francine. francine: we have gone through the paper review. we are in the fifth day of voting for president. mario draghi is still seen as favorite but it is unclear if he will at a. which each day that passes, he has more of a chance to become president. but others say his chances diminish. after the politics settles down though, how is italy's economy shaping up? joining us now to discuss all of this, is the chair of on ciaccio vonnie -- on say giovanni -- ance giovani. do you worry about the next prime minister and what that means for access to the funds? angelica: we are mostly worried about what will happen in the interim if he leaves and a new prime minister is chosen whether it is through election or through another interim prime minister until the next election in 2022. this is a crucial year. and as you know, during a general election from everything grinds to a halt until the new prime minister is in place. there is a lot of fear. francine: we have been on the ground for four days trying to explain the system to americans. the italia

francine: where do you invest? when you look at the repricing -- because we're going to see nasdaq correction or -- maybe it is not the right time to get in? lucy: it is always wise to be in equities long-term. at the moment, looks like there may be better opportunities during the year because you have the policy driven by central-bank action. maybe there will be some you can investment with the volatility. there are some areas that have not kept up. outside the u.s. there is more value. with europe and asia, there is more potential upside. tom: it has been a relatively solid start for the ftse. do expect that to continue? have they found the sweet spot? lucy: the u.k. is still offering value. we know why it is still a little bit hung over from brexit devaluation that there is still a concern about the impact of brexit. also, the index is quite heavy towards energy, which has been a lack over the last fears. that could be a change because there is a little bit of reevaluation. about whether you can invest in those

francine: good morning

hong kong francine: adds new restrictions. francine:-- hong kong adds new restrictions. francine: a full opening day in january. if you like the futures, we did have a lole in technology stocks. they are concerned about interest rates rise. tom: higher yields above 6%. you will get three fed hikes this year, possibly starting in may. on the cases around omicron, polar opposites in terms of policy response from hong kong, additional restrictions on a number of cases there. u.k. and france pushing back on the need for additional restrictions as we get caseloads per day. let's check in on what is happening across asset. the yield story continues to be the focus. 1.64 now on the u.s. 10 year. future state side pointing to losses after a mixed picture on rotation discussed in the headlines from growth to value. we will see if that is a head fake or becomes more pronounced in the sessions ahead. brent is up. a lot of open to him is him from -- a lot of optimism from opec-plus. the optimism about the demand for oil that is underscoring prices. bitcoin at $46,000, they are up. f

francine: absolutely. it is very clear that the markets like the results, but i would point to the fact that after eight rounds of voting, if you need to actually reelect a president that did not want a second term, that wanted to retire and was flat hunting, there is something wrong with the system. there is something wrong with the elections or the way the elections are held. it shows the dysfunctionality. another concern the markets may not be pricing and, does this forced mario draghi to govern in a different style and weaken his changes because he wants to be president in a couple years? markets are happy with the result right now, but there are elections coming in 2023 and italy has always been pretty volatile politically. tom: it is that short-term relief. it is fascinating that mattarella said he didn't want the job and got the job and mario draghi has to intervene. how about the mario draghi brand and how it affects his standing in the politics of italy? francine: we are still trying to understand

francine: thank you so much. we want to get you on rate my room, a 10 out of 10 for the background. >> thank you, i am not good at it. francine: we will rate the room first and then we will play a game. coming up later on, much more on the markets. we will speak with the allianz chief economist. don't miss that interview coming up shortly. ♪ francine: 25 minutes into the european trading day. there's a bit of pressure with the dax, cac, and european stoxx 600 down. but futures in the u.s. are more mixed as it is a big week for geopolitics with ukraine. also a big politics week in italy and overarching all of that is the fed. we don't know what happens with the u.k. but the story is -- we both picked up on lamborghini going green. tom: they are going to phase out the combustion engine by 2024 completely, switching to hybrid in 2022 thomas still working with the design, you put your orders and already. -- order in already. francine: i am not a purist. i don't mind it would be green. there is no chance i would eve

