and christine lagarde says they must water the green shoots of recovery, echoing that the region is not doing enough on the physical front. let's check where markets are. equity markets actually coming in at the end of the week in the front foot, but only just. the bond market is the most interesting of the day. yields lifted on both sides of the atlantic. btp's certainly seen yields surgeon. alix: it is contribute into a rise in the financials could you have the stress test last night, selling in the back end with yields about five basis points. if you look at my board, you can see the outperformance of the banks. on the flipside, you wind up having the 10-year yield, as you were saying. i want to highlight fedex. earnings did not impress. i was interested in hearing more about fedex in terms of labor shortages and supply issues they are getting constrained by, how they will manage that in terms of profit margin. i will pay attention to that one. nike contributing about 120 points to the dow. without it, the dow could be flat for the day. i wanted to highlight crude for a second. there

lagarde is talking to european parliamentarians right now.king about minimal transference out of the u.s. rate market into what is happening in europe. do you think the ecb has got the kind of time it seems to suggest it has? vineer: it depends on what your view is, how long they can actually hang onto negative yielding bonds. right now they are globally at $25 trillion, $30 trillion. you can go to $50 trillion or $100 trillion. the question is can they keep, in the face of reflecting, can they keep buying it? since i'm an option trader, for me i am getting paid basically to short these bonds, so my horizon is much longer then the politician who either gets reelected or nominated something like that. i think they are trying to narrow the dissonance between europe and the u.s.. i don't think it is going to work in the long run. i think all yield curves globally will normalize to what is a natural level. alix: when is that going to hurt? as you have real yields moving at some point less negative and higher rates, that is going to hurt growth. t

thank you. >> thank you, president lagarde.st question goes to isabella. >> good afternoon and thank you very much for the opportunity. i have a question on the meeting. president lagarde, may you tell us how was the discussion of the governing council meeting today? how is the mood as you said uncertainties remain, and what prevailed in the discussion as you decided to confirm the very accommodative monetary policy stance? thank you. pres. lagarde: thank you for that open question because it gives me a chance to tell you a little bit about how this meeting went. let me start with what i would -- what would be my take away of the overall analysis we conducted, the joint assessment we had in the conclusion we reached. i would say steady hand. let me drill a little bit into that. we spent a lot of time looking at the quarterly staff projections. went deep into each and every item of those projections. in-home inclusion of the work, i think i could say we were somewhat more optimistic about the economic outlook than we were three

christine lagarde mentioned that has well.t it is not that reasonable to extrapolate from what is happening in the u.s. to the euro area because where we are in the cycle and in terms of policy accommodation is very different. so i would expect the ecb from here to facilitate fiscal first and foremost. alix: so what does that actually mean for rates? are we ever going to get sustained higher-yielding europe? konstantin: if you look at the first hikes from the fed for may 2023, and the ecb price couple of months later which is probably unreasonable if you look at the differences in the forecast when it comes to inflation, the fed is projecting to be around target in 2023, while the ecb is projecting to be miles away. certainly it does not make that much since to expect the ecb to go a couple of months after the fed, so it were means be seen to extent they will be able to normalize policy over this horizon. maybe japan is a better comparison than the u.s. guy: so what do you do? where is the opportunity in europe right now? kons

what do you think the direction will be from christine lagarde?gen: the euro again plays a part. she's told us a broad-based financing condition index is what they're using to guide them back to stability. the euro is obviously part of that. i don't think we getting more cautionary language around that than we've already had but clearly appreciation in the euro and rise in yields we've had is all going to play a part for the financial conditions they will be watching and use that to justify the very easy monetary policy. manus: i'm not trying to get you to make a market call, but when you look at the trajectory of the bund market and yield careering toward zero, giving everything you said, it's astounding the speed of the repricing in the european bond market, isn't it? imogen: luckily, making market because is my job, so i'm happy to do it this morning. we generally over the longer term won't see much higher bund yields. we believe strongly in the strength of recovery and we don't believe the european market has priced that in yet. the difference

