mario draghi remains as prime minister.ld maintain political stability, especially in the short-term, and that pushes away the prospect of a new election until spring 2023. joining us is our guest. thank you for joining us. a lot to talk about, but i guess we start with the dysfunction of the market taking this as positive news. what i saw last week was political indecision, dysfunctionality. what does that mean about how mario draghi can govern from now on? guest: i think this is really very important. we are seeing there are many challenges for our country. there are problems linked to the pandemic and the economic recovery. we had in 2021 been doing quite well in terms of economic growth and we want to continue on that track. thea duda -- the idea of continuing stability is important. francine: do you think mario draghi will continue the way he governs? he listens, but does what he wants. because he wants the presidency and did not get it this time around, will he be more accommodating to the political factions? is there

prime minister mario draghi remains the lead candidate. fran is on the ground with all the details out of italy. let's check in on futures. modest gains across the european equity space yesterday. then you had the picture in the u.s. again. another day of incredible volatility. the s&p 500 ending at its lowest point since october. the story around microsoft is always fascinating. just how ready investors are to punish these big tech companies if they don't meet across the board. microsoft ended in terms of post market trading higher on the back of some reassurance around its cloud business. here is how the markets are opening in the u.k. as we lead across to that fed meeting and the decision. will we get a dovish tone from jay powell given the volatility we have seen across these asset classes? does he reassure or do we get a more hawkish jay powell in light of the four decade high inflation? the cac 40 is higher by 64 points. the spanish ibex is gaining, 0.7%. there is a view that if you want to find a safe haven, you can find it in europ

there is a mario draghi voodoo doll. other papers are warning through, just a little bit more sober just because there is another vote, but we still do not have a candidate that seems to have consensus from both parties. tom: the shirtless sell beanie was that a mockup, or was he actually at the nightclub? francine: i think it was actually him. it went back to an old scandal. tom: love that. francine lacqua on the ground in rome. stay with us. this is bloomberg. ♪ tom: welcome back to the open. top stories. rate high bets. apple surges as a blows through estimates and supply chain posting record sales. and customers snap up couture and cognac. francine lacqua is on the ground in rome. two key factors investors are weighing up, the continued readjustment of the hawkish fed pricing and five hikes in 2022. that picture slightly brighter on the backs of what we are seeing from apple. and the way that apple has nimbly been able to navigate supply chain issues. currently, the european benchmark is down 0.8%. turning a sharper

mario draghi is very businesslike, very well-regarded.shed things through but he also had support of a lot of the parties because it was in their interest to get him to do the hard work. we are looking at elections in 2023 which means a lot of the parties will be less -- will be less likely to do business with whoever is prime minister from now on because they want to get the votes when it comes to 2023. if mario draghi becomes president of the republic, you have a pair of hands to guide it. in times of crisis, the president can step in. in the shorter-term we could see volatility, but in the longer term you would have a safe pair of hands at the head of the government. manus: thank you very much. francine lacqua onto her -- on tour in rome. anna stupnytska has been listening. in 30 seconds, our biggest risk is when i go to the ecb next week -- what is the biggest risk there? anna: that it sounds hawkish. this might be the biggest surprise for this year. they might start laying the ground for rate hikes. i think the markets would be surpr

prime minister mario draghi looking like the early favorite.s is a convoluted process, a bit like electing the pope. we await whitesmoke. that we await white smoke -- we await white smoke. our bureau chief is joining us. always a pleasure. talk to us about what is happening, how it works, and what the result -- and win the result is going to start to become a little clearer. reporter: not today, i would say, with some certainty. there are 1008 voters, the numbers of the lower house, members of the senate, 58 regional delegates, and senators for life, they are all taking turns to go into a box in the middle of the floor of the lower house and write their name on a piece of paper. no official names. at the end of this process, each voter gets called individually because of covid regulations, to make the process even slower. the head of the lower house is going to read the names out loud, and we will count and keep track, and most of the parties at least today will vote an empty ballot, so we will have no match today, unfortunately. alix: when do

