you have to be on the register of the u.k. to give to a u.k. political party, and before you start chucking it around, i would remind you that the largest single donation to the labour party came from a member of the chinese communist party. >> at this moment, as they house agreed yesterday, we have to stand united. i'll note the prime minister did not agree to change the elections bill. i think that is a mistake, and i ask him to take it away and look at it again. putin has invaded a sovereign european nation. he has attacked because he wears openness of democracy and because he knows that given a choice, people will not choose to live under erratic violence. he seeks division. we must stay united. he hopes for in action, so we must take a stand. he believes we are to corrupted to do the right thing, so we must prove him wrong, and i believe that we can, so will the prime minister work across the house to ensure that this is the end of the era of oligarchic impunity by saying that this house and this country will no longer be homes for their l

the u.k. is playing a leading role, delivering both militarily and diplomatically. i welcome your offer of more troops, ships and planes to nato. additional troops you are deploying to poland showed allied solidarity and action. the u.k. leads nato in s tony appeared you contribute to nato's air policing and an aircraft carrier leads nato's maritime force. all of this shows we will defend and protect our allies. we also have diplomacy with nato leaders working to get russia to de-escalate. i welcome your support to ukraine and your recent contact with president putin and the foreign secretary of moscow today. this morning, i have sent a letter to the foreign minister reiterating my invitation to russia to continue our dialogue in a series of meetings to find a diplomatic way forward. we are prepared to listen to russia's concerns and ready to discuss ways to uphold and strengthen fundamental principles of u.n. security that you all have signed up to appeared we have proposed neutral briefings

i think that the u.k. has been able to help to bring people together with an automatic package of sanctions that would hit russian commercial and strategic -- strategic commercial interests. the tougher those sanctions are, the more automatic they are, the more chance we have of deterring what i think would be an irrational response. but what we're also doing is ensuring that we have a -- we engage the russian's attention, we occupy their bandwidth, and we get ready all over the eastern frontier of nato, and that's why jens was kind to mention all the things that we're doing. we're supporting operation, cold response in -- up in the north in the norway area with the prince of hms prince of wales, 16 air assault brigade. in estonia, we're doubling the presence at tapa, the enhanced forward presence of tapa. in poland, we're adding -- where i'll be going shortly -- we're adding another 350 troops from 45 commando. we're doing air policing in romania, increasing the number of typhoons that we're deploying out

i think that the u.k. has been able to help to bring people together with an automatic package of sanctions that would hit russian commercial and strategic -- strategic commercial interests. the tougher those sanctions are, the more automatic they are, the more chance we have of deterring what i think would be an irrational response. but what we're also doing is ensuring that we have a -- we engage the russian's attention, we occupy their bandwidth, and we get ready all over the eastern frontier of nato, and that's why jens was kind to mention all the things that we're doing. we're supporting operation, cold response in -- up in the north in the norway area with the prince of hms prince of wales, 16 air assault brigade. in estonia, we're doubling the presence at tapa, the enhanced forward presence of tapa. in poland, we're adding -- where i'll be going shortly -- we're adding another 350 troops from 45 commando. we're doing air policing in romania, increasing the number of typhoons that we're deploying out

the u.k. has worked with the european union and the united states to put together the toughest and strongest package of sanctions. i spoke recently to president ursula to sanction russian individuals and companies of strategic importance to the russian state. and we will make it impossible for them to raise finance on the london capital markets. and we will open up russian owned companies and entities defined the ultimate beneficiaries within. if president putin believes that by these actions he can drive nato back or intimidate nato, he will find the opposite is the case. the u.k. and allies are strengthening the defenses of the eastern flank of nato, increasing the british contribution by sending our newest aircraft carrier and three commander brigades. we are doubling presence in estonia to nearly 2000 troops. we increased our presence in poland to 600 troops. we sent 350 marines. we have increased our presence in the skies over southeastern europe with another six dragoons in cyprus. we ar

although the u.k. and our allies tried every avenue for diplomacy until the final hour, i am driven to conclude that putin was always determined to attack his neighbor. no matter what we did. now, we see him for what he is. a bloodstained aggressor who believes in imperial conquest. i am proud that britain did everything we could and our power to help ukraine prepare for this onslaught, and we will do our utmost to offer more help as arbery friends defend their homeland. -- r three friends defend their homeland. -- our brave friends defend their homeland. our ambassador continues to work with ukraine authorities and to support british nationals. now, we have a clear mission. diplomatically, politically, economically, and eventually military. this hideous and barbarous venture of vladimir putin must end in failure. at the g7 meeting, we agreed to work to maximize the economic price putin will pay for his aggression. this must include ending europe's collective dependence on russian oil and gas. >> yeah!

