate time, what is that. but let's look at what inflation is doing, because that helps us understand what the ecb is looking at. and christine lagarde they be talking about tomorrow, you can see the main inflation rate is up to 2%, it is expected to fall up to 1.4% in 2023. presumably, they are looking at a transitory inflation situation, but wi

christine lagarde address to this earlier. >> the general board last week noted that these conditionso not deteriorate materially. our recommendation on the restriction of distributions, including dividends during the covid-19 pandemic, could be allowed to lapse at the end of september '21. guy: european banks, 25%, you own them at the moment, will it take a continuation of what christine lagarde was talking about? the united states are able to return money. how big a part is it when you are looking at financials? mark: that is one of the accelerating sectors for banks. in our investment thesis, it is about trading historically cheap -- on top of it, while rates are higher, which is certainly a positive, we have a broadening and strengthening in the economy. that means we will see less defaults. we will see some of that price tension moving upwards. a lot of -- taylor: more broadly speaking, it has been europe that has been lagging the price action for the first half of the year. do you expect that to change? is that a dollar weakness call for you? mark: we had europe catching up stro

this is christine lagarde looking ahead at what to expect. >> it seems to be an important meeting. a new framework that is unanimously approved. we will communicate differently. it will be your -- more pure, simpler, crisp and to the point. as little jargon as possible. there will be afford -- forward guidance review. we want to continue to support that recovery that is underway. there will be some interesting variations and changes. now is not the right time to talk about it. david: there we go, something to look forward to in about nine hours. moderately risk on. you are getting across equity markets, not so much across commodities. the dollar is on offer right now. some of the moving averages are pointing down. it will actually take more than two straight days of gains like this to turn the ship around. >> you have reached peak growth and now you have the virus. what does that all actually mean when it comes to risk assets? you reach the base effects. >> we are flat on u.s. futures. plenty more ahead, this is bloomberg. ♪ [ "me and you" by barry louis polisar ] ♪ me and you just

we heard earlier from christine lagarde. >> this may well imply for a temporary period inflation thate target. are we doing average inflation targeting like the fed? the answer is no, very squarely. amanda: one of the things that makes this so interesting, the ecb would kill for inflation around 2%. it would be a good news story if the stimulus -- and i don't think we acknowledge it in america enough. it would be a good story if this stimulus produces some stimulative growth. matt: i have long told my wife i want to earn a maximum of $1 million a year, but i have changed that target. now it is a maximum of $10 million a year. neither one is achievable for me, but maybe it will be easier to rise closer to the first goal if i put the second one in stone. core inflation in europe has not come close to 2% since i've been here covering the ecb, so good luck with that. amanda: i think you can definitely shoot above $1 million. you got it. matt: i guess if it continues to devalue the dollar like this, it should be easier. let's get to the stock of the hour. the white house may be looking to

sticking with the ecb, christine lagarde says it has learned from history and want to rail the recoveryy tightening too soon. in the first morning -- meeting, she said the inflation expectations are rising but there is still some distance from the 2% target. >> it's not intended to keep interest rates low for longer. it's intended to deliver on our objective. it's intended to reach the target of 2%. this is what we want to do. frankly, the quicker we can do that, the quicker we can use those other tools that we have not used a lot in the last few quarters which is the interest rate. we are not there. dani: what does this all mean for markets? joining us now is janet mui. thanks for joining us. happy friday to you. does the market now, especially in europe, care about the economic fundamentals? is it all about ecb and asset purchases at this moment? janet: good morning. things for having me. the central bank acts like it's really important. it gives more certainty on the direction of monetary policy. they expect qe2 continue and negative rates to continue. it's not a major surprise. it i

christine lagarde tells europe that investors should prepare for new guidance from the ecb at its next we are going to hear from madame lagarde in just a moment. boris johnson will confirm at five and lock p.m. tonight in london that most of the remaining -- at 5:00 p.m. tonight in london that most of the remaining covid restrictions will be lifted in london. the eu postpones its push for a controversial digital tax, handing treasury secretary janet yellen a big win in brussels.