again, it is all about christine lagarde, will she have a hawkish tilt today in a press conference?kets brace for the tapering ahead. if we look at what is happening in the key proxy of financial conditions, the tenure spread, that did why didn't by about 20 basis points from that meeting through mid-may. that has come up quite a bit. the spreads are wider than the last meeting, but nothing to be concerned about. i think they are quite happy with that. they want to continue to contain the spreads. it will be a fine balancing act. anna: thank you very much. laura cooper, think for bringing us what to watch on the inflationary story in the united states and the ecb. tapering will be happening at the same time. we will bring you coverage of that data and that press conference where conversations could roam and get into interesting territory. we will also have come running in the backdrop, the g7 taking place. that is it for the european market open. "bloomberg surveillance: early edition" asap next. the markets look flat right now. the ftse 100 is lifted a little bit. that is it for th

tom: is this a ballet between lagarde and powell? are they coordinated?speech a million years ago about a square dance. are they square dancing here? michael: they are not square dancing, and they aren't directly related in terms of policymaking. they do talk to each other. they see each other every couple of months at the basel meetings. but it is that impact of the recovery in both regions and how it feeds back into the other regions that matters, and if you get a lot of inflation in europe as prices rise and we import those prices, that affects what the fed thinks. i am reminded when you say that old-line about the dancers and the woman has to do every thing the man does, but backwards and in high heels. [laughter] tom: lisa, help me here. lisa: nope. not going to help you. carry on. [laughter] tom: romaine is being way too polite. michael mckee, go away. [laughter] right now, katrina dudley joins us with franklin. she's got a real ample career on the sell side research and portfolio management. good morning to you. how much of a value is europe right

christine lagarde -- they will talk about it. do not want to give up control of this process. why with the country want to give up control of money? it seems like a crazy thing to do. alix: isn't that bastille day? there's something to say about bastille day. ray: -- alix: that is a stretch. that is what we do. it seems similar to what is happening with the carbon price or any sort of co2 emissions. they are like please give us regulations because if we do not do it now the results will be so bad for the companies and individuals. i feel like to do something similar with crypto. do it now before everything gets thrown out with the bathwater. guy: if you look at china, the bathwater is being thrown out. alix: totally. they can also do that. guy: they do have the power to do that. that is the difference, but it is a big part of the market. if the u.s. decides to regulate -- the regulate can go one of two ways. it can provide an air legitimacy, but it also make it more difficult. if you believe cryptocurrency are effectively swiss b

and the q&a is where we see what stands christine lagarde is leaning towards.s she need to lean into the fact that what the bank of england, bank of canada, bank of new zealand is paying in terms of, you know, the light at the end of the tunnel is there in terms of starting to ratchet back some of this extraordinary policy? >> look, i think the press conference -- we are in the middle of this strategy review right now, the ecb strategy review. we will not get more clarity on that until later this year. i think if i were a european bond trader, one of the things i would be most interested in hearing today is whether or not there is a growing consensus within the governing council to tolerate above target cpi inflation for longer. right now, you were seeing some considerable flattening. it's largely being led by the move in u.s. treasuries but if they start to give indications that they want to move in that direction, they are happy with inflation to be about 2% and, you know, moving more towards the symmetrical inflation target, that could put a break on some of

christine lagarde says raising u.s. inflation will have only a moderate impact in the euro area.e will discuss that, next. this is bloomberg. ♪ >> international spillover from u.s. inflation can be amplified if people in the euro area shape their inflation expectations also on the basis of developments in the united dates. -- states. overall, however, the effect on euro area inflation is expected to be moderate. as the recovery is gathering pace, we need to remain vigilant and ensure that policy support continues to provide a bridge over the pandemic and well into the recovery. anna: that was the european central bank president, christine lagarde, speaking with lawmakers at the european parliament. she reiterated her view that accelerating u.s. inflation would have only a limited impact in the euro area. i'm sure that is the received wisdom. looking at five-year inflation expectations for the euro zone, the most recent direction of travel over the last couple of weeks or so, those expectations have been coming down a little bit as if there is a de-anchoring with the u.s. mark: ab

