bank of england decision around the corner. a former bank of england policy maker just around the corner, too. this is bloomberg. ♪ >> there is some stress. there is that healthy skepticism about history labels or sustainable labels. that is one of the reasons we are having this relentless focus on zero. in the end, we cannot stabilize the climate unless we get to net zero. emissions are either going up or down. if they are going down, are they anchored in the science? francine: should it be compulsory? should we not have regulators saying, this is the new definition? >> great question. six years ago, you and i were in paris. we talked about this. now it is moving to become mandatory. jonathan: all-time highs on the equity market. record high after record high. from new york city, good morning . a five date winning streak on the s&p 500. up 0.1%. up 0.4%. futures just keep pushing higher. the longest winning streak on the nasdaq of that year so far. jonathan: let us get to the bond market. 26 basis points, down about three ba

she spent nine years at the bank of england. did the bank of england make a mistake today? >> i don't think it was a mistake. it was clearly a decision that was on a knife edge. i think what the bank of england had been doing is trying to balance, on the one hand, huge inflationary pressures and supply chains at the moment. if you talk to businesses, there are supply shortages across different sectors, particularly in vital components like semiconductors, and we are also seeing rising energy prices. but on the other hand, we have seen some softening in demand recently. consumer confidence has come back a bit. the pandemic is still very much with us, even if we hope to move beyond it, and we are learning to live with the virus. we saw the bank put out somewhat softer growth expectations. so i think what we do know is that interest rates will go up at some point over the course of this year, but i think what the bank of england decided is that it was better to wait until they had a bit more information about what is happening in particular around the labor market, with the en

we will work our way through day 2 of the bank of england story. of course, the main focus is what is happening with the fallout from the payroll report. thank you very much. have a great weekend. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. >> from the world of politics to the world of business, this is "balance of power" with david westin. ♪ david: from bloomberg world headquarters to our television and radio audiences worldwide, welcome. the big news of the morning commend was jobs numbers. we welcome dr. jared bernstein. so, you beat across the board, i think it is fair to say, both in terms of last month and revisions further prior month. g

we will hear from the bank of england today. a tale of two banks. credit suisse expects a loss next quarter to capital has been a year to forget. socgen in france tops estimates as equities trading rebounds.

of course, the communication from the bank of england and that surprise. it did not surprised the economists, but the economy was put on the back foot by what some are characterizing as miscommunication from andrew bailey. how should investors be thinking about central bank communication going forward? >> i think it certainly raises a lot of questions. can you trust what they are saying? are they going to follow through with what they are indicating they're going to do? a lot of questions are being raised about the credibility of the bank. he says it is not his job to lead the markets and investors have to make their decision. >> further bond market volatility is something we should be bracing for a central banks way up the inflation prospects. >> that is something you are seeing this week. extremely big moves across the bond market. the bond market has been quite sleepy, but everything is up in the air and there is a lot of upheaval because people are trying to guess which way banks are going to go. tom: equity markets cannot separate themselves from the

at the bank of england, not a surprise, there is dissent. jonathan: no change on monetary policy, if we can get my microphone activated. 7-2, the vote on interest rates. two dissents. they leave interest rates unchanged. on asset purchases, also some dissent on that. some voting to and asset purchases, but things unchanged. tom: i know you are going to bring in our expert on this from london to -- from london, guy johnson, but guy, bond -- [laughter] jonathan: can we start this again? tom: good morning on radio and television. what is so important here is beneath the surface, we would get more visibility today from governor bailey? jonathan: the guidance is coming from the bank of england that the rate will have to rise over the coming months to meet the target, so what you've got is some dissent in the early part of this conversation, but ultimately they are setting us up for a rate hike at the bank of england. it is just not happen -- it has just not happened today. tom: we will do the data check real quick. i see sterling cable, 1.7539. j

