tv Bloomberg Daybreak Europe Bloomberg August 26, 2021 1:00am-2:00am EDT
>> good morning from bloomberg's european headquarters, i'm tom mackenzie, this is bloomberg "daybreak: europe." these are today's top stories. watching wyoming. investor attention turns to the fed's jackson hole meeting for any clues on tapering. treasury yields hold again. crackdown pay agent strzok's -- crackdown pain. asian stocks hit the outlook for growth.
and labor crunch. the biggest business group warns consumer firms are turning pessimistic as they struggle to find staff after lockdown. let's check in on the markets. investors will be focusing on jackson hole. fed chair jay powell's speech on friday. we were talking about china. president xi jinping is looking and is determined to reach those developmental and economic goals by the end of the year. we already see the impact of the regulatory squeeze around the margins. a bold call in the u.s. from ubs global wealth management as to the outlook of the s&p 500. the target for ubs is 5000 by the end of 2022. this is the cio. it is worth noting the chart illustrates the divergent views as to the target, the forecast for the s&p 500.
on the back, optimists are suggesting the support from the fed and continued economic resilience despite the mixed data will support continued upside. the earnings have been strong out of the u.s. we did hear from callister's yesterday that may be valuations were looking a little bit choppy. there was a mixed view, a divergence between those forecasts. about 26% in the gap. optimists looking at 5000. the more nuanced, pessimistic views, the bearish views looking at 3800 for the s&p 500. that is the call for ubs, 5000 by the end of 2022 for the s&p 500. we were talking about the picture in asia. you did have the rate rise by the bank of korea. we will dig into that shortly. in terms of the msci asia pacific, a drop of .4%. the s&p future lower by .10%.
six points as things stand. the dollar remains in focus. just holding some marginal gains for the greenback. the korean won, i want to bring it to your attention. a weakness of .3%. it strengthened on the back of the 25 basis point hike from the bank of korea. it was split 50-50, in terms of where the central bank would go. the first asia central bank to go with those rates, with commentary that the pressure was more dovish and you see the won under pressure. coming up, don't miss our interview. the global head of thematic investing at blackrock. we will get the price action across the commodities space and trends that could shape our future demand. investor focus is firmly fixed on jackson hole.
any paper clues we get from the fed and officials, particularly jay powell. former fed governor randy closer doesn't -- randy croson are doesn't expect any big announcement. >> it is unlikely. a lot of information has come out since their last meeting. i don't think jay powell -- i think he will try and push people in one direction or another. a lot of different views around the fed table. i don't think he will try and say "here is my view, and everyone better follow it." tom: joining us to look ahead is sylvain broyer, chief economist of emea and snp global ratings -- s and p global ratings. you detailed the timings of how you expect the taper to play out, but more importantly, how it will end. flesh it out for us.
>> everybody is waiting for jay powell's speech on friday. but we agree with the previous speaker. there will be some announcement in principle to what will be very live. suddenly -- and the pace. this can be done in september. for example, -- there is no rush to qatar. they have looked only missing consensus among the fed, but the balance is back. so why should they hurry? on the concrete tapering, our current view is the fed will continue buying assets until the end of the year. and starting next year, the fed will decrease, or is likely to
decrease by 10 billion until they reach december 2022. it means purchases in bonds will last for one year. it is not the end of the story. maybe it is not the main issue for asset prices. the key issue in normalizing monetary policy, both in the u.s. and other central banks, is are the steps coming right after a tapering? -- that will be -- that is what economies, the stipends when -- tightens, and this for the fed might start in 2024 until the end of the decade. that is the long story. tom: i want to dig into the
normalization of the balance sheet. the consensus you are alluding to, september is when they announce the taper. it kicks in at the beginning of 2022. that is your view. in terms of the pace and amount of flexibility the fed will be communicating, how important is it the clarity comes through for the market? >> very important. communication makes a lot of things, in terms of volatility. volatility, financial markets is something central banks do not like. it challenges growth, so they will be very careful of clear communication about the pace, the conditions for changing the pace, and the timing of tapering. tom: 2024 is when you expect
quantitative tightening? normalization of balance by the fed -- balance sheets by the fed. the possibility for a longer dated yield curve as a result of that? >> much bigger than the consequences of tapering in net. because we know stock effect matters more than flow effects. the portfolio -- matters more for the level of long-term yields. than the simple net purchase. this is the key issue of the normalization of monetary policy. not before 2024 as we got the fed. tom: before we let you go, your
views on the data we are getting out of the u.s.? factory orders stalling in july. are you concerned about indications of fragility in terms of the economic recovery we see stateside? >> we see suffering from the virus, and entering -- and intrigue in the third-quarter gdp, more in the u.s. and europe, but so far, the impact of the delta variant is limited. in the second quarter gdp, i think stronger than many expectations. -- were trading good, at an all-time high. so it is recovering much quicker.