where does there fit into madame lagarde's morning?ven the bundesbank is bending a little bit, not as hawkish as they have been in the past, but in a sense, i think it is funny that u.s. democrats would be cdu, they would be on the center right here. the german hawks are far more hawkish than the most hawkish americans. we have had this black zero program and play. the germans do not want to incur new debt, but this pandemic has forced their hand. tom: what is so important is looking at the clock, looking at the news out there, noting matt miller will waltz on with history manic day. that means it is time for obligatory car talk with matt miller. how are electric vehicles doing in germany? will they buy the f-150 electric vehicle pickup truck? matt: i wish. i always wondered, alan mulally would say they had a one for policy, they made one product for the globe and do not tell the pickup trucks here. before i moved back, i thought about bringing my f-150 raptor with me, and now, i realized it would be impossible to. . fit through the st

the guard and lane largely -- lagarde and lane largely seem to be on the same page.re they coming to a summer conclusion? brian: the message was to hawks -- paul: the message was to hawks everywhere, not just within the central bank. they took that baby step towards a tapering discussion. that doesn't mean that the ecb have to go the same way. he did acknowledge that there's a lot of uncertainty, and as you heard it there, the moment will come we've got to start landing for a transition away from emergency measures into what will still be pretty heavy stimulus, but of a different kind sometime in 2022 presumably. so hawks think now is the moment, that inflation will become entrenched. alix: so technically, if the ecb is going to keep buying bonds at an accelerated pace, at what point they continue to run into liquidity constraints, or illiquidity constraints, i should say? brian: it looks less likely -- paul: it looks less likely now. it has largely amounted to 33% of any particular government's debt, and in any case, governments have issued a lot more debt this year

we have not heard from lagarde yet, but her lieutenants are talking about it. the inflation here, even if it is lighter than the inflation there, germans are much more sensitive to it. so they really got to react if you start to see prices higher. in terms of food prices, that really is transitory. i think there is a you engage of food prices out today that shows we are at a decade high. but if you see gains in prices for things like homes, that pushes their hand. tom: to get you started on your day on radio on television, futures -10, dow futures, -71. it is 17.72. i will call it midrange over the last three to four days. as lisa mentioned the yield, we had a 1.5 eight about 12 trading hours ago. curve dynamics are about the same. maybe the real yield with a little bit in. oil, $72 on brent. 71.45 on brent. gold is not a story today. i'll are turning is what i would put it with some rain in be stability. lisa? lisa: we recognize the fed beige book. yesterday, it was really interesting. what it showed was this concern people have. the increase in cost presser,

lagarde managed to put off that low volatility act ever so well.lly. anna: it was interesting to watch that. you talked about low volatility. we have very low volatility in fx markets. is that because it is summer, or because we have a big football championship looming on the agenda and that is distracting everybody? what is driving us down on fx? reporter: definitely the football backdrop. but i think there are several reasons here. on a day like yesterday when you had the u.s. cpi moving at the fastest simply global financial crisis, if you look at currencies, they were all excited. but not for very long. for me, that suggests there are several reasons going on. one is the central bank push in the markets and the other is those swap lines that the fed has put in place with major central banks around the world. there is no incentive to build up volatilities in markets anymore. anna: a good place to leave the conversation. thank you for joining us. have a good weekend. ven ram from our markets live team. "surveillance early edition" is next. they w

we will have to watch, but that is not the problem christine lagarde faces right now. that's talk about another aspect of one of the key stories we are watching at the moment, the crypto story from a different angle. banks facing the potential of significantly tougher requirements to carry crypto on their balance sheets, despite the possible the of tighter restrictions -- their balance sheets. despite the possibility of tighter restrictions, it is a little higher today, possibly on the idea that it could be carried by banks. abigail doolittle has more. abigail: in terms of tougher capital requirement relative to banks, it has everything to do with volatility because the crypto bulls are happy today. why? because in the more near-term over the last two months, we have bitcoin in a bear market. we took a look at bitcoin since april at its last all-time high, we are going to see a pretty decent decline, down 40%. right now stuck in this sideways range. that really suggests uncertainty about what is next. as banks are going to step it up in terms of regulation, or the bitc