so the bank of england needs to be thinking ahead. but in their latest inflation report, they showed that even when the spike in inflation which we are expecting subsides, they would expect inflation to be stuck above the target, somewhere around about 2.7%, 2.8%, even when some of these temporary factors have passed through. so the first thing is, according to the bank plus my own analysis, the need to do something on interest rates to correct that. the second thing is that if the bank does nothing then some of these global cost pressures will be intensified by the weakness of the pound. so they will be even greater because the pound is suffering on the foreign exchanges. so on both counts i think interest rates would have some impact on inflation. but it won't happen immediately. therefore the bank of england need to think ahead. d0 therefore the bank of england need to think ahead.— to think ahead. do you think this u ward to think ahead. do you think this upward trend — to think ahead. do you think this upward trend in _ to th

that of course increases pressure on the bank of england to hike interest rates. lizzie burden joining us now. what is driving this inflation? reporter: you had a higher-than-expected contribution from restaurants and hotels, but maybe it comes back to ng. there were rising costs from wholesale, and that translated into higher natural gas and electricity prices. remember, the regulator allowed suppliers to hike tariffs to offset those rising wholesale costs. you will get another rise in april, at the same time as a planned tax rise. so if the bank of england doesn't step in soon, this squeeze on household finances could choke off or undermine the recovery. alix: what can the boe do about that? they can't create more natural gas, and they certainly can't change government policy in terms of payroll tax. reporter: no, and they can't help the shortage of truck drivers, as governor bailey has pointed out, but they could ease the pressure on u.k. consumers heading into the winter. at the same time, if they hike interest rates, you will get an effect on house prices. so

one of the reasons the bank of england gave for not i bank of england gave for not raising rates last— bank of england gave for not raising rates last week was because of a market— rates last week was because of a market uncertainty surrounding the furlough _ market uncertainty surrounding the furlough and today's figures has provided — furlough and today's figures has provided some reassurance against that but— provided some reassurance against that but on— provided some reassurance against that but on the other hand, today's figures _ that but on the other hand, today's figures show we haven't seen particularly strong wage growth, which _ particularly strong wage growth, which would have justified raising rates _ which would have justified raising rates to— which would have justified raising rates to prevent a wage price spiral. — rates to prevent a wage price siral. �* ., rates to prevent a wage price siral. ~ . ., , rates to prevent a wage price siral. . . ., , _ spiral. average earnings rose by 4.996 spiral. average earnings rose by 4-9% over _ spiral. average ear

left about the bank of england because l the bank of england because andrew bailey, the governor, said they have to act in the act of rising energy prices and other prizes across the country. your thoughts on whether central bank might do today? it whether central bank might do toda ? , ., ~ today? it is a knife edge. it habited about _ today? it is a knife edge. it habited about 50-50. - today? it is a knife edge. it habited about 50-50. we | today? it is a knife edge. it - habited about 50-50. we think habited about 50—50. we think we will buy for a bit more time. we have another meeting in december and time. we have another meeting in decemberand in time. we have another meeting in december and in february, a bit more data on the end of the furlough scheme, and if we are still on furlough, this is protection scheme in the uk that protected jobs during the pandemic, have those people found jobs or are they still seeking jobs? a little more data is needed. it would be surprising if it didn't go by 15 basis points. again, not light financial conditions households by any scope, but ma

these numbers are close to the bank of england's updated forecast. they will probably buttress market expectations of a rate hike soon, if not next month. the intention is to turn to the inflation outcomes next week. alix: that leads us to the next part of the story. as u.s. -- story, that u.s. inflation here is a harbinger for the euro area. we will turn to agnes belaisch, baring investment's chief european strategist, up next. european strategist, up next. alix: you're looking now at a live shot of arlington national cemetery, waiting for president biden and the first lady, coming to participate in the president to arm sources full honor wreathlaying ceremony on the centennial anniversary of the tomb of the unknown soldier. the president is expected to deliver remarks in observation of veterans day. guy? guy: the president will be arriving shortly. we will bring you pictures when he does. let's turn our attention back to what is happening with the economy and the markets. we certainly saw a shock yesterday for many when it came to the inflation num

