cannot wait to bring supply into europe. the question is time. i look at it as all the pent up supply in pennsylvania waiting to come this way. it is a matter of time. overly we don't have a cold winter but if we do that will be a bit of a problem. alix: i wonder what positioning is like. bank of america is looking at diesel at 100. lng prices trading at $190 a barrel for brent. our investors and hedge funds guys going on on commodities or staying out? how clean are we? mike: the shorts are getting stuck out. -- stopped out. making the calls typically when i hear that, that usually means a longer-term eke coming in. -- a long-term peak coming in. it happened in lumber, beans, i look at brent staying around 80 and supplies coming back and u.s. shale coming back and curtailing demand. we just hit and now there will be a gap in the way down and it is a question of how high it goes and that is the hard part. amanda: one piece that is different is china saying secure your energy supply at any cost. how does that factor in? mike: it is amazing how chin

or europe. and the advantages and this case of being swiss is you are not a flashpoint in terms of your nationality as a company. mission-critical technology has had a lot of research which differentiates you from your competitors. anna: what is the long-term structural trend you are investing in at the moment? eleanor: for us, that is going to be a continuation of focus on health care. and more personalization of health care. that means we are of the crowd that considers the diagnostics growth will be refined. we also look at the restrictions in the capacity for manufacturing pharmaceuticals. we think that is going to be continued strong growth for that sector. other sectors, we are interested in seeing how some of the challenges of trying to make the planet more green will play out in some companies. some companies have had a disappointing year. we still think there is a long-term positive trend for hydrogen. tom: eleanor taylor jolidon on some of the themes to be considered. she will stay wit

and europe's. those are the issues, but unquestionably, there's regulatory risk in china. they don't have the rule by law set up we have in the west. they are coming up with the laws today and doing the rule of law, but they don't have a structure for how to deal with these companies, the profitability of these companies. that is happening on the fly and is messy, but if you look at that, a lot of that is price standard. the same asset in china relative to the u.s. is at a 40% or 45% discount. maybe that should be worse. our point is, you are still better off having a diverse mix of assets with chinese assets. that has always been the case. stephanie: the bond market has certainly done well. the wild card, which could overturn the analysis you've given, is this potential for u.s.-china relations to deteriorate. you've got the chinese authority discouraging chinese companies from listing in the u.s. you headed the comer secretary gina raimondo saying the u.s. needed to rally its allies to slow down china's rate of innovation. this feels like potentially a difficult situatio

corporate america, corporate europe, or finding themselves largely at a negative real yields, and, by the way, there were so much money in the private markets now, they are waiting for an industry or company to go through restructuring, so they can step in, so recovery values are coming out at 100 cents on the dollar, a golden era for investing corporate's. i would love to buy yields at 8%, it will not be there for quite some time. jonathan: winnie, is it a golden era? >> i would say it is in terms of fundamentals, absolutely. all of those things that bob highlighted are spectacular, but, does that come at the expense of the long-term? if we have ultra low borrowing costs at negative real yields, does that mean you're going to start borrowing, may be private transactions, although degradation of corporate? at 2% ig and 4% high-yield, it is not feel like a compelling table. you cannot argue with the sidelines. that is a reality, and corporate credit right now a very significant cash practice for a lot of investors. in that scheme, i much prefer high-yield investment grade. at least the

sonali: i'm glad you brought up that point about europe paying more. where does that leave the u.s.? especially on something like gas, where you see there is more production. but perhaps less in terms of what people are willing to pay on the demand side. fiona: the u.s. is pumping out natural gas like it never has before. a lot of that additional gas is actually leaving the country as lng. and natural gas prices, the index up a bit over 100% year to date. that compares to prices here in the u.k. which are up 300%. it is still a big increase. but i expect as we come into the winter and the heating season, and with stockpiles where they are, we could see increased pressure on the u.s. natural gas pressure -- price. caroline: having to have the country send the army in to petrol stations, that was a logistical nightmare because there are not truck drivers -- not enough truck drivers. is that something unique to the u.k.? how are things delivered everywhere and how will we see the infrastructure being improved to support that? fiona: it has been a logistic

it targets much of europe, poland, italy, but the u.k. will miss out. facebook is expecting a record level of advertising during the upcoming holiday season, despite supply chain challenges. a look at booster shots, we're joined by the moderna ceo stephane bancel, for the latest news on when that authorization is happening. how much vaccine they will produce over the next year. so much to talk about. this is bloomberg. ♪ emily: welcome back to "bloomberg technology." i am emily chang in san francisco. booster shots are the topic of every day. almost 9 million americans have gotten a booster dose of the pfizer vaccine, the only booster authorized by the fda. for the other two vaccines working through the regulatory process, booster shots are likely to be available for some people soon. i want to bring in the moderna ceo, stephane bancel, for an exclusive interview from the health conference in boston. thank you for joining us. let's talk about the status of that authorization. what have you heard on the timing from the fda on the authorization for the

