europe and asia ended in the red yesterday, europe saw more than 1%. the u.s. got a late time boost from the debt ceiling headlines. they ended up higher, hence why we see a little bit of outperformance. tech is the big outperform or. it is despite the fact we see yields climb higher. we are looking at a move of more than a basis point when it comes to the u.s. 10 year yield. . nearly two basis points. it is not enough to derail the more optimistic outlook we are holding. people happy to buy the dip. looking at a euro at a july 2020 low. oil easing off from the 2014 highs. to the u.k., where boris johnson put forward his vision for new britain at the conservative party conference. >> we are embarking now on a change of direction that has been long overdue in the u.k. economy. we are not going back to the same broken models. we have low wages, no growth, low skills, low productivity. all of it enabled and assisted by uncontrolled immigration. >> his plan to turn the u.k. into a high wage, high skill economy face immediate problems from inflation. one gauge of ex

is europe going to be hostage to russia? maria: europe would like to avoid that. that is not going to be something that the e.u. would like to fall into. it is a trap. remember the issue of the energy prices. it's a short-term issue. it is not in six months or one year. now, we need to resolve that. the e.u. will be taking measures to try and contain that. negotiated -- negotiating from a weak position is never a good idea so other measures need to be put in place. so e.u. is doing the nobles come all the things. this is not long-term. there is a bumpy ride for europe in my view. dani: the other source of political tension within the e.u. is emanating from poland, with courts ruling that some of their national laws usurps that of e.u. law. there is also this question of whether they will actually put it into writing, make it legally binding. we have seen in the past that have delayed that with, for example, their ruling effectively banning abortion. how likely is it that we get this written into law in portland and how soon could that happen? maria: the issues wit

some of the activity data soft engine europe. dani: are we goaght a point where we need to be more worried about consumer sentiment? we have seen only of the readings come in. this is what you need for a recessionary environment. are you at a point where you too are concerned about consumer sentiment? >> we're starting these a little bit across the world. didn't see much of a pick-up in china. you mentioned the u.s. retail sales in the u.k. have been weew months now. we're not seeing huge evidence of that happening. it could be a possibility going forward. dani: i want to ask one more question on the fed. you mentioned the break-even rates as well bumping up to 2.5. at what point do policy makers need to check a their tone in order to accommodate what the markets are doing. at what point do they have to pay more attention? >> i would argue the other side for that, we saw inflation that came on the higher side in the spring and the fed reacted. i would say we will see that reaction, a change from the fed. the fed does worry about

and europe entering up ever so higher. if this isn't the thing that's going to affect stocks, what is it that could possibly and this rally? mark: it brings people's attention back to the elephant in the room at the moment which is inflation. and has become a hotter and hotter topic for traders. you can see that they are getting impatient with central bank's around the world. particularly g10 central banks. they want to see them taking action to get in front of the rising inflation. they no longer believe the narrative that we will get past it quickly and so they are taking it into their own hands. they are pushing yield curves up around the world. dani: all right. sorry to cut you off. thanks for joining us. coming up, we speak to the abb ceo after the company reported earnings. this is bloomberg. ♪ >> good morning from bloomberg surveillance headquarters, just gone 6:30 a.m. in the city of london. this is daybreak europe, here's what you need to know. u.s. stocks gain for a six-day, pushing the s&p 500 with any risk or