it is perfectly correct what madame lagarde said.iscussion in highlighting different risks and what is a different assessment of risk in both directions. maria: just looking forward, there is some debate in the market that says when you look at the purchases over the summer, you know that in august liquidity tends to be less. also, there is less trading going on, markets go away for the summer holidays. perhaps you could do more with less money. is that something you could agree that the pace of purchases could be tweaked in august because of that reason? guest: i think the statement by the ecb says clearly there is care. if there is nothing on the market, you cannot buy as much as you hope. it is simply following what the markets propose, what it offers, and you cannot buy more. maria: mr. holzmann, again, focused on the market reaction, there has been fear of a taper talk, where the market is not ready for it yet. would you say this is something the market needs to start to factor, that there will be tapering at him point? when do

their inflation target -- madam lagarde, to raise their inflation target. it sounds like that very much from where you're setting but for us, it is a dream come true. the question is, can i keep it going? can we continue to reopen at this pace? tom: the reopening we are seeing a spread out across the country. we will have the oecd secretary-general with us. matt, help me with data. what do you see? matt: i am watching a currencies pretty closely. look at the euro. we're getting pretty close to some of the support levels the analysts i talked to are watching. we continue to drop down, which is interesting because you expect the ecb gets a little bit more hawkish at the next meeting and maybe starts to change some language. you can see a turnaround stop the tenure yield he already talked about. -- you can see the turnaround. the 10 year yield you already talked about. german yield climbing up to less than 20 basis points of negative yield, although we are still negative across the spectrum all the way out to two years even in greece and italy. nymex crude com

we were listening there to christine lagarde talking about what is needed in the european recovery.hat is very much underway is the next generation e.u. capital raising. the commissioner came to the market raising lots of euros. 35 billion euros. they could have raised a lot more though. this has been very well oversubscribed. demand holding up strongly. are you interested in that kind of sovereign debt at this point? >> generally speaking, our past year, from our poirl perspective is we're very much underweight sovereign det. we don't have a structural requirement to own it, inlike other styles, investors. in terms of the e.u. i think my caution to the market is i would estimate the level of resolve the e.u. and e.c.b. have in terms of getting these structural changes to take place. getting this capital to work. i realize and i'm the first to criticize in terms of having shovel-ready projects, that is definitely on our radar screen but i would not be too fast to criticize the e.u. and e.c.b. in terms of the level of resolve they have in terms of actually making these things happen

christine lagarde says the ecb governing council is making good progress in its focus on the biggestaul of the institution monetary policy into decades. the governing council met this weekend for the first time since the pandemic outbreak. germany hopes to renew the central banks inflation role. data analysis ahead of the annual form late september. 100 american airlines flights have been canceled for monday extending from the weekend. 300 flights were scratched saturday and sunday, citing unprecedented weather at hubs with labor shortages and increased bookings. airlines a struggle to deal with demand as a vaccinated travelers embarq again. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: take a look at markets asia under pressure, read across the board. >> investors are jittery after fed talks about tapering. the focus goes to when it will start raising rates. we heard from bullard saying, if inflation continues to be elevated, we could see rate r

ministers gather in italy and then christine lagarde speaks at the brussels economic forum. u.k.inuing confidence numbers. a lot of cpi data out of a number of different locations. keep an eye on that. we are looking for a catalyst. maybe that could provide one. alix: right, although you have central bank saying still transitory. it feels like even if you get a big number, will that move the needle? maybe the hawks in europe in the u.s., but it has been discounted by what powell continues to beat the drum with. guy: to be honest the big number of the week, everything builds up to it. it is the payroll number. if you get something circa 700,000, north of 700,000, i think people are looking at the moment when we start to get traction the u.s. labor market. that is not happened yet and is, a lot of people by surprise. alix: when we get those one million prints? coming up, adam posen, peterson institute president will be joining "balance of power" with david westin on bloomberg radio and television. guy: the cable show will be hearing from the new health secretary. hopefully he will

