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tv   Bloomberg Markets European Close  Bloomberg  December 13, 2021 11:00am-12:00pm EST

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right now -- the countdown to the close starts now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to go to the closing europe. we are down by 0.2%. saw a little bit of a fade coming through. nat gas futures certainly getting a big bid around europe. it is not just the u.k.. it is not just netherlands. it is germany. it is everywhere, really. we are seeing a pickup in prices as we worry about what this winter could bring. fears about the arrivals nord stream 2 certainly growing. euro-dollar under pressure, $1.1275. big week for central bank
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meetings. we've got the fed, the ecb, the bank of england, plus a whole host of others. are we going to see significant policy divergence? how hawkish will the fed be? how dovish could the ecb be? alix: over here, we are looking at stocks rolling over. the s&p off by about 0.6%. apple trying to hold onto its gains, now i've 0.3%. it has been a bit of a dicey session for the company. it is still sitting right around a $3 trillion market cap, and that obviously would help support the nasdaq 100, but not as of now, because that is down by 0.7%. all of this to say that as we head into this week, we are looking at a denier yelled down by about five basis points. particularly the backend now flat after a low bit of selling earlier. you mentioned what is happening with the euro. a straight up safety play. still socks, by bonds, by the
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dollar. -- sell stocks, buy bonds, buy the dollar. guy: the british prime minister boris johnson not ruling out or covid restrictions in the united kingdom. we could be seeing the option of shutting down schools once again being put on the table. he says this government will do whatever it takes. pm johnson: i have been at great pains to stress to the public that we have to watch where the pandemic is going. take whatever steps necessary to protect public health. the best thing we can do to protect ourselves and our country and ensure that we have as normal a christmas as possible is to get boosted now. guy: boris johnson at a vaccination center. bloomberg's joe mays joins us now. boris johnson not ruling anything out. however, what will the public take in terms of further
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restrictions? could we really go as far as closing down schools again? how far will his own mp's allow him to go? joe: the current news from the government is focus on boosters. they are saying that would be enough, but it seems that they essentially have to boost one million booster jabs a day to meet their target. i think public willingness probably quite limited. i think people want to see the data be significant enough to justify that. at least, that is what many conservative mps are saying. within the party, we see 60, 70 mps rebelled tomorrow. this is just on the work from home and vaccine certification mother -- certification measure.
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so within the party, very limited for going further than what is announced. alix: how shaky is boris johnson's grip here? joe: a general election, that is 23, 2024. what is more of a prospect is a vote of no-confidence in the prime minister. talk about this has been increasing. it would require 15% of the conservative party at least to put in no-confidence. this week, the conservative party might lose what was previously a safe tory seat. if that happens, we could see many more votes of no-confidence, and that would trigger -- it is not outside the room possibility. my sense now is the party doesn't want that, but we could end up in that territory. alix: joe, thanks a lot. let's get further details on that. oksana pyzik, ucl school of
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pharmacy global health advisor and lecturer, joins us now. if the policy for plan b that we are undergoing right now that is going to be voted on tomorrow, is that going to be enough to do what boris johnson needs to do, which is stem the virus count? we are looking at u.k. reporting, 55,000 more covid cases. oksana: we've heard that plan b won't go far enough, and even with boosters, trying to meet that one million boosters a day goal will be incredibly difficult given the human resources available, given the notice that has been given to some gps, pharmacists. it is going to be very hard to just rely on boosters and working from home, given that boosters are not 100% effective in preventing transmission. it will help significantly with preventing severe disease, but they also take time to work, and
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it is time we don't really have, given the rate of doubling and effect that omicron is going to take over for delta in the coming days. guy: in terms of the impact on the numbers over the coming days, what should we expect? as that happens, what will the numbers look like? we are circuit 50,000 in terms of the number of cases right now. what do you think -- what a rehearing in terms of what people are talking about on the front line, and terms of what they are expecting over the next few days in the run-up to christmas? oksana: certainly we know there is a delay. the effect on hospitalization will become clearer. already, we have had some cases confirmed of omicron, as low as one death, but that tells us very little about the severity of this disease. however, even if it is half as severe as delta, it will still, due to the rate of spread, be severe enough to put significant
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pressure on nhs. already we are hearing about icu crowding, etc. and it will disrupt primary services as well, which means that in the long term, we will see a big rise in non-covid related deaths as well. given that the vaccines that are available to us are not as effective as we had hoped, this means that pharmaceutical companies will also have to be keeping one eye on the data around deaths, which will become clear in coming weeks. whether we need to also introduce a new variant specific vaccine for this crisis. in the meantime, however, we know we can protect via the measures we have relied on before. in ireland, they are investing $72 million in ventilation. that is something the u.k. doesn't even talk about. alix: i think you raise a really good point when you talked about the nhs because what is the goal of any restrictions?