paul: the key reason to move to 2% is christine lagarde and others thought the previous goal was a littleectively implied a cap on inflation of 2%. it removes any possible ambiguity and resolutely conveys 2% is not a ceiling. as you pointed out, as was said in that clip that you played, this makes it much clearer that inflation could rise above 2% for a moderate time. she was also keen to stress that yñá■/ztpin exceptional circumst, when interest rates are near their effective look, when they cannot be cut any further, the situation we are in now. dani: there has been a lot of noise, really globally, about housing bubble,. we got some details about that potentially being included into some of their decision-making. what do we know about that so far and what kind of questions do you have around it? paul: it will be a multiyear process because the ecb does not produce the inflation measure. the governing council agreed to recommend that it be included into the official measure, and the european union officials will now have to decide whether they do that. supplementary to that, the ecb will

we heard from christine lagarde.he spoke to my colleague francine lacqua over the weekend, sounding quite positive in some ways, talking about the opportunity that a new framework would give her. in terms of how divided you think the ecb is going to be going forward, when do you think the taper is going, given what you found is a reasonably optimistic picture in terms of the recovery and the delta fading into the background. ? dr. broyer: that is a good question. probably the ecb has a bit more time for tapering than before. . the new reaction function is yet to be discovered, so it will be very interesting to listen for christine lagarde at the monetary policy meeting of july. given sue trim work it -- even -- the target for inflation is a bit higher. saying that qe will remain above will mean that the risk of having the ecb starting discussing not only tapering, but reshaping of the balance sheet, that is why yields are going lower. guy: thank you very much, indeed. always appreciate your time. sylvain broyer joini

christine lagarde teeing us up for a change in 10 days time at the ecb meeting. euro-dollar, -0.2%. lisa: it is going to be a busy week for markets and politically. it is also a basey week when it comes to health care concerns and the covid pandemic. we saw the numbers in the u.s. rise to the highest levels since march as the delta variant increases. today, the u.k. prime minister boris johnson is expected to confirm the end to certain covid restrictions starting on july 19. this really highlights to me the inconsistency across countries and regions. i say this after traveling in europe. whether people wore masks, didn't wear masks, it is raising questions about what is prudent and possible at this point. the u.s. selling $30 billion of 10 year notes. i want to see the technicals here. jon will be watching this closely, as he always does. our people feeling like perhaps we have gotten to peak growth concerns? or is this the new normal? are we reverting back to a slow growth, slow inflation narrative with the fed continuing to pump the prime? today, treasury secretary janet yellen at

ecb president christine lagarde tells bloomberg there'll be guidance on monetary stimulus in 10 days, measures might be brought in next year. and the battle of the space alien heirs heats up as richard branson blasts off just days ahead of jeff bezos. haidi: let's look at how the asian markets are setting up in the start of trading this week. sophie: with a new trading week, i want to show you what's going on with momentum for asian stocks, pulling up the board, we could see some moves higher at the start of cash trade with futures seeing modular gains with concerns around covid cases in the region in places like pan and malaysia. we will get averages later today along with inflation data from india. the focus is brent and new york crude edging higher. once you get on currencies this morning, on the dollar-yen trading close to 110, the kiwi dollar gaining ground. the euro very much the focus after christine lagarde spoke of a potential policy to take that could put the currency on the defensive. the pboc may be wary around u.n. trades after guidance they got on friday. kathleen: china

jonathan: that was president christine lagarde of the ecb.review touches so much on europe. all that effort, all that time dedicated to making the smallest of possibly incomes which moves the european central bank. tom: i'm worried more about italy-england. i didn't see that until now. you've got to be kidding me. jonathan: i think the bond market heard what you heard, not a lot from the ecb. do you think that is christine lagarde, or just the natural consequence of the construct of the european central bank and the bundesbanks rolling all of this as we go on? tom: my eyes are so bad i don't read anymore, but i've got a hallway of economics textbooks we've collected over the years. none of what we are living is collected in a single one of those books. they are all making it up as we go. someone who doesn't make it up as ian lyngen, bmo capital markets, giving guidance on price and healed. we are thrilled he could join us today. what are you writing today so i can think about it over the weekend to act on monday? what is a specific thing for