jonathan: could we wrap things up with the bank of england. whose fault was it, the messenger or the market? kathy: messenger. matt: with apologies, the messenger. george: 100% the messenger. jonathan: governor bailey will not be taking your calls. from new york city, great to catch up with all of you. same time, same place. for our audience worldwide. this was "bloomberg real yield." this is a tv. this is bloomberg. ♪ moving is a handful. no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at xfinity.com/moving. matt: matt: ritika: president biden considering a release to increase crude production. the biden administration is very concerned about the prices at the pump. >> on average, gasoline isis will be about

for the bank of england. good morning, lizzi. >> good morning, manus. and economists are expecting above target krupp inflation. -- c.p.i. inflation. and to come back to the supply bottlenecks and the energy crisis that is really affecting the u.k. just this week the governors of the bank of england said that he's still very uneasy about inflation. and he explained to lawmakers the reason he didn't go for a november rate hike because he wanted to see how the job market is faring post furlough. we got the labor market data yesterday and it showed if anything even more of a case for a december rate hike as economists are joining the markets and expecting now. and the strong c.p.i. print around 3.9% economists are expecting could be the straw that breaks the bank of england's back. in december. dani: certainly a lot of pressure mounting up for -- thank you so much for joining us. that's our u.k. economy reporter lizzi burden. let's get to the first word news with annabell jewelers in hong kong. >> hey, dani. ireland is reintroducing some covid restrictions

after the repricing of gilts because of the bank of england not repricing interest rates. we'll have a look at what i've us to bs going on and some of the energy stocks. these are some of the stocks on the move. this is renewable energy part of siemens, getting 7.4%. rishaad -- richemont has an in vestor. coming up, pfizer has an mental covid-19 pill. that story is up next and this is bloomberg. . ♪ ♪ francine: welcome back to the open, everyone, 41 minutes into the trading day. you can see the picture focuses on some of the things we've been watching out for, treasury repricing. on wednesday, we have that cpi figure. wti, story on oil prices. we look at wti, brent, and natural gas. the focus is on the possible release from the u.s. on some of the stocks. this is, as we continued covering cop 26, will be very interesting to see the oil ministers, first of all, how they score off the fact you do need to become cleaner and greener, with oil advancing above $82 a barrel and traders on the release of crude from the u.s. strategic totally reserves -- petroleum reserves afte

a bank of england decision kicks off a global bond rally. the governor says it i

the bank of england? kit: it is always a bit of both, but i don't understand why we have to have unscheduled speeches that came out sounding very aggressive, even if you say the caveat was always there. they didn't have enough information to hike in november because they hadn't seen this morning's labor market data that show or give a glimpse of what happened when the furlough scheme ends. there is a strong case for the bank of england to be saying we are waiting to see what happened -- happens after furlough ends. they chose not to do that. i put some blame on them and of course we got overexcited and the market because we are those kind of people, really. jonathan: that's what we do. how credible is the latest communication from fred naito street? kit: that's a bunch of people giving their opinions in front of the select committee so they had to. we've seen the data. the u.k. has gone from that set of data about 230,000 more people in jobs than the pandemic start, pretty good, but a lot of price pressur

i think moves on the bank of england side are ones to watch, frankly. if we see them actually raising rates. jonathan: your view on this, zach? zach: certainly an interesting dynamic in europe and the covid case counts. the move today has been a reminder that we are not through the pandemic. that could remain an issue. i think that definitely argues for the ecb to remain patient. that has been our view all along. we tend to joke on whether they will be able to raise rates, and we think they will eventually. there are a lot of steps in between here and that point. i think it does start with the elimination of the pet program. these rate hikes are not going to happen for a while. i would say the latest developments push that out even further. jonathan: still ahead, the final spread, the week ahead featuring u.s. gdp. that conversation coming up shortly. you have been looking at live pictures from a courthouse following kyle rittenhouse, the result from that court case, acquitted of all charges. from new york, this is bloomberg. ♪ jonathan: live from new