and u.k. on the budapest mend miranda -- budapest memorandum gave ukraine [indiscernible] will my honorable friend support the united states to whatever extent it is prepared to go and stand alongside the united states in whatever military support it is prepared to give to ukraine? prime minister johnson: my friend is absolutely right to remind the house of the 1994 budapest memorandum which had exactly got affecting created exactly that obligation on us as one of the signatories. >> the prime minister will be aware that we in the house are very keen on these sanctions, although, does he share with me the worry of the record of driving up dictators and demagogues with sanctions isn't all that successful? does he share my concern that, if we read what putin has been saying these last few hours, he is a man that might not stop at ukraine. he might go into a nato country. are we playing that scenario? many of us think that might be the next step >> prime minister johnson: -- step. prime minister

kailey: obviously there is an implication for u.k. consumers and u.k. utility providers, many of whom have not survived over the last several months. where does this leave the future of your company? simon: we have obviously seen a big increase in that has been challenging for us to manage. we have had many of our customers move on to price cap rates and leave us to pick up the tap for that because we do not know it would move on to the cheaper price cap rate. we would lock in energy and hedge in advance but then we had this unexpected amount of customers moving on to price cut rates and we cannot retrospectively hedge. that is particular challenging and so energy is no different than any other retailer. we have all faced additional cost. we have announced a merger with esp and their background is in ireland and a much larger and more stable organization. for us having that partnership and stability is particular helpful comment it allows us to take a longer-term view of the future. i know over the long term with the right regulatory reform, hopefully t

we should be proud the u.k. has established the biggest testing program per person of any large country in the world. this came at fast cost. the test trays of knisley's and budget exceeded the entire budget -- it cost of further 15.7 pounds in this financial year and 2 billion pounds in january alone at the height of the omicron wave. we must now scale this back. from today, we are removing the guidance for staff and students in most education and child care settings to undertake twice-weekly a symptomatically testing. from april 1, where winter is over and the virus will not spread as easily -- anna: boris johnson speaking in the houses of parliament and saying the u.k. -- specifically england will remove covid isolation rules on february 24, that is thursday of this week, they will be ending routine contact tracing in england. covid testing and tracing program came at a vast cost and that scale was much less valuable with omicron. those that the headlines coming through. the u.k. setting up plans for england

if the u.k. has a really high inflation rate and there's this question about the falling of potential gdp which is the follow-up from brexit a few years ago, maybe rates cannot go up very much. in that case, the heat needs to be taken out through sterling, the shape of the curve, so the bank of england is aware of this. in some ways, sterling is positive all of the policy here. it might enjoy rate differentials, but that is a temporary thing. francine: one of the most interesting market moves we saw today was the five year yield in japan turning positive for the first time since 2016. this could lead to a global repricing of ponds across the world. are they getting too ahead of themselves? the world might look different in june of this year as you say. steven: when you are in a tightening trend, the possibility of the curve that moves the fastest is the belly. that is the five-year. you have got the decade cheapest in the u.s., so there is a possibility that the bank of japan policy will change.

this is what the u.k. government signed up to. now you have the dup acting effectively unilaterally. we've always been angry about it, so now we are going to look at it from our legal perspective and halt it. you've got the legal advice, but you also have the wider political agreements and the ramifications this will have in dublin, london, and brussels. ros: that story will evolve in the coming days. stay with me here on "outside source." in a few minutes, we will look at the rise in the number of who in africa -- of coups in africa after guinea-bissau foils another attempted takeover. now, turkey is blaming greece after 12 migrants were found frozen to death in a field near the border. it is thought the migrants were trying to enter greece and turkey, a way into the eu that has caused disagreements in the past. we have more information. >> these 12 migrants were on the greek-turkish border. the mayor's's office made a statement. they said they found 11 bodies that were frozen to death, and then ty found another migrant who died

i'm surprised the u.k. has not ended up somewhere up here in scandinavia as the wind has blown us in that direction. we will see where we finished the day. the ibex down .9%. some of the eastern european markets, the austrian market down 1.5%. geopolitical tension front and center. let's talk about the week. what this week has delivered in terms of direction, down 1.88%. as you can see we saw drop down at the beginning of the week the climb up of tight trading range, tuesday and wednesday and thursday. friday we faded it. it is not that big a move relative to the incredible news cycle we have seen. central banks, but mainly the geopolitical tension. the fact that we potentially have war in europe any day in the stock market is down 1.9% tells me i think the market is a bit confused, trying to manage the uncertainty is very difficult. we've been trading around the 460 level for some time. let's talk about the sector rotation. where her cuisine movement and action in terms of the sector story? -- where have w