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is it to save everyone's life? is it to save the compromised and elderly? is it to make sure the hospitals can handle what is being thrown at them? because policy can be dictated by that one goal. oksana: absolutely. we would have heard about something called bureau covid, which other countries have pursued, which include more extreme measures including border closures, etc. however, it is very clear that in this instance, this is going to be an endemic disease, and really, the only thing we can do at this stage in the u.k. would be to protect the nhs. that means that in case uri get hit by a car today, that there isn't so much crowding in the hospital from covid patients that we cannot be treated, or an ambulance will not come because it is so overrun. that is one of the challenges of
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having an under resourced nhs. it is something that is very difficult to fix overnight. it does mean that in addition to boosters, we will have to look at potentially plan c to see a real effect in blunting the growth. guy: in terms of the demographics, where is the problem right now? much of the rest of europe in the united states is vaccinating five up. the u.k. isn't. is that creating a pool of under vaccination, call it what you will, within the u.k. that is going to be problematic? oksana: certainly a hole in the vaccine while of defense, if you will. if we look at tools, we know that it will help to excel or he vaccination of that age, and intergenerational, we see that spread continue. so i think it is really
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important to look further. there's an abundance of evidence around safety and making sure that we are accelerating that on all fronts. this has now become another time sensitive issue, and in some ways there is a deja vu here, but there are steps we can take, and it has to happen at multiple levels. alix: total deja vu, absolutely. plan c, what would that look like? oksana: plan c is probably not a popular option, as we have heard some of the politicians already railing against plan b. plan c is something we have heard sage scientists say would be necessary in terms of curbing that spread further, and that does look at further restrictions for households, he limit on household mixing, limit on number of contact, really
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trying to break trains -- break chains of transmission. however, the government has denied that there is even a plan c that they are happy to currently discuss because plan b has proven to be controversial, even though it should not come at this stage. we have been in this for two years. we understand how this virus works, even in the face of a variant. there's is new aspects to it, but the public health measures remain. again, just bringing this aspect of where are the ventilation standards in buildings and public offices and schools? at this point in the pandemic, that should have already been accomplished here. it certainly has in other countries. guy: so what does january and february look like? what are you expecting? oksana: i think there's a lot of concern that if the boosters don't get rolled out quickly enough and people are not
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working from home and limiting their contact, we could see a return to more severe measures, and lockdowns is part of that. it is interesting that boris today really refused to rule that out just due to the nature of the spread of this variant. alix: oksana, thanks a lot. some breaking news for you. your inflation expectations among u.s. consumers are now at a new high of 6% for the coming year. this is a survey that comes out from the fed, a new york fed consumer survey. everyone is looking at higher prices now for things like college, medical care, food, rent, and gas prices. all others expectations for gains or above 9%. i feel like this truly sets the stage for the fed meeting this week. expectations for prices next year, 6%. guy: i don't think anybody
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thinks they are going to be more dovish than the market expects. the risk is all on the other side. if you take a look at the true rent numbers, they are through the roof. they are way higher than the numbers you were just giving us. so the danger is that the market may still be underpricing the fed, and in terms of how they run this, the sequencing i think is important as well. another piece of news which i think will be a lot of interest going forward for our audience as well, kathy hochul announcing a 9.6 billion dollars revamp of new york's jfk. alix: that is great. let's do laguardia first, please. one airport disaster at a time. guy: furnish national travel -- for an international traveler, jfk, it would be nice to be able to get into new york on public transport in a kind of seamless way. alix: it's not that bad. the a-train is not too bad. but kennedy is really far out there. that's the thing.