so there might be some -- to the growth prospect for the u.s. but could be even less, that is not -- revision. tom: 6.7% gdp growth for the u.s. still positive on that outlook. sylvain broyer stays with us. we are getting his views on the chinese economy after the break. don't miss our coverage of the kansas city fed's economic symposium in jackson hole. we will bring you the key moments on bloomberg. i mentioned this near the top. south korea has raised interest rates, becoming the first major asian economy to exit record low borrowing across markets moved as the key rate was lifted by 25 basis points.
a record low of .5% for 15 months. but the vote was not unanimous. we heard from the governor of the bank of korea. >> the reason for today's hike is threefold. we see economic recovery continuing, consumer price inflation is also to increase, and a buildup of financial imbalances. those are the three factors we took into consideration for today's decision. tom: let's bring in juliette saly. surprising, but really coming as they tried to balance domestic concerns, front of mind for me, the house prices against the virus. juliette: absolutely. the house prices, mounting household debt, it would go one of two ways, if they would focus on that, which they did, or the effects of the coronavirus pandemic. governor lee said they are not
seeing much of an impact so far from the pandemic, so they have to focus on tamping down the mounting debt. they still see the economy expanding by 4% over the course of the year. the bank of korea also forecasting their cpi target will rise to 2.1% in 2021. you see it reflected by the green line on our chart. governor lee saying inflation can be above target for a while. when it comes to assets, you were mentioning the won. it got whiplash. . ed -- whiplash ed. it did rise on that. but now down a quarter of 1% against the dollar. korean stocks falling. futures reversed a decline after governor lee said the policy would remain accommodative. the question now is what is the past of the future hikes? let's have a look at some of the analyst calls. dbs saying they will see bank of korea lifting to 1% by mid next
year. 1.5% by the end of 2022. ingc seeing a peak of no more than 1%. catalyst economics looking for more tightening of these financial risks. tom: juliette saly breaking down that decision by the bank of korea. the market implications, as well. let's get the first word news with annabelle droulers. annabelle: the u.s. has warned against traveling to the airport in kabul due to security threats as the administration knows of about 1500 americans still in afghanistan. the secretary of state said the u.s. is relentlessly trying to reach them, but doesn't believe all of them wish to leave the country. a shortage of workers to fill jobs in the u.k. hasn't seen a big drop in business confidence in the services sector. a quarterly survey by the cbi showed optimism at -17% this
month. down from a rating of plus 47% in may. firms citing labor shortages are at the highest since the survey started in 1993. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom: thank you. chinese president xi jinping urging government officials to hit their growth targets this year as researcher shows the impact of beijing's regulatory overhaul. . that is next this is. -- that is next. this is bloomberg. ♪
determined to hit major economic and social development targets set for this year. it linked to those are the regulatory crackdowns and they have been insisting. creating a more prosperous society. the data tells us a different story so far. sylvain broyer is still with us. it seems like we are getting the regulatory crackdown, not just targeting the sector. that is one part of the store. the other part is the pboc. they are remaining in support, the need for more credit. how is it playing out? what kind of delicacy is around this balancing act and how concerned are you about the economic growth prospects of this country? >> under the economic growth prospects, we saw q2 gdp flowing
in china. -- in q1. so the current developments are concurrent with yearly growth in gdp of 8% or even lower. so far, it is shortened developments. so chinese aspects to the question, especially in terms of income redistribution, the social success. and whether this income or distribution would hinder or foster growth, it is impossible to tell. on the question of regulating big tech, it is a global issue.
sent with a strong warning, saying it is about the payments, it is the question of financial stability, and possible -- providing stable calls. the people's bank of china is leading this prospect. the new digital road is the process. we said at the beginning of this. tom: is it realistic to think china's consumer will be back to pre-pandemic levels by this year? >> it -- there is a huge difference between what is going on in europe and america and china. in europe and america, the recovery has been -- led by the consumer. the chinese consumer is lagging.