bringing it into the u.k. we've seen comments from executives at the bank of england saying we do not see the u.k. banking sector exposure to ukraine as being particularly concerning. kailey: have international banks been successful and dialing back their exposure? have we seen those types of moves? not just in years past but recently as tension started to escalate? tom: we are in a lucky position and it pulls back. ukraine has never been a growth area. banks from citigroup to barclays in the u.k. are basically saying we are already quite well-positioned for this. they are not going in any harder. kailey: how do banks get ready to position around potential sanctions and the way it can impact the flow of money transactions they can do with russia? who is likely to face the greatest challenge in that? tom: i think the big listed banks are all pretty comfortable with their position. not expecting any kind of impact on their business. household names, do not think you will see too much there. what is likely to hit

breaking lines on the u.k., the u.k. intention to take further restrictions, to have restrictive economic measures. they will target the central bank of russia and prohibit any u.k. person to deal with the russian central bank. they say they are taking these measures in concert with the u.s. and eu. again, targeting the central bank of russia. there is a question how much of the reserves, about 600 billion dollars of reserves in the russian central bank, they can use at this point. they are also prohibiting any citizen from transaction with the russian central bank. let's get back to our guest, martin vallone. -- martin malone. as much as an economist and observer, you are a historian of this market as well. is there any historical corollary you look back to at this moment to help give you guidance as to how to act as this unfolds? martin: i think most people would recognize the financial crisis of the lehman moment in 2008, and similarly the asian, russian and ltm crisis of 1998. and maybe the 1998 crisis is the best to

in the u.k., the cost of living just got worse. domestic energy in the u.k. climbed. u.k. energy regulator has put dozens of utilities out of business. all three of president bynum nominee to join the federal reserve say they want to focus on inflation. there's a senate confirmation hearing today. fourth quarter earnings and analysts expect earnings and they want to buy back shares and they promised to raise its dividend this year. how big is the new jeff bezos super yacht? it will have to be temporarily dismantled. global news, 24 hours a day, powered by more than 2700 journalists and analysts in 100 20 countries, this is bloomberg. ♪ >> global wages continue to rise over the last two weeks. what happens in other countries matters here in the u.s. and we have to watch very carefully. jonathan: your equity markets are down by more than 2% and facebook is getting hammered. to central banks are still to report, we get the bank of england and then we get the ecb. tom: it will be interesting to see the two different stories there. jonathan: we've got live coverage outside th

for our part today, the u.k. is announcing the most severe package of economic sanctions that russia has ever seen. with new financial measures, we are taking new powers to target russian finance in addition to the banks we already sanctioned this week in concert with the u.s.. we are imposing a full asset freeze on vtb. these powers will enable us totally to exclude russian banks from the u.k. financial system. stopping them from accessing sterling and clearing payments through the u.k. with around half of russia's trade in u.s. dollars and sterling, the u.s. is taking similar measures. these powers will also enable us to ban russian state and private companies from raising funds in the u.k., banning dealing with their securities and making loans to them. we will limit the amount of money russian nationals can deposit in u.k. bank accounts. sentience will be applied to belarus for its role in the assault on ukraine. overall we will be imposing asset freezes on more than 100 new entities and individuals on top of

for example, the u.k. that was statement saying they are holding meeting to discuss health, and the airport and how to get food in and out in a less disruptive way. tom: meetings with no more than two families in a household is controversial. chinese electric car maker which is one of the most important ones within that community is pushing further into europe 14 months after the delivery of its g3 sport utility vehicles to customers in norway. brian, always good to talk to you. the expansion into europe. we start in norway and now pushing into the netherlands and sweden. stepping up a center in stockholm. what are the priority markets for you going forward in europe? how much demand are you seeing? >> very glad to be back on the show. yes, you know, we have just announced that we are expanding our european presence. in the european and northern part of europe and i think given our experience in norway, we're very confident in our products and vehicles appeal to customers there. the important thing right n

