tv Bloomberg Markets European Open Bloomberg October 15, 2021 2:00am-4:00am EDT
u.s. jobless claims. the s&p 500 with its best gains since march. a surge in pandemic dealmaking and trading continues to rile u.s. lenders. a watershed moment for the crypto industry. the sec is supposed to allow the first u.s. bitcoin futures etf to begin trading. welcome to the program. 7:00 a.m. in london. i wonder what the markets are saying to you this morning? mark: the best day for the s&p 500 since march. . stocks are booming, commodities continue the never-ending rally, crypto is doing well. a lot of people very happy. but if you are a fixed income trader you are noticing concern. the theme has been a flattening curve and that reflects the idea that the fixed income market believes they are going to have to hike policy sooner than
anticipated, but ultimately, this is an economy that cannot cope with many hikes. that is why we will not be starting. along hiking cycle. that should be more worrying for equity traders. >> we will get into that conversation. breaking about european car sales. european car sales plunging by 25% in the worst september since 1995. only just one month of data, but it adds up to a gloomy picture for the year so far. european car sales declined largely due to chip shortages according to the body that put together these statistics. the covid-19 outbreak causing difficulties in asia earlier in the year and last year, and all of that still being felt by the car sector. we see daimler had the worst showing in this last month of results with deliveries down almost 50%. we will look for reaction at the start of trade. we are an hour away from the start of cash equities trading in europe.
you have talked about how equity markets are booming. that looks as if it will continue. futures pointing to the upside by 0.5% or so. the u.s. equity picture moving to the upside. the earnings picture is lifting us, the bank earnings, other earnings. easier mortgage policy perhaps in china, moves in the japanese yen the asian session. let's see what the gmm shows us is happening overnight. mark: the japanese yen is right at the top of that fx curve on the gm screen. notice the yen is a massive energy importer, it is really suffering. in terms of trade, coming back is a factor. i have not seen this since the mid to thousands, but they were an issue during the big commodities cycle been. now people are starting to trade on the effects of that dynamic. that is why the rupiah is doing well because it is a commodity exporter. other factors on the gmm, look at the commodities column.
absolutely surging today. reports of la niña starting. i can pronounce that word. it's going to get worse for the energy crisis. a colder climate for the northern hemisphere and perhaps more droughts in the southern hemisphere. it is going to push agricultural prices and food prices. not that they needed another excuse to rally. finally, as we have all talked about, a very positive day. japanese stocks, korean stocks, all doing really well. semiconductors are doing well, driving career, we saw yesterday on earnings and taiwan is also doing excellent. hsi returns from a two day break and positive again today. anna: stocks are booming. that is a theme that comes through in the gmm. it is not just about u.s. bank earnings.
are you feeling convinced? mark: not convinced that all. the earnings story has been so positive. we came from a little bit of a correction. maybe we got too pessimistic too quickly. people have got a little bit more into the inflation debate. one of the themes of this week is people got very excited and now we have already pushed back on the stagflation idea. growth is ok. it's not going to be stagflation. it may be inflation but not stagflation. anna: let me ask where you take your cues from. you are not convinced by the rally in stocks. do you prefer the bond market? mark: absolutely. i am biased. i am a macro guy. macro guys are generally fixed income guys. i don't want to overhyped the idea of a flattening yield curve. it is not a negative as some people portray. we still have a curve, it is not
inverted or anything. i do think the signal is saying this is a global economy that cannot cope with multiple hikes at the start of along hiking cycle. anna: you say how much we have learned about how many hikes we will get. that is a big thing the market is going through. to do with inflation, there have been a lot of comments. larry fink from el-erian's, over at goldman, morgan stanley, plenty of people talking about how this is not transitory. that is the new transitory. mark: can we get one of bostick's swear jars? we might have to -- we have definitely debunked the idea of short-term transitory. there are enough people saying it is still transitory, i just meant an 18 month version of transitory, which is more complicated. we need another word. the problem is the fed, the most important central bank for these narratives, got very fixated on
the word transitory not too long ago. anna: like stagflation, we never had a proper definition. it means what you want it to mean. mark: the transitory confusion is worse than the stagflation confusion. we have known stagflation is bad, but transitory can mean anything you want. it can be quite a good thing, it can be bad if it is long. anna: on the asian session, because we have these moves in the end, chinese easing mortgage curve, the housing market is such a big part of the chinese economy these days. important to keep that engine motoring. mark: it is important for the signal as well. an extra step to react to ever grant -- evergrande. china has all the policy tools they want to avert an evergrande shut down. they have wanted to lower the moral hazard and allow some loss. this is a sign, we are worried how far it is going.
they might be worried what we are going to see monday. we could see a negative quarter on quarter growth risk. not the base case, but it is a risk. anna: you can get analysis and insight from mark and the rest of the markets life team at mliv on your terminal. coming up, we will be speaking to the governor of the national bank -- and a member of the ecb governing council. don't miss that conversation at 8:00 a.m. u.k. time. we will talk through the energy crunch, the economic recovery, the ecb stimulus plans, how comfortable are they being behind the fed? maria tadeo will be with us. plus bitcoin jumps as etf approval optimism hits a fever pitch. ♪
anna: futures point to the upside. wall street rallied on robust bank earnings with the s&p 500 marking its best day since march. the enthusiasm spilled over into asia where taiwan was also buoyed by tsmc results. let's talk about the earnings so far. good to speak to you this friday, hannah. let's start with the earnings narrative and what you are seeing. how do you take on what we have heard from the banking sector? is the banking sector you want to be based on valuations, the earnings sector so far? or are you not convinced? >> good morning. we actually don't invest in the banking sector, but we are looking to companies with strong balance sheets. what we have taken away from the earnings of the banks, which is really interesting, is the read
cross into sectors that maybe more interesting. we are looking at mastercard. if you look at j.p. morgan finance, you see volumes are up above 2019 levels. that is really exciting. we are looking for the reader cross into the payment sector where we have seen a pullback in the likes of visa and mastercard. mark: i can't believe you don't own banks, i thought everyone owned banks. one of the most consensus trades out there. why don't you? what are you worried about? >> we are quality based investors. one of the things we look for his balance sheet strength. they simply don't meet that criteria for us. the sector as a whole over the long-term is underperforming.