. ♪ 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 europe. also, technology is mostly in europe and the u.s.. jonathan: if we get anywhere close to zero, this is what is going to happen. they will call you at about 8:35 eastern time to pick up the phone. if we get nowhere near it, we don't talk to you again. tom: jon. we are calling it 8:31:30. lisa: people still talk to you if it is not zero. someone has got to be. jonathan: thomas, thank you, sir. tom: pray conversation. jonathan: looking for zero, tom. tom: i did what are the stupid fools one-time. -- pools. i have never done it since. jonathan: why did we stop doing that? tom: it's stupid. lisa: he got crossed every time. -- crushed every time. tom: 200,000. 400,000 divided by 150 million. i'm doing math or radio. jonathan: i'm going to help you now. lisa: there is a debate underpinning this company pitches a patient rate. -- underpinning this, the differential between the bearish view and thomas's more bullish view has to do on the tightness of the labor market. i find that fascinating. jonathan: the unknown. equity futures this morning

is it possible that europe could see rule changes to encourage even more green investment? for example, precluding green spending from that ceiling rules? hans: there is a huge discussion coming on. it will be a paper put on the table this month by the european commission, and there is a huge discussion going on about green investments and what you can do to induce them, to make the rules so flexible. this is a careful balance to be taken. you don't want greenwashing, so you don't want investments which are really great to be green washed. on the other hand you want to make enough space for green investments that are needed. this will be huge, the discussion in the union, i think. matt: it is a great point about greenwashing. when i think about an international fund, which the netherlands supports, tim help developing companies -- countries make the green transition, it feels like there might be a greenwashing pitfall ready to happen. is that a concern? hans: i think the whole goal to transition totally, overstates, everything else, but if you look at the rules for countrie

and europe. they are also betting on the adoption of wireless 5g technology, which will compete with eric's and nokia, and while wa -- huawei. >> i wanted to ride on the new wave of the new market. that means the open markets of 5g. yvonne: working capital management is set to be planning an asian based spinoff that could become one of the biggest hedge fund firms of 2021. it will be run by -- partner and have more than 3.5 billion dollars in assets under management. david: let's take stock, if you will. looking at the markets. the reason we are doing this, japan going into the lunch break. it entered a correction yesterday. have a look at the common dominator between these markets. look at japan, the chunk on i.t. the kospi also took a quick chunk -- big chunk. taiwan, also a big chunk exposed to tech. if you are long these markets, you are by virtue long tech, and probably not performing well. yvonne: it is interesting the change of fortunes in a north asia. it seemed the first part of this yea

as well, and you can do some trades in europe to add to the value tilt. overall, we don't think you should be tilted one way or the other in more of a barbell. everybody uses it, but the truth of the matter is this year, the market doesn't reward you for being overweight value or cyclicals. it really was a monthly or even quarterly story, and i think as we move into the second quarter of next year, those supply chain issues are going to lessen. commodity price spikes come down, and when that happens, you are going to see the flattening of the yield curve, and you are going to see increasing growth and a lowering of inflation. so you want to be prepared for that, but you have a short-term where inflation is moving higher as inflation expect haitians are moving higher. you have to get through it. we think by the second quarter, these supply issues will start to come down. again, commodity price spikes don't last. tom: if i wanted -- jonathan: if i wanted a call option on a better supply side story, what am i doing here? is it true industrials? where do i ge

why, because the world economy is doing reasonably well, europe is good, a lot of these countries had severe covert problem which is getting better now. so i think x china earnings will be very good. rishaad: you say we have been living in a disinflationary world. you are absolutely right, nothing last forever. with various chart showing how china produces the factory gate prices that are so correlated with u.s. cpi, they are intertwined in effect. what you say to the prospect of that huge leap up and china's producer price numbers in their inflationary impact in the u.s.? you can't ignore that. >> i don't think we should ignore it, but all that chart tells me is the cycle that's correlated. to me, those charts look peaky. it's a very service driven economy. it's not a widget driven economy. so prices are probably picking up, but the whole concept of commodity prices are going up so inflation should pick up, it's a 1960's view of the world. our market intensity of the stock market has dropped dramatically to report -- two or 3% of various indices. with the service economy consumes his