anna: as you mentioned the bank of england, i will get to some of the news coming out of the bank of england. on the subject of the labor market, because we were waiting for further information about the end of furlough, there is strong evidence of spike. then there's quite a lot of conversation here around the way that mpc comments are worked into markets. he says there a danger that guidance is interpreted as commitment, and i suppose we have to remember the conditionality of all of the statements we get from central bankers now. charlotte:charlotte: if you look back through the market reaction of what has been priced into bond markets, they didn't to react far more in terms of actual actions. things like consumer confidence in the u.k. has not been particularly strong, and maybe that is due to things like a petrol shortage, worries about supplies running into christmas, and terms of business sentiment, that is somewhat mixed. you can see why the bank of england has a degree of caution. there was this wait for the furlough and the impact of about one million people coming into the

budget all of that ahead of the bank of england tomorrow. this is bloomberg. ♪ ritika: coming up, scott minerd, guggenheim ceo. this is bloomberg. alix: live from new york, i'm alix steel. guy johnson is in london. climate finance is the main focus on today's cop26 program. rishi sunak, u.k. chance of the exchequer spoke exclusively with francine lacqua on how the world's biggest economy is funding green efforts. >> it is important we take a moment to look at what has been achieved. you look at this alliance, which is an assembled 450 different firms that represent 130 chile dollars of capital. that is an enormous'sÁachieveme. we know publicizk funding is not efficient on its own. the wall of capital cannot be deployed towards helping developing countries. it will be a process we have to make sure governments work and a piece of paper will turn into tangible projects on the ground that are going to make a difference to people's lives. francine: you are cutting the eight budget but sticking to your pledge on climate. francine: on our eight

bank of england next. this is bloomberg. ♪ >> i think the narrative on inflation is a little bit confused. >> you're on your comparisons are difficult to do because we are emerging from this extraordinary period. >> the second derivative is telling you perhaps the peak in inflation is over. >> our viewpoint is that it is a glass half-full environment. >> this is an economy that is still primed for growth. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. the federal reserve yesterday, there was no dissent. at the bank of

., the bank of england. there's a really ugly growth-inflation compared to what we see in the united states. there is a fear in the u.k. that this inflation story could overwhelm things, that the reaction function of thr -- the central bank, that they are hiking for the wrong reason. when you ask people about the federal reserve, they will say dollar stronger. if you ask them in the u.k. what does it mean for sterling, you will get mixed views precisely because of the backdrop around growth and inflation. tom: lisa, what are you watching into the weekend? what is top of mind for you in the bond market? lisa: the narrative over inflation and how much the fed's hands will be tied. the idea that morgan stanley, as well as td securities, saying the fed can hold off, and then you had a steepening in the yield curve for the flattening you have seen the past three months. tom: priya misra's call at td securities is stunning down the road to 2023. we wanted to get perspective on the times we live in and where we are

we will have to try to answer particularly those of the bank of england. i think what really matters to family at the moment is we know these price rises are here to stay for the foreseeable months and that's really the. they're looking at the moment. the decisions making at the moment is how they are going to manage the festive. forthat is how they are going to manage the festive. for that we all want to be able to buy those gifts for our loved ones and enjoy yourselves this christmas. but for a lot of families they will be feeling incredibly squeezed. and when they see the price rises going up, how they get a manager. ? find price rises going up, how they get a manager- ?— price rises going up, how they get a manauer. ?~ , ., , manager. ? and ccckkk squeeze really because of global _ manager. ? and ccckkk squeeze really because of global supply _ manager. ? and ccckkk squeeze really because of global supply issues, - because of global supply issues, global storages and also rising costs of energy, gas and water. there's not much that the bank of engla

here's what bank of england govenor andrew bailey had to say. this was a very close call, we have got much higher inflation than we would want to see. the causes of it, quite a few of them, are global, quite a few are to do with bottlenecks and the world economy affecting us. which actually, rising interest rates went directly salt ash thatis rates went directly salt ash that is the question — but the reason why i made this statement was because we have to keep a very close watch obviously on what could be the consequences of these price pressures on what could cause inflation to be more sustained and much more difficult. we are in a world of interest rates. they may not fall and rising abound, but want to be clear, we're not going to see some very sharp return to the world that we can just about remember before the natural crisis of a certain age. dan kemp is chief investment officer at morningstar investment management here in london. good morning, thank you for joining me. this decision by the bank of england seems to have caught the market