marks italy starting its elections with mario draghi elections with mario draghi in pole position.e expected from today's vote? >> not too much from today's vote. the process is quite complicated. it takes delegates writing a name on a piece of paper. there are no official candidates. each of these names is read out loud by the head of the lower chamber, and most parties have announced that for today they are going to go to an empty ballot. francine: they just care if mario draghi stays prime minister. what are the chances if he has to leave government? who will take his place? reporter: it is difficult to tell. he is a very strong candidate, and i know that in the markets, most consider hemp prime minister. don't underestimate the powers of the president. that becomes important. tom: rome bureau chief on the applications of this vote getting underway in rome today. not throwing his hat in the ring. lewd -- our guest is still with us. how do you assess the political risk out of italy? the markets have been comforted by mario draghi at the helm. that could come to an end. is there a

mario draghi, very straight talking, very intent on putting through reforms to make sure they get access funds. this is a probably if you speak to a lot of centers who say maybe there's a 15% chance that this would happen, but the thinking is that actually, if they put someone else in the presidential role, the prime minister remains mario draghi and tries to continue pushing through his reforms. but with every month that passes , because we won't see elections possibly until 2023, he will have a much harder time getting these political factions to follow what he wants to do. for the moment it is pretty plain sailing. it is not an easy job, but they have been doing what he wanted. as soon as you start talking about elections, it is up to the political parties to say i don't want this because this is why you should elect me, so herd ing the cats is going to be difficult for mario draghi as prime minister or the next one. guy: vtb buns -- btp bunds widening out a bit. bloomberg's francine lacqua in rome. here in the u.k., prime minster boris johnson has again refused to step down over the

francine: and the shorter-term mario draghi could become weakened. he didn't match the support. markets will be looking at the. people charge for seven years that he is actually quite good, and you have the prime minister saying as it is, that means it will push through the reforms and he will have access to the 200 billion euros and that's the linchpin of the reform program for italy to be a success. the question is, mario draghi changes in one of the things we have been hearing from negotiations last week that did not lead to him to become president was that lawmakers thought he was too dictatorial in his decision-making. i don't know whether eyeing the presidency becomes softer, so it doesn't push through the roof as a could, or whether we get the same mario draghi going forward. dani: thanks so much, and with a beautiful backdrop of room behind her. still with us is jane, perhaps we are now one at risk event in terms of italian politics taken off the table. when we look at ecb, we start to hear more calls of their moving in 2022 as well. to what degree will it be difficult f

mario draghi needs to stay where he is.er thing we can see and needs change and may come because of what we saw this week is politics. we see the political parties having had a very difficult time coming to some sort of solution that was different from mattarella they need to work out their issues and the coalition fighting the center right coalition also needs to work on its political situation in terms of the coalition and each political party.remained united has been going through an existential crisis we hope they can work through their issues and go through what has been going on and trying to find a common ground in order to face the elections that will be in 2023 in a better political state. overall, it has been a difficult week, but looks like this monday morning things have settled and you see how the market is reacting the market is happy that mario draghi is where he was last week and so is mattarella. >> cladia, thank you for breaking this down for us. >>> let's switch and talk about monetary policy. the federal

who mario draghi could install as the head of cabinet, somewhat technocratic.s afraid of his we have early elections. for the moment elections in italy are slated for about 2023. at the moment everything is up in the air. what is interesting is despite a lot of the heads of the parties asking their own lawmakers to have a white book, to have a boat without a name, the incumbent, the current president of the republic keeps on cropping up. he is getting about 60 to 100 votes every time, although people do not want him to vote for that. it is interesting. it is chaotic. someone say it is italian politics. guy: but quite fun. does this tell us how fractured the underlying political scene is in italy. if we do not get consensus on this there could be trouble ahead. francine: that is also the case. one of the things to keep an eye on is the government made up of parties that do not sit together, that do not have much in party, but were kept together by mario draghi. the more we get closer to the election, the more factions of these parties will want to split to make

not likely that there will be a real political crisis at least until the summer because while mario draghias come out of the voting care, his parties are even weaker, so by looking at the relative power, draghi has actually gain some strength and will be able to impose some reforms and push through his agenda quite easily. the real question here is how much trouble will the parties themselves have to face. they are all convening internal gatherings in coming weeks. leadership might change, so we are going to see how much things are going to be. guy: certainly btp's tightening over germany today. that spread compressing. the market certainly happy for now. thank you very much, indeed. joining us and has been happening in rome. let's turn to the united states now. senators getting ready to pass sanctions on russia. -- on russia, regardless of whether the country they'd ukraine. the united states and russia are facing off today at the united nations. the security council's meeting for you let's get the latest details from annmarie hordern. she joins us now with the latest from washington. whe