francine: there is a lot going on. i was looking at -- this would be the highest inflation numbers we would get. the highest in four decades. you're also spending a lot less because it is unlikely that you have the wage. tom: we are looking at those wages from the fomc and coming out with this opinion piece about what he sees as entrenched inflation. that is going to force the hand of the fed to step up rate hikes beyond what the market is currently pricing. let us bring in kristine from art like markets team. let us start with what we heard from jay powell committing in his testimony to the senate banking committee is that inflation does not become entrenched. the cpi data tomorrow will be crucial. reporter: i think that really sharpens the focus on that number because it is all about inflation. it is clear what the fed is responding to. we saw the market reaction to the wage data last week, and the recent comments from the federal reserve officials focusing on the fact that they want to be responding to prices more t

lacqua operating francine: -- francine lacqua. francine: guess what's coming up on today's program. turmoil at credit suisse. the embattled bank ousts the chairman after just nine months on the job.

francine: thank you so much. a mixed picture on the markets. a big friday for the markets. it comes out -- the prospect of a more hawkish federal reserve. james bullard said the central bank could raise rates as soon as march. >> the fomc also could begin raising the policy rate as early as the march meeting in order to be in a better position to control inflation. francine: joining us now is a global equities analyst. big day. pretty exciting day to be in the markets. we have some great analysis looking at whether we'll do a correction or have a tantrum on the markets. what kind of number are you expecting? >> i for one am going to be looking at those wage gains data for sure. i think it is really all about the inflation story that we're looking at. probably what prompted the fed to consider a faster pace of tightening for sure. it is something that is on the brain as well for investors and for consumers. and so what we see from the wage rate data, we saw a picking up over the last couple of months but real wage

francine: so, deborah. does the chief executive have to come up with a new strategy so that shareholders feel a little bit better about what the future of this company is? deborah: absolutely and that is missing and it should be brought around before the actual results. they say they will give a big strategy overview in february. but what it does when we think about the food and refreshments business, it is 40% of the business. 17% operating margin. it is below where the rest of the business is. that is all uncertain. yes, they absolutely need to follow through with this and explain in detail what is going to happen. we already know [indiscernible] but there needs to be much more done. what this could do most of all going back to that initial question is to really expose certain refreshments. tom: ok. deborah aitken. on unilever's strategy going forward. let's get back to the markets. the bond selloff tempering a bit today, but we have seen a big run up in yields in the past days that has been a big follow

francine: we take a look at the futures. a lot coming up with the treasury yields, and the question we have been asking is have yields moved significantly? a lot of these futures are holding onto gains. tom: we talked about inflation data out on wednesday. that will be crucial to talking out the picture. we expect four rate hikes for 2022, kicking off in march and ending in december. that is the call from goldman sachs. the spanish ibex is gaining 0.2%. the cac is gaining 0.25%. we are focused on inflation. the flip side is that aluminum prices remain in focus for production there. 35 billion pounds for the u.k. economy in january as a result of stock shortages. we want to focus on the u.s. 10 year but also the german bund that gets closer to zero levels from the negative. currently the german ten-year is at 0.031. that is across the euro zone as well. in terms of the u.s. 10 year, 1. 79. once we get to 2%, it is key. u.s. futures gaining 0.2%. and concerns about the chinese economy amid the omicron cases. let us check in on

francine? francine: let's get into some of the key movers that are key market driverses. we focus on stocks after we saw a huge move in yields yesterday. >> i think the big question now is as you start trading in ernest in 2022 is exactly what tom said earlier. where is the pain point for stocks here especially since we're seeing yields on the move once again. we're at 1.6% at the moment but i think there are already some bet in the market building for 1.5% by february. is that going to be too painful and will it dent some of the earlier market gains we're seeing? i think it is still too early to say. i think it is very odd juxtaposition for sure that we're seeing record gains in the s&p 500 just as u.s. cases hit record highs. questions stillsurrounding overe implications of cases as far as lockdowns are concerned. there is definitely something investors are going to be watching out for. the fact that we're seeing stocks, 2022 very much on strong footing here. francine: there is quite a lot of bankers -- it is going to be more difficult to get through 2022 given some of