china is one example of this i have not seen jay powell or christine lagarde being great friends of cryptol see how that regulatory battle is fielding up. >> sven, thanks so much. great to see you >> great to be with you guys >>> goldman reiterating its buy ratings on micron and western digital. both those shares up forecasting strong demand for the rest of the year the semiconductors used in smart phones and watch sprinkler opening for trade just moments ago and another debut drop to go with it. the ceo with us in just a moment "techcheck" is back in two minutes. (vo) this is a place for ambition. a forge of progress. a unicorn in training. a corner to build a legacy. a vision for tomorrow. a fresh start. a blank canvas. a second act. a renewed company culture. a temple for ideas. and a place to make your mark. this is where dreams become brick and mortar. find yours, on loopnet. >>> facebook is expanding to sell directly on its properties and announcing some new numbers. julia boorstin has that. julia? >> well, jon, mark zuckerberg has talked about how commerce is a valuable long-term op

what will christine lagarde have to say about the stronger euro, as well as the weaker jobs report andr as we continue down this road? on friday we have the g7 summit in cornwall. guy johnson will be there on location. the first time in about a year and a half. lots of great interviews from the g7. stay with me if you're in london and your commuting, you can go to bloomberg radios the cable at the top of the hour live on bloomberg dab digital radio in london. if not, have a wonderful weekend. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and t

and christine lagarde says they must water the green shoots of recovery, echoing that the region is noton the physical front. let's check where markets are. equity markets actually coming

1:10 p.m., christine lagarde will be speaking at the green swan event. basically, this is bankers coming together and policymakers to talk about level climate change -- global climate change. interesting to think of that is part of the banker mandate, there increasing power, increasing political footprint. tom:, on, no. i don't agree. they're looking for a new thought and the thought is climate change. lisa: when is the next time i will hear you say thought leaders? tom: they're just picking up on the theme. i get that. help me. jonathan: now, no, no, don't bring the into it. lisa: 2:00 p.m., your next favorite, the beige book. i've been looking forward to trying to sell the beige book for the past month. it will be really interesting to see the wage dynamic, how people are coming into the labor force to try to understand how much employers are having to tee up the salaries to get them into the workforce. this is not a huge mystery. we do not understand what is causing the friction that is leading to so many job openings and still so many unemployed work

matt: i think lagarde and the ecb have done a great job playing this to their advantage. you see europe coming back down to 118. my question is, does the fed strike back with the speakers today? we will see a lot of people talking about the big central banks jockeying for a better position in terms of currency. tom: i want to emphasize the market coverage worldwide absolutely extraordinary right now. toni kroos nz will be joining us. matt miller, you mentioned euro, 119. yen weaker as well. the dollar not breaking out, is it? matt: it is not but we have seen the euro and the pound come down pretty substantially over the past couple of sessions. what you see is could be a dead cat bounce. the euro is not trading at 1.22 as it was prepared meeting last week. tom: weaker in asia and now they surge of half a percent. we do the dow futures for jonathan ferro. nasdaq leading the way but not so much right now. bitcoin, 32,033. lisa: we will get to bitcoin, i promise later on. matt: i thought dow futures were fascinating. lisa: let's move on to what we are expecting today, number

the ecb decision out later this hour ahead of christine lagarde's news conference.icy but, mark, the conversation certainly has changed in europe around fed tapering. it's also happening in europe and for a little while we were talking about the double dip recession in europe, now we're talking about getting back to growth. your thoughts, would you put money in europe right now? >> we do have a little bit of money in developed international. we're not overweight by any means. i think we just need to have a little bit of exposure. but look, i think the ecb, they keep their foot on the gas here. they're going to keep buying bonds. they're going to keep rates low. they're not going to taper just yet. they're going follow in the fed's foot steps, they're going to allow inflation over a transitory period, however long that a may be, to keep their economy off life support because maria, let's remember, they don't have covid contained as well as we do. operation warp speed gave us the ability to rebound faster than any other country and because of that, their economic reco