and also in the u.k. manus: what can we get in the u.k.? do you think we will get 50 basis points in march? where do you see rates by the end of the year in the u.k.? >> i think we see rates going up materially from where they are today, whether we see 25 or 50 basis points at the next meeting, i think we are on a progressive set of rate rises. manus: the cfo of hsbc just a short time ago. breaking news for volkswagen shareholders. it looks as if volkswagen is in a potential advanced talk with a potential ipo, about unlocking the value in one of their premium brands in porsche. they are in discussions on an ipo. we will wait for discussions. the very first flush of this news. keep an eye on volkswagen as we get more details on the potential ipo. they are negotiating the framework that should form the basis for further steps in preparation for the ipo. it needs approval from the management board. as i say, this is about unlocking value within the volkswagen family. a couple of lines coming through from boris johnson as well. these are in rea

and the u.k. the u.k. also has bottlenecks that are structural because of brexit. we have been talking about persistent inflation. now the question is, how people's expectations on rate hikes gone too far? is there a competition for 5, 6, 7 fed hikes? how much can the economy really take? we think a frontloaded hike cycle is what we are going to see. so more hikes in 2022. that is the playbook for the bank of england. probably not a very high terminal rate because economies still have a lot of leverage. but the ecb is going the other way around. they are delaying because wages are stagnant, unemployment is very high, and they're going to have to do more next year. so with the ecb, still probably know hike this year, even of the market prices one. but it means probably two or more next year. lisa: how do you position for this? how do you take advantage of the necessary ensuing volatility that we see? alberto: unfortunately in this environment, we are in a hawkish cycle in a bear market for risk assets, so if you are holding a long-running portfolio, especially if yo

eastern time that the u.k. will put sanctions into place and then we will hear from the broader general affairs minister that will give a press briefing at 10:30 a.m. eastern on the outcome of their meeting earlier so hopefully that will give us a sense of how the european union is coalescing around a facet of sanctions and finally, we will hear from atlanta fed president rafael bostic at 3:30 p.m. eastern time. jim bullard is in the 50 basis point camp. he says it will be dependent on the data and whether the bed will raise 25 or 50. jonathan: thank you, stunning pictures coming out of russia. to fee that just to see that security council meeting and everybody sitting 20 feet in front of him taking to the podium to tell the president what they thought about the situation. tom: including dmitry medvedev. let's get to this quickly because we have a wonderful wall street guest. this is the continued image -- imagery and you have to get out the map. this is between the baltic sea and the caspian sea. the distance

and in the u.k. manus: what can we get in the u.k.? do you think we will get 50 basis points in march? where you see rates by the end of the year in the u.k.? ewen: i think we see rates going up materially from where they are today, whether we see 25 or 50 basis points at the next meeting. we are on a progressive set of rate rises. manus: the hsbc cfo, a broad ranging conversation on rates, exposure, to property markets, assessing the impact of this morning's news. my guest is with me. hsbc is down this morning, concerned about property exposure in china and u.k.. to what extent is that a drag on the numbers this morning? good day. >> good morning. that was a little bit unexpected but at the same time, they did have the latitude. i would consider -- concur that we need to put things in perspective. there exposure to china is limited. offshore is only $10 million. in the grand scheme, it is small. there is a question with rates rising. we needed to not be fearful but there could be a risk. manus: let's talk about that because ewen was c

francine: in the u.k., inflation could hit 7%. that could also hurt how much disposable income people have. do you increase prices in other parts of the world and subsidize the u.k., or do you raise prices on a premium brand in the markets where inflation is increasing? how do you think about that? dolf: what we are looking at is the input costs. the input costs affect different countries in different ways. you have the markets where you also have currency exposure to have higher increase in the cost -- the input cost inflation, therefore taking more pricing historically. we also expected for this year emerging markets like brazil and nigeria, the rest of the european markets will be lower than that. the principles we are trying to offset are the absolute input cost increases country by country in absolute terms. francine: wendy expect the nightclub tried to recover in europe? dolf: first of all, i am a happy man today because last night the french government announced that trade announcements and restrictions were lifted. the tra

a little closer to where i am in the u.k., let's talk about u.k. politics because the u.k. prime minister boris johnson is set to announce an end to england's covid-19 restrictions cabinet discussing a so-called living with covid plan today as queen elizabeth tested positive for the virus, with the pala saying the 95-year-old monarch is experiencing mild cold like symptoms -- the palace saying the 95-year-old monarch is experiencing mild cold like symptoms. bloomberg's david merritt is joining us. there's been delays in all of this. we are expected to hear from prime minister boris johnson around now. what is the talk about the delay? david: it is a slightly strange spectacle this morning. we had ministers signing into 10 downing street, supposed to be rubberstamping this new plan to live with covid, and then it all sort of fell apart. it turns out they could not have that meeting after all. it seems there's a bit of a row that went on between the health secretary and the chancellor of the exchequer, about money, of course, about how much they want to keep paying for testin