francine: thank you. not looking at major moves today, but these prices have seen their biggest gains. monetary policy is getting louder. the fed says that getting inflation down to 2% is crucial. james bullard also says he believes the fed should have four rate hikes this year. they have been telling bloombert year. >> there is a fear that inflation was going to have -- comes in higher than expected. >> it met expectations. >> the question is what is the rate of inflation over the course of this year. >> inflation is significantly above what the discount is and the fed target. it sends the message that we have been getting from the fed. >> there is not enough in these reports to stop them from pursuing a hawkish path. >> they seem to want to address the -- in the fed. >> there is nothing stopping them from going large accept these outliers. i think they are ready. francine: we are joined by wei li, the global chief investment strategist at blackrock. >> good question and i think that is why we are receiv

francine? francine: thank you so much. leigh-ann gerrans in london with us. the rotation out of risky assets appears to be in full swing after the fed signaled that rate hikes may be more aggressive than many expected. here's how some of the leading industry voices have been interpreting the latest fomc minutes. >> powell says during the press conference. clearly, they were going to go. >> is this a meaningful shift? >> i don't think that there will be as hawkish as they were in december. and remember, this is just the fed talking. >> what's changed in terms of the fed's reaction function? >> this is the early stage of a tightening cycle. as you know, it's usually not the first rate hike that matters, it's usually the last one. >> with real rates being quite low and likely to remain quite low, it is still a broadly accommodative backdrop. >> i think the only surprise perhaps was sort of the view on the balance she runoff. >> we should expect volatility to return to markets when we get unexpected results out of central bankers. >> you are seeing orderly volati

francine: absolutely. if you look at the stability of italy that we have enjoyed, it is all relative because it has been the last 11 months since mario draghi was in charge, but it is because a lot of these fractious parties, the 10 or 15 we need to take into account gave them the support he needed. whoever comes next, even if they are just as well-regarded, may not enjoy that support because politics is a fickle thing. people are then thinking about elections and then maybe will be less cooperative regardless of who becomes my minister. tom: we will be back with a freshly caffeinated francine lacqua in rome with us in the next few minutes, but let's get caught up with what is happening in the markets with dani burger. it is a risk on in europe. you would have thought maybe investors would stay on the sidelines ahead of the fomc. >> surprisingly bullish. i think that is a great way of describing what is going on. we have seen a lot of chop in this equity market. we have seen this yo-yo of market. positioni

francine: thank you so much. the message from the fed is clear that they are bringing inflation down to the 2% target. the question remaining is how many rate hikes. here are key fed officials on the subject. >> i see rate increases coming as early as march. >> three hikes is still a good baseline. we will have to wait and see what inflation looks like in the second half of the year. >> we need to get inflation back in the ballpark of our 2% objective. >> our monetary policy is focused on getting inflation down to 2%. this is our most important task. francine: joining us now is the cio of credit suisse as well as our reporter kristine aquino. thank you for joining us. we may need to act even quicker than we thought. kristine: it is significant that we have a number of official stuff coming out and giving indication of what they think it would take to cap this inflation issue. it is a split between three and four rate hikes. markets are interested in what bullard was saying. he has is in the past served as bellwet

francine: thank you very much kristine. we will have much more after the break with beata manthey, global equity strategies at citigroup. we will have more on the unilever job cuts shortly. this is bloomberg. ♪ tom: welcome back to the open. we are 13 minutes into european trading day. european investors making up some losses across the sectors. at the top of the list is the cac and the major benchmarks above 1%. you have got a sick resources gaining 2%. two sectors in the red this morning. the futures stateside are still pointing to further losses with the incredible volatility we saw from wall street yesterday. we have losses of more than 1%. francine: unilever is reportedly cutting thousands of management jobs. last week unilever had consumer businesses. i do not know whether this is a sign that the chief executive is changing things up, but he seems to be changing so the time for the investors makes sense because they want to rationalize the quicker decisions. if you have too many managers come i it is hard to make de