. ♪ manus: that is "daybreak europe." in the exclusive interview, the standard chartered ceo said, inflation may be transitory but structural wage pressures won't be. bill: i think what we can be sure about is stagflation. you can hear the narrative that it is transitory. inflationary pressures are transitory, but i also see structural wage pressures building up. they will not easily be resolved. i think the inflation trend is transitory, that will be a little bit dismissive. the early stages of pulling back the monetary system. in terms of fiscal stimulus, the wind may come out of the sale for the economy a bit. the momentum is good. in china, we talk about growth, down to 5%, may be down for a while. u.s. has tremendous resilience. i'm not desperately concerned about the economy but i think it is a little bit harder. >> pressure for the markets? bill: i think the markets are sensitive right now. i do think we will have a correction. the underlying earnings, they are ok. even if we have global growth into the 3% zone for

in london, i am dani burger and here is "daybreak: europe." the global selloff deepens, the s&p closes at its lowest level since july amid concerns about surging prices. asian stocks slump as another property developer misses a bond repayment. oil rallies to its highest since 2014 after opec bus maintains -- opec-plus maintains its gradual increase. commodity prices soared to an all-time high. and facebook suffers a devastating outage across its most popular platforms. billions lost to competitors and mark zuckerberg's fortune plunges $6 million. will it be a turnaround tuesday? certainly for james bullard, it is a regime change. we are in the middle of the st. louis fed president yesterday saying i am concerned about changing mentality. i would say around prices and the economy, the relative freedom that dismisses feel they can pass on to consumers. this is not transitory inflation, this is inflation that sticks around, if consumers are willing to pay more and companies willing to charge more. that means a big hit. long-duration, most noticea

europe wants to engage china. so there is a difference of view who need to discuss about that because of the strategy question. juliette: president biden says the number of unvaccinated americans remains too high, and he's calling on more businesses to impose mandates. biden also said u.s. health officials will soon decide on pfizer on biontech covid vaccines to kids age five to 11. >> we're going to continue protecting the vaccinated. 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. juliette: a weather roiling amina emerges across the pacific, setting the stage for worsening droughts and california and south america. frigid winters and parts of the united states and japan, and greater risks for the world already strained energy and food supplies. the u.s. climate prediction center says the phenomenon could c

this despite goldman upgrading their natural gas in europe. they are saying the russian market is tight and not as much supply will come online because of that. manus: yeah, you know what the other side of that is they ratchet it i 70%, and then they brought their first quarter numbers back given relief in the market. but you are right, we seem to be at the top of those at the moment. the u.k. prime minister says he doesn't want to turn away chinese investment despite concerns of some of his own lawmakers. johnson spoke exclusively to our editor-in-chief in a wide-ranging interview. they also discussed what actions the u.k. is seeking on climate change ahead of cop 26. >> when i was running london, i went out several times to china and had fantastic trips. >> things have changed. >> well, investment in stuff that drives jobs and growth in this country, other in development -- whether in development, look at what is happening in greenwich. things have taken off because of chinese investment. so i am not going to tell you the u.k. government is

this is "bloomberg daybreak: europe." no shutdown. biden signs a stopgap funding bill but the house postpones its infrastructure vote. the democrats failed to agree on the white house's economic agenda. stocks begin the quarter in the red after equities suffer their worst monthly selloff since march of 2020. a fight for power. china orders its top energy firms to secure supply at all costs and another tailwind for european energy prices. happy new month, happy new quarter. it is a precarious start to this new quarter. we have a host of risks. let's get away from the doom and gloom this friday because we have a very special treat this friday. usually, manus cranny starts the weekend on friday but we are very lucky. manus cranny is putting in the long, extra hours this weekend at the dubai expo. good morning to you. you have such a great lineup of guests and some really interesting conversations. what are you most looking forward to? manus: dani, this is a roll of the dice for dubai. welcome to an infrastructure build a year late but th

it is easier in europe. we are a science-based company, so we don't only hire software engineer people, we hire surgeons, biologists. this dynamic is a quite interesting dynamic. you are right. even in china today, or in india. anna: thank you so much. good to speak to you. bernard charles talking about the transformation he sees with new materials, new processes coming to manufacturing. thank you for giving us your thoughts. coming up, a growth warning. bond curves flan from the u.s. to australia as markets increasingly factor in policy normalization. we have that for you next. this is bloomberg. ♪ anna: welcome back. i'm anna edwards in london. slipping in the afternoon session in asia. annabelle droulers has more details. >> it has been fairly risk off in asia. led lower by the nikkei in japan. a sub index of minus, leading up around 4%. in china, concerns around a crackdown on private enterprise. also perennial problems in the property sector. concerns evergrande can face default. we do have the kospi,