we have benefited from not owning them. economic recovery on the back of the vaccine has been very strong . the second top-performing sector in the world this year. it is a big part of the market moving, but when we have benefited from staying away from long-term. anna: something you do like his health care. there are many different types of health care business under the banner. where do you see the most value? >> we are seeing a big discrepancy between the likes of pharmaceuticals particularly in europe in terms of valuation and medical diagnostic businesses, medical technology businesses. earlier in the year what we saw was because of elective procedures -- people won't be
able to have knee replacements for example because of the pandemic. the market is starting to see people -- that part of the health care sector has moved very much. what you are seeing, your pharmaceutical businesses on a valuation basis are looking very cantankerous. they're not impacted by these inflationary pressures we keep talking about because they don't have the pressure the market is worried about. mark: the u.s. earnings season kicked off with a bang thanks to banks, which you said you don't like. do you think the rest of the season will be trickier given that the high expectations we had from the last year of incredible earnings -- generally positive guidance where it has been given. do you think it will be a trickier earnings season once we move beyond financials? >> i do.
we are going to see volatility. we are going to see a lot of themes around supply chains and inflation and input costs and whether these companies are able to pass those input costs through. are they able to do that? you look at the airlines, we are seeing pressure because of the rising energy costs. what was a more simplistic recovery we were looking at on the back of the reopening trade is now going to be between different sectors. there's going to be a real difference between those companies that are starting to move ahead and those companies were unfortunately the lack of earnings through the pandemic is starting to show through in results. anna: one sector that has shown earnings through the pandemic is the tech sector. where is it in tech you want to be positioned right now?
that isn't going to be suffering from the chip shortages. what do you make of tech? >> we are very strongly positioned in asia. if we look at asian technology you're talking about evergrande, things before this, you have a huge market selloff in china, the likes of alibaba, tencent, and net ease, a gaming stock, had 50% pullbacks on the back of this news a regulatory scrutiny. these are companies that are very well attuned to secular growth trends, the likes of internet, e-commerce, and most importantly, new -- most importantly, they have exceptional balance sheets. very strong research and developments. we are excited about the opportunities. we have been investing in those and we believe the weakness we saw a couple weeks ago really strengthening throughout this
year has been one of the best valuation entry points in about five years. we are very happy about that. mark: you said these kinds of high-quality names in china tech spaces are now properly discounted and quite an attractive long-term entry point. this is purely about a valuation story and it is not a view the china policy crackdowns are over. are you worried about the tail risk china policy crackdowns might still get more severe again on these names? >> i would like to think the news flare around regulations has effectively bottomed out. ultimately we don't know what we have got to do in terms of the longer time horizon. it is not like we have not had negative news flow before in china.
tencent is now one of our biggest winners in terms of our strategy. what we like to do is use investors here and we have so many investors calling the market on investable and that sentiment has changed with the likes of biden meeting with the chinese president. promises of that meeting have improved sentiment in china. we look first and foremost at the fundamentals of these businesses. the balance sheet is important. all those companies are intact. anna: really good to get your thoughts. stay with us. hannah gooch-peters will be with us a little bit longer. that's get a first word news update. >> french finance minister bruno le maire is calling on the u.s. to drop trade tariffs against european countries after the global deal on corporate taxes.
the u.s. is unhappy at french levees on tech firms which lamere -- bruno le maire says will be abolished. >> the united states wants to oppose china. europe wants to engage china. there is a difference of view. we need to discuss that because this is clearly a strategy question. >> bloomberg has learned china is loosening restrictions on mortgages at some of its biggest banks, adding to signs of growing concern by authorities about contagion from the evergrande debt crisis. financial regulators told some banks last month to accelerate approval of mortgages. lenders will also commit to sell securities backed by residential mortgages. president biden says the number of unvaccinated americans are manes too high. he is calling on more businesses to impose mandates. speaking from the white house, biden said u.s. health officials
will decide soon on pfizer and biontech vaccines for children aged five to 11. >> we are going to continue. the food and drug administration and the fda is reviewing data on moderna and johnson & johnson boosters. we expect a final decision from the fda and the centers for disease control and prevention, the cdc, in the next couple of weeks. >> la niña appears to have emerged across the equatorial pacific, setting the stage for worsening droughts in california and south america, frigid winters in parts of the united states and japan, and greater risk to strained energy and food supplies. the u.s. climate prediction center says the phenomenon could continue until february. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than
>> i am not a buyer of this story that it is all transitory, the inflation story. the supply chain disruptions, natural gas, have been real. that is not all of it. we are in a position where inflation is going to pick up. it is going to move more aggressively than they are predicting. >> inflation is clearly not temporary. people worry it is more permanent. the way to conflate that is to
get to work on it. >> inflation is running higher than we thought it would be. it is going to be there longer. we are seeing pressure in wages, but not across the board. really only in certain pockets. anna: u.s. banking ceos and leading officials talking about the inflation debate. hannah gooch peters is still with us. away from the definition of transitory and stagflation, which can be defined so many ways, how are you positioning? how does that influence the equity portfolio you are running? >> inflation has turned out to be stickier than we thought, but what is important for us is positioning ourselves to companies that are typically not impacted by it, like health care i spoke about, or tech companies. consumer staples, we are looking
for those with the ability to pass through the input cost through strong pricing power. an example i would like to use of one that is impacted that we have seen in the short term is something like unilever. they are struggling with passing through the input cost. we are seeing weakness. we are holding onto this name. we are positive about it in the long term. on the developed market size, they are seeing weakness because of the input cost inflation. two thirds of the revenue is from faster growing emerging markets. this is a company we think will be able to grow 3% to 4% over the long-term. that does not sound exciting but the majority of your companies will not be able to continue to do this over the long-term. we are holding on because we think it is very much a case of the tortoise will beat the hair over the long-term -- beat the hare over the long-term. mark: i'm very pleased so far we are having an inflation discussion without mentioning
the two words that shall not be named. given that inflation is stickier than was thought, ultimately is this not a bad for equities? if we get a proper inflationary cycle, we get much tighter financial conditions, or the flipside, ultimately, companies can not pass it on and we get too much of a margin pressure squeeze and that is also bad for equities. ultimately is going to prove a tough environment. >> you have to put the emphasis more on stock selection. you are staying away from companies that don't have a strong price power, the ability to pass through input costs. we are going to see pressure on industrials for example. we are going to see pressure on airlines because of rising energy costs. it is important when you're looking at your stock selection, looking at those that are able to control supply chains when it
comes to lvmh, and companies that have the strong ability to pass that through without impacting the margins. anna: really good to speak to you. hannah gooch-peters. next we focus back on u.s. banks and the earnings story coming out of them. we will bring you are interview with bank of america's brian moynihan. ♪
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anna: welcome back to the european market open. it is friday. futures pointing to the upside. the global boom is an equities rolls into europe. through the ages session. let's put equities to one side and talk about another miniboom we are seeing and that is bitcoin racing back to levels we saw earlier this year, almost. mark: this is an inspired --
this is inspired by our producer. friday morning, i would like a little inspiration. crypto is getting exciting. bitcoin is again getting back toward record highs. it has done it relatively quietly. we had that jump a week or so ago, but overnight we surged about 3.5% on a volatile move for bitcoin after news the sec is not set to block this new bitcoin etf, set to be another approval that it is -- sign of approval in mainstream finance. it has been accepted for a while so i'm surprised we get excited about every step. crypto headed back toward the highest. not so long ago it was more than 50% down from his earlier peak. volatility remains high but that can count as a win given this is an asset that has a history of 75% cost drawdown over the last decade. it is dragging the crypto complex higher.