francine: speaking through twitter. i had to stop scrolling because i had to get to bed, but there was video of john barco on twitter, so i tweeted at the crypto company, and there was something called cameo. you can go onto kimye.com -- cameo.com, and you can see john bercow. i do not know if this is wrong or not, but you can pay them up to 2000 pounds and they give you 40 seconds and they just read it off. tom: who would you want to call off for your birthday? we should get you on their, fran. francine: this is amid the controversies we have seen with the u.k. politicians. tom: oh yes. order. calling out celebs before your birthday. what is make note of that one. let us switch over to geopolitics, slightly more serious. efforts to avoid military conflict in ukraine. u.s. diplomats are set to meet with the russian foreign minister in geneva. >> he has to do something. >> in this circumstance, you have to be ready for everything. >> the russian side is aware of our determination, but they also realize they games of corp

francine: mr. blair, let us talk about the report that came out, and you are trying to talk about this global vaccination beings successful. there is this vaccination nationalization over the last two years. tony: that is why we need to do better next year. what we do with this report, we work with different experts, is to say that this will be a challenge with future pandemics and we have also got a huge opportunity. it is one thing to look for during this time of covid, his advances in medical science. we show how the world economy would save trillions of dollars if it worked together by cooperating, ensuring that vaccines are produced and distributed more quickly, ensuring that manufacturing is spread around the world. you have got these new vaccines that will be coming onto the market soon, and the potential there is to save millions of lives. you have got -- there have been enormous advances in medical trials. francine: from a practical point of view, who would make this? is it the role of the

francine: we are near chaos. what we thought would speed up the process of finding a president was the second vote this afternoon. it seems the parties arbitrating. there is about 1001 senators. they need half of those votes to find a president. what we have understood is the parties, especially the ones that make up government would vote together to find some kind of consensus instead of telling their own party to vote for someone the others do not agree with. this afternoon the right-wing candidates are asking to be voted, something the left-wing candidates were against. now the situation is much worse than three or four hours ago. there is a possibility that the process of choosing a president is delayed. we should have two votes tomorrow. it could mean mario draghi is closer, but at the same time if these parties fallout, there is also risk of government unity. kailey: what with the path forward from there be? francine: that everything is little up in the air. a lot will depend on the candidate for -- on who

bloomberg's francine lacqua in rome. here in the u.k., prime minster boris johnson has again refused to step down over the controversy involving parties at downing street during lockdown. lawmakers are now waiting for to reports from two investigations into the matter. one being conducted by civil service, the other being conducted by the metropolitan police. joining us now is bloomberg's david merritt. i came into work this morning, there was speculation that the sue gray report might be released today. what do we know on timing? david: we all woke up this morning thinking we might finally get this report. it has still not emerged, and a lot of confusion about exacting when this thing is going to appear. it does seem that it is complete, so we may well get it this evening. some reports that the speaker has said mr. johnson could come to parliament to make a statement about it, they will clear the agenda later today. so we may get our eyes on it tonight. if not, it is going to have to be tomorrow at this point. . kailey:

francine: kai-fu lee was an early pioneer in speech

francine: it 100% does. i had to say we had at least eight votes in every couple of hours we had a new name. in the end we stay exactly where we started with the president who repeatedly said that he did not want another term and he wanted to retire. this was opaque at best. people in other circumstances and it didn't lead to a new candidate. it means that some say we don't know what this means, it probably weakens mario draghi, it also means that they are finding out how difficult it is to find some kind of coalition for elections. it's probably a good thing for a market, but the fact that after a weeklong negotiation they couldn't come up with another name also shows the fact that it's not easy finding a fresh face. dani: you make a really good point that this perhaps means stability for the market. but, given what you are saying, does that stability continue, are there still risks on the horizon? francine: and the shorter-term mario draghi could become weakened. he didn't match the support. the markets wi

let's get to our surveillance anchor francine lacqua in rome. you set out on monday, you are still there friday. how is the search going? good morning. >> the alarm is going off in room. there is a lot of excitement about whether we get a double vote today. i remind everyone, the way the vote goes, the way there is no -- the fact there could be an unknown 75 lawmaker we have never heard of as president of the republic is how things work. i would not panic with the way things are. in the past they have always gone through the process. the thing the markets want to know is whether mario draghi stays prime minister or becomes president. it is not clear with every day that passes whether his chances are increased. or whether his chances diminish because they have not been able to elect him so far. we understand instead of one vote today there could be two. that would start today which could speed up the process. if mario draghi does become president, it would not be the first vote today. it might be later this afternoon. not confirmed, but that is w

