am a dutch bank -- a dutch bank pushes ahead, and we focus on europe. risk factoring about cutting 2800 jobs and planning on cutting about one third of its business. commodity financing. haidi: all right, let's take a look at samsung, one of the movers to the downside. a broad-based selling on the kospi ahead of the bank of korea, samsung dropping as much as 3.1%, the lowest since december 3, and we are off session lows, but when it comes to 2021 profit expectations, we are expecting samsung to be able to meet consensus profit expectations, but getting caught up in the korean kospi selloff, being dragged down by the foreign funds selling, and waiting for the bok. shery: yes, that monetary policy decision coming at any time. our next guest talks about them keeping rates on hold, and let's talk more about it with an economist at moody's analytics, katrina ell. if we are expecting a hold, what will be important for investors to watch in today's decision? katrina: the bank of korea will hold, it will be good to see commentary around the economic recovery re

went into recession, europe was in recession and china between 2003 and 2013, you had double-digit growth which kept commodity prices very high. this was a big boon for emerging markets, especially commodity producers. apart from the risk associated with a titer, should central banks move to titer financial conditions, another significant risk for emerging markets is further slowing in china. the chinese slowdown of 2015 had a big hit and i think one cannot underestimate what further slowing in an environment where there's a lot of vulnerability from the covid legacy. shery: carmen reinhart speaking with bloomberg's kathleen hays. our next guest says she remains bullish on markets given the economy's progressing. as always, great having you on. i wonder with these inflationary concerns, markets are starting to become a little anxious. how are you positioning? >> great to talk with you today. we are back where we've been every couple of weeks or so where we get back on worrying whether inflation is transitory and markets try to recover and end up trading sideways and then we see these oppo

the asset manager, a big esg backer says it was especially high in europe. their third quarter revenue and adjusted eps beat estimates. we just opened for japan and south korea, its turned to sophie for what stocks to watch. sophie: in tokyo, keeping an eye on chip suppliers, pledging to reduce impediments to overseas shipments with funding in the next stimulus package to ensure semiconductor capacity. keeping an eye on vaccine stocks in japan as well, reporting the government will offer three drug companies a total of ¥3.8 billion to support covid drug developer. we are watching fast retailing this thursday which is expected to deliver a rosy forecast for the operating profits on the sales recovery in key markets for this owner and korea's biggest -- posco coming in at nearly $3 billion thanks to high steel prices and strong demand in auto and construction. shery: we have an interview in the next hour, the philippines finance secretary joins us to discuss the nation's economic recovery as inflation surges and the vaccination campaign it rolls ahead. the ma

and europe as well. but there seems to be a little bit of frustration on this shift when it comes to the government's tone on covid elimination strategies now to endemic covid, having to learn about living with covid, and how countries like australia will have to live with the virus. now we are hearing this frustration from singapore, hospitals with people inundating hospitals even with mild symptoms because they are scared of living with this disease. we continue to see these frustrations mounting in a countries, especially across asia that have been so successful in reining in the pandemic, but now they have to live with the disease and open up. paul: the messaging around this definitely starting to change now. what has changed phenomenally in new south wales over the past couple months, and today a very big development, the announcement that there will no longer be the quarantine for travelers entering the state of new south wales. this is where sydney is. that means know hotel or home -- this means n

and europe. that means delays in getting goods to the shelf and higher costs in getting those goods to the end consumer. that is true to the inflation story. their ongoing? 's over the durability of the global recovery. there is no sign of a circuit maker yet in the supply. other manufacturers that we speak to now are no longer talking about christmas. that ship has sailed. they are talking about their spring, summer order book. many people are not seeing a nerd -- near term circuit breaker. as long this continues, the more pressure from the inflation run and downward pressure that will end up on the consumer. the greater the risks from the recovery to this big supply chain. they are call it -- shery: it sounds like a serial. the bit crunch of 2021. thank you so much for that. let's get to vonnie quinn with the first word headlines. vonnie: thank you. if feel -- new zealand's inflation jumped faster and the third quarter fastest in 10 years. the central bank will raise interest rates. the rate su