what does europe perceive china to be? maria: yes, and that is still a big question for the european union. that was the central theme in that dinner that took place yesterday. just as an anecdote in the dinner that happened behind closed doors, the 27 leaders of the european union were told to not bring in their phones and not bring in advisors in the room. is to avoid leaks coming out. the idea was to have an open and frank discussion and keep your phones out. this is something the european union tends to do when they talk about very sensitive issues. when it comes to china, european leaders recognize that china can be a partner in a number of areas, specifically when you look at climate change. it's too big to ignore. china remains and continues to be a strategic rival to the european union. they call for this relationship, particularly on the trade to be recalibrated and to become a two-way street. there is a deal, the e.u. china investment deal that has been on hold for months. many in the european union say that this

and europe, but also in asia. domestically the vaccination program in japan is accelerating as of late. we think the domestic reopening should and that market. as i said earlier with energy and financials, if you are looking at a global market that benefits from rising u.s. yields and tighter u.s. policy, it is japan. a market people tend not to own much of, we think it is a useful hedge when you think about concerns about u.s. interest rate. dani: in general with china closed, japan has been hit hard, perhaps as a release valve. we have seen asia high-yield debt get hit hard by evergrande. your choice. do you think some of the second-order effects are overdone? kiran: i think in terms of the second-order effect, we would say that is overdone. there are genuine challenges china is facing, but in terms of regulation in the property sector, does that transmit beyond china into markets like japan? we think not. china will need to adapt to a different growth dynamic. that will have effects on individual companies arou

and europe. there will be a delay of goods getting to supermarkets and shopping malls and a greater cost in getting those goods to that point. that will delay the point at which consumers can buy them. when you consider the impact it has on inflation, the kind of feeling is this a supply crunch of story is getting worse and will continue to drag on the global growth recovery. that's what we are seeing in many parts of the world, economists saying the crunch that started at the start of the year contemporary is looking much longer lasting than anticipated. manus: and yet i would encourage you to go back and listen to the interview with martin malone, he talks about the port of l.a. operating 24 hours in the next two to three months. you will get a growth break in the u.s., something like you have never seen before. so is that one piece of the circuit breaker? the l.a. port is one example. enda: absolutely. to be clear, there are those who say there are a lot of containers being built right now, th

welcome to "bloomberg markets europe." deutsche bank holds market shares, but fixed income trading falls. we will bring you our interview with the ceo. mixed results for big tech. cloud computing drives growth at microsoft, but disappointing numbers way on google. investors are on the lookout for

this is "bloomberg daybreak: europe." apple and amazon tumble in late trading, sparking fears of an unhappy holiday season. acb hike bets stay alive after mild pushback from the central bank. lagarde says higher inflation will last longer than expected. another earnings bonanza. bnp paribas counts strong growth. >> being distinctively diversified delivered strong growth in the third quarter, and basically confirming the performance which is well above re-pandemic levels. anna: bnp paribas on their numbers. bnp paribas, 2.5 billion euros ahead of what was anticipated. a 900 million euro share buyback program on november 3. the bnp plan, $1 billion a buyback as equities. a 79% jump in equities trading is part of the story. it has been on equity trading we are focused. this is a key area for french banks, and this is the first french bank to report, and a stage is set for others in the sector with strong equities trading. let's get the numbers out of daimler, third quarter ebit, 3.6 billion, another beat against the 3.1 bill

coming up with losses of europe and the u.k. alexandra: yeah, that's a good question when we think, getting the bananas to get going. how terrible inflation might be. in the u.s. we have c.p.i. of 4%. that's nearly well of the trend that we have in europe where we only, so i think it's a very different trend unfolding in these two cases and we do see inflation in europe here on the search of the energy prices and obviously what everybody, not right now, is the education that might have been presented. i'll see you with changes and we expect now, for instance, that the tech myope -- before the end of next year. dani: you don't see them increasing rates before the end of next year, do they start to change their messaging, their own as the market prices into rate hikes, we get this transitory drumbeat for toll. do they have to maintain what they do? >> the messaging and right bag in doing two to come. clearly now it was subtle for normalizization around the world. it is going to take i'm. we also need you to different chat between