. ♪ ♪ francine: pascal soriot has played a vital role in tackling the biggest health crisis of our time. as the chief executive of astrazeneca, he's overseen the production of one of the leading vaccines against covid-19. pascal: the covid pandemic tested us. but, at the end of the day, i think it was really a positive for our organization, first of all, because everyone is proud, very proud of the difference we've made globally. again, more than 2 billion doses of vaccine. 30% of global supply, orse

eurozone and francine is losing steam. i spoke to the deputy director of the imf's research department about the uneven recovery of advanced and emerging economies. >> unfortunately, were still seeing thoseivergences across countries. for advanced economy, if we look at tony 24, 2025, the crisis is leaving no scars. it is a different story when we look at the level of output for emerging markets and especially for though income countries. >> inflation is one of the big problems of the moment. it has hit its highest level in decades. can you give us an idea of how big that problem is? these price surges we are seeing and you think central bank policy makers are rising to the occasion? >> yes, inflation is now a serious issue. we have seen elevated energy prices, food prices. we have seen their impact also of the supply demand bottlenecks mentioned and in some cases the domestic recovery is proceeding quite strongly. all of this is creating inflation pressures, which do va r across countriesy. the central banks are doing the

. ♪ francine: few have managed to capture the fashion and business world like the british handbag designer anya hindmarch. she has won fans around the world with her range of luxury bags, turning her label into a fashion powerhouse. anya: it is fun starting a businesses. i started my business officially at 18, but i knew i wanted to do it differently

if i to mic cannot have francine called it here before and mc of get, i'm wearing this lovely dress, but obviously something over a to jour manase my voucher. if you learn how to cope with the code over time or especially from the sammy saab center. ok, so was girl a little you can learn from indigenous people, we should listen to them and not just in sweden wiki that, the couple ended their visit with a stroll through the market. no doubt, a pleasant change from the formality of their usual engagements. for the locals, the visit was a welcome gesture of support. they want to protect their region from exploitation. it's an advantage to have the royals on one side. one day later, there was a fridays for future gathering in the arctic circle to lead law that climate activist, great, i tuned back came to meet with the saw me and she said to learn from them. but 1st they listened to her. you seen that us in a kit middle? yeah, we're in the middle of an acute environmental and climate crisis. you 19, if the last 20 years were the hottest, since records began in sweden, the average tempera

." ♪ ♪ francine: good morning. welcome to "bloomberg markets: europe." i'm anna edwards live in london. mark cudmore joins us from singapore to take us through the market action. the cash trade. is less than an hour away. fed left off. jay powell bakes in a march hike and does not rule out tightening at every meeting this year. equity wipeout. global stocks sour on the fed. bridgewater sees a much bigger drop in the share

. >> the economic form event on the pandemic, the conversation was followed by francine lacqua. the central bank has cut a key interest rate for the first time in almost two years. beijing is trying to bolster an economy that has lost momentum and repeated coronavirus outbreaks. china's product growth is up higher from a year earlier, global news, 24 hours a day honor and in gloom -- and in -- global news 24 hours a day, on-air and at quicktake, powered by more than 2700 journalists and analysts in over 120 countries. guy: eastman chemical will build the biggest molecular plastics recycling facility in france. the plant will start operations in 2025. the company's ceo is joining us today, mark costa. let us begin with a chemistry and we move on to the economics -- with the chemistry and we will move on to the economics. what will you be doing here and how will you make it work? >> it is great to be here and talk about this investment. when you think about the world in which we are headed today and eastman's focus on sustainable materials, the key to the challenge is the triple c