in europe, it is primarily a gas issue. in asia, both china and india have had some disruptions to their coal supply. drought has reduced -- there's more volatility as a result of climate change which is affecting energy systems all around the world. haidi: the energy crunch, rising energy prices -- we are hearing a lot of the critics of climate action saying this is why the transition to greener forms of energy is not sustainable. it will be more expensive. this is an indication of it not working. is this going to be one of the downsides they will face before we get there? ali: unfortunately, there's a real risk that this incorrect perception will result in lack of political will to accelerate energy transition. just to be 100% clear, the current energy crisis is primarily a fuel issue. there is nothing with renewables. some people argue the move from the vestments of fossil fuels has resulted in this. when we look at fossil fuel production, there really hasn't been any shortage of fossil fuel production. it's dislocations

and europe seek to jumpstart talks on revising the nuclear deal. they will discuss nuclear inspections. the situation has been described as fragile. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. haidi: still ahead, more insight into the first bitcoin-linked etf in the u.s.. find out why the etf may be risky for those holding bitcoin. the investing outlook more broadly, we will be discussing where she sees the opportunities. this is bloomberg. ♪ >> i think we are at a moment in time where we are coming out of the pandemic and there's a handful of things going on. all over the world, there are labor issues that air a reflection of the pandemic. some of the stuff is transitory. there are secular trends we have to watch closely, but i think we are adjusting and dealing with it as anyone else's. shery: david solomon on the chair dashed on the trends he is watching. our next guest says she's optimistic supply chain disruptions will not derail u.s. earnings re

europe and china. and energy equity has performed very well and we think it will continue to do well for the next quarter or so. in terms of the broader based commodity, we are more pragmatic about those commodities because there is a lot more, you know, china growth to slow somewhat heading into the year-end and that will release -- relieve some of the pressure on the likes of iron ore. for a broader commodity, we think it looks -- at the moment. >> are you saying that when it comes to price pressures that we are seeing right now that the energy crisis might resolve first before supply chain disruptions and does that affect how you position your portfolio? jun-bei: that's an interesting question. which one would come first? as we head into winter, the energy crisis may change the way it is paid we don't think both will be resolved anytime soon. certainly not when the global mobility gets to pick up significantly. next three months to six months, we will see more of those shortages in energy and supply

and china warns europe over its support for taiwan saying it violates the one china principle. >> we have just opened for trade in australia and we have a staggered open so stocks are slowly coming online. off 0.1% that we will have more information in the next 10 minutes or so as we got going there. new zealand has been trading for a bit longer. a couple of hours. also currently looking very flat at the moment. it is kind of the theme for the day across the asia-pacific. glad to mixed. nikkei futures weekend to the -- weakened to the tune of 0.5%. we can see markets in the u.s. flat to reasonably higher. blackstone is among the asset managers and bracing the fall hiring inflation. >> inflation is definitely becoming more pervasive, more persistent than people had hoped. i think that is happening for a couple of reasons. one is money supply has grown really significantly. by more than a third since covid. wanted terry fiscal response to the crisis and it put more money and the system and at the same time, we have structural shortages. >> inflation one of those things putting a dent i

the head of the european parliament said europe will not be intimidated. this is all part of a larger pattern of off-and-on presentations that president erdogan has had with countries that really are nominally and practically allies of turkey, including in nato. so this is not an entirely unheard of scenario, but it is -- it would be a very striking move if turkey goes through with this. kathleen: this is kind of an awkward time for this. this is one week before the g20 meeting in rome where president erdogan is supposed to meet with president biden. >> that meeting is usually the case ahead of the big international summit. neither have been confirmed nor denied. but they are all going to be meeting, and there is a source of -- in this case, it's not even bilateral, but multilateral tension between members of the g20. and it's not the first time that erdogan has shown that he's willing to take a very unorthodox approach to policy, including economic policy where he intervened in personnel decisions at the central bank, and other issues that, in the end, as