. ♪ dani: it is bloomberg daybreak: europe." i am dani burger in london, alongside manus cranny in dubai. evergrande halted trading amid reports that the developer agreed to sell a controlling stake in the unit to raise much-needed cash. a lot of headlines coming fast and thick. keeping on track with them is stephen engle. lots of reports here of the key evergrande asset sale. what is the latest we know over the sale. stephen: this is what the chinese government would like to see being the unwinding of evergrande, with a key asset sale. they would like to sell the vehicle unit, no sale. they have tried to sell their tower in hong kong, no sale. they did sell a bank recently to the shenyang government to pay back debts to that lender. the government coming in slightly there, a local government. but this time, this is a key asset. evergrande property services is the property management arm. it is after the big taking of 80% of the evergrande shares. it is the most valuable asset in the evergrande portfolio. it is a listed company

this is "bloomberg daybreak: europe." evergrande avoids default with a last-minute payment. you a-shares hit another record but the you for yuri it -- u.s. shares hit another record but the euphoria is not long. checking facebook, twitter and alphabet. the fed curbs trading by top officials after an embarrassing scandal. will powell's damage control be enough to clear the way through nomination. happy friday. you made it to the end of the week, and the inflation bet is on. a monster auction yesterday yesterday in the u.s. session. $19 billion up for sale in a record low yield. there is demand in the market to hedge, and protect yourself against inflation. all of that translates into inflation expectations as measured by rake evens that are at -- breakevens that are at the highest since this was offered again. these are a substantial ramp up. this is a conversation we have been having for months, but it is notable how the market keeps putting these on. what does that mean for risk assets? so far, not a lot. u.s. stocks yes

natural gas the story in europe. asia stockpiles low as we head into the northern hemisphere and winter prompting a switch to diesel and kerosene. joining me is dan. the sustainability of the price hike is what we are trying to understand. this is a tight market for a variety of reasons. will the tightness indoor -- en dure? dan: i think it will, with the one caveat that opec is still restricting supply quite a bit compared to what they were producing before the pandemic. they have the ability to open up the taps a little more if they wanted to and ease the tightness but there's no indication they want to. many of these countries have been dealing with low prices for a year and a half and i don't think they are in a huge rush to flood the market with supply. i don't think there is a ton of upside to them doing so. there is already 500,000 barrels per day of extra oil demand from power stations switching from natural gas -- switching to natural gas from diesel. but is not like they can solve the energy crisis in a yea

it's daybreak europe. we have the stories that set your agenda. china sees the factory price inflation at the highest since 26 years. u.s. cpi prints above 5% again. fed minutes suggest tapering as soon as next month. bank of america, morgan stanley, and citigroup report later. we break down the figures this hour. plus, revenge of value trading. we speak to the chairman and founder of research affiliates about the market bubble and the revival of cheaper stocks. looking forward to that conversation. very good morning. i've got a conundrum. i don't understand. inflation at the highest since 2008. core inflation is up there at a 25 year high. tapir is set to begin. why is the bond yield dropping? is it more worried about growth? dani: good morning. is this a recession signal? it's not just a conundrum for us, it's the return of the greenspan conundrum. this is something that was flagged at not alliance. when you have this move lower in the 10 year yield, buying on the long end as rate expectations pick up. it's indeed a conundrum for both of those s