francine: talk to me about u.k. guilt. what is there take -- what is your take on them right now and is there a move to the markets right now? what happens in the second half of the year? althea: we believe that with the jobs data, it is clear that the labor market is tighter than even the real terms. salaries are around negative and they are still contributing to more inflation in the u.k.. it is fair to expect that they plan to hike rates in march. the question is by how much. we are seeing that four members out of the nine will not -- that 50 basis point rate that we think that is not possible for march. in the 60 years of inflation that inflation is anymore in the u.k., that moves in the euro and in the u.s. we have inflationary pressure coming from brexit that gives inflationary pressure from the post-pandemic. francine: so what is the possibility of a tantrum being played out in the bond market? if the bank of england or the u.k. guild market, the one that is at risk? althea: definitely because we are seeing the end

but smith wants even more u.k. focus on mining metals. >> you know, if we were to transition our economy away from hydrocarbons, to electric vehicles, we're going to need those raw ingredients. and if we can source them domestically, i think that should be part of government policy, and enabling us to do that in an economic way. >> reporter: mines have played a big part in cornwall's social and industrial history for thousands of years, providing livelihoods for thousands of locals. but in recent decades, as demand for other mined materials here has fallen, much of the digging has stopped. but thanks to transformational technologies, these old hills and hollows could offer new economic opportunities for the community, and help the u.k. end its reliance on countries like china, which control most of the world's lithium market. >> there's no doubt that the potential of lithium extraction has the potential of creating the well-paid jobs that cornwall really, desperately needs now. >> reporter: steve double is a member

the u.k.? i am looking down the numbers year to date. euro stoxx 50 down by 4%. ftse 100 up by 2%. cac 40 down by 1.8%. dax down by 4.2%. does that outperformance continue? caroline: it might continue a little bit, as long as the value trade is running, because obviously u.k. has got higher exposure to energy and financials. it is not going to probably last forever, though. it is just as long as these bond yields are moving. if we look at where u.k. yields have got to come up people's expedition for the bank of england raising rates started before even the fed or the ecb expectations of the ecb raising, so the trade is probably a little more progressed in the u.k. than some of the other regions. kailey: obviously we are talking about bond yields, the influence of macro policy. on a micro level, i noticed one of your colleagues mark haefele was putting up research talking about how research is showing that market fundament was are quite strong. how much does this matter in this kind of environm

on the u.k. side, the lenders are exposed but they are limited. the big u.k. listed banks will, we will not see so much but others, they might start to take more action. tom: what are you looking for in the days and ahead? are there particular things you're looking for and how close do you want to see liquidity? tom: shares are up in the u.k.. this weekend will indicate how long this situation may last. on the banking side, it something for the treasury to give more guidance. perhaps that will become clear over the weekend. tom: thank you very much indeed. let's check in on how the markets have closed. european session is ok. he intraday ftse 100 is 3.5%. reassurance from the ecb but this is about the sanctions and the fact that the heavier load is not come through yet. coming up, the european minister and what other safeguards they want to put in place. this is bloomberg. ♪ ritika: coming up, the monthly series featuring a cfo. this is bloomberg. tom: the top economy officials in the eu are warning about the fact of russian sanctions. the eu economy commiss

we have the sanctions announced by the u.k. and those proposals were put on the table and joe biden was put out that speech of what he described as the first tranche of sanctions and u.s. officials suggest more if we see further action from the russian president. the ftse 100 waste -- range bound as we get to the open. futures pointing to the gains of their .3%. as today, european equities ended up about in the green. u.s. stocks were lower but they paired some of the heavier losses in the day. we are looking at the basic resources picture around oil, which clings to $97 a barrel, with many were casting $100 within reach, and it is still earnings season. we will break those down for you in the next minutes. currently you see the feet see -- the ftse on the screen. we see the assets play out as we open up. andrew bailey given -- giving a testament later today and investors will be gauging comments there to get clarity on where he and the team at the boe stand on additional planned hikes from the u.k. central bank. the yield curv

in the u.k., boris johnson has announced an end to the u.k.'s covid-19 regulations day after the queen tested positive for the virus. we have the very latest. what are we expecting from the u.k. government today? what will be the de-risking position by the government? >> good morning. one of the de-risking positions will be ending restrictions for people to self-isolate if they test positive for covid-19 in england. that will be replaced by new guidance. prime minister boris johnson said the outline is living with covid plan in parliament later, as ministers return from recess. we will see those new regulations on plans put in place. really for the last two years, we have lived with the strict covid restrictions. that has halted the spread of the virus throughout england. now the government is saying the vaccine rollout has been so successful, we are in the position to move ahead into a new era when it comes to the virus. another thing we are expected to here today, that the government is going to scrap free testing, that is pcr and lateral flo