mario draghi over —— as head of state means we are still part of nato and western europe and we don'tally, there is no life left in this government, there is one year of legislature left, but obviously it is on full display how lifeless this government has become. what will the outlook _ government has become. what will the outlook be? _ government has become. what will the outlook be? if- government has become. what will the outlook be? if we i will the outlook be? if we don't have mario druggie as prime minister? i understand silvio berlusconi, who has dominated italian politics, media and most other things for years and years is counting himself out, which may be a relief to many, but politically, the outlook, because mario druggie, since he has been prime minister, he has managed to break a huge amounts of financial aid from the eu, et cetera, and has brought some stability? et cetera, and has brought some stabili ? . et cetera, and has brought some stabili ? , ., , ~ stability? yes, he has. and in fact, what _ stability? yes, he has. and in fact, what could _ stability? yes, he h

. >> you mentioned the name of mario draghi which is to say he is the candidate at this moment with theighest likelihood of becoming the next president. >> it could be it could be the president. we need a political party. all of the political parties want to understand if we can go on with the legislature and we go on with the government. we have high challenges. as you know, we have to go out from the covid emergency and we have to carry out the recovery plan 200 billion euro and it's a big stake and we have to work together carry out the project and to do the reform as you know, to do the reform in italy is not so easy >> that was going to be my next question these 200 billion euro is a big deal for italy regardless of what happens in the presidential election, can italy implement the 100 milestones needed to receive the european funds even if we have a parliamentary election in 2023 if not before? >> we have to do it is a big italian challenge for the system this is why we need a strong government draghi would be the president of the italian republican weneed a strong government to g

while several will seek mario draghi as a top contender for the job, it is not guaranteed. the outgoing president got a surge today in the vote, but he has repeatedly said he is not up for a second term. germany grantham got the market's attention with his super bubble call on u.s. stocks. he has a new message to asset manager gmo, saying the goldilocks period is ending and the world needs to prepare for a future of inflation, slower growth and labor shortages. he spoke with my colleague erik schatzker in "front row." -- on bloomberg's "front row." >> we are in the early stages of running out of raw materials. there is only a certain amount of cheap nickel, copper and oil and we are beginning to have boundaries. we'll live in a world of bottlenecks, shortages and price spikes. and we have to get used to it and manage our way around it. mark: you can see more of that interview on the terminal and throughout the day on bloomberg television, as well as our front roadshow -- "front row" show. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more tha

they hope to resolve a stalemate that threatens to derail mario draghi's government and unleash moreitical instability. the government has changed some 60 times since the end of the second world war. the series of meetings took place as the parliament convened to replace the outgoing president. draghi is among the most prominent candidates in a contest being closely monitored by the financial markets. let's get the analysis on this with lorenzo c. thank you for being with us. no president, is that no problem? >> well, draghi s a great chance to be elected as the president of theepublic. candidate now.e the most popular but there's a problemhat needs to be solved by the party, before draghi as president of e republic. a deal as needed ang political forces to replace draghi as prime minister and eventually to form a new government. the political parties -- the majority supporting drhi, they seem committ to these ideas. looking for a solution for the government and promoting draghi as head of the state. of course, we are facing parliamentary votes with secret votes. so the result is not

almost double the number who arrived the previous year, putting further pressure on prime minister mario draghi'sial media content creator in east africa has become an internet sensation, going viral in india. kilimanjaro, named after africa's highest mountain, is a young maasai who's been lip—syncing india's bollywood songs to perfection on tiktok. salim kikeke met kili, as he's known, in tanzania. this is what he does for his dayjob, looking after the family business. and this is what he does in his spare time. his videos have been attracting a lot of attention here in east africa, but they have been a huge hit in india. in africa, but they have been a huge hit in india.— huge hit in india. in the beginning _ huge hit in india. in the beginning it _ huge hit in india. in the beginning it started - huge hit in india. in the beginning it started as | huge hit in india. in the| beginning it started as a huge hit in india. in the - beginning it started as a joke, i wasjust beginning it started as a joke, i was just having fun and enjoying. i didn't know it was going to blow up and become this big.