and europe by november. haidi: that was part of the reason how we saw tesla being vaulted to that for the biggest u.s. company position. and it is important not just in terms of the cars and this deal, but the significance of this. going mainstream. it gives anyone who is curious about driving and electric vehicle, driving a tesla, essentially the opportunity to test drive one through hertz. when it comes to ev's we also have the chinese a startup unveiling details of his new products and features at its tech day including faster charging infrastructure, as well as, yes, a flying car. the vice chairman spoke exclusively with us about their ambitions. >> rp seven is our flagship vehicle right now in china. it is one of the best selling devices in the china market. we have seen a strong interest level in our presale program. we are announcing official sales today. this marks another milestone as we have delivered our first and now this is the second flagship product for us to deliver in norway and we are very

that has kept europe dominating our top 10 for october. ireland does not number one, spain is number two. the nordic countries populate the rest. norway, denmark, finland is doing well at reopening, but does it in a way that is not leading to huge outbreaks. but europe is facing down another winter and we are starting to see cases and deaths picking up again in eastern europe, which could not bode well for the top rankings. shery: what happened to singapore? >> this was former number one and now ranked 13. the biggest drop for a former number one in the ranking history, which was started almost a year ago. it is in the middle of a very painful transition, moving away from the covid zero and targeting no cases and keeping everything closed, starting to open the borders and trying to ease restrictions internally. that is leading to an uptick in cases and deaths. they had just 29 deaths all of last year. it is now 349 deaths. we are seeing some pressure on a very well resourced hospital system in singapore. but the fact that they are pulling

and europe is that the pace of recovery in demand has been weaker in japan. daphne's companies tend not to raise end product prices even when demand recovers. i believe japanese prices will gradually move toward a rising trend as the gap between supply and demand narrows. >> prime minister fumio cushy to -- he/she to -- kishida was regarded as the safe choice, but raises questions going into a general election. juliette saly explains what is at stake. >> japanese prime minister fumio cushy to has only been -- kishida has only been in the position for a month but he has the lowest approval rating for a prime minister since 2008. a major loss of parliamentary seats could weaken the party and send him through the revolving door of japanese leaders. none of japan's many opposition parties have more than single figure support, but several have formed alliances in a bid to win seats. kishida set a modest target for this election to maintain the ruling coalition's majority. missing out on a super majority would prevent him from taking bold action such as constitutio

we are currently looking at a very interesting projects in eastern europe. annabelle: with the target of being carbon neutral by 2050, does that mean you are looking at renewable projects or traditional power sources? caroline: we keep on looking at gas, and we look very strongly at renewable. it is not only the trend, but also the future and the technology is becoming cheaper. however, we also see that there is a big place still for hybrid power plants. it is a combination for different reasons. i think the renewable power plants are also still very influenced by environment of factors. until we find the right balance, we will keep expanding in all directions. annabelle: what about the industry and health care sectors? that makes up about 30%. where will you see the biggest opportunities in the industry space right now? caroline: in the industry space, we are really focusing on smart solutions. smart utility solutions for districts and cities. then we are looking at healthy living, healthy building solutions as well. so for example, we are in the cooling bu

and europe. but looks like another historical issue causing a big plunge in nomura stock price today. let's get more on china. the stress developers in the country are facing a collective honda bill of $2 billion this month. investors will be watching for any signs of default as they prepare for the biggest shakeout in years. let's get more from rebecca choong wilkins in hong kong. what are we watching out for here? rebecca: there are a few big names to watch for. firms like central china yield estate and kaiser are all in focus and not just on the maturities but on their coupons, as well as with their other kinds of debt, things like commercial bills or abs products also being watched by investors to give potential signs of stress. kaiser in particular makes up such a big chunk of the china offshore dollar bond market. more than half of evergrande dollar bonds even though it is continually smaller in size. elsewhere we are looking very closely at evergrande of course. kathleen: so where would yo