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laguardia needs its own train, and a lot of other things. but that is a different story. guy: absolutely. in terms of the inflation story, i think it is going to be something that is more sticky. if you look at what mohamed el-erian is saying, the fed is still behind the curve. we will talk about that because that is kind of relating to our question of the day, what are the biggest risks to your portfolio in 2022. robert thompson is joint death -- we thompson -- rupert thompson, kingsford cio, is joining us next. this is bloomberg. ♪ ♪
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guy: 30 minutes until the
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closing europe -- 13 minutes until the closing europe. rupert thompson is the chief investment officer at kingswood. he joins us now. the u.k. health secretary he expects hospitalizations and deaths to rise dramatically. in what scenario do you think equities will take price? rupert: i think if boris ends up having to put in a full-scale lockdown and we get worse news about how effective vaccines are against omicron, which was the initial news last week, then the markets may take fright. the number one risky to markets is still inflation, despite what is going on at this very moment.
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alix: so how do you play the number one risk being inflation? rupert: you just have to sort of shut your eyes and go through it. as you said, we are sticking with our small overweight of equities. it is not that we think we are through the period of volatility. you've got covid burning on the back in her, but inflation at 40 year highs getting bought. it is not that we are saying this problem is going to go away. it is just we still think equities have got more upside than bonds or cash, so anyway, you look through it. shut your eyes. guy: closing my eyes and hoping for the best feels like a risky strategy right now, inasmuch as we don't know what the fed is going to do. clearly, the data are increasingly looking like the inflation story is going to be
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trickier to manage. if that is the case, what is the risk/reward? the small overweight you've got, what is the risk/reward on that? what is the downside risk if central banks are more hawkish and take a tougher line with this inflation? rupert: in terms of how much more hawkish they are going to be, short rates have already priced in a more hawkish stance. in terms of they are now saying there's a 50% chance we will get a rate hike by may, two to three rate hikes into 2022 is what the marketer now pricing in, the fed is already saying they are going to be raising three times in 2023. so i'm not sure we will see a massive ratcheting up in terms of interest rate expectations. there's more to go at the long end, definitely. but just going back in terms of the risk to the upside versus the downside, our base case in
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terms of return for global equities, you are looking at 5%, 10%, every thing goes very smoothly. then you turn to 15%. what we are not looking at is a big correction at this point. . alix: something we are going to figure out this week is how much the central banks are going to diverge. how do you play a central bank divergence? how do you play inflation divergence? no matter how far you go for europe, we are still not going to get the kind of hot inflation we are seeing in the u.s. how do you play those similar but diverging trends? rupert: in a way, our view is that the fed still rules the roost at the end of the day. there is divergence to varied degrees to what the bank of england is going to do, what the ecb is going to do, but at the end of the day, to varying degrees, inflation is at multi-decade highs in all three countries, and i think the way
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we are playing it is essentially, we do think bond yields have further to trend higher. we do think the risk is that central banks do turn more hawkish. in that case, you have to stick they modest value tilt. don't go overboard, but that is the general tilt you've got to have. that also means you got to be in the states because that is the growth market susceptible to higher bond yields. guy: when you talk to your clients, what are they asking you? how confident are they in keeping -- how confident are they at being positioned superlong equities? i know you've got a small overweight, but a lot of people have a big overweight position at the moment. when you talk to them, what are they saying to you about the risk of continuing to be long
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into 2022? do they want to go to cash, or are they comfortable staying in equities? rupert: they are not comfortable in equities. they are uncomfortable, getting that you're close to zero returns, and they are seeing inflation heading up to 7% in the u.s., and the u.k., up to 5%. so they will be aware that they are losing money in real time, and it sort of appreciates the fact that you need to take risk to get some returns. so they are certainly not comfortable. what is going on with omicron at the moment is the process of issuing soothing words. that is just another worry at the moment. alix: thanks a lot. really appreciate it. here in the u.s., we are picking up some steam to the downside. the nasdaq is now down 1%. yields a lot lower. we are seeing some buying in the
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front end as well. two-year yields down by about two basis points. this is bloomberg. ♪
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alix: it is time for the bloomberg business flash. in a paris court today, in victory of sorts for ubs. the swiss bank was ordered to pay a heavily reduced penalty for helping wealthy clients establish bonds in swiss accounts. goldman sachs telling its london staff to work from home if they can. bank offices remain open for those who need to come in. goldman's guidance comes after boris johnson tightened penned them accruals to curb the spread of the omicron variant. that is the latest business
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flash. i wonder what a work from home if you can is different from a work from home. that is going to have repercussions on local businesses, transport, etc. guy: anecdotally, i get the train in everyday. that is much quieter now. today was significant leak quieter. i had a quick look around the city just to get a sense of what the feeling was. it was quieter, but not quiet. relative to pre-pandemic, it was certainly incredibly quiet, but there were still people around. it wasn't like the full lockdown days when everybody was at home and it felt like you are the only one in town. so people are still here, but i think over the next few days, it will be really interesting to see what happens. the close is next. we are near session lows. this is bloomberg. ♪
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guy: european stocks taking a
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turn for the worst. a lot of red. what you are seeing, the dax is not great, it has gone back flat. the ftse is down .8%, the cac 40 down .7%. the cyclicals in europe have been doing well. the dax is emblematic. the cac 40 was on the front foot but the dax has now assumed that position and today is a perfect example of that. the car sector doing well. the dax outperforming. we are at the bottom of the range. very close to session lows. 473.66, down .4%. it is off slightly light volume. i wonder whether it is the seasonality factor where people working from home? i do not know.