almost double the number who arrived the previous year, putting further pressure on prime minister mario draghi'sworld people have welcomed the new year in a host of different ways. some spent time with family and friends, others headed to the shops in search of a bargain. but, a surprisingly large number decided to see in 2022 by getting wet. the bbc�*s tim allman explains. what is it with new year's day and people doing things like this? cheering here at cavour bridge in rome, for more than half a century, every year, to celebrate the new year, they threw themselves into the tiber. normally, the water is icy cold, although milder weather meant it was perhaps a little less bracing this time around. in the netherlands, a group of hardy souls went for a dip in the north sea. an official event had been cancelled due to covid restrictions, but some just couldn't stop themselves. it feels like a refreshment, you know? now, ifeel like all my troubles are gone and i actually feel really energised. not that far away in portugal, their destination was the choppy seas of the north atlantic. the sun was sh

the former you see the head mario draghi as prime minister.en as top contender for president, but lawmakers feared a return to political chaos without his leadership. mattarella was reelected as president. exit polls in portugal so that the socialist prime minister won the parliamentary elections. it would be the third term with his party projector to take up to 116 of the 230 seats in parliament. his party has pledged discipline, stability and higher household incomes, as the country looks to recover from the pandemic. refiled that doubt broke the man's record for the highest titles. coming back from two sets down in a match lasting five hours and 20 minutes. it was the spanish player's 21st glance from title, breaking the three-way tie with novak djokovic and roger federer. 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. haslinda: thank you for that. the nikkei 225 comes back from lunch break. second day of gai

and prime minister mario draghi could be elected as head of state.ty to combat covid and he says he wants to avoid triggering divisions. turkeys finance minister has seen inflation rate peaking at 40% in the months ahead. he said inflation might not fall below 30% until year-end. the cpi hit 36% in december and some predict the currency crisis could push it beyond 50%. the eu executive arm is exploring whether trading partners including the u.s. could move natural gas pipes to the region. this is to ease the pressure from rising geopolitical risks. the eu needs to remain vigilant and prepare for emergencies. 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. i am vonnie quinn. paul: the u.s. has ordered diplomat families to leave ukraine, saying russia could decide to invade at any time, and the u.s. embassy in ukraine will continue operations but officials still believe a russian invasion could occur at any time. antony blinken says it is too

in europe, italian lawmakers will start voting to elect the next president with mario draghi a top contenderregional pmi's on monday and gdp prints from germany and france. south korea also reports its latest growth figures on tuesday ahead of the debut of its biggest ipo on record. lg energy will list. the main event, the fed's first rate decision of the year on wednesday when we will also hear from chairman jerome powell. shery: the central bank is expected to signal its first rate hike since 2018 and pave the way for a march move. oldman sees a risk of more aggressive tightening until the inflation picture changes. janet yellen things the fed will be able to bring down price pressures while one of her predecessors, larry summers, says it will be a tough task. >> it is important to note that professional forecasters think that inflation will substantially abate next year. part of this view is likely driven by the expectation that the federal reserve continue to account for these pressures as it fulfills its dual mandate. >> inflations at rates lower than 7% do not exit the system without v

almost double the number who arrived the previous year, putting further pressure on prime minister mario draghi'stime for a look at the weather. hello. after yesterday's record breaking mild new year's day, a lot of mild weather around for the rest of today. in terms of the weather, we have a few scattered showers, some of them heavy. you may have already had a few cracks of thunder, especially across the south of the country. this is what it looks like at 6pm. 11 celsius in london, 9 celsius there in the lowlands of scotland. you can see where the showers are spreading across some parts of the country through the course of the evening and night. a change taking place in scotland. a weather front arrives, behind it we have much colder air, there is a possibility of some snow and stronger winds in places across scotland through the course of the night and the early hours of the morning as well, central and southern scotland. you can see the winds coming in from the north, so that is a sign of that colder air arriving. in the south tomorrow, it is still a south—westerly, so across england and wales

at the same time you have a political president mario draghi trying to put pressure on these companiesplease, don't go ahead with these meetings given what's going on on the geopolitical front. still, the money outweighed their decisions and they are taking the meeting with president putin. jonathan: our transatlantic coverage from berlin and washington, d.c. the president has good intentions trying to work with the united front to deal with what he believes is a situation he believes we have to deal with, russia. china is another one. uniting european friends on a single issue like russia or china is really difficult. tom: it is a history that certainly goes back to world war ii and the dynamics there, and frankly world war i. it is an ancient discussion about how america fits into a european continental debate. i would suggest what we've done since 1946 is show the troops. i grew up with thousands of american troops, wisconsin and germany, the entire problem was unwound in 1980 9, 19 91. show the flag, show the troops is the way america does it. are we going to do it this time around