and europe. they are betting on the adoption of wireless 5g technology where it will compete with ericsson, nokia and huawei. >> i wanted to ride on the new wave of the market. that means open ground and open market of the 5g. shery: capital management said to be planning and asia based spinoff which could become one of the biggest new hedge fund of 2021. bloomberg sources say the unit will be run by the partner and have more than three and a half billion dollars in assets under management when it is formed in early december. they unveiled plans to exit most of the business. texaco's third-quarter sales beat analyst estimates. they are boosting their forecast . they plan to raise prices next year. >> we were somewhat constrained on the supply-side. we were more resilient than most in that regard. i do think we did leave a little bit on the table as a result of some of the input challenges we had. we feel great about the quarter. 9% revenue growth is a strong number and that is a sequential improv

you -- europe has had a bigger impact on -- as a result of that. in the u.s., it's a different story where we are battling a more hawkish fed as well as higher oil prices. our view is that oil can remain elevated but certainly the big increases are behind us at this point. shery: this gdp chart showing how treasury yields have continued to rise and we are now seeing the greater correlation with oil prices. why is it important that we make that differentiation about what's behind what's happening in europe rising yields and what is happening in the u.s.? marvin: yes. ultimately, when you look at central-bank policy, it will be driven based on sustainable inflation and concerns around sustainable inflation. that's the core discussion of cpi. you take food and energy out of it because it has to have a tax and it ultimately only becomes an issue if it increases at that same pace year after year after year. we are not in the view that we will see oil at $200 which is the type of explosive growth that we've seen continuing. in europe, it's a different st

if europe, u.s. and u.k., if the situation is being contained, we can lower the quarantine requirements. our highest risk category currently is 21 days. if there cases are coming down, we can lower to 14 into seven even. >> but it is up to them. >> we have our own problem. we have to drive up our vaccination rate. we need to figure out how best we can convince beijing we are doing a good job so there is no leakage. we make sure there is no leakage. we are not going to create an outbreak for them to returning from these countries -- it is also to do with where they're coming back from. currently we have only one country, new zealand, that falls into the low risk category. if things are far better contained now with vaccination pickup rates, i think the situation, we will find a way out. >> the olympics are coming up in china. they're going to keep their borders closed. >>>> i wish we had the answers to the whole world needs an answer, what is the end game for everyone? >> before i move on, what risk l

we have seen a surge of litigation, not only in australia but europe to mexico in the past five years. it's just corporations and activists using the course of pressure government. at a time when investors are trying to really understand what this means for the global bond market, four markets trying to factor in the climate crisis. this is a discussion that we will continue to have. plenty more ahead. this is bloomberg. ♪ >> we will have more jobs at higher quality. consumers will have better products, electric cars are better than engine or combustion cars. we can do that in every sector of our economy. we can improve our agricultural systems. we can return the natural world to the fabrics of years ago. haidi: jeff bezos said governments have to be more ambitious when it comes to climate their a effects of beryl for the first time since november of 2014. this comes as the global energy crisis boosts demands at a time when producers are keeping supplies type. joining us to discuss liz -- we have had such a volatile ride. is there any kind of end in sight when it comes to the roller

., he believes that what we're seeing is europe and china switching from natural gas to oil. that crisis putting upward pressure on oil demand that wasn't even in the forecast a month ago. you're looking at brent crude which is now within striking distance of $85. and if we go to the year to date gains for oil and other energy futures, you see that the oil gains are dwarfed by the natural gas gains. and that's really the issue. you got european natural gas up almost 300% year to date. and jurgen says -- and he's a well-known oil historian -- that when you have natural gas and europe at the equivalent of $200 a gallon, even though it's difficult for generators to switch from burning natural gas to oil, it becomes a consideration further boosting demand. jurgen also believes that the u.s. is likely to ask opec to pump more to ease the crisis. any president he says knows that high gas prices not good for incumbents. lastly let's go back into the bloomberg. because coal prices continue to surge higher in china. china's largest coal producing region has now been hit by severe floo