while this has seemed a little bit lower volatility, the 10 year volatility by one of our colleagues is below the tenure volatility, you would expect that. five year, it is exactly its five-year volatility. anna: this is interesting in the context of the conversation we had yesterday. you are saying this is a sign of it being excepted into the financial community. we were talking about those lines from the bank of england suggesting this could be a big risk to financial stability. the size of the subprime market in the united states. you were saying crypto just is not as integrated to play that systemic role. this overnight does not change your view. help me understand the size and scope. mark: when you have subprime mortgage debt, where people live, it is their homes, but
consumer spending is wrapped up in that. plus all the banks that mediate the financial system have derivatives leveraged in quite complicated ways. plus we had investment funds buying at a speculative return. with crypto we have consumers invested, but it is not their homes and we have financial managers invested, but if crypto collapses, it does not free the financial system -- freeze the financial system. we did not think lehman should be allowed to have an unmanaged bankruptcy. without the fed would provide the money, maybe nationalize it. what they freeze the whole financial system for $4 billion? no chance. of course they did. if crypto collapses, it is going to cause short-term pain to consumers, may asset managers lose money, but it is not going to freeze the financial system and people will not lose the homes they live in. anna: interesting reflections on
the role crypto plays in today's economy. let's talk about wall street. wall street rallied on robust bank earnings. the focus on investment banking fees once again. they are expected to fall 130%. steve, good to have you with us. looking over the atlantic at the u.s. bank earnings season, what is the overarching theme for u.s. bank earnings from your perspective? >> as you pointed out, the third quarter, a record quarter in dealmaking. it is quite ridiculous how much money banks made from advising on deals. morgan stanley, citi, bank of america, all the banks that have reported. there is also a damper from the loans. the measures put in place, liquidity in the system.
sort of a down on longer banks and consumer business has not performed as well as people expected. mark: why do investors seem skeptical? anna: -- >> dealmaking revenue was strong. as investors pulled back from a couple banks, there were a few up, if you down. there was not the optimistic reaction you would have expected because of the sort of slow long demand. people are still concerned -- these banks have big consumer business. if they are not doing so well, investors remain skeptical. anna: good to speak to you. keeping it on the banking thing, we have been speaking exclusively to bank of america ceo brian moynihan about earnings and the topic on everyone's mind, inflation.
>> the activity levels and what goes on day-to-day is bigger than it was before the pandemic. we can talk about the economy, but we have about half the people at work every day and we are building that up. our clients, our communities, and our shareholders -- we are doing that, but we are still partway to getting people back to work. i had a town hall with hundreds of teammates in the audience. we have to keep pushing ahead. >> your business is back to levels from before the pandemic? >> production of credit cards this quarter for example, we did a million new customers. that is as much as we did in 2019. we are on organic -- we were on an organic growth drive and then we hit the pandemic. what you see is like the economy, that was an upward trajectory, it dipped, now it is back on the trajectory.
year-over-year, loans are basically flat. they have grown two quarters in a row and they are building. deposits, it has been 15% year-over-year. on investment banking fees, those things are record levels. lows are starting to build and that is going to go well for us. >> you mentioned credit cards. you have advantage into a lot of consumer spending -- you have a vantage into a lot of consumer spending. where is the economy heading? >> this year bank of america, we have already done $2.78 trillion of money from consumer accounts into the economy, by charging on debit and credit cards, by taking cash out of atm's, moving money from p2p payments, all the way they move money. that has grown over last year by 20% plus.
you say last year was still a pandemic, but no, last year this quarter we were growing 20% positive over 19. it has grown over the highest levels before the pandemic and it is growing. the month of october is up 13%, 14%. september was the biggest number during the year. almost $3 trillion of spending this year. you are seeing that grow at double-digit rates. that is consistent with the 5% projection we have for this economy to grow this year. it is consistent with what we see next year which is 5% plus growth in the u.s. economy. >> how much of a vantage point to have into the holiday season? there is concern about supply chains. do you have any sense of consumer spending into the holidays? >> it will be interesting because it is a big spending season.