christine lagarde urges patients and ties a rate move to an lesion forecasts.nilever's inflation morning. the company faces a fast -- faces the fastest inflation since 2008. and ubs shows me the money. the bank is lifting salaries for junior bankers, associates, and directors in the u.s., the latest firm to boost pay. let's get right to that market check. you had the ecb confirming this dovish bias, really tying rates to inflation forecasts, and yet not a lot really changed. european stocks up by about 0.6%. lagarde preaching patients in terms of getting that inflation goal up. a big bid into the bond market. yields lower in italy by about three basis points, similar in germany, but i find interesting is the lack of reaction in euro-dollar. you may argue the art -- the market was expecting something more dovish, saw some short covering, stronger euro, and now is around $1.17, still in range bound territory for the euro-dollar. pointing out gold here, central banker after central bank talking about inflation. they call it transitory, but they are still talking a

but what a change of messaging have we seen with christine lagarde.this market miss the communication of president draghi, that is for sure. and that was a high bar anyway. let's be clear about that. could the barbie any higher for the handoff? i think the bar was pretty high for chairman powell from chairman yellen, and that first quarter was not pretty. the man we heard at the end of 2018 is just a different person compared to the one we hear from at the moment. tom: i am going to do a gdp analysis. where is the boom in europe? it is there, but no it is not. jonathan: bank of america asking that question this morning, too. the s&p advancing 0.4%. another beautiful morning in new york city. good morning to you all worldwide. this is bloomberg. ♪ laura: with the first word news, i'm laura wright. talks between the european union and the u.s. on vaccine passports are making little progress. bloomberg has learned that because there is no certification program in america, the eu launched its covid pass at the beginning of the month. the bloc is at an adv

we are expectinghe t press conference with christine lagarde at 8:30 a.m. front desk. yes, hello... all in our app. expedia. it matters who you travel with. expedia. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. hey, it's good to see you. the company we've trusted to keep us working remotely, is the same company we'll trust to bring us back together. cisco. the bridge to possible. >>> good morning we are currently looking at another positive open. we'll speak to that company's president exclusively. and no deal yet close to an agreement and pete buttigieg, treasury secretary as the final hour of "squawk box"begins >> good morning. futures are up and after monday's losses some of those have been reversed check out the price of wti crude that gained more than 4.5% since its best day mid-april senate republicans blocking and that was to be expected. yesterday's vote was procedure al the 22 member bipart

not go with you on this — two men slagging off the first female german chancellor, who is as christine lagarden who combined, yes, meticulous thought and consideration with some pretty daring policies. of course in greece there is this feeling that it is because of her they went through this terrible crisis, but the eu isn't just angela merkel. and i think what she has achieved in these years, a young woman from east germany who came over and has kept germany steady through it all. in the 2008 crisis germany did not suffer as so many others did, because the eu isn't one nation. each nation has its own capacities and distinction. i have just been talking to 32 british people who have taken out german citizenship — a 2,000% increase in those. in a way, the equivalent of thomas. they love germany, they love merkel. i wanted to say that because i'm not going to, you know, go on this fairly destructive train of thought you have taken out. now for your question: yes, i think germany and italy during that crisis, maybe the entire eu, should've been more — i don't know, kind or considerate. taking in

ecb president christine lagarde is speaking and taking questions. questions that the eu parliament committee for economic and monetary affairs. you can watch that live on your bloomberg terminal. she is speaking of course as chair of the european union systemic risk board. the euro area recovery faces uncertainty from mutations, and banks must fully reflect credit risks and provision early for some of these risk-based messages she is giving at the moment. let's get back to the markets than. 25 minutes into our trading session, we have a focus on airlines today. we have eu covid passports coming into focus. we are seeing some positivity for some of these stocks, the generally speaking, we saw heavy selling yesterday at the half year end. some of the beaten up names in the aviation space doing pretty well today. travel the biggest gain at the start of trade. ryanair up by 2.7%, and i will be speaking with the ryanair ceo about eu covid passports. that conversation coming up. this is bloomberg. ♪ look...if your wireless carrier was a guy, you'd leave h

it's going to be really interesting to see the pushback we get from ecb president christine lagarde.ot a new target. it's 2%. that's going to be a big shift. tom: i think it's going to be really different. also look at emerging markets. it's a bit off the radar. emerging market will be a challenge. jonathan: the shanghai comp is giving me nothing this year. that was the international story that was really meant to deliver. tom: the red sox are giving me nothing in the second half but they won last night. jonathan: you know how it feels then. you feel their pain i'm sure. tom: dr. brammer on some of the international relations at the moment. if you're in arizona and you come out to new mexico and go east into west texas, edward ludlow this morning. i think something has not been discussed with blue origin. within the mercury redstone of alan shepard and then gus grissom before orbit, there was a stunning lack of preflight testing. the legitimate space race in the 60's and 70's and here we've got major major rocket testing before we throw four people into orbit. how confident is this t