the bank of england ultimately has backed itself into a corner. if they would just focus on inflation and they would make an adjustment based on that they could have laid the groundwork for patients and not raising interest rates too quickly. by focusing more on the labour market —— on the labour market they could have high unemployment benefit but it does not give them much wiggle room in december to raise interest rates. the market disappointment this month that they did not raise interest rates was quite significant. they will not have that flexibility next month and as you say this comes at a time when we are going through a winter period. we know what happened last winter with the rate of covid infections and they are not leaving themselves much wiggle room next month if the unemployment data says what we think it will say. we the unemployment data says what we think it will say.— we think it will say. we do keep talking _ we think it will say. we do keep talking about - we think it will say. we do keep talking about the i we think it w

andrew bailey, governor of the bank of england, has told mp's he is very uneasy about the inflation situation. mep michael saunders says unless rates go up, and placers -- go up, inflation will overshoot the bank of england target. we continue to creep higher. that is the message. we are up by another 0.2%. the stoxx 600 at 487. what is interesting as well as that the pound is now on the front foot. 1.3431. the euro in particular very much under pressure. alix: andy dollar really popping here. let's take a look at what is happening in the u.s. start with the bloomberg dollar index, up by 0.1%. ubs and hsbc dollar positive for 2022. potentially a stronger fed and better growth here in the u.s. that all leading to the 30 year yield above six basis points, buffets 30 moving -- 30 day moving average. that triggered a selloff in the long end of the bond market. yields pushing higher. within the individual equity market, you have utilities, consumer staples, and financials leading the way. obviously financials because of a spike in the long end. i did want to highlight two specific stocks. the real

communication at the bank of england. we had to see a huge unwind at the front end of the u.k.. i want to talk to about the timeline of things. the governor is going on making excuses for this. the start of the month of october with a nice little chitchat with the yorkshire post. it sounds like the government was concerned about inflation. he followed up those comments with a conversation with a group of 13 weaning even harder to the conversation. then, the chief economist saw where rates were and called november a live meeting. now course, anytime one of the central banks speaks and makes a statement, it is conditional. we understand that. no one here is a child. they are smarter than that and i know that when it comes to central banking communication, it is about emphasis in the know where the emphasis was. my thing with on yesterday is not a high interest rates yesterday. it is a fact they completely backed away from doing it soon when they were looking to make a moves at some point before the end of the year. when the

the risk is obviously of the bank of england _ year. the risk is obviously of the bank of england start _ year. the risk is obviously of the bank of england start raising - year. the risk is obviously of the l bank of england start raising rates to quickly and that could depress demand quite significantly at a time when the economy is still vulnerable.— when the economy is still vulnerable. ., , ., vulnerable. the those rates may have to no u- is vulnerable. the those rates may have to go no is to — vulnerable. the those rates may have to go no is to help — vulnerable. the those rates may have to go up is to help combat the - to go up is to help combat the threat rising prices, so even though consumer spending rose, that demand may soften as businesses face much higher costs. the duchess of sussex has apologised to the high court for forgetting she asked a senior aide to brief the authors of a biography about her. meghan denied intentionally misleading the court, after it emerged her former spokesman gave information to the author

what tore does the bank of england need, tom? inflation came in above expectations. 4.2% in october year on year. the third that it's above the 2% target bank of england and highest in the u.k. in a decade and it's only expected to keep rising. already this week, the governor andrew bailey of the bank of england said that he's very uneasy about the inflation picture in the u.k. he said the reason he didn't vote for a november rate hike was because he wanted to see how the labor market was faring post furlough. we have the jobs numbers yesterday and they too strengthen the case for a december rate rise. the jobs numbers in december should just rubber stamp what's already a strong case for a december rate rise. and the fear now will be that worries about inflation mean price growth starts fueling itself. tom: so everything seems to be come together to make the case for that rate rise by the b.o.e. in december. let's unpack what's happening with inflation here in the u.k. what is behind this surge in prices? beating estimates. what