we talked earlier about world trade. china is behind in this recovery in world trade. tom: we are talking jackson hole, as well. the divergence we see from the start of the pboc versus the fed. how impactful could it be for assets? is it something we need to watch more closely? >> it is the most important investment for the capital market. the chinese economy, chinese financial markets are not as integrated to direct the capital markets. so the fed matters more than the pboc. >> absolutely.
thank you for your insight. sylvain broyer. just nine months away from the french presidential elections. executives and politicians gather in paris for the conference organized i the country's biggest business lobby. with an economy still recovering from the pandemic, our executive satisfied with the current business climate in the country, tune in for the president, the french trade minister, the french treasury chief economist and the head of the court of order in charge of the public finances. coming up, the future of work as we emerge from the pandemic, companies look at the economic benefits of hybrid working for employees. that story is next. this is bloomberg.
tom: this is bloomberg "daybreak: europe." there is no doubt covid has changed the way we work. with each enforced lockdown, many moved to working remotely from home. as we emerge from the pandemic, businesses are looking at the economic benefits of hybrid working for employees. libby cherry joins me on set. a lot of companies have employees back into the office. what would encourage managers to take the right approach to have the most economic benefits for their corporations? >> talking about a broader economic sector, some economists have calculated working from home or a shift to hybrid working could induce a 4.8% increase in productivity compared to pre-pandemic levels. most of it comes from saved commuting time. there are other benefits.
a lot of workers have found they work better at home for some tasks, and in the hybrid system, when you do need that collaboration, you can come into the office. another thing employers should keep in mind is they can have access to a larger pool of workers. people who value that flexibility, whether it be working mothers, older workers, potentially people living outside of city centers, these are all new people employees can recruit. tom: 4.8% increase in productivity is a win-win scenario. might push us back in the wall street determinations to get people back in the office. how is it reshaping the economy? >> we have to look outside to see what it once was when it comes to city centers. if you look at the bloomberg index, sales have been around half of pre-pandemic levels in the city. in the suburbs, it regained
pre-pandemic levels. there has also been this ecosystem of innovation that has risen around hybrid working. people catering to people stuck at home, whether it be shops that adopted e-commerce for the first time, or restaurants with food deliveries. what is really important is these are sectors innovated in the past. so there will be some economic pain coming out of this. a lot of city center businesses, in particular, are waiting until the end of the holiday season to see how the push to hybrid working impacts their business models. tom: some forced innovations and investments. what does it mean for countries that u.k. that have struggled with productivity? is it going to solve that in some way further u.k.? >> to be sure, the productivity problems in the u.k. have not
been great. even prior to the pandemic. 2019 we were lacking total factor productivity trends for the crisis by around 15%. hybrid working will not solve the problems on their own. but they haven't really looked at it before. tom: interesting stuff, thank you very much. libby cherry has been digging into the economic impact of that shift in working as a result of the pandemic. let's check in on the data as we head out to our next break and before we choose our next guest , how. . things are playing out in the mud -- j . how things are playing out in the market. markets in the u.s. down .10% after record gain. bloomberg dollar index essentially flat. we have a great guest coming up next. metals moving as china's demand
outlook. we will speak to evy hambro. stay with us fr thaor -- stay with us for that interview. this is bloomberg. ♪ and there you have it- woah. wireless on the most reliable network nationwide. wow. -big deal! ...we get unlimited for just 30 bucks. sweet, i get that too and mine has 5g included. that's cool, but ours save us serious clam-aroonies. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. it only takes about a minute. wait, a minute? but what have you been doing for the last two hours?
tom: good morning from bloomberg 's european headquarters. it is 6:30 a.m. in london. i'm tom mackenzie. this is bloomberg "daybreak: europe." watching wyoming. investor attention turns to the fed. the jackson hole meeting. for any clues on tapering. treasury yield holder gain. flat down pay in asian stocks as the regulatory push hits the
outlook for growth. labor crunch. britain's biggest group warns consumer firms are turning pessimistic as they struggle to find staff after lockdown. the futures for the u.s., s&p 500 are pointing lower after another record. a bold call from ubs global wealth management, the cio making a prediction. you will get to 5000 on the s&p 500 by the end of 2022. let's check in on the markets. the msci asia pacific down .4%. continued concerns around the regulatory push by china and the delta variant continuing to weigh on the economy as we see a significant pick up in places like japan. down in the u.s. by over .10%. the dollar index posting modest gains ahead of that speech by jay powell. a bit of strength for the greenback. and we are focused on the korean won.