the thing is, the question is do people have the money to spend and the answer is yes. you look at deposit customers, people have $2000 to $5,000 average balance, families making $75,000 a year type numbers. they grew from the month of august to september by 2%, not annualized, just growth, and they are up 50% year-over-year. the question is can they get goods in the country for them to buy? my guess is christmas will have a little more on, we are going to get you this bike as soon as we can find it, but here is a picture of it. like we used to do when we were younger, or people are going to spend on experiences. activity levels are high. they may be impacted by the supply chain, but it is not purchasing denied. purchasing may be pushed out as goods and services get in the country. we have to get the supply chain
straightened out. it's good to see attention on it. that will ensure the first half and second half of next year are better than they would otherwise benefit if the situation persisted. anna: some people in my household still waiting for last year's christmas gifts. a shift in gears, we look at the european auto industry after new car sales had the lowest level since 1995. this is bloomberg. ♪
flash floods in indonesia, no country's immune from extreme weather events fueled by climate change. but not everyone is equally to blame, and not everyone can afford the massive costs of cleaning up disasters like this. or just as important, shifting economies away from these sorts of things and embracing more of these. take africa for instance. the continent is only responsible for around 3% of global greenhouse gases, yet it is among the most vulnerable to knock on effects of climate change. take the cyclone in mozambique or droughts in ethiopia. those incidents can impact food production and increase the risk of malaria. some argue wealthy nations industrialized over the last two centuries precisely because they were able to burn fossil fuels like coal. now the goal is to keep these fuel sources in the ground in an
effort to stop temperatures from rising he's and more -- rising even more. what if you need to tap those fossil fuels to cheaply industrialized or developing country? well joe biden's doubling of the u.s. climate pledge is a step in the right direction, a global problem needs a global response, and that is what the united nations framework convention on climate change wants to solve. how to get rich countries to agree to a plan to help poor countries pay for solutions. over a decade ago, wealthy countries promised that by 2020, they would help to raise $100 billion a year for projects to combat climate change in poor countries. support was lackluster even before the pandemic. once that took hold, governments worldwide shifted their focus to emergency response packages to cope with the shock of the outbreak. another challenging up --
challenging element is most of the money has gone to green technologies like wind turbines and solar panels meant to mitigate climate change, but fewer funds have gone to resilience measures like flood barriers, needed to help countries adapt to extreme weather. u.n. secretary general has said adaptation and mitigation money should be flipped -- should be split 50-50. developing countries have noticed the failure of rich countries to deliver on the pledge and the inequality of the coronavirus vaccine rollout has heightened tensions. without the promised funding, they say they are unable to announce tougher carbon cutting goals which are desperately needed to keep global warming below 1.5 degrees celsius. even if the $100 billion goal is met, the reality is that trillions, not just billions, will be needed to pay for the green transition.
anna: the road to cop-26. a look at the key issues ahead of that climate summit in glasgow in a couple weeks time. let's shift gears to the european car industry, which is itself undergoing a pivot toward electric vehicles. sales in september fell to lowe's for the month. car registrations plunged 25%. headwinds have come together to hit the industry at a time when economies are in a nascent period of recovery after the pandemic. let's get torah global car czar who has been going through the latest numbers that shows get to our -- let's get to our global car czar who has been going through the latest numbers. >> we have been talking about semiconductors affecting the industry for months. you know, we have gotten to the
point where the barrel is dry. the inventory levels are so depleted. early on the carmakers were having trouble keeping their plants open but they had inventory to work with. they exhausted quite a bit of the supply on dealer lots. they are to the point where they are no longer able to rely on the fact that going into this, they had some supplies to work with. we are seeing this really hit companies across the board, some worse than others. we saw mercedes with an almost helping of sales. renault has been down year to date as of the last couple months. but this is really a broad-based story where much of the industry is down 20% or 30% or more. mark: you're talking about big hits to european automakers, but ev sales are continuing to grow.
what is the story? >> it is a combination. you have real organic demand, but also a situation where these are companies that are prioritizing their most profitable models and the models that are going to keep them compliant with very tough rules in the european union that have been really effective with helping cultivate electric vehicle sales. we saw europe overtake china in terms of the amount of sales of electric vehicles. the rules last year did sort of cut the industry some slack where they were able to exclude 5% of their sales in making the calculation of whether or not they were compliant with the eu's rules. that goes away this year. they have to prioritize those cars to meet the rules and the expectation is we will see that this year. anna: thanks very much.
we will watch those automakers at the start of the trading day. craig trudell, our global car czar. let's get a bloomberg first word news update. >> bruno le maire is calling on the u.s. to drop trade tariffs against european countries after the global deal on corporate taxes. the u.s. is unhappy at french levees on tech firms which bruno le maire says will be abolished when a new global agreement come in. he also says the allies have a different approach to china. >> the united states want to oppose china. europe wants to engage china. there is a difference of view. we need to discuss about that. >> australia's biggest city will reopen to fully vaccinated citizens and residents from next month in a major policy shift. the newly installed new south wales state premier says fully
vaccinated arrivals will no longer be required to quarantine. scott morrison did clarify this is a federal decision. a partially destroyed painting has sold for 60 million pounds. the piece was partly shredded as an artist prank after it came to option in 2018. it became a cultural phenomenon. after closing the bidding, the auctioneer joked he was relieved the artwork quote was still there. 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. anna: thanks very much. coming up on this program, we will get into the stocks we are watching. also in focus, spinach utilities after the prime minister pedro sanchez pledged to exempt them from a new tax. ♪
anna: welcome back "the european market open." let's get into the stocks we are watching with sam unstead from our equities team with us this morning. let's start with the spinach utilities sector. pedro sanchez backing away from implementing new taxes on utilities. what's the story? >> watering down a little bit what was considered to be quite a significant risk. when the idea of this was
announced back in september, utilities fell quite significantly. the risk is not completely gone. but the rhetoric from sanchez has pulled back a little. the risk may come out in stocks today. it did rise before the decision was made, but we would expect the likes of -- two rise. stock rose in extended trading in the u.s.. other aluminum producers over here, that will read in, but also there is this morning about magnesium shortage. aluminum prices hovering around a 13 year high. that could go further if that continues to tighten. expecting some activity there. anna: how about money-management? >> net new business looks good.