we see the relative success of mario draghi in italy and what you've got in the united kingdom.ascinated by the u.k. story. jonathan: you can feel the effort to slowly try and normalize positive cases. with a big step forward in the last week cutting the isolation down from 10 to five days and then the pushback very quickly. >> how do you create economic policy, a business policy and you have the health science still moving quickly and so many unknowns. jonathan: and then some backtracking. lisa abramowicz, tom keene. futures up 19. from new york at all-time highs, this is bloomberg. ♪ ♪ >> washer 2022 be any different -- why should 2022 be any different from 2021? >> we are still in a very accommodative place. there's a lot of cash from central banks. >> omicron is turning out to not be a huge threat. >> we are still significantly underestimating the earnings story. >> i think the so-called everything rally continues. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: the road back to normal is a bit of a bumpy one. from new york

this strengthens the prospect that mario draghi could be elected head of state. the decision was announced in a statement saying italy needs unity to battle covid and he wants to avoid his name and triggering division. 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. manus? manus: thank you very much. coming up, phillips's fourth quarter earnings miss estimates. we speak with the ceo, next. dani: plus, shares in key iphone manufacturer climb in taipei. more chips and ships through the show. we will take on the challenges facing big tech. this is bloomberg. ♪ manus: it is "daybreak: europe." phillips's fourth quarter results are in, and as expected, supply bottlenecks have impacted earnings. earlier this month, they flagged the struggle supply chains marking the biggest share plunge in 23 years. the ceo joins us now. good to have you with us. very much as you guided the markets, sales at 17.2 billion. i am joined to -- drawn to the order intake. double di

guy: do you think christine lagarde is going to be as good at managing the governing council as mario draghias? you only have to look at the different inflation prints we are getting out of europe, spain hi, france less so, germany hi. do you think christine lagarde is going to be able to keep all of the different groups within the euro zone on board when inflation seems to be going in different directions? kristine: that is her challenge, and we have seen in previous periods during her tenure the challenge of keeping the governing council in line as a united front. i think that is going to be very difficult. as you say, it is very disparate levels of inflation. some countries are probably hedged more than the others. i think probably lagarde will keep to a more measured approach in trying to argue once again that the peak is probably soon, if not already here, but it is going to be difficult when all other major central banks akin to the ecb are going the other way. alix: thanks a lot, bloomberg's kristine aquino joining us. let's get that take from hugh gimber, jp morgan asset management g

the reason mario draghi, the prime minister of italy was coming under relentless pressure, particularlyement even well before the pandemic. they were saying they're very, very concerned about the infection rate spiking. you've also got to remember this isn't just an issue in italy . now i should point out there are other countries that have taken a leap. austria is already involved. we're seeing the netherlands having to up its game in terms of trying to have mini lockdowns to try to stem the spread of covid-19. yet again what we're seeing is people getting increasingly irritated by the more draconian measures. the netherlands have had days and days of outbreaks. rosemary? >> nina dos santos. let's go to steven jiang. talking about draconian measures. probably the most draconian has been across china. we're hearing about tian jiang. people are being told don't leave the city unless it's absolutely necessary. what sort of measures are in place there? >> reporter: that's right, rosemary. that's the most important because they want to stick to the zero covid policy. given how highly transm

think there is a risk that people under appreciate how risky or how big the probability is that mario draghi'sr simply ends next week. dani: really fascinating again. we also see a lot of other potential political headaches cropping up. we have a french election, in the u.k. there are calls for boris to resign. do any of these register on the radar as well? >> well, they do because in europe it is going to be crucial year as we move out of the pandemic and into the post-pendant rebuilding phase. one debate we are going to have is what happens to the fiscal framework in europe? for that, we need input from italy, germany. we don't know exactly how much leeway there is with this new government giving fiscal space to everybody. position to men president. but is not clear to us that if he remains president, he will also have a majority in parliament. and if he doesn't, his influence on french-european policy and his political capital in europe more generally will be diminished. and with an uncertain german government, with perhaps political stability in italy and political capital the french presi