christine lagarde said the regions lenders could see a cap on dividends and share buybacks stood by theber. christine lagarde told the european lawmakers that restrictions could be removed if economic and financial sector conditions do not worsen. last year, regulators issued a de facto ban on shareholder returns as a trade-off for taxpayer funded stimulus. 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 am vonnie quinn. this is bloomberg. haidi. haidi: credit suisse is raising salaries as it tries to retain staff after the scandals. let's get more from our asia finance reporter, bill ahmed. -- nabila ahmed. we have seen a lot of banks boosting pay. will that be enough? just want to check that we have you. nabila: yes, i'm here. haidi: all right, we are -- so obviously, just the latest in a number of different wall street banks and global banks trying to retain talent. is it enough that they are just going to pay more? nabila: haidi, this is credit suisse trying to keep the dream alive. the

we have seen this from the federal reserve as well as christine lagarde. do expect from central bankers to tame housing prices, or will they say this is a necessary consequence to a policy that helps the economy? vincent: here is the irony. the ecb wants to add equivalent rent to their price index because it makes it go higher. they are welcoming that extra tip to inflation to get closer to their goal. what can they do? there is monetary policy and regulatory policy in the same building. expect to see them to tighten where they can in terms of supervisory restraint. it is a problem they would prefer to address from that side of the building. right now, there overwhelming concern is a macro one. the level of employment. therefore they will not adjust the setting rates nor the balance sheet to worry about housing. the fed has an opportunity when it does start to taper. it could slow purchases of mortgage backed securities by a quicker pace than treasury securities. that would be a way to send a signal. lisa: that is something fed officials have discussed and

we will hear from christine lagarde. we've got some news.han: wrote tom: road trip. -- tom: road trip. jonathan: the uk2 allowed vaccinated residents to return without quarantine. if you live in the u.k. and have been vaccinated in the u.k. you can travel now. you can return without quarantine. here's the issue, if you are a u.k. residents and try to come to the united states directly you cannot,, that's the problem. we do not have a reciprocal relationship with the united states of america and this is the problem right now. from july 19 if you are vaccinated you can travel to europe, back to the u.k., no quarantine. my personal example, if i fly to the u.k. today before july 19, i would have to quarantine for a short while. i would not be able to fly back directly to the united states. i would have to find a third country and stay there for two weeks. what a fantastic time of the transport secretary of the united states this morning. why do we have no reciprocal arrangement with the europeans, with the u.k. ready to go for this summer to he

the yield down. 1.2433. 25 hours out from an ecb decision and conference with christine lagarde. tom: it is going to be interesting to see on the ecb, what is your initial thoughts? jonathan: euro-dollar. have we seen the highs already? have we seen peak euro strength? dukes is out suggesting maybe we have, may be the strength is behind us and not in front. they were looking for 1.30. tom: you frame out, how do you go down to 1.15. instead of the geography that you are an expert at, in emergency rooms at the johns hopkins hospital, there's gotta be a certain percentage of people working there who are unvaccinated. there's got to be a certain percentage coming in unvaccinated. what do you do? >> regarding employees, we are vaccinated. we all do show our vaccine status. regarding unvaccinated patients, we have that knowledge on who is vaccinated and who is not. my practice is to be ready if i am unsure of vaccine status or covid status. jonathan: i was surprised to read in the new york times that around 60% of workers in the city's public hospital system are vaccinated. i would exp

if you are near the lower bound, as christine lagarde said, you would need an especially forceful response we could be in that position for a while. >> bloomberg's paul gordon. let's get more insight into what this means for investors. hannah gooch-peters joins us now. hannah, did anything you heard out of the ecb change the way you are thinking about european equities? hannah: for us, i think in terms of where investing in europe, we are investing in companies that are so not -- are not so much impacted by the ecb. we are looking for software companies, platform companies, or in terms of consumer staples, input cost inflation might be a problem for lower quality consumer staples. we are looking for ones that can push that input contemplation onto consumers without impacting on them on prices and margins. guy: hannah, you are bottom up, trying to pick good stocks care the top-down picture at the moment is one of volatility. you're seeing bond yields on the move. it is rippling into equity markets. we are seeing a significant drawdown today. where the opportunity in that? there is a danger