europe was in recession.sion. and china was between 2003 and 2013, you had double 2013, you ha digitd double growth which kept commodity prices verys very high. this was a big boon for emerging markets. and especially many commodity producers. i think apart from the risk associated with, you know, a tighter -- should central banks move to tighter financial conditions, another significant risk for emerging markets ris isk for emerging markets further slowing in china that the chinese slowdown of 2015, 2, when china's growth rate slowed to around 6%, had a bigg hit on e.m.'s and i think one cannot underestimate what further slowing in already an environment where there's a lot of vulnerabilities from the covid legacy. so at the moment, i would say these -- thesee -- these are twn the downside to keep in mindep d when looking at -- at the emerging world which has been disproportionately hard hit by the covid pandemic. from wealthier count parts. kathleen: the taper is pretty well on the table and advertised is that t

or europe. haidi: does that mean they're looking to increasingly bring more work in house? >> amazon has built a robust internal logistics operation. they can transport between warehouses with trucks and increasingly they're looking to acquire their own planes to move things within their network. shery: what do we know about the relationship between amazon and air cargo carriers? >> it's a little complicated. amazon is ups's biggest customer. they don't have a strong relationship with fedex. amazon will say they need all the capacity they can to grow and they still rely on partners and still have a good relationship with them. haidi: matt day there in seattle on those changes that amazon. jp morgan saw dealmaking almost triple. helping the bank beat estimates to just under $12 billion. jamie dimon says the bank will spend whatever it takes to keep up with the competition as it looks to boost its presence in tech. and a 12% increase from the year before, investors raise the revenue outlook for the year ending 2022, underscoring how i.t. spending continues to grow even as the

europe wants to engage china. there is a different view. we need to discuss that. vonnie: jenny's president xi jinping says his country will set up a global innovation center for sustainable transport. he made the announcement to a united nations conference without providing details. he pointed to his country's successes. it is his third speech in less than a month to a u.n. audience on green issues. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: bank of america ceo brian monahan has joined other executives warning that inflation is not temporary. he spoke to bloomberg after the lender reported third-quarter earnings that beat estimates boosted by a record-breaking period to >> the activity levels and what goes on day-to-day is bigger than what it was before the pandemic we can talk about the economy but the actual company has about half the people at work and we are putting that up as we go. we are doing our job for customers at our clients come o

facebook will create 10,000 new positions in europe within the next five years part of efforts to develop a meta-verse. target markets are countries in the eu with u.k. being left out of the plan. facebook has been pushing the meta-verse where you would not just log into the platforms but live, work and play in its digital world. shery: we are seeing kiwi stocks seeing upside this morning. let us turn to sophie on what to watch. sophie: that inflation be this morning striking a reaction in markets. kiwi dollar trading at a one month high. that against the greenback. yields are pushing higher. we are seeing a jump in swap rates as dust swap rates as well. back above that 221 level two a january 2019 high. we have this as the case for a november rate hike. this seems to be happening in new zealand. this underpins for the next two meetings. switching out the board, they have pricing in multiple spots as well as reopening program that continues in australia, prompting a jump in the three year yield to a 20 month high. we have them eyeing that 69 level right now. as we see the curve flattened

we heard about opec failing to meet targets and russia to offset sending more gas to europe. higher commodity prices really filtering in to the inflation debate. take a look at yields at the front end -- highest since the pandemic and we see the 10 year yield headed toward that 160 above level, the gap between a five and 30 year yield at the narrowest since april of 2020, potentially signaling and economic slowdown when you have these inflation concerns and perhaps a fed tightening that might come faster. at one point falling below that 84 basis point level. in february, at that 157 basis point level. if you step back and look at the spread between the two and 10 year, you will see yields remain at wider levels. when you look at the global picture, it's all about the surge in yields. we saw new zealand's inflation accelerating at the fastest pace in 10 years, leading to yields surging higher. u.k. yields also jumping because of that hawkish signal coming from the boe, so that broader surge in the belly really seen around the world. haidi: key to the global economic recovery i