the bank of korea, the first major developed bank out of asia to hike rates by 25 basis points. it was a 50-50 review. but they did hike. -- 50-50 view. but they did hike. let's get the first word news with annabelle droulers in hong kong. annabelle: thanks, tom. bloomberg has learned the soon to be released u.s. investigation into the origins of the covid-19 has proved inconclusive. president biden received the review after asking for a deeper examination of the origins of the pandemic and not ruling out a lab leak, it -- contingent with beijing, which has called the inquiry political manipulation. israel's new prime minister is likely to oppose u.s. led efforts to revise the iran nuclear deal. during his meeting with president biden at the white house today. in a new york times interview,
he said he will continue his attacks on tehran's atomic progress. irani lawmakers have approved of the president's cabinet. they complete the installation of an anti-western conservative as the foreign minister. shares in rocket lab failed to take off in their first day of trade, humbling more than 9%. the american space launch provided $750 million to the back listing, which it plans to use to build's largest rocket to date. rocket lab builds itself -- bills itself as spacex's only direct competitor. >> i think people get that we are not just a satellite company, -- launch company, we build satellites. two satellites to go to mars for nassau, one for the moon. we already have two of our own on orbital ready. annabelle: global news, 24 hours a day, on air and at quicktake
by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom: thank you. inflation expectations, tight supply chains, and a cloudy picture for chinese demand. it comes together to make an uncertain and volatile outlook for commodities. just this morning, iron ore rebounded from a sharp rap over the past month. investors bet china's push to reach economic targets could boost demand. joining us is evy hambro. always excellent to get your insight into this space. i'm looking at wti. june, july, august. it seems to be range bound. where are we in this cycle when you map on the inflation expectations, the views around covid, and central-bank support? >> good morning.
thank you for having me on. we are at such an exciting time in the commodity markets. they have been a few times just saying some similar thoughts, which going into this environment, it looks like we will have above average expectations for demand growth for most commodities lasting at least 10 years, maybe even longer. it is being driven by the rollout of plans to move the global economy toward a net zero environment that people are starting to call this a net zero cycle. that demand environment will be supported. we will have bumps along the way. we had one recently. weakness in commodity prices as very short-term expectations move around. government policy might start to cool the near-term demand. the underlying trend is very much your friend in today's market.
tom: inflation expectations, the view from blackrock is those continue to look fairly robust heading into the end of the year. do you think it will be sustained and plays out well for the commodities? >> we have seen very large increases in commodity prices. from the lows of last year's covid, but also the bottom of the market in 2016. copper prices well above four dollars a pound, lows that were less than half of that. iron ore prices over $200 a ton. these are incredible prices. the inflationary expectations from commodity news, oil price, etc., have driven the market where it is today. the question most people are asking is if we will start to see commodity prices falling back. from what we can see from lack of investment and supply, the ongoing demand growth, it is unlikely that will happen. you then need to think about government policy.
we have seen a lot of communication, in terms of shifting returns generated in the market away from capital and towards labor. we see tighter labor markets. if it does result in wage increases, it will lead into the inflation data, as well. putting it together, the prospects of inflation are higher than they have been. governments certainly seem to want to have higher numbers before they change interest rates. most things are lining up in that direction. tom: you talked before about price elasticity. are we seeing more coming in as the capex is put to work and as it supplies ramp-up, or are we still a long way from that? >> we have just been through the results season. what has been reassuring to us is the absence of commitments to big new projects. most companies in a commodity
environment like we have seen, if we go back to the previous cycle, where the china-related one in the first decade of the century, or other cycles, you get these big increases in commodity prices. executives dust off the projects, reevaluate them, and commit to them. but a lot of investors are asking where the growth is. they need to see growth with a higher multiple. now they see companies being rewarded in terms of their rating by their discipline. we have seen that for the last five years. we would like to continue to see it into the future. what has been very reassuring for us is companies are committing multibillion dollars, a whole range of new projects that will eventually flood the market with new supply. that means we will see strong returns. obviously, there are a handful of projects being committed to, but nothing like the scale you would see, or enough scale to offset the direction of commodity prices. tom: the case for copper seems very clear. iron ore, it seems more murky.