tom: the highlight of my year is usually francine lacqua discussion with leadership. where they are at the meeting? jonathan: not that i see. maybe they are. tom: what is thewhy for this meeting? jonathan: they have a lot of meeting. it is the chamber of commerce. that is the foreign behind all of that. are we done with that story? that is just a quick clarification. tom: i think that we have run out of things to talk about. jonathan: we should focus on the fed and catch up with the former richmond fed president later at 8:30 eastern time. as we have heard from former fed officials repeatedly, they have sounded much more hawkish than the committee publicly speaking. lisa: maybe we would have been better listening to them and not the fed chair, because they have been ahead of the need to tighten more quickly. i'm curious what data could make them question some of their assertions on the more hawkish ness. jonathan: former fed officials seem to be more comfortable saying what they really think. i said comfortable. just more comfortable. futures up. from new york city on

in an address to the council of european francine as remarks to outrage from anti racism group, kick it out, who called them completely unacceptable. his would infancy no said because football is about what they were saying at the very beginning. about opportunities, about hope, about national teams, about the country, about the heart, about the joy, about the emotion. and we cannot say to the rest of the world. give us your money if you have or happen to have a good player by coincidence. give us the player as well. but watch us on tv. we need to include them. we need to find ways to include the entire world to get hope to african so that they don't need to cross the terrain. and in order to find maybe a better life, but more probably death in the see event. no later, cities comments were misrepresented and taken out of context. in a tweet on fif is media accounts. he said, my more general message was that everyone in the decision making position has a responsibility to help improve the situation of people around the world. this was a general come in, which was not directly related

confederation says the idea of a world cup every 2 years is a no go on wednesday, fee for president gianni and francine again touted the idea of a biennial world cup in fatina caused controversy. when he suggested it would save african migrants from drowning in the mediterranean sea island above dog. wondering it's not a stance against infant tina. it's simply impossible to think of having a world cup every 2 years because our calendar does not allow us and it would kill copper america, which is a very important source of income for the member associations. will tennis number one ashley boss he has to do to the final over home grand slam. the australian open party took just over an hour to beat american madison cheese 6163, as she continued her impressive run in melbourne. the reigning wimbledon champion, is yet a drop, a cit, when in sunday, final would make 40 the 1st local to win the australian open. since 1978, would you believe? honestly, it's just incredible of, i mean, i love this one. i love coming out here and playing in australia and as a noisy were exceptionally spoiled, the where grants are

author mark brown is the genius behind the character and his cast of friends like buster, francine and binky but as the 25th and financial season of "arthur" approaches, it is hard to imagine that the series almost never happened the book was very much inspired by a bedtime story for your own son >> i had just lost a teaching job. and i went home that night and my son asked for a bedtime story. and i said, oh i've had a terrible day i really don't feel like telling you a story tonight. and he said, oh come an dad. maybe it will make you feel better awe, and he was right. >> more than 125 books later, combined with the longest-running animated kid series in the u.s. ♪ >> arthur's made a lasting impact on millions of children, and adults. >> the best thing that arthur has done for kids all these years is tell them the truth i think kids trust him and i value that trust that i have with kids >> is there a little bit of you in arthur? or a lot of you? >> okay. i guess the secret's out yeah there is a little bit me in arter. >> the show has not only received awards but strong praise for t

guy: pencil -- laura: the discussion was moderated by bloomberg francine lacqua. business is in new york city reportedly offered most four times the number of remote jobs to applicants last year, according to "the new york post." the industries with the highest jobs in working from home included information and financial services. 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'm laura wright. this is bloomberg. guy: office. much better. thank you very much, indeed. let's talk about how the virus is impacting the return to work, the return to normality. where are we in this process? let's bring in bloomberg's sam fazeli. the case count in the u.k. is coming down very rapidly. should we expect that to happen elsewhere? sam: well, it kind of happened in south africa with regards to, if you look at a 50%, a halving of case counts, but south africa and the u.k. have higher levels of immunity, which hopefully will be replicated in other countries and cities in the u.k. , the