the bank of england's warning there shouldn't be the pricing enough hikes. they are just being -- in hikes. they are just being cautious right now. they don't know what's going to happen with growth and wages. energy prices could fund a year. that is expected. that can push inflation done. in fairness to andrew bailey, there were people who didn't think they should raise the rates because they thought it would put too much pressure on the economy, with brexit and everything else, it still has a lot of uncertainty around. paul: upcoming employment numbers in the u.s. will take on extra importance. jay powell, putting so much emphasis on getting to a stronger job market. what are we expecting? >> we are expecting a stronger jobs report. it's important jay powell said it is our target for 2% of higher and we still have to go on jobs -- where exciting to see a good report after two disappointing ones. let's take a look at one bloomberg chart to show you what i'm talking about. you can see the october number just 194,000, the september report just shy of 400,000,

for the bank of england, higherwages economy. for the bank of england, higher wages means higher inflation, which is the case for higher interest rates being harder to resist. just how much they increased borrowing costs will depend on what kind of inflation received. if we start to see that workers are getting very high pay rises and therefore costs are increasing further, and companies raise their prices again, that is a type of inflation that will be disruptive, and whether bank of england may really have to start slowing things down, raise interest rates sharply, and that is the inflation that proves problematic. higher energy and fuel prices are expected to push inflation up are expected to push inflation up to 5% next year, average wages are rising less than that so many will actually feel poorer. the bank of england is hoping the cost of living squeeze is is short lived. now on bbc news, the travel show. coming up this week... making rally racing more climate friendly in italy. oh, my goodness, this thing absolutely goes.

jonathan: the rba, the federal reserve, the bank of england -- a ton of central bank decisions. lisa: they are going to announce tapering. the question is whether they start november, december and whether they push back against rate hike expectations. jonathan: will we get sufficient pushback to the rate hikes christ into the front end of this yield curve? kailey: we saw that christine lagarde ab gave a weak attempt at pushing back. we understand that she was advised not to do that. do that would be a we move at this meeting? i was talking to steen jakobsen early this morning. he said central banks are so far behind. kailey: -- have sacked their manager. that happened in the last 30 minutes. the first manager is gone. tom keene failed to show up for work. lisa: causation is not correlation. but we are throwing it out there. should we will -- jonathan: should we wake up tk? up 19 on the s&p. there is a left in this equity market, remarkable. who would have thought that amazon could deliver the earnings they deliver and this market would close friday and another record? bond marke

will it be the bank of england? the pound against the u.s. dollar. tom keene, the labor market flashing green. will the bank of england hike interest rates in the middle of next month? tom: we will have to see. our interview of the day yesterday, flat out doing -- what did you think of that? let's stop the show for a minute. i thought that was a make or break career call. jonathan: i think it is a big one. it depends on how patient you think the federal reserve will be. whether this chairman will be committed to the framework. whoever the chairperson is. be patient to sit this out. if we wait long enough, the economy will change. can they wait? tom: i go to gdp, which is a boom economy. target is doing a home depot. there are always some nuances. target with over 400,000 employees, you talk about labor demand. home depot, what i would really go here is can anyone compete with amazon? the digital experiment at target is organized, acute. they are up 155% from the previous year, up 29% on digital. let's go right now to lindsey piegza, chief economist.