particularly the determination by the chinese to cut back on steel production. the factors supporting iron ore are slightly shakier at this point, given what we see in china. >> you see a lot of things in the iron ore market over the last two years. the biggest single one is the major disruption to supply out of brazil. obviously more seasonal disruptions of australia, the big export markets. it took tens of millions of supply -- tons of supply out of the market, allowing the market to rebalance itself. now what they see is trillions of dollars committed to by governments to go towards the net zero environment. how do you build a wind turbine without steel? how do you make the infrastructure investments to support that transition without steel? it is a huge factor in the market. china might want to be cutting back on domestic production, but
at the same time, cutting back exports, which means steel prices in international markets will be much tighter, which means prices should stay strong in europe and the u.s. as those big multitrillion dollar plans are rolled out in the next few years. i'm less bearish than you on the outlook, and certainly less bearish on the outlook of stee l. they have good medium and long-term demand trends. tom: on gold, before we let you go, 1800, breaking above that level, do we need to see jay powell take a dovish tone on friday to push through 1800? >> the gold market has been buffeted significant by fed expectations around inflation. a complete rebasing of gold to a much higher level. you saw the new highs made last year during the pandemic. now settling down at about $1800 an hour. gold can be higher or lower.
when we think about gold, we think about how much money the companies are making when they are producing gold. it costs around $1000, these are very profitable businesses. the key question for us is what are we paying for that possibility. we see a lot of value in gold companies right now. tom: always excellent insight. the global head of pneumatic investing at blackrock. listen to him on iron ore, not me. coming up, more of our interview with alan joyce, the chief executive of qantas. their plans of international frights. -- international flights. and empty shelves at supermarkets as labor shortfalls and supply distributions hit them. this is bloomberg. ♪
>> international should start opening once we get to 80%. which we believe will happen by the end of the year. and opening up countries that have similar levels of vaccinations. the u.k., the west coast of the u.s., singapore, japan, canada. that is what we are planning. starting operations from the 17th and 18th of december in those countries we believe are a possibility. it is dependent on the decision the government hasn't quite made yet, what the quarantine requirements will be to vaccinate travelers. >> of course, there is a lot of uncertainty. there is criticism even at 80%, people say we should not reopen, given how high cases are.
around the world, there's a chance we might not get to 80% or 90%. >> at the moment in australia, the big shock aid of vaccinations higher than the u.s. and u.k. when there was demand. we are comfortable to get to the 70% and 80% targets. tom: that was alan joyce speaking to haidi stroud-watts earlier. the outlook for travel is also a major theme in europe. the eu set to discuss re-imposing travel curves on the u.s. due to soaring numbers of coronavirus cases. it comes as we are getting to the end of what has been a very turbulent summer for travel. joining us now is laura wright. what is the latest travel picture in europe? >> momentum is definitely building in europe. data on seat capacity supports
it. in china, passenger data at the lowest level since february. the bloomberg america's airline tells you it's at his lowest since february this week. the momentum in europe, when greece unilaterally opened their borders to vaccinated tourists. the traffic light system in the united kingdom. the european union welcomed american vaccinated tourists in june. since and, transatlantic travel between the u.s. and eu has reached 50% of what it was pre-pandemic. what is most important was the launch of the eu digital covid-19 travel pass. it has helped generate momentum traveling europe. tom:tom: we heard from the qantas ceo, how are european airlines doing? >> there is a clear divergence. my next chart will show you. carriers like air france, ryanair, it is the clear standout. you see the chart normalized over the pandemic, their stock
price is higher than it was pre-pandemic. passenger data shows it is -7% this week in august, compared to the same week in 2019. that is impressive, given iag's passenger data is -50% from the same week in 2019. we are looking at ryanair and easyjet. ryanair is headquartered within the european union. easyjet is in the united kingdom. ryanair able to benefit from open borders within the european union. easyjet suffering from the higher costs due to pcr tests for travelers. tom: how is it playing out in terms of which countries are recovering most quickly? >> greece is a clear standout. you see from the chart, the capacity since 2019. greece now at higher levels, at a quarter of a percent, higher than it was for the same period in 2019.
a phenomenal achievement, especially because tourism accounts for 20% of their gdp. one notable laggard is the u.k., -54% for this week compared to 2019. it is because the united kingdom cannot compete with the european union on a travel basis, as they are not in the open border framework because of the digital covid-19 travel pass. tom: laura wright breaking down what is happening across europe as economies and the travel industry adjust to changes in the pandemic read in the u.k., a labor shortage in key industries from haulage to food process is disrupting supplies in some supermarkets. restaurants, as well. britain's biggest business group saying recruitment difficulties are also hitting investments. for more, we are joined by deirdre hipwell. why is the situation worse than anywhere else? >> the situation is challenging.