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certainly the covid story is changing fast. health care is doing well today. you are seeing the grocery sector doing well. the more defensive end of the market, travel and leisure you have seen what is happening in terms of the advance omicron is making. that is likely to lead to more restrictions and people becoming more cautious about traveling. travel and leisure down 2.5%. the energy sector had a great run, oil had a great run, banks are down, retail is down. individual stocks, ubs is fairly flat. it is interesting how we have watched this story develop. we have seen it's fine, this being reduced from the french authorities.
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nevertheless ubs is still considering its opinion. ubs flat, down .4%. s.a.p. is having a cracking day. it was a ubs upgrade, we are seeing sap up with an the cloud will do well. there is iag, the owner of british airways and iberia, down just over 5%. alix: let's get a topic near and dear to her heart, that is the weather. european natural gas futures are searching to a high. concern russia's nord stream 2 pipeline will not operate this winter. it might be warmer where you are but how long will it stay like that? with us is rachel morrison. the prices we are seeing in france and germany, germany 200 megawatts per hour, that is next year. supply, demand, or bureaucracy, which one is it? rachel: today it is supply.
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we have had a volatile day on the gas market that is bleeding through. you mentioned the supplied concerns over gas and everybody looking at the weather. this feeds into the electricity market. in france it is low wind, low nuclear. what they need to fill that gap is gas and gas cost six times more that usually does. that is bleeding into prices and making everything expensive. at the moment it is not that cold so it is not a demand story. as we go nearer winter it as everybody keeps watching the weather forecast closely, the worry is we are already at such elevated levels that when it does get cold the system will struggle to cope. guy: give us an update on where we sit with nord stream 2. the german government says they will stick with the letter of the eu law and will not do
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anything until we see the domicile and of the holding company that owns nord stream 2. in terms of what we are thinking about with the timeline of that russian pipeline, what is this looking like? rachel: it has been seen as increasingly that nord stream 2 is being used as a bargaining chip by russia. everything is getting more political with tension over ukraine and the new german coalition talking about ensuring gas will continue to flow through ukraine. it is getting quite political and as things stand it does not look like nord stream 2 is coming online this winter. that is what is at the front of traders minds when looking at supply and where new supplies might come from. also seeing on the more bearish side there could be extra lng that could come to europe if the mild weather continues in asia. at the moment everyone is
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looking at nord stream 2. the political tension is increasing. alix: has the balance of power shifted at all? antony blinken was trying to persuade germany, saying they need the revenue of nord stream 2. you have a lot more power than you think. who could run the show? rachel: it is interesting to see the u.s. get involved when a lot of people say nord stream 2 is built, what can you do? u.s. applying pressure to germany who holds most of the cards, who can make the regulatory hurdles go away, can make things quicker or slower depending on how they view the situation. it is clear that the pressure is on germany. what few they take on how rigorous they need to be when it comes to nord stream 2, the supply situation and the pressure from that.
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at the moment we are not expecting it this winter. guy: we will watch the weather as ever. my favorite subject. that is rachel morison. let's check where european stocks have settled. outperformance from the dax. the ftse down .8%. the cac 40 down .7%. for the dax, the dax is the star, which is interesting. cyclicality seems to be coming back, which is fascinating. the valuations in europe look different. the cyclical story has been interesting to watch over last couple of days. we will carry on the conversation on the radio later. we will do it with the cable on dab digital radio. 5:00 in london, 12:00 in new york. we are on dab digital.