not to the same extent we have seen in the u.s., but to an extent in the u.k.. it may well be you get a neutral reaction. there are a couple of things pulling on the share today. anna: thank you for bringing us the latest. sam unstead with the lowdown on stocks we are watching. and watching stocks as we head toward what looks like another positive session. perhaps we are coming off of earlier highs. mark: it is a positive session. the figure and watching that makes me nervous is oil prices again. we talked about this yesterday. they are sneakily rising. that is the force of these problems. higher energy prices means higher commodities. anna: is it like yields were it is the pace that matters? or is it more complicated? mark: for oil prices, level does matter, not just pace. pace is what grabs the attention
of the headlines, but i'm quite worried. this might cause us more nervousness next week. anna: we heard the saudi's saying, look, the price of oil has not gone up as much is gas. watch that story as it develops. i will be back with the market open in the next hour. futures to the upside. back with the european markets next. this is bloomberg. ♪ bloomberg. ♪
♪ anna: welcome back to the european market open. a minute to go until the start of cash equities trading, i'm anna edwards live in london. here are your top stories. the bulls roar back. global stocks rally amid optimism. the s&p 500 posted its best day since march. goldman sachs rounds out the week for u.s. bank earnings after a surge in pound -- pandemic dealmaking. and european car sales are the weakest since 1995 in the month
of september as a chip crunch takes its toll. good morning. welcome back to the european market open, 20 seconds or so to go until the start of the european trading session. let's look at the futures, surrounded by green, futures pointed to the upside. coming off yesterday's gains, gains in the united states, and the asia session. the earnings story is providing a positive narrative. buffer global equity markets, that little bit higher. let's have a look at where these markets are opening up then. we'll probably have to wait to get them in full swing. we're waiting for the data from some of the other markets to comply. we have a fix on the auto sector this morning. we'll see whether we get big movement there. i see spanish ibex is up .4%. that's something we'll keep an eye on. we're focused on inflation this
week as we learned more about inflation with the cpi number, the ppi number not coming with quite the same sticker shock, if you like, when it comes to factory gains inflation, up .4%. let's move on through the sectors picture. we've got energy stocks moving to the upside. and as mark was saying, we do see those oil prices just ticking gently higher the last couple days, moving confidently in that direction, not maybe with the same drama on arbor day. but they are moving higher. utilities up 3% as some of the spanish names in the mix, thanks also higher. we have seen a flattening of the yield curve. good banking results in the united states, suggesting lending is, in some cases, may be the earnings season gave a shaky start. but we are seeing lending coming back, car transactions coming
back, and the m&a story continues from earlier on, technology up .75% this morning. european equity markets opening to the upside. it seems the equity bulls or out of hiding and backbiting the dip. the s&p 500 -- back buying the dip. we had some robust earnings reports as well as a drop in initial jobless claims. let's get to emmanuel cal, head of european strategy, who joined us from barclays. good morning to you. thank you for joining us this friday morning. let me just ask you about your convictions around european equities at this point. you see european stocks doing ok this morning. the overall picture is one of buoyancy, one where the bulls are back in control. are you convinced by further rally in european or globe stocks? >> yeah,. good morning thanks for. will keep climbing -- y eah, anna, thanks for having me.
good morning. we will keep climbing. equities are more expensive. at the end of the day, we've seen extension is not to go. it will keep growing enough for earnings to support equities and to defend the evaluation in the backdrop of higher inflation. so yes, we've seen the market can continue to focus on the positives. there's enough positive on the markets to reform. and to some extent, it's -- investors are very aware of the risk, and i don't think the market is may be as priced as it was earlier in the year. anna: do you fear higher rates of inflation might be a negative for global stocks that, are margins might feel the pressure if they are not able to pass on
those higher prices in the shape of price inflation? do you think the inflation narrative could come back to damage some of the stocks you're following? emmanuel: well, i think we may the at pea -- may be at peak inflation fears, to some extent. there may be evidence that inflation is rising, but this is just a temper he imbalanced between supply and demand, in our view. and i do expect it to reconnect the market. and at the end of the day, we will see a mixed delivery from companies. we're going to see less growth, more companies talking about destruction. but i think the pricing should still prevail, and we had companies further some of these models. so some sectors will be more impacted than the other. but we're in an economy growing,
where demand is very strong, where pricing is very strong. that should help most of the companies to mitigate the cost of inflation in the margins. anna: that's interesting. you believe they'll have the pricing power. they'll have the margins and pricing power should prevail. in terms of sectors where this is going to fall the hardest and lightest, where are you expecting to see real resilience? where will the margins really hold up? emmanuel: well, we are positive on customer. where the customer wants to spend and price increase. we like the luxury goods sector. we like the broader theme as a way to catch spending by customers. we like financials. there's a stronger economy, which can grow more, and banks
can monetize the inflationary economy. we like energy stocks very much. we think the market is finally warming up to the sector with very strong ability to generate cash flow, very strong ability to grow and benefit from higher prices. so we are are a bit more nervous about minors, and weaker chinese demand. the overall, we think -- but overall, we think cyclicals is very good to see earnings strength. anna: ok, so i was just about to ask you if there was nervousness around the chinese growth story. that's good to know. let me ask you about what you call over earning. have we come off a period where you saw companies earning more than they should, or more than what was expendable?
what did it mean that we saw companies over earning last quarter? emmanuel: we had 12 months of extraordinary rebounding in stability with much stronger than expected bond and global demand, and to some extent, a lot of the cost seems to die by fiscal support. we had very strong rebound profitability. we had an effect that had delivered impressive numbers. now we are getting to a development where the base effect getting less of a number, most of the top indicators have rebounded. and as you said, you're going to see less inflation numbers coming out. but still, we do believe that earnings can grow. and margins cannot remain high. so i think the market needs to
get used to lessen presence of numbers, but it's -- less impressive numbers, but it's fundamental with topline and margins both contribute to healthy earnings delivery. anna: thanks so much for joining us. have a good friday. have a good weekend. emmanuel cau, head of european strategy at barclays. coming up, we'll be speaking to the governor of the national bank of belgium, that conversation coming up. of course, he is part of the ecb's governing council. maria tadeo just getting set up for that exclusive conversation. that's coming up next. she'll be talking about inflation, the energy crunch, and the ecb stimulus plan, perhaps relevant to the fed. that will be interesting. we will be back with that conversation next. this is bloomberg. ♪ ♪
♪ anna: welcome back to the european market open. 11 minutes into ever european trading day, european equities moving to the upside. let's turn to the european inflation conversation, inflation in the euro area 3.4% year on year, far beyond the ecb's goal of 2%. some policymakers have recently started to warn it could become more persistent. it sets the scene for intense
discussion on the future of stimulus when the ecb meets at the end of the month. for more on this, maria tadeo joins us now from brussels with a guest on the subject. maria? maria: yes, good morning. we have a very special guest, pierre, the head of the belgian central bank. i have a lot of questions for you and time is short, of the essence. i remember the last time you spoke publicly, you did signal you are concerned perhaps about some of the guides the ecb was giving out in terms of the rights, the interest rates trajectory going forward. the debate seems to be about the shortage of the economy and inflation. how concerned are you about the uptick in prices and how sticky do you think it is? pierre: indeed, i was not fully confident with the forward guidance but is because essentially, we were talking about something that would take place for five years down the