jonathan: the bank of england encouraged it. the chief economist on thread needle street is saying this one is a live meeting. we have been burned by this kind of language before by the so-called unreliable voice of governor carney. geoffrey: it is a live meeting, but for the wrong reasons. instead of talking about the economy and monetary policy, it has become a live meeting testing the bank of england communication strategy. that shouldn't be what monetary policy is about. on the other hand, given communication is already a part of monetary policy, you could argue the boe has every right to focus on this. on balance, they will probably move to validate things as well, but i don't think they can have the time, and it can afford to wait. lisa: stocks have remained incredibly resilient with this backdrop of volatility. just to give a sense of how much it has increased, you look at the implied volatility index, it has risen to the highest since the end of the march 2020 disruption that we saw. why are we not seeing the same volati

at a hearing with the governor of the bank of england. the chief medical officer and the u.k., boris johnson has just been speaking about the u.k.. a new wave is affecting the uk's nearest neighbors. we are seeing ireland return potentially to work from home tomorrow. you've got a lockdown for the unvaccinated in austria. germany moving in that direction. this is the direction of travel in europe. that is a story in the u.k.. we are lowering the age as well that people are available to get their next booster shot, so that is happening at 10 downing street. a little further down the road in westminster, andrew bailey, the governor of the bank of england, is answering questions. catherine mann is alongside him, speaking right now. remember, she has come from finance into the bank of england very recently. basically, the governor of the bank a big limb saying that every meeting is in play. michael saunders, who is also there in the monetary policy committee, saying without tighter policy, inflation will rise. the market is now expecting dece

after shop bank of england decision, bank of england, unexpectedly kept rates unchanged. sterling is now the worst performing g 10 currency. so there you see quite a plunge in terms of displacements of economic activity. of course, as you know, it was one of the bigger and the top 5 currencies in the world. so, and so a lot of when it makes that sort of move, it's huge ripples. right, right, right, well the bank of england unchanged at near 0, near a p and central bank on chains that near 0 federal reserve bank of america unchanged. that near 0. that's the latest moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach. they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point, the future as they've been saying that for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spilling o

the bank of england is going to take on the millennial voters? not. they're not gonna do it. they're gonna have to adapt. did to they care about the policies don't seem to they tend to millennial verges or on the regular venue. no, much liking the bank of england perhaps. i mean i and they don't. if they go to battle, they will go to battle and, and we saw that recently with the u. s. on of puts regulations in and like millions of people wrote him to congressmen, senators got involved in all sorts of groups. and i think the she was surprised at the strength of this movement and how much money's in it as well. and on the even more macro level for the military industrial complex, they're fine with countries now using it to evade this sanctions. other anecdotal reports of countries buying a humanitarian aid. they say i can't be, can't be got to normal means because of nato sanctioned that alone. countries not necessarily progressive like el salvador, allowing it as, as a currency. would it be big in the global south? yes, it will be because it does

no, no, much liking the bank of england perhaps. i mean, i don't, but if they go to battle, they will go to battle. and we saw that recently with the u. s. on of puts regulations in and like millions of people wrote him to congressmen, senators got involved in all sorts of groups. and i think the she was surprised at the strength of this movement and how much money in it as well. and on the even more macro level for the military industrial complex, they're fine with countries now using it to have a dis, sanctions. other anecdotal reports of countries buying humanitarian aid that they say, oh, can't be, can't be got through normal means because of nato sanctioned that alone countries not necessarily progressive like el salvador allowing it as, as a currency. or would it be big in the global south? yes, it will be because it does avoid, swished. you know, you can have one nation state saying who is a good a by actor and bad actor. it's ok if all nations come together and say we made an agreement, somebody's about actor, that's ok. at

bank of england's rate decision could go either way. the boe could become the world's first major central bank to hike since covid. credit suisse plans to

after shop bank of england decision, bank of england, unexpectedly kept rates unchanged. sterling is now the worst performing g 10 currency. so there you see a quite a plunge in terms of displacement of economic activity. of course, it's a, you know, it's one of the bigger on the top 5 currencies in the world. so, and so a lot of when it makes that sort of move, it's huge ripples. right, right, right. well, the bank of england unchanged that near 0 european central bank unchanged, that near 0 federal reserve bank of america unchanged, that near 0. that's the latest that moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach. they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point, the future as they've been saying that for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spi