we will watch and see what happens, but that is certain the message from lagarde and lane at the moment will leave it there. always appreciate your time, julian emanuel of tig. i think -- of btig. i think the central bank divergence story is one you will want to keep an eye on. the europeans are in a very different place to the fed right now. certainly that was the narrative coming from the ecb. i appreciate it is going to be hard to resist for the ecb, but nevertheless, you look at lane, listen to what he said today, they are on different planets. alix: very much different planets. bullard wasn't set out there in isolation. he may not be a voter, but they had to have known what he was going to say. clearly there has to be some messaging. like, i am not expecting another fed official to come out and try to calm the markets at this point. guy: no, and you've got a whole bunch of fed speak next week. it is how you finesse the message. and i don't powell is doing this by mistake. i think this is going to be a coordinated strategy. there was a sense in the market, i sort of felt, post the p

lisa: the thought leadership today comes from the ecb's christine lagarde.his comes on the people of the greens event the talks about climate -- the green swan event that talks about climate change. she will talk about how the ecb will extricate itself from the policy it has currently implemented. how will it up down should conditions deteriorate further in the euro zone? 2:00 p.m., the fed beige book. really interested to see how much clarity it gives to the employment picture. the idea that we don't understand why there are so many job openings, and yet so many people still out of work. is it childcare? is it enhanced unemployment benefits? is the fact that people are worried about their health and going back to the office where the restaurants where they work? this is also very interesting in terms of how much momentum there is behind a bipartisan bill to fund infrastructure in the united states. president biden is meeting with shelley moore capito, the senator leading the infrastructure effort for the bipartisan bill. how much are we actually getting fro

the ecb doesn't sound like lagarde in any shape or form is ready to do anything significant at the momentother than keep the taps on. walk me through the investment thesis that goes with that. eleanor: for us, the thesis is an equity investment thesis, so we are looking at companies that can still create value regardless of what central banks are doing. that means we do stay away from value stocks, which need some kind of economic support in order to be able to perform. we prefer to have trades which do benefit from the fact that they can create value themselves. i don't think we are going to see a higher level of inflation in the united states. i think we are going to move away from some of the value trade we have seen during the first quarter and into the second quarter of this year, and return to a more growth, quality situation that we had prior to the enthusiasm of post-pandemic. alix: i guess the question then becomes what do you do, when you switch back to more defensive names? morgan stanley says they see growth now, but value later. does that hold when you are investing in europe

even christine lagarde today and her central bank meeting, hold on the phone, it is way to stop the bondand bond buying distorts the signals of the market so it is hard to tell what the treasury complex thinks of today's numbers but what we can tell you is that investors are going along with the fed to some extent they're not going to fight it. it has not been very profitable to fight it. does that mean that they believe there is no inflation? and it absolutely is transient not necessarily. they're just going along with the market until they see something that theycan act upo that will make it through the clouds and through the smoke and actually get a signal out. and there will be those sessions of treasury trades now, if we look at another measurement of inflation that is being scrutinized these days it's the break-even 10-year. the comparison between a coupon 10 and tips which is treasury inflation protected security, and that relation in the 230s, you see on this chart, it has been moving down that's a month to date chart a daily month to date chart. and at that point, it is now the

a discussion with christine lagarde and jerome powell, among others.his is a real set of worthies trying to figure out how monetary dynamics fold into better gdp and sustain gdp among climate change. it is a different effort than the paris accord, which really went to the documentation of data coming off of cities and smaller institutions. taylor: and i have to say, larry think of last week i think talking about the higher inflationary trend as we shift to going ev, to going green -- larry fink of blackrock last week i think was talking about the higher inflationary trend as we shift to going to ev, to going green. romaine: this is a push, and global push right now, by our monetary policy makers into that arena. tom: it really is. this is what bis does. i can't say enough about the institution. as one of our guests mentioned the other day, they are absolutely definitive on thinking through this event called bitcoin. let me do a quote. romaine bostick insists i quote bitcoin, $36,800. we have not mentioned amc in at least 12 minutes. we will fix that pr