even though the u.k. is directly reliant on russian gases, it will up competition for liquefied gas. it they could push up the energy gas company on top of the rise in april. that will intensify the political crisis, but also the bank headache because the weight on consumer confidence will drag on the recovery. it means that a supersized rate hike is looking less likely. dani: lizzy, thank you very much. that is lizzy burden. coming up from the economic consequence, the french perspective. we will speak with anne-claire legendre, spokeswoman for the french foreign ministry. don't miss that conversation next. ♪ dani: welcome back. i'm dani burger in london, with manus cranny in dubai. we continue to see some effect of sell the rumor, buy the news, or perhaps a reaction to sanctions that were not as severe as some speculated. you are looking at the gmm screen. equities in china up by 0.9%, but elsewhere we are seeing european futures with a strong rebound as well. manus: indeed. let's get our next guest.

why do you see the u.k. as being one of the opportunities, i know it's on a relative valuation, but my gosh, i did not realize it was at a 50 year low in a relative sense. is it for the brave, or isn't it going to become consensus? -- is it going to become consensus? fabiana: you don't have to be to o brave. it is about the growth outlook, manus. it is not about inflation, it's not about rate hikes, as long as the growth outlook remains supportive, then earnings will do well. that's what you have to follow as an equity investor. this is a case for a number of u.k. stocks, where the fundamentals are really not being reflected by the extremely low valuation. dani: it's ok to call yourself brave taking a call like that. you're going to stick around with us. fabiana fedeli, chief investment officer equities and multi-asset at m&g investments. we have markets digesting u.s. cpi that we have been discussing. but at the same time, earnings season well underway. we delve into equities to see where the earnings oppor

and u.k. say institutional racism in health services might be affecting women's experience of miscarriage. black women are 40% more likely to have a miscarriage than white women, which gynecologists in the u.k. calls that acceptable. our global health correspondent has been investigating. ♪ >> these women are sisters. it is the name of their organization created to help give black women a voice when it comes to maternal health. all have suffered pregnancy loss. >> i had my last at 12 weeks. this is 2018. >> she told me she was inconsolable when it was scanned and told there was no heartbeat. >> i collapsed. i got sick right there. she asked me why was throwing up, if i came in sick. i had to explain to her, you just told me my baby no longer has a heartbeat. there was no compassion. >> i woke up, was having bad back pain. i was told by my doctor when i called that i was constipated. they told me to come back in a few hours for an ultrasound. i never made it back to the ultrasound, because i

u.k. equities, the important day will be wednesday and whether we get more clarity on what will happen in march. investors pricing in a rate hike. the cac 40, 0.8%. ibex also up. we will get eurozone manufacturing data in the next hour that will flesh out the picture in terms of the growth trajectory. with jp morgan's calls, they say they see nine consecutive rate hikes. 25 basis points. will others get on board without very aggressive outlook from jp morgan? markets reducing their bets that we will get 50 basis points in march. some of the bank -- some of that on the back of what we are getting from central bank officials. in terms of geopolitical risk on move we are seeing. spot gold going above $1900 last week but it is now below that as some of these risk havens unwind on the back of this perspective -- prospect of meeting between the leaders. -- prospective meeting between the leaders peered yields ending below 2%. the futures, u.s. equities, gains. the yen is coming off a little bit

the u.k. is geared towards commodity plays and the value benefit from the greater market. francine: relative valuation, and we have a great chart. when you look at the relative valuation, it is for a reason, so why do you think they will outperform this year? marcus: there are quite a few reasons, and that is explained by the competition between the u.k. market and the tech sector. it is against other sectors like energy and the mining sectors. but business tech tends to do well when revenues grow. the u.s. market is certainly overweight is a long-duration outset. they will struggle more in the long-term growth. if you look at the rates, the u.k. market is a good place to be. tom: there is another asset here to our chart team. we get so many guests that say, you have got to look at the fundamentals and the threats to the balance sheet. and yet, this is companies with weaker balance sheets have outperformed those with stronger balance sheets. what does that tell you? marcus: if you are backed b