the bank of england's aim is to keep inflation to around 2%. rising prices are putting new pressure on households and businesses. economists are debating how much of the surge in inflation can be blamed on the pandemic, and how long it will last. this morning, the international trade secretary, anne—marie trevelyan, was asked how tough it was going to be for consumers in the run up to christmas. the chancellor raised this in his budget a few weeks ago and the forecast indeed show that inflation was likely to go up a little more. that's why for our most vulnerable constituents he has both increased the universal credit fund by up to about £1,000 a year, there is a £5 million fund for councils to tap into with the most vulnerable families and indeed we continue to support those. and the independent pay review bodies for our public sector workers will be looking in the traditional way now that we have come out of the covid crisis situation at how to support for pay increases in the year ahead. so the chancellor has set in play a number of tool

it put the bank of england off of raising rates at the meeting last week. the bank of england changed its forecast for the economic outlook. if today's numbers match up with the new outlook, he will keep the bank of england on track to raise rates in the coming months, as it said it would. dani: is that fear about a slowing economic recovery weighing on other economic data? >> absolutely not. it seems the housing market is tone deaf in the u.k. the latest house price data saying house prices rose in october and they expect them to keep rising over the coming year. that's because the shortage of new property coming to the market is weighing over all other factors. and other data on manufacturing and industrial production will come that will give us a clearer idea of what is going on with brexit in the u.k. dani: it certainly does feel like with the data were getting in that is becoming increasingly difficult to be transitory. manus: the fed are considering other -- all the options on the table. i think lizzie should call them and tell them to move the proper

bailey at the bank of england modeling him. alix: jay powell, you could argue, did exactly what the markets expected, whereas andrew bailey definitely became unreliable boyfriend number two. he even addressed that, saying maybe it is in the cards for the head of the boe. built up expectations of a hike and then didn't deliver. this is now the market reaction in some capacity. you have sterling-usd down by over 1%. before the decision, -- now we are trying to do with what the sequencing means. in the equity market, record close yesterday after the fed really met those market expert patients and calmed everything down. you have s&p up by 0.3%. you have value. you have discretionary, energy all leading the way. over in the bond market, a lot of buying coming in by about 10 basis point. brent we are all watching. opec, wanting to see if they're going to bow to president biden's ask for more oil. guy: and what does biden do if they don't deliver extra barrels? let's track those top stories we are focusing on. mike mckee looking ahea

it means the current rate is more than double the bank of england's official target of 2%. our economics editor, faisal islam, is here in belfast and this is his report. here at harlequin, a fuel and waste tank manufacturer in moira, county down, it's notjust that energy prices have nearly doubled. inflation is everywhere, from the plastic raw materials prices, up 50%, freight prices, up 12% that morning, and worker wages having to go up well over 4%. if we just stand still, it will cost us an extra £2 million next year to manufacture the same product. exactly the same thing. exactly the same product, same levels, £2 million. and that's the cost of energy and... energy, labour, transport, raw materials. it's just unsustainable. i've been in this business 29 years and i've never experienced this, not the sustained price increases. i don't see any end to it at the minute. in homes across the uk, energy prices are already biting. with fears now that mortgage costs will also have to go up, self—employed mum of three susie grazier from hartlepool says it's hard to make ends

it was the risk of choking off the economic recovery that put the bank of england off of hiking rates at its november decision last week. these are not far off of the predicted numbers, but expectations are the bank will hike rates soon. francine: manufacturing not as strong as it could have been, and cars are missing chips. lizzy: that comes back to the supply issues. you had the pandemic that meant workers could not go in because they were notified of coming in contact with the positive case of coronavirus. that held up the recovery over the summer. tom: are there political costs for boris johnson? lizzy: you have a political moment because the cost of living crisis pushed up by inflation, but the allegations that keep coming out, they divided the ruling conservative party. this is after last week the government made a u-turn to overhaul parliamentary standards when it tried to save a former minister from suspension. unlike the cost of living crisis, you cannot blame this on the pandemic. it is an open goal for the opposition. francine: thank you very much. that is it for the market