road and i didn't feel comfortable having an assessment of what we could do them. but in the meantime, we had a number of inflation surprises, so the debate is more about whether inflation is going to be temporarily higher or whether it's going to turn into something which is the dynamics of it, so i think there are very good arguments to say what we see today is temporary in nature. we have base affects and supply constraints. because it's lasting more and we know some of the supply constraint will take time, maybe a year or so, that it could turn into something that's a bit stronger in terms of second round of facts. there is uncertainty there. actually, we could fault some of the effects because we want to go back to our target. we are not at our target in europe, which means our policy would remain supportive. i think it's important between exiting the back, which is an emergency program that was
really related to this covid crisis, and the fact that if we decide, and i think the economy is moving in the right directions, we could at some point decide that. but we still have to fall back on our more traditional tools that were there before because we are not at our objective, so we need it. maria: you make it perfect for the follow-up question, a good segue, because you talk about the pandemic coming to an end. the market assumes that that will happen in a few months. but there's a debate into what will come next. whether you go back to the toolbox or the traditional tools you have but with added flexibility. is the market right to assume even if you were going to go back to your traditional tools, that there will be an element of flexibility? pierre: what you mean by traditional, we had the ecb before the pandemic because we
were not at our objective. the program is a program in the covid crisis. we are going to exit at some point. but then we will still be doing qe, so it's important to understand that if we would, that's not exiting the very support of monetary supply to get back to 2% objective because we are still not at our objective. if you read inflation numbers, there are probably about 2%, but it's the story to be a large extent, temporary. maria: the nuance is very important. this is still an economy that would need stimulus. but with a pandemic program, it allows you some leeway, that perhaps the more traditional tools you had in the past would allow you -- greek bonds, for example. is that something you think merits debate after march? it would need an additional
element that state-of-the-art? pierre: we have been quite flexible with confirming in our's tragedy review that those qe and others are not part of our basic toolbox and they should not be considered very exceptional. and we've been using them for seven years. so i think we've shown a lot of flexibility in the past, whether we meet here to show our instruments, we are going into the discussion basically with a good track record and crisis or difficulties come in many ways. so we need some flexibility when we are faced with whatever shock or difficulty. and i strongly believe the track record has been good in the last few years with flexibility. and we've been quite supportive of the economy and i would say our message is no regret. what we have done so far was
proportional. and i think needed and required. and i hope we will still, in the future, get it right. but the last few years, we got it right. this is a crisis we have managed quite well. on the fiscal front in europe, there was a lot of support from those fiscal and monetary fronts. and it's going to last for a while because we are still not at the end of the story of inflation being too low. but we are still close to the recovery. maria: you mentioned the fiscal package that we've seen from the european central bank and the institution story and brussels working together quite well in this crisis. there's a big debate in terms of what is going to happen with the fiscal rules in europe at a time where we are also debating what to do with your qe program. how important is it that you do it in a way that's coordinated? and i know the institutions are independent, but this is
happening at the same time. pierre: well, i don't think we should speak of coordination here. it was a big crisis. naturally, monetary and fiscal were supporting the economy together. i guess again, the name of the game going forward, if there is inflation that picks up, is some form of recovery on the pickup and may be on the monetary front and we will start with that. fiscal rules are very complex in europe but very complex because may be a difficult history with added lawyers. there are arguments to simplify, but people disagree how to simplify, so we will see where it gets us. but at the end of the day, monetary policy has to take into account what happens in the fiscal front. but it's two separate discussions. maria: just the final discussion, we know the decisions will be made at the ecb. the markets are not expecting anything to happen in december. perhaps that could be a big one.
how would you say the mood is inside? perhaps there is tension building? pierre: no, i think we had a meeting on the last decision, so there's far from tension. i think there's a lot of uncertainty about where inflation is going. we are at some kind of inflation point. and basically it's good. we are below our objective so we could afford some second-round affect, but not too much. one of my colleagues put it this way. we need to be patient but stay vigilant. maria: governor, thank you so much for your time. it's good to see you. by the way, your spanish, congratulations, it's very good. pierre: thank you. [laughter] maria: thank you so much. anna, that was pierre, who was the central bank governor of the national bank of belgium speaking to bloomberg this morning. anna: thank you very much. thanks for doing it in english, my spanish not so good.
anna: welcome back to the european market open. 22 minutes into the treading session, positive for european equity markets, moving to the upside, the dax underperforming a little. here in the u.k., the banks rolling out a spending limit for contactless payments. they searched during the pandemic, some shops refusing to take cash anymore to help prevent the spread of covid-19. for more, we're joined by charlie wells. good morning to you. the pandemic seemed to supercharge this process away from electronic payments we don't have to put in a pin number. what does this u.k. card intake eight about the payment industry? charlie: so we know that debit cards here in the u.k. are used more than cash. cash is really whining, which is concerning to some consumer advocates. but it's a huge boost for consumers and retailers. but this is just one of many changers. we've got contactless -- changes
. we've got contactless payments, we've got by now, pay later. britain spent 3 billion pounds doing right now, pay later. anna: so who is pushing for this change? who is it saying i don't want to spend, the limit before today was 45 pounds, so who is saying this is not enough for contactless? i need it to be more? charlie: banks love this. credit cards date back to the 1960's. anything banks can do to make those pieces of plastic more relevant, they love. consumers like this, so we know there are two contactless cards for any one single person here in the u.k. that's a large adoption of this technology. retailers are lukewarm on this. their association put out a statement that said to perceive contactless with caution. i think the concern is robbed. anna: absolutely. what is the limit if it's
limited to just cars? you can use your phone to pay, apple pay, google paid. charlie: funny you mention apple pay because that is a big concern for banks. banks are huge legacy institutions. they know they need to adapt. they've seen apple disrupt things. early on, banks partnered with apple pay, but this increase helped banks take some control away from apple because it makes their cards more attractive than apple pay technologies, which require banks to pay apple. anna: this sounds good if you like the idea of going into shops and getting out quickly and tapping your card and leaving. what if you lose your card? how protected are we? charlie: this is something i'm concerned about. we know debit cards, credit cards, and store cards are the most commonly stolen items in the u.k., on parity with wallets or purses, which says something
about where we are with technology. there are limits to this. to percent of transactions actually require someone to enter something even though it's contactless, a pin or touch a machine. of that 2%, 16% of transactions allow them to walk out of the store without paying. there are concerns on a personal level and on the business side. anna: how does this change our behavior? charlie: there's a striking new study that came out this year that showed that when people were given the prompt to use a new technology, it lit up the reward area of their brain more than the cash. so we know the less friction there is, the easier it is to pay, the more likely someone could pay. but the study showed is not about friction. it's about the excitement of using new technology. that's a lot of fun, but these new methods of payment get us to pay even more. anna: that is interesting.