. >> european central bank president christine lagarde is telling investors to prepare for new guidance on monetary stimulus in 10 days. an interview with francine lacqua, she also signaled fresh measures might be brought in next year's. after the current emergency bond program ends. in cuba, state run media is acknowledging the -- they faced growing hunger after they were hit by slumping revenue since the pandemic struck. what it calls neoliberal opponents. richard branson has boosted their plan. branson and five employees rocketed into space from a carrier aircraft high above new mexico. they reach an altitude of more than 53 miles above the earth before the plane glided back down. a fundraising run completed at $37.6 billion. walmart joined investors including softbank and $3.6 billion. >> this deal will end the race to the bottom. instead of asking the question who can offer the lowest tax rates, we will allow all our countries to compete on the basis of economic fundamentals. on the skill of our workforces, on the capacity to innovate and the strength of our legal and economic inst

christine lagarde is making it very clear that it is far too early to start talking about normalizationt the germans are starting to talk about the fact that maybe there is a need to restore the pre-pandemic fiscal rules. in your mind, would that be a mistake? gilles: i think the discussion is on 2023, not so much on 2022. the decision to suspend the implementation of fiscal rules is for this year and next. the big conversation is one we do in 2023. i am not sure we have come to the point where germany is going to be so blunt in asking for a proper austerity drive in the rest of europe because they know that this was the wrong decision during the crisis. we should also not forget that germany is in an election campaign at the moment, which means of you things being said right now may dial down once the elections are done and we have a normal conversation in europe. but i thing it is really important that we have learned from the mistakes of imposing a return to austerity too soon after the financial crisis, so i best guess is that there will be the getting of an austerity -- the beginni

i understand we will hear from christine lagarde in about 90 minutes. we need to reflect on this equity market. the s&p is more than 1% lower. in the bond market or break of 1.25. right now 1.2562. this bond market right now, how it is set up on 10, unreal, on the curve, it makes the cyclical trade quite difficult. romaine: it makes it quite difficult. the bond market has been the traffic light for the equity market. the bond market got it right when it led what front run what it up being a massive equity rally. the signals we are getting are showing you the trepidation is justified in you already saw that in the cyclical. folks have been piling out of the cyclicals for the last four weeks. the underperformance of the russell is very significant. we have not opened lower on the s&p 500 for three weeks. jonathan: what you're alluding to is important. this idea is the move has not developed over the last week. it started from the end of q1. breakevens topped out in may. he started to see this bill through the equity market in the last four weeks or so. to

said nothing publicly about this since the last retreat outside of frankfurt, where president christine lagardethey made good progress. we believe they are getting quite close to a consensus on most of the issues, and as you pointed out, there are a lot of issues covering a multitude of debates that have to be had. whether they will get that sorted out well enough to make an announcement this week is something we intend to find out. taylor: in the u.s., they are putting inflation aside and the soulless is really -- the focus is really solely on labor markets. is there a theme for these central banks reviewing their policies, reviewing their mandates, and hinting at inflation versus employment instead of these dual mandates? paul: the ecb's primary objective is price stability, and its definition is inflation is close to but below 2%. there seems to be a shift towards changing that definition to precisely to percent instead of below but close to, but the big debate is how much flex ability around that you have. inequality, job growth is a factor in reaching that decision, but not part of the ecb

ecb president christine lagarde say the inflation pickup may only be temporary. >> the pandemic continueso cast a shadow, especially since the delta variant constitutes a growing source of uncertainty. inflation has picked up, although this increase is expected to be mostly temporary. the outlook for inflation over the medium-term remains subdued. matt: for more, we have guillaume menuet, citigroup euro area economist. what was your take on this meeting? since this strategic review, people are paying more attention this week. >> we got a message from the ecb that they will be taking time before they really start to apply the conclusions of the news to the strategic review. it was very easy to change the guidance from interest rates. what they did was to replace their definition of inflation, and at a few qualifiers. what was missing was the forcefulness elements. we think it could take at least until december that we get more clarity on how the ecb intends to deliver on the new 2% metric level of inflation they want. matt: they don't address currency directly, central banks tend to shy aw