that is a yield christine lagarde would know. matt: german yields are going in the opposite direction. i thought it was interesting the bundesbank put out its new forecast for the year, growth will be back to pre-pandemic levels. then much higher next year. inflation, though they have it at 2.6% this year, comes back down to 1.8% and then to 1.6% in the following months. tom: this sets us up for weekend reading to get started into the fed meeting next week. lisa, i got to look at the real yield, extraordinary. i came in this morning from the surveillance siesta and looked at the 10 read -- 10 year real yield, .9 3%. it is safe to say it plunged yesterday. lisa: it plunged yesterday. i'm wondering how much we can take away from this. you have an increasing number of people saying it was a technical trade, that this was a massive short squeeze. and people getting squeezed out of the position will reset and yields will creep higher. that said, there is this expectation the federal reserve will be able to stay on hold with the $120 b

tom: i do want to mention christine lagarde and jerome powell at a summit with the bank of international settlements. very important summit trying to link climate change into the future of central banks. as we speak, the leader of russia speaking at the st. petersburg international i comic forum. many -- international comic forum. many at bloombergtechtv -- international economic forum. many at bloomberg have attended this before. mr. putin speaking on things european this morning. we are going to digress to a data check right now. euro weaker, but much more on where we are in the equity markets. tom: -- romaine: s&p futures up about 0.1 percent. nasdaq futures up as well. really not doing much of anywhere. this is pretty much where we have been camped out around the 4200 level for the past six weeks. a similar story with regards to fixed income. you are looking at a 10 year yield camped out around the 162 basis point level. the dollar spot index also in stasis as well. to say we are now in a holding pattern, waiting for what is going to transpire in about 26, 27 minutes would be an unde

thursday, the ecb releases its rate decision, followed by a press conference with president christine lagardesday, i iran nuclear deal talks resume. we got a little on the timeline impacts. uscp i will provide insights. friday, the highly anticipated g7 leaders summit starts in the southwest of england. joe biden will be there, his first visit to the u.k. as u.s. president. coming up here on this program, we look at your socks to watch, including the u.k. travel and leisure structure. it might have impact on to leisure businesses domestically rather than travel. this is bloomberg. ♪ anna: welcome back to the european market open. nine minutes until the start of cash equity trading for another week. we have futures pointing in various directions. let's think about the individual stocks that could be on the move today. we are joined by simone foxman. let's start with some asset sales. simone: wreckit is selling up the chinese baby formula business to a private equity form called -- private equity firm called primavera. we knew the business was up for sale. the enterprise value coming in at $2.2

it will feature presentations from angela merkel and christine lagarde.lso on that particular program. at 1:00 p.m. u.k. time, we will have german cpi data released from 2:00 p.m. u.k. time, a series of data from the u.s. will hit the bloomberg terminal, including on housing and consumer confidence. later today, g20 foreign affairs ministers will be meeting. that meeting will continue in italy. let's get back to the banking agenda. the biggest u.s. banks are boosting payouts and continuing buybacks after clearing the fed's stress test. morgan stanley doubling its quarterly dividend and goldman sachs increasing its payout to two dollars per share. let's bring into the conversation dani burger. good morning. morgan stanley not disappointing. the average amongst the six banks went up by some 50%, i think. morgan stanley taking some headlines. dani: not a 50% increase, it's a doubling of their dividend. it reflects then performing better in the stress test. to one degree, it's pretty significant to see morgan stanley shares move post market. they rose about 2

christine lagarde says the ecb governing council is making progress on the overhaul of the monetary policye governing council met in person this weekend for the first time since the outbreak of the pandemic. the talks aimed to retool the inflation goal and improve its data analysis ahead of an annual forum in late september. 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. >> st. louis fed president says he moved the dates for the tyke after 10 to 22 -- rate hike after 2022 because of hotter than expected inflation. kathleen hays is here with more. this is a huge shift. >> it certainly is, especially since jim bullard is someone who was firmly in the camp of as long as there is pandemic region, we cannot talk about lift off. on friday, he was asked, where is your daughter, he said, i put us starting in late 2022. the link to it. you have to have the idea that these forecasts for rate hikes are related to the forecasts for inflation, so my forecast said 3% inflation for 2021 and