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♪ anna: welcome back to the european market open. 30 minutes into your european trading day, here are your top stories. the bulls roar back. global stocks rally amid optimism and a fall in jobless claims. the s&p 500 posts its best day since march. goldman sachs rounds out the week for big bang earnings after the surge in pandemic dealmaking
and trading continues for rival u.s. lenders. and european car sales slumped to their lowest level since 1995 as the chip crunch takes its toll. good morning. welcome back to the european market open, half an hour into our trading day. let's look at where we are on the equity markets, stocks euro 600 moving to the upside, up .25%, the cac 40 up .6%, ftse up .3%. that's a picture across the european equity markets. we don't necessarily see a reaction in the auto space we might have expected this morning. we've got weakness on the dax, but the auto sector not necessarily all to the downside, auto parts down .9%, banks the biggest sector and energy moving to the upside. oil crisis -- prices continue
their gradual hike, feeling more comfortable. we do have autos moving to the upside, and i was looking at the sector as a whole. and all of the participants moving higher. we tried to find some given the negative headlines we've been covering about autos. maybe we already knew chip shortages were heading for that sector. personal consumer goods and grocery stores where the worst performing sector, down .25%, health care down .2%. the great rotation in consumer habits is underway. shoppers are increasingly heading back to the high streets after lockdowns forced them to buy online. in the u.k., internet sales dropped in august to the lowest since the start of the pandemic. some have seen businesses blossom, more than traveling sales in a year. but how will the company adjust to this new phase? joining us now is the blue and
wild ceo. really nice to speak to you, really interesting to speak to you about your business. i wonder whether you're seeing any drop-off in business, any reluctance to still shop online when we can get out, can go to the local florist and buy flowers that way. how is that consumer behavior is evolving? >> good morning. we're very fortunate to asking our customers to stick with us. a large number of our customers tried online clouds for the first time during covid, had a great experience, and are now continuing to order, too. anna: so not too much of a hit from that kind of phenomenon. you are a business that has spent locked doing a lot of m&a. tell us about your european ambitions. how big do you want to be? aron: that's right. we're already the leader in the 25 billion euro flower market
this year. we still also have under 1% share of that market, so there's a huge amount of opportunity of opportunity to grow. and markets like germany and france, where we're already present, and other countries over time. anna: you are doing a lot of european expansion on the other side of the break's it. i don't know if you have of brexit. -- of brexit. i don't know if you have a sense of it all. has this thrown out trade barriers? aron: there have been some trade barriers. in particular the u.k. has more complexity than it has before. we did have some time to prepare for it. we will deal with some barriers. anna: speaking of things that have been difficult, what about a shortage of drivers?
aron: we've been fortunate. in the u.k., we work as our delivery partners and found them to be reliable and resilient in face of the challenges so we continued to be able to offer to rely on our customers. anna: we're heading towards comp 26, and some are asking themselves about consumer behavior, may be asking about flowers and the number of miles they travel before they get to your table. what are you saying in that context? what is the way that you sort of justify that this business is still worth consumers time? aron: of course. so our business is climate neutral, which is really important for us. and also the blue mott brand.
we have a shared commitment in terms of carbon footprint or not spending waste to landfill. and i think our consumers really appreciate that we are on the front foot in terms of our sustainability commitment. and we will push that further ahead moving forward. anna: will you need to fund raise again? d plan to fund raise again? what is the story there? aron: it is well-funded. we reached the 100 million pounds in the last year and so as a result of that, we are well-funded for our current plan, but always ambitious and we will always consider the right move in due course. anna: thank you very much. thanks for joining us. lovely flowers in the back of
the shot, as you would expect. let's get a bloomberg first word news update. for that, here's laura wright. paul: good morning -- laura: good morning. french finance minister bruno le maire is calling on the u.s. to drop trade tariffs against european countries after the global deal on corporate taxes. the u.s. is unhappy on french tech levies on tech firms, which lemaire says will be abolished when the new agreement comes in. speaking to bloomberg, he also says the allies have a different approach to china. bruno: the united states wants to oppose china. europe wants to engage china. so there is a difference of view we need to discuss about that because this is a clear strategy question. laura: bloomberg has learned to -- has learned china is loosening restrictions on mortgages on some of its biggest gains, adding to signs of concerns of contagion from the evergrande debt crisis. they told major banks to accelerate approval of mortgages. lenders were also committed to apply to sell securities back by
-- backed by residential mortgages. president biden said it remains too high and is calling on more businesses to impose mandates. biden also said u.s. health officials will soon decide on pfizer and biontech covid vaccines to kids age five to 11. pres. biden: we're going to continue protecting to vaccinate. this work, this week, the food and drug administration and the fda is reviewing data on moderna and johnson & johnson boosters. we expect a final decision from the fda and the centers for disease control and prevention, the cdc, in the next couple of weeks. laura: a partially destroyed banksy painting has sold in london for a record 60 million pounds. previously known as girl with balloon, the piece was partially shredded as an artist prank after it came to auction in 2018.