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if you want to find us and you are not in london, spotify and apple podcast. a huge central bank week. 20 holding meetings this week. there are a few we are focusing on, the fed, the ecb come the bank of england. the turkish will be interesting as well. aditya bhave joining us next. we will figure out where we are going. this is bloomberg. ♪
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alix: this is the european close. coming up, athletes unlimited ceo will be joining bloomberg at 2:00 in new york, 7:00 in london. this is bloomberg. let's check in on the bloomberg first word news. the u.k.'s health minister says the country is in a race between the vaccine and the virus. he detailed plans to offer all
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adults in england of booster vaccination by the end of december as part of a plan to fight the spread of the omicron variant. he also said there is no certainty the government will be able to keep those open. the number of people's using the london subway system plunged after the government urged people to work from home. the drop in ridership comes as the service holds talks aimed at securing more emergency funding. economists surveyed by bloomberg says the bank of england is likely to hold off a rate hike until february. those surveyed expect officials will keep interest rates at a record low. there are concerns the omicron variant could push the economy back into tighter restrictions. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. guy? guy: a big week for central banks. a huge week. we have the fed, we have the
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ecb, we have the bank of england. aditya bhave, bank of america cut securities global economist joins us now. he expects the fed to double the speed of the taper with two hikes in 2022. let's talk about what a slightly more hawkish fed might need to do. we just had the survey from the fed in terms of consumer expectations on inflation. it is running 6%. there are plenty of areas running hotter than that. if the fed decides he needs to be a little tougher, what does that look like? aditya: the most likely scenario for more hawkish fed would be reflected in the dots. you might see three rate hikes penciled in for next year and you might see four rate hikes penciled in for 2023. that is in line with our forecast. we expect them to hype three times next year, four times in
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2023, but we think the dots will lag. if the dots do not lag, that will be a hawkish the prize. alix: we have a curve that gets flatter and flatter. the new york consumer fed survey says next year inflation expectations are over 6%, flatter, flatter. what does the fed do to change that? can they change that at this point? aditya: i do not think that is their top priority. there has been talk about advancing the timing of quantitative tapering. you remember what the fed did in the previous cycle, they started qe about halfway through when the policy rate was between one and 1.5. there is a risk they go earlier this time, especially since they have so much room to cut their balance sheet before they worry it gets too small. there is a risk they do qt earlier, but the first priority would be to end qe.
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guy: what would be the effect in terms of the impact on the economy of qt versus rate hikes. aditya: rate hikes are much more effective way to pull off the economy, slow inflation down. it is also something the fed understands a lot better. the fed has several cycles of history to look back on and understand the impact of rate hikes on the economy, where they have one billion of qt to look back on. alix: how much do you think central banks can raise rates to combat inflation before inflation itself corrects? it feels like the market is pricing in not too much tightening that will be enough to tamp down inflation. are you in that camp? aditya: the fed, the sooner they go the less they will have to do, and that is an important
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part of our view. the risks around the fed are not that they go too fast, but they wait too long to hike and as a result they are forced to hike too much and they in depth drag -- and they end up dragging the economy into a recession. how much they hike if they do lift off in june, they might be ok getting rates up to percent from here, maybe a little bit more. that might be sufficient to get inflation up. the longer they hike, the more the risk of a cycle. guy: how much does omicron confuse the picture? aditya: it certainly does to a degree, and you can see that with the bank of england already. there were risks. they have signaled a hike even earlier in the fall. with omicron it looks like we will not go in december. that is the consensus. we expect that to go in
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february. from the u.s. perspective, i think omicron does put march at risk. ultimately, it is complicated with inflation. if omicron turns out to be a shock, you could get weaker demand but even more constrained supply. how those balance out the inflation outlook is not clear. omicron might end up more resistant to inflation. alix: we've been breaking that down the last couple of days. let's go to some of the other central banks. i want to go to the ecb. how does the ecb address the word transitory? aditya: the ecb is structurally more hawkish than the fed. they have adopted asymmetric inflation target. some of the hawks on the ecb, the governing council is very divided.
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some of the hawks on the ecb seem to be less committed to the symmetric target. if they see inflation around 1.8 or 1.9 they might see that is sufficient condition to tighten. that being said, the economy there is weaker. they have not had a strong fiscal stimulus, so there economic outlook is not as strong. demand is not as strong. i would see greater risk of transitory inflation in europe, whereas in the u.s. inflation looks much more persistent. guy: where is the biggest risk of a policy mistake right now? aditya: going back to the fed, the biggest risk as they wait too long. too long to tighten. guy: in terms -- to follow up on that, if that happens, how much higher could the terminal rate be than under the more benign
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scenario? aditya: it would depend on what happened to inflation. if a bad scenario does play out, what we are talking about is the fed waits too long and it tightens. we could see a terminal rate of 3%. this is not my base case. this is the risk case. the risk is the economy cannot handle that and it goes into recession. one of the things to remember is over the last 75 years every time their employment rate goes up 50 basis points, it does not drop that much. we end up in a recession. it is difficult to take a little bit of air out of the balloon without popping the balloon. alix: where does that leave the boe? inflation is super red-hot.