and europe seek to jumpstart talks on reviving the nuclear deal. he hopes to meet senior leadership to discuss nuclear inspections. he describes the situation as fragile since tehran ramped up its uranium enrichment. a washington mansion linked to oleg dara posco -- the aluminum tycoon and his companies were targeted by treasury department sanctions in 2018. at the time, he was forced to relinquish power. a dara posco spokeswoman said they are owned by family members. mobile news 24 hours a day on air powered by more than 2700 analysts in more than 2700 countries. this is bloomberg. haidi: he points to significant excess in valuations and the availability of cash. he spoke at the milken institute global conference about what he wants the fed and treasury to do. >>>> the question is whether we will normalize, and will the fed or treasury take their hands off the economy and run itself, or will they continue to drive it? i think i would like to see an economy that did its thing uncontrolled by the fed. i would like to see naturally occurring interest

europe, the u.s. developed markets behind japan -- japan has not raised rates in years or decades. the trouble the fed has, the real problem here, they are between a rock and a hard place. they are trapped in a very difficult situation. we have inflation that is measured by cpi and many would argue true inflation numbers are higher than that. but it has run at about 5% for three months and doesn't show any sign of slowing down. we expect inflation to taper off into 2022, but so far it has been running honor and some might have expected it would be by now. certainly hotter than the fed had been expecting. at the same time, we have our gdp forecast for the u.s., if we just talk about the third quarter. a few months ago as high as 7%. the most region -- recent forecast by the atlanta fed is down 2.5%. that is dangerously close to economic contraction. so we are talking about the fed tapering and then immediately following with raising rates, when gdp growth is slowing significantly. whether the delta plus, another variant, or whether we get a cyclical slowdown after this massive econo

we are now seeing lockdowns in eastern europe and russia giving rise to demand concerns that weighed on the commodities prices today. take a look at the five year yield because skepticism about inflation is being transitory continues to rise. the five year yield the highest february 2020. expectation for inflation is that it will search to the highest in 15 years. we continue to see a jump in yield broadly. that is making jump on's in the u.s. more appealing. we have seen u.s. jump bonds see $2.3 billion of inflows. we continue to watch the treasury markets. inflationary signals across the market. >> u.s. investment grade bonds on track for their worst performance since the global financial crisis. this is according to strategist at ubs. they're going to end the year at a negative yield. still a ways to go before we hit the 2008 mark. >> it's been interesting how traders are punishing these earnings misses we are seeing on the s&p 500. 84% or so of those companies report earnings beating expectations. a few companies that have missed have been punished severely. we are seeing the aft

and their president's approach to governance between europe and turkey and also between the u.s. and turkey. what we have heard from the u.s. so far is that they asked the foreign turkish minister for clarity on what this means because erdogan said that the ambassadors from these 10 countries including the u.s., germany for example would be declared persona non grata. that requires an official decision from the government that is not been made yet. there is this waiting for the other shoe to drop. the feeling with eric on that -- erdogan that you have with turkey because he can be a very mercurial leader. he does not hesitate to pick fights. that said, this has been going on since the trump administration. as far as the u.s. is concerned. the is this man and philanthropist who is in jail has been there for four years already. this has been coming for a while. kathleen: more pressure on the lire, i guess. china on its latest virus outbreak. compared to other mornings you have heard in -- warnings of hurt in the past, how serious is this one? reporter: the global scale of things, i

and a little while ago, like europe, getting covid under control, but the u.s. with the problem, but now, it is reversing a bit. for a lot of it, covid is still at the center of a lot of noise across countries, across markets, obviously having a deep impact on the situation. until we get the pandemic behind us, that is going to cause ongoing volatility and, in many ways, opportunity. haidi: shane, always great to have you with us, the head of investment strategy at amp capital. crown resorts. found not suitable to hold the melbourne casino license. according to the commission of the casino operator, at the moment, we are hearing that the finding is that crown is not suitable to hold that open casino license there. we will be awaiting for details when it comes to the other findings, but certainly, this is a huge development in the crown situation, being the global gambling empire. a reduced chain of domestic casinos -- whether the casino license will continue. looking at the suitability of their ability to hold the melbourne casino. we will get more details on th