i'm going to u.k. inflation which is now a spike, three point four standard deviations which is a huge deal for the economy, for the people, for the politicians. jonathan: a conversation about 25 basis points and that's the conversation in america and a similar one in the u.k. tom: i need you to explain what happens in april to the people of the united kingdom when they see a combined energy tax reality. jonathan: it will get very difficult and i think we are already there and a similar story here in america. higher energy costs and high interest rates. what will be interesting to see how this hits the outlook for growth in both economies. tom: we are watching russia with some headlines in the last two hours. jonathan: it seems that the russians are saying one thing and nato and the united states is saying that's good news we haven't seen it yet. lisa: there is concern about cyber attacks ukraine in the meantime. what is it mean to have a true de-escalation? it's not clear that vladimir putin got what

laura: u.k. prime minister boris johnson facing fresh fury from his own conservative lawmakers after an official report into the downing street lockdown parties slammed failures of leadership and judgment at the top of his government. it has also criticized a culture of excessive drinking and says some events should not have been allowed to take place. the metropolitan police are investigating 12 gatherings and government buildings, including at johnson's own apartment at downing street. the uae is imposing a federal levy on corporate earnings for the first time next year as it dismantles its tax-free regime. the gulf nation seeks to align itself with new international rules on minimum tax rates for corporations. its new 9% rate will come into effect june of next year. australia's central bank is scrapping its quantitative easing program. the aussie dollar and bond yields sort after they remained patient. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 jo

the u.k. in europe particularly. -- the u.k. and europe particular. francine: what do you expect from the bank of england? this chart shows market expectations. when you look at what the market is pricing in, are policymakers going to push back against market pricing because inflation could be below 2% this year? jari: we do not expect that today. we expect clear decisions to hike. we think they will indicate the balance sheet or not, then there will be upward divisions to the projections on the wage side where we think wage growth will remain about 4% for this year. we look for a message that the tightening will continue, and we look for four rate hikes this year with the next one coming in march. tom: we started this week talking about the fact that 80% of the s&p 500 companies that reported have beaten estimates, then we got alphabet with a strong beat. now we have meta. how are you looking at the earnings picture? how much transparency do you have as you look ahead to the quarters of 1, 2 and 3? suzanne: a lot of companies have not been able to gi

u.k., where the bank of england is considering hiking a third time. let's get back to the geopolitics and the invasion of ukraine. day two of that invasion. there's a report that vladimir putin is open to talks. henry meyer kicks off our coverage. what do we know about these talks? henry: the offer emerged today, with president putin's spokesman , who confirmed russia is ready to discuss the neutrality of ukraine. this came after some comments made by president zelensky of ukraine earlier in the day, in which he said he would not be afraid to discuss this. this is the first indication of any kind of diplomatic effort, but i would say that the russians have made it abundantly clear that they are willing to discuss the surrender of zelensky's government and ukraine. so it is unclear what response will be in kyiv. kailey: thank you so much to bloomberg's henry meyer in moscow. the european union coming out with its own package of sanctions on russia. bloomberg's maria tadeo is in brussels wit

the eu and u.k. are proposing sanctions targeting moscow, after vladimir putin recognized two self-proclaimed republics in eastern ukraine. germany has block production of russia's nord stream 2 pipeline. >> if this further escalates the crisis, this receives our strong rejection. >> no certification of the pipeline can take place right now. without this certification, nord stream 2 cannot go into operation. >> today, the u.k. is sanctioning the following five russian banks. i asked bank, general bank, and the black sea bank, and sanctioning three high net worth individuals. this is the first barrage of what we are prepared to do. >> europe is not afraid of russia's actions. we choose our partners and our partners choose us. >> i do think this is actually an invasion. if it is an invasion, the sooner the sanctions are on the ground, the better. tom: joining us now is our international affairs reporter at bloomberg news. mark, what do you make of the flurry of news we have had over the past few hours

and that's what we, the alcohol change u.k., can bring. a lot of work with downing street, we can help downing street and the government put in place 21st century alcohol policies. it will help them to offset an environment in which alcohol is in its place. many younger people don't drink at all. many people from different faiths don't drink at all. so a working culture that centers around alcohol even when it's celebrations, even when it's not working time, are actually exclusionary kind of cultures. and that's not on in the 21st semplegry. >> can i ask you one specific question, is it more likely that there'll be a work -- a drinking culture at work when people are doing very long hours? because we know in number 10, generally, but particularly during the pandemic, people for very good reasons were putting in huge shifts when they went to work. is that likely to increase the chances of behavior around alcohol deteriorating? >> that's a great question. it can be the case. it's not always the case but it can be the case. we see problematic