renamed love is in the bin, the it became a cultural phenomenon after closed in the beginning. the auctioneer joked he was relieved that the artwork "was still there." global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. anna? anna: laura, thank you. very nice. coming up, the ceo of morgan stanley is preparing for rate hikes and says the markets are ready for them. don't miss our interview. that's next. this is bloomberg. ♪
♪ anna: welcome back to the european market open. 42 minutes into friday's equity trading session, and european equity markets are in the green, not by that much in germany. elsewhere, we have heftier gains, certainly the french market, the london market doing better. let's talk about where we are on individual stock names. let's stop -- start with
renault. the sector up 3.3%. it seems autos managing to do pretty well despite the fact we had the auto story out this morning. we saw a and registration in europe, 25% weaker, the weakest september since 1995, more than 25 years. that seems to be the story that caught people's imagination. hugo boss, let's focus on that one, as well. the pursuit maker, hugo boss moving to the upside because of the sales update that they have delivered to the market. they raised their profit forecast and said revenues are exceeding pre-pandemic levels, assign formalwear may be impaction, -- in fashion, people dressing up. let's talk about terminus, a
software business, that stock moving to the downside, shares falling, analysts saying that third quarter update was a pretty mixed bag while price reaction doesn't look that mixed right now, down 13.3%. back to the banking sector, james gorman is preparing for rate hikes and says the markets are ready. he pointed to wage increases and surging commodity prices driving inflation higher. he spoke on bloomberg markets. >> we continue to see shade gain and extremely good performance on trading platforms. i don't expect the investment banking pipeline to slow down at this point. it remains very robust. eventually, the fed starts tapering, moves to rate increasing, you will see more volatility in the mixed income space, which we'll participate in. there's a lot of stuff going on right now. . >> let's speak to the challenges
for a second, james. he said to watch out for volatility. many of your peers have been worried about interest rates. what are you most worried about as we start to close up this year still? >> i just said you've got to be mindful. we're seeing sharper movements in the market by the day. some of it in earlier bubbles around spac's, clearly off the boil a little bit. there is no geopolitical tension in the u.s. china talk of taiwan. our job is to be mindful and to, on the one hand, have the foot on the accelerator, and also constantly be looking at where the potholders are. honestly, in the next several months, i think the market has digested the fed will have to move, not just on tapering, but rate increases. and by the way, we're attending -- rate increases on what would be considered normal. bringing up a little bit over the next year, that's not a
crisis and not unexpected. >> he said not a crisis. you think a lot of people worried about the next correction in market, are those fears misplaced? >> those people are always worried. you know, when you've got basically free money,, record fiscal stimulus, global synchronized growth, of course the markets will do well. when are they not going to do well? if this environment doesn't make it happen, none well. that doesn't mean it's going to go in a straight line forever. you have corrections, moments of excess, reassessments, the investor psyche changes. we'll go through one of those periods, but i'm not expecting a major crisis, nothing like that shock we've been through the last 30 years. >> d.c. this wage pressure on the industry lasting for a while? and what is that going to do in terms of the ability to control spending at the end of the day? >> i don't think it's going to be that important to what we do.
this industry understands when markets are good, they are getting paid better. when they're not, they're not. i think there are some natural hedges within these kind of businesses, but traditional companies don't have. so my focus is on making sure we pay our people well for great jobs done and they will get paid well for doing it. that's our focus. it's not an anxiety around wage inflation for this company, very different industries affected dramatically. but what i see is wage inflation around the world. >> you seem pretty confident about the trajectory that we are on. you don't see inflation getting out of control. do you see this as being something we can manage our way through? >> that's my assumption is that the fed will manage. they will have to being -- bring rates up. i'd be much more hawkish. i would have brought rates up by the first quarter of next year.
a lot of capacity to move, and you've got to prick this bubble a little bit. yeah, we're seeing, and i'm not above this story that it's all transitory. it's not transitory. wage inflation israel. and the supply -- is real. in the supply chains have clearly been real. some of that is temporary, but not all of it. so i think we're in a period where inflation is going to take up. it's going to force the fed's hand. and you saw that in the last fmoc meeting. there were five rate increases in 2022. that most 29 dots -- moves to nine dots. anna: james gorman, what the fed, in his view, should be doing. let's get the bloomberg business flash with the latest corporate stories.
here's laura. laura: in a watershed moment for cryptocurrencies, they are poised to allow the first bitcoin futures etf's to begin trading next week. unlike etf applications the ftt previously rejected, the proposals are based on future contracts. the ets were filed under mutual rules that they provide "significant investment protections." microsoft is setting a significantly more challenging operating environment and raise her complaint requirements. the service has around 52 million users. it makes linkedin the latest major u.s. social network on the mainland. virgin galactic is pushing the start of commercial flights further into next year after scheduling attack flight, disciplining investors -- a tech flight, disappointing investors, an upgrade is taking longer than
anticipated, delaying commercial take off into the final three months of 2022. that your bloomberg business flash. anna? anna: thank you laura wright. coming up, we've been hearing banking ceo's weigh in on the debate. we'll continue that conversation with our markets live team next. this is bloomberg. ♪
♪ anna: welcome back to the european market open. equity markets moving to the upside. we are moving higher. just breaking news pre-across the bloomberg, brent oil hit $85 a barrel for the first time since october 2018 as we continue to see oil prices recovering from those pandemic lows, and those they really work, negative in some cases. let's get to the markets live team. nour al ali is with us and can reflect on what we are seeing. i was reading the words of one of our colleagues who said oil is really enjoying life across $80 a barrel. but brent is now above $85. we have the paper on story in cushing that seems to indicate oil prices will continue to go higher from here. nour: absolutely.
we've got the tightening in the market, key oil indicators pointing toward the bulls are finally in charge of oils. what is not to like about this when you're an exporter? and this is doing really well. looking at canadian dollars, the russian ruble, all performing really well, all of this just to point out that crude is going to enjoy a really good boost coming into the year-end, especially with the energy crunch. anna: it's going to be an interesting earnings season, talking to the executive. of oils companies some of them might have been reflecting on their transition, but now they're going to be talking about higher oil prices. let's think about inflation. we've heard a lot of chatter about how inflation is not transitory. it. is a bit more sticky james gorman at morgan stanley, they're all saying it's not going to be transitory.
what are you learning about the inflation narrative? nour: absolutely. we just talked about oil prices. once you get that spike from energy prices, it will be much harder for central bankers to pay in inflation because cpi prints have been heavily weighed down by energy costs here. that's something to keep in mind here. i think the use of the term transitory has been misplaced and i think now is the time for us to shelf that and put it aside. now is the time to understand the fundamentals that have been weighing on inflation. and right now, it seems to proved to be more sticky, but it could just perhaps be a shock for the economy for the time being. anna: what about bitcoin, that coin shot to the upside because of potential ms. we might get out of the sec and acceptance into mainstream finance, i suppose? nour: i was waiting for you to ask me about that coin. what's happening right now, cryptocurrencies are assets that
are generally sentiments driven. when we talk about them, the more we talk them up, we've got the sct ef's, and canada, europe as well, all of that to say when you talk positively about bitcoin, that's going to move. but the key takeaway is that previous rallies that bitcoin had has been mainly driven by retail investors. now, as we step on whether the sec is going to improve the etf, this is going to be a completely different rally driven by wall street. and that's extremely interesting because it's going to test the fundamentals of the market, that's currently under pressure. i'm talking about miners in china and whether they could stand the true test of money coming in now. anna: thanks for joining us. remember, you can find commentary about the markets. mliv is the function to use on your bloomberg. that is it for the european market open.
surveillance: early edition is up next. we have equity markets moving to the upside, maybe not as strongly as we were, up to point percent -- .2% on the upside, fairly easily split on the losers. energy also doing well, no surprise there when we see the oil price moving to the upside. this is bloomberg. ♪