jp morgan mentioned this morning that the worsening natural gas crisis in europe. your today increases so you get an idea of how energy prices have spiked that this will spur so many power generators to switch to petroleum-based fuels that crude will reach 84 by the end of the year and we are seeing alternatives like coal spiking and that is just compounding the prices. shery: su keenan with the latest on the power crunch and those prices. gains in energy prices leading to inflationary concerns. mexico's central bank sees no immediate need for an aggressive rate hike but remains data-dependent as it seeks to fight for price pressures. i spoke to the deputy governor about their efforts to combat inflation that is currently double essential banks target. >> we are in a very difficult and complex contents in terms of the monetary policy. we are seeing a very fast recovery but at the same time, it has slowed down lately because of the pandemic and we are observing globally increasing inflation so it is a moment where we have to be aware about uncertainty in terms of gr

and learned its lesson last winter was very cold and on the on a protracted basis europe and asia. so i think that's already priced into the market. and really i think the only issue will be if it gets very cold very quickly that might really cause that fear factor in the market. but if on average temperatures are -- where they were last year, i think the market already priced that in. shery: what are you expecting in terms of power, energy market changes in china given now the crisis that they face? tamar: yeah. so it's been a perfect storm in china as well in terms of coal not being up to snuff in terms of rapid supplies and issues with the regulatory environment there. hydro also didn't perform. and then they weren't able to get their coal supplies from -- from australia for other reasons. so i think that you heard the announcement they want to secury and at all costs, sthul you will see more -- i think you will see more diversification in terms of what they use for energy and a definite place for u.s. l.n.g. to supplement what they weren't able to make up for from coal. haidi:

the mediterranean and northwest europe. the opec plus cartel led by the saudis and russia opted on monday to continue with gradual production increases. and that triggered a surge in crude prices. australia's banking regulators has raised the minimum interest rate buffer that lenders need to account for when assessing home loan applications. the centralliian prudential regulation authority cites growing risks to financial stability from a booming housing market. it sold -- told vendors to assess new borrowers' ability to repay and an interest rate at least 3% above the loan product rate. moody's investor services raised ottowa look on india's credit rating from stable to negative. ending the threat of a downgrade for a shay's third largest economy. the credit score was kept at baa-3 at the lowest investment grade. that's on par with russia and with romania. the agency says downside risks from negative feedback between the real economy and the financial system are receding. global news 24 hours a day on air and on bloomberg

prices in europe fluctuated and we saw a plunge underscoring how volatile energy markets are. if you look at this chart, russia is the number two producer of natural gas trailing the u.s.. maybe having to go through that nord stream 2 natural gas pipeline. treasuries have also been choppy. there has been pressure in the short and around the debt ceiling deadline. we saw today when it comes to october bill -- bills, the yield plunging after reaching that high of 50 basis points. a potential default with senate republicans offering a short-term deal. this is really not a resolution, it is not a suspension either. it is postponing a decision and it is all about the 2022 congressional elections. haidi: as we get this deepening of bipartisan entrenched disagreement when it comes to the debt ceiling, we did hear from jamie dimon, one of the wall street banks that met with white house officials assaying jp morgan is going to review all of their contracts amid concerns. they will begin monday, reviewing those contracts including ties to repo markets, collateral. there will be huge dem

europe's biggest steel mark -- steelmaker is increasing a surge on some products. sources say some products will be subject to a surcharge which follows a similar move by british steel. a shortage of natural gas has caused prices to soar across europe increasing costs. abu dhabi investments authority and blackrock are among those weighing bids to take part in the listing. sources say the company is planning to raise $2 billion from the share sale. shery: we are headed toward the australian open. let's look at the stocks sophie is watching. >> the bank tied up with visa to weigh into the buy now pay later space. when it comes to minors, where keeping an eye on rio after the ceo gave a start date of 2022 for its goldmine. then a ceo spoke with the possibility that the company would consider operating in tougher jurisdictions if the assets involved are attractive enough. this after a report that they are in talks to buy copper project. this amid the backdrop of the metals and mining industry facing tightening supply after years of underinvestment when it comes to mind

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

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

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

. ♪ 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

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

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

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

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

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

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

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

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

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

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,

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