in the u.k., we have a number of other events other countries don't have to contend with. it is largely brexit. we have lost a huge quantity of workers who have returned back to the eu. it led to shortages of fruit pickers, vegetable pickers, meat processors, butchers, and a huge crisis of a shortage of lori drivers, truck drivers. it is imported in a country that relies on importing a lot of products, particularly food. also a country where we probably have one of the most advanced e-commerce markets in the world. a lot of people are shopping online, and you need truck's to get products to their house. also in the pandemic, which has led to restrictions, it has led to a shortage in the number of test slots for new drivers wanting to become truck drivers. so it is of really difficult situation. -- it is a really difficult situation.
tom: we have heard them calling out for truck drivers and additional staff. what is the knock on effect for consumers? >> it will lead to higher prices. we have already had toy sellers saying they cannot afford the huge increase in their supply chain costs. retailers, some of the most competitive markets in the world, they try hard not to increase prices. one of the ways they do it is a reduction in range. so we could see fewer products from the east. they might be fewer varieties of strawberries, or less toys that rely on semiconductor chips. in terms of planning for christmas for consumers, if they want to buy presents now, they should think about it now before the shortages start. tom: that is a depressing thought. it is still august. thank you for breaking down that story. coming up, the countdown to jackson hole. more on what investors expect. and this morning's other key
tom: this is bloomberg "daybreak: europe." i'm tom mackenzie. let's get back to the markets. investors very much focused on any tapir thought coming out of jackson hole on friday. let's bring in paul dodson. aware is your attention focused, in terms of this beach from jay powell? >> the market is kind of expecting he will open the door for the fed to move towards tapering, either at the backend of this year or early next year. feel like one of the details people might be more focused on is what sort of tapering horizon
we are thinking about. how long it will take the fed to get down from about 120 a month at the moment, back down to zero. it could be a key determinant for where the market goes in how it reacts to what he says. people will be primed for that. and of course, what the future rate path looks like, as well. tom: how important is the makeup of the tapering? specifically when it comes to nbs. a lot of focus on the housing market for obvious reasons. is the makeup of the taper likely to be spelled out when and if jay powell finally starts to pronounce on it? >> yeah -- like you said, that is going to be one of the important considerations, if they will do it sequentially organ currently -- or concurrently. frankly, if you look at the
economy, plenty get off with the unwinding -- at least the whittling down in the treasury goes back to zero. it took 10 months to go through the tapering last time around. people are talking about it could take as long as a year. so we would not get back down to the end of qe until beyond this time next year. that seems to me a very long time. what might happen, depending on what they do with the treasury purchases, we might see that little -- like -- seesaw like we saw around the 10 year segment. kind of in a horizon where it looks like the fed will take its time over this. it might push up the short-term yield, but bring down longer-term yields. whereas this feels like the fed will move faster, it might lead to a flattening of the yield curve. tom: paul dodson, thank you very
much. looking forward to jay powell's speech on friday. that is it for bloomberg "daybreak: europe." the european open is next. we are going to check in on the markets before we let you go. it has been lackluster in asia. mse asia-pacific down. about .3%. currently down about .5%. bank of korea raising rates at the first major asian central bank to do so. 25 basis points. futures in the u.s. pointing down after another record bear. the dollar marginally up today. continuing to hold its strength. they yields also holding gains, in terms of the u.s. 10 year and the won under pressure. don't miss our coverage of jackson hole. we will bring you the moments on viraj patel tv. or -- we will bring you the moments on bloomberg tv. here are the names we will be hearing from. the key name, jay powell on
introducing xfinity rewards. our very own way of thanking you just for being with us. enjoy rewards like movie night specials. xfinity mobile benefits. ...and exclusive experiences, like the chance to win tickets to see watch what happens live. hey! it's me. the longer you've been with us... the more rewards you can get. like sharpening your cooking skills with a top chef. join for free on the xfinity app and watch all the rewards float in. our thanks. your rewards.
>> good morning, welcome to "bloomberg markets: the european open." i am anna edwards. mark joins us to take us through the market action. trade is less then an hour away. here are the headlines. watching wyoming. investor attention turns to the jackson hole meeting for any clues on tapering, treasury yields holding onto gains. labor crunch. britain's biggest business group warns consumer firms