look at the u.k. two year yield. strong inflation data but not strong enough to convince the bank to go 50 at the next meeting, the bank of england i'm talking about. the march meeting starting to price in that direction. we have seen a big move lower in terms of the front end of the curve. brent has been bit, that is interesting in terms of the flip with the sector story and stabilization in the move around the dollar. what does that mean in terms of the sector narrative? single stocks have had a fairly significant impact. at the top it has been a return of the commodity trade. energy is up in basic resources are up. the energy stocks and minors have had a good day. the bottom end of the market is where life gets interesting. the grocery sector down. telecom also lower. we were just talking about erickson weighing heavily on that sector. ericsson down 14.41%. we were just talking about the investigation with isis. that is weighing heavily on the stock. trading 99. ahold delhaize and heineken are both interesting sto

the u.k. economy, and we have recovered strongly in 20 tony one. the second is to continue to grow our strategy in this year in areas like 16 billion pounds of first buyer mortgages, we supported 93,000 stock -- startups, and we helped the liens of customers improve their finances. the second thing we are announcing today are strategies looking forward, which is a strategy around focusing on growth and diversification. anna: morgan stanley describing your 2024 targets is looking conservative. how would you describe those targets? charlie: we set ambitious targets to things we can control, so we are focused on how we grow our relationships with customers and we set a target for revenue growth of 100 million pounds by 2024. we also look to continue our cost and capital efficiency and offset the things around inflation. we are setting ambitious targets for the things we can control and we have laid out relative consumptions -- assumptions around the environment that we cannot control. anna: give

emphasis on the u.k. in the fourth quarter with a couple of rate increases, and now with the fed about to liftoff with its rate increases in 2022. we will get some guidance for the full year of 2022. the wildcard could be asia. asia contributes the bulk of earnings and revenue for hsbc, despite its domicile in the u.k. here in hong kong, though, as we all know, the risk environment is a challenge with the covid situation, and also with the developers in that. issues that really bubbled up to the fore -- about 12 chinese developers defaulting on their dollar bounce since october. so the fourth quarter see those issues. will they be reflected on those results from hsbc? there will be a lot to look at. we will be looking at further buybacks. i was watching the wire and there was another announcement of hsbc, $10 million worth of buybacks. they also announced a $2 million buyback plan in the last quarter results. we also need to look at dividends and the like to see if this company can build on the momentum t

the u.k. and eu have announced sanctions against moscow. the head of nato says that there is evidence that russian troops are moving into separatist held areas of eastern ukraine in that there is every indication russia is planning a full-scale attack on ukraine. donetsk and luhansk are self-declared republics held by separatists backed by moscow. russia has approved the deployment of troops into the area together known as the luhansk -- the donbass region. we begin coverage tonight with a report from the front line village where the soldiers have been defending against russian encroachment. >> on the front lines here, target practice with president putin. he has his eye on ukraine. the world is watching and waiting for his next move. they know all about waiting, here. this man has been in the trenches for seven long years, fighting kremlin backed separatist, trying to keep moscow off of ukrainian soil. >> russia is rotten. ukraine must blossom. that is why i am here. i wife and my daughter to live in peace and quiet. we just -- >> just sta

is the u.k. out in front? are we going to the others quickly following up in terms of being able to exit? i am wondering what your read of the data are right now. guy: -- sam: the critical thing i am looking at right now is whether there will be a kink in that armor as we go further away from the booster shots in the u.k. and denmark and the rest of europe. i also want to see how this case numbers -- how these case numbers drop because we are looking like you end up with a shoulder or a smoldering level of cases that are much higher than we had even with delta. those are the things i am looking for and trying to see whether there's anything that should make us start to worry again, perhaps start talking about fourth shots, as you have heard germany talking about, and i am pretty sure the conversation in the u.k. will start soon. guy: and whether that is a more focused chopped, a more tailored shot, to omicron or another variant. always a pleasure. have a great weekend. sam fazeli of bloomberg intelligence. we

that is also leading many people to make the case for europe on the u.k. as well guy: the u.k. has been out performing quite significantly. what i think is interesting, and let me see if i can bring it up, is what has happened in terms of the rotation we have seen towards energy and banks as we have watched that value story start to play out. a lot of people are still very positive about the banking story going forward. certainly the european banking story, given where book values are right now. nevertheless, if you take a look at the bond markets and take a look at the flat curve, which is circa 40 basis points, 45 basis points at the moment twos-tens, you need a steeper curve for the bank trade to carry on. so i am wondering if some of the value stories we have been focused on are starting maybe to hit the buffers a little bit because of the way the bond market is positioned. kailey: when we are talking about underlying assets that have moved in tandem with equities, energy, the other value outperformer, is getting hitting readily hard today because oil is down hard, more tha