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a lot of that is not omicron or covid related. it will be brexit and structural at the same time. aditya: right. i think the boe is in a much more difficult condition. i talked about the ecb being more hawkish than the fed. the boe is probably the most hawkish of all. they are also facing the economy with probably the most structural damage from covid and brexit. we think there will be 40 basis points of hikes in the first half of next year and we start quantitative tightening in the summer. the risks are, given how the economic outlook is, it might despite their structural hawkish nest be forced. alix: subject good mode -- such a for this week. aditya bhave, bank of america global economist, thank you very
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much. this is bloomberg. ♪
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alix: two hours into the u.s. trading day. stocks rolling over. a nice bid into the bond market. yields much lower. let's see where things stand with abigail doolittle. apple now holding up. abigail: apple down 1.2% from its worst day in two weeks. it was the day some people were expecting we would see $3 billion in market cap, but easing back. a bit of rethinking on the part of the bulls, the stock is pretty overextended. because apple is a 7% waiting to the s&p 500, we have that index down, the other index is down as well. this apple action seems to be
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weighing on some of the other big tech names. tesla, after elon musk, was named time's person of the year, shares down almost 6%. not related to what that company will be doing number wise, but it seems to be a sentiment indicator that the situation, the risk on sentiment has gotten too frothy. amazon, nvidia, google all down lower. on the other hand there is one pocket of brightness for the markets. lots of green for some of the vaccine makers. this as the omicron variant, it is said that two doses may not work, there may need to be a booster. pfizer, moderna, novavax, perhaps that up to offer a booster. you can see the shares of the vaccine makers up and away. guy: thank you.
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that can be a counter indicator. maybe the market is freaked out by that. tomorrow is tuesday. what we need to be thinking about? around half an hour from now we will get a bank of england news conference on bank stress tests. interesting to see what comes out of that. it may give some clues to later on this week. it'll be interesting to watch and see what happens. the bank under considerable pressure in terms of what it will do with rates. we will get that news later in the week. alix: if the bond market is any indication, does not look good for any kind of rate hike. tomorrow in the u.s. we get the u.s. small business optimism. i love this indicator and i wonder what we will get the readthrough in terms of omicron and any issues, plus supply chains. ppi coming out as well. inflation super hot but not 7%, so what does the ppi say and will we get a read to consumer prices?
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plus it is the first day of the fed's two day meeting in the iea oil market report, opec saying the revised upward their first quarter demand but lowered their second and third quarter of next year. plus the u.k. labor market report, chinese retail sales, industrial output, kind of a data dump. it is busy. we will see what the data is from china to see if we will get any readthrough until will the pboc start to loosen a little bit? guy: the emma: wrong story will be a fast -- the omicron story will be a fascinating wrinkle in that narrative given the fact they have taken a very tough approach. we have an omicron case being confirmed. the wildcard is omicron and the impact it will have. central banks coming up. we are mapping those out and have a good idea on the base case. the variant?
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who knows. alix: exactly, so what you do? that is why you see buying into treasury markets. the front end, which means perhaps there is a line between omicron and what the fed will say and what the fed will do. that all impacting everything. the curve flattening a little bit. off one basis point. that wraps it up for me and guy. coming up, jane harman will be joining "balance of power" on bloomberg television and radio. if you get more of me and guy all the time. guy: the cable show will be on d ab digital radio. if you're in new york, spotify and apple is where you will find us. this is bloomberg. ♪
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>> from the world of politics to the world of business, this is "balance of power" with david
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westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." european union foreign ministers are meeting today to consider options for deterring russia from further invasion of ukraine that they fear may happen. we welcome expert on national security and geopolitics, jane harman, distinguished fellow and president america of the wilson center and she served as ranking democrat is the house intelligence committee, and she is also the author of "the insanity defense." thanks for being back with us. give us your thoughts on ukraine. the idea is to deter russia from further invasion.
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