it's slowly turning which correlates with a very dovish ecb, christine lagarde and maybe the higher pricesl live to fight another month. >> back to you. >> thank you very much, rick santelli. >>> still to come the ceo of novamax, the vaccine proved 90% effective overall in a late stage trial. >> dow was down triple digits off the open down 94 points right now and nasdaq bucking that. up a third of a percent. we'll be right back. ♪ ♪ ♪ 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. this past year has felt like a long, long norwegian winter. but eventually, with spring comes rebirth. everything begins anew. and many of us realize a fundamental human need to connect with other like-minded people. welcome back to the world. viking. exploring the world in comfort... once again. at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people fo

youse and whats the subtext and the context of the language >> it reminds me, ursula, of christine lagarde who used to encourage people to -- encourage ceos to bring women onto their boards and into their executive leadership team. they would say to her, we would love to. we just don't have any qualified women. we don't have any people that meet the merit qualifications to have these jobs. what do you say to people -- she would pull a bag of names out of her pocket and say here you go, here are some women. what do you say to your fellow executives who say i'd love to have more black women on our executive leadership level or on our boards but i can't find them >> i think i would not be as graceful as she was and pull a bag of names out i would point out very clearly how small-minded this whole statement is what has happened in corporate america is that the rules -- the playing field of the field we play in was defined by white men. the rules of the game were defined by white men the referees are white men and then we say, oh, we have nobody these white men say we have nobody who fits this

remember, christine lagarde was very bearish, dovish, with regard to the ecb meeting., it's been raining dollars. and that's a good thing. the fed needed to do that, maybe it's a little bit too good right now, but that makes hedging the dollar very cheap, and buying treasuries a much better deal than many other sovereigns finally, let's get to our tens tech check here's a chart going back to 2012 this is important. in 2012 july and 2016 july, you had bottoms at 1.39 and 1.37 pre-covid, the last big bottom was 1.46 the main issue is if we start not -- if we close below either of these levels, most likely the place we're going to be going is right around 1.19. 1.19 was the last tie in the post-covid choppy trade that the treasuries had but right now, most of the screen is betting these areas hold, and do remember one thing. if you looked at all the auctions this week as i have, indirect bidders were very strong there's another signal that foreign interests are finding the right blend, mixture of rates and dollar hedging to be able to be big buyers in our auctions carl, b

. >> interesting comments from the euro president lagarde, she does see a gradual pickup in inflationary the coming year. she says she expects the economy to pick up and positive signs turning a little bit optimistic when it comes to the outlook when she sees the vaccination rates going on there andrew, i think the term in french, transitory when talking about inflation she was talking english of course. >> steve, thank you for that. >>> we've got some news -- >> i guess stan had said this before stan drunkemiller and has said this before and he says the market is not speaking right now, in terms of how it's reacting to the inflation numbers and will not, until the fed stops canceling market signals. and at that point, we will know, and not until then well, we know whether, so basically said so, and we can say the market is okay, and indicating transitory. andrew, i won't see you for a while and i'll miss you. make sure you join us tomorrow "squawk on the street" is next >>> good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at

the ecb president christine lagarde said there was moderate optimism generated by vaccination programmested there was also still a great deal of uncertainty over the evolution of the pandemic, including the emergence of new variants, and over the rate at which current restrictions on normal life could be lifted. so that is a snapshot about the current european response to the pandemic. girls as young as 11 have experienced sexual harassment in secondary schools in england. a review by 0fsted found that nine out of ten girls at schools and colleges said they had experienced sexist name calling or been sent explicit images. many of the incidents went unreported, which the watchdog warns is leading to sexual harassment becoming normalised among young people. zoe conway reports. it doesn't matter who you are, any age, you will experience as a woman sexual harassment. it is normalised and it is ok for men to do these things to women and young girls and there's not enough of a consequence. lucy and kerry have now left school but they remember how hard it was being sent sexually explicit images