eoin: it is a complete mixed bag in europe. you have german producer price inflation figures that are as high as bloomberg records go back i believe, back until 1967. 10-year inflation breakevens are not reacting, they are still below 2%. and in france and in italy, you have far more significant problems and a lot less room to maneuver. on the back of the biden announcement earlier this week, this is an interesting juncture for europe from a political perspective. it will be fascinating to see if it will be held together over the next couple of years. francine: what does this mean overall for where you see investment? if you go back to inflation, this ties in with the bmi number . does it filter through real inflation? the japanese experiment did not work out before but it seems to be this time. eoin: i think the central banks are still trying to tell us that we should expect inflation to be temporary. a appear to be acting that way. the bank of england was the odd man out a little bit. but remarks overnight from the chief econ

is it a real sign of support for the tech industry in europe? what are you seeing in europe that you are not seeing elsewhere? nicola: the jobs are a mixture. highly skilled. engineering, product jobs and associated business functions. europe is a fantastic bed of talent because of the universities. that is why we are excited to do this announcement. this is over the next five years. we will start recruiting before the end of the year. we are also interested and have explored what it means for how people work. not all of these jobs will be requiring people to come into the office. they can be in different places. or different countries. francine: apple and google are killing the ad cookies. what does that mean because of your advertisers? do you have to work extra hard to keep your advertisers? nicola: as a company, we face a lot of competition from different tech companies. we have seen the changes that apple has made particularly with ios 14. some businesses are navigating the changes. we continue to make sure we adapt our system to help busin

, vis-a-vis asia, europe, in em. rishaad: it is interesting, you point out several reasons to be overweight tech, including government spending. we have also people indulging in more capex. industrial automation, health tech, too, on the floor. give us a sense of where this all goes. >> the pandemic really kind of exposed many countries to the vulnerabilities to the global supply chain. between china and the u.s., it is not how much i export and import but really about who has the edge on technology. i think the beneficiaries would be semiconductor companies. everyone is investing. it comes also in my town, my country, so i think it is another kind of catalyst or tailwind for the technology sector. yvonne: is china tech part of that story, too? talking about when it comes to asia, we continue to see we are off something like 44% from the peaks we saw in february. are you seeing much upside now? >> i think the regulatory changes in china have created a selloff. big names like in china have fallen, like, 50%. until we

this is bloomberg. ♪ >> the countdown is on in europe. this is bloomberg markets: european close with guy johnson and alix steel. ♪ guy: friday the 22nd. bank of england's new chief economist warns that inflation could reach 5%. germany's case count climbs sharply. it today was the largest one-day jump in months. russia's surprise 75 base point height, sending the ruble higher. on the day though the stoxx 600 is up by 6/10 of 1%. we are watching what is happening in russia, an indication of

that we've seen in asia and europe? you are a huge supplier of natural gas. can you give us insight? pierre: supply and demand can get out of sync. we saw demand decline rapidly last year and increase rapidly this year for natural gas and products and supply cannot adjust as quickly as demand. the markets are rebalancing and we expect they will rebalance over time. we have a great natural gas business in the u.s., australia, and africa and we are well-positioned. we expect the markets to rebalance over time. alix: i'm sure that you knew this question was coming. you have shale wanting to break up the company, the legacy oil and gas business versus lng and the renewable energy business. chevron and axion are going different ways than the shells are in the energy transition. what do you think about calling for the breakup of big oil? pierre: we are in a different place than everyone else in the sector in terms of our track record, returning cash to shareholders, proven capital discipline, the balance sheet and strategy that is clear and consistent on delivering

an hour away from the start of cash equities trading in europe. we see that positive session in asia. you will have more on that in a moment. these are the futures in europe. a bit of a holding pattern but with a slight downside bias. let's show you what the u.s. futures look like. perhaps we are, as a u.s. market suggests, in a bit of a holding pattern waiting for that jobs report. we have had progress on the debt ceiling, even if it is it kicking the can. it is a short-term progress. we have china in the fray and stimulus talks taking place in japan. mark: the gmm is really interesting today because superficially, it reflects that positive mood. you look at the equities column and it is all green. china, japan, india leading the gains across equity markets. look at that commodities column. everything in commodities is up again. oil prices are rising again, up towards those year to date highs. that's driving everything higher and that's a risk for markets. we are concerned at the pace which commodities are rising. dollars slightly stronger, asian

and europe lose economic clout. how do you get more economic clout for the behemoths like china, especially with the credibility gap increasingly growing among policymakers. later, we get the fomc meeting minutes. when did they start tapering the monthly bond purchases? it also has to do with the rate hike idea. 2-year yields at the highest level to have been since the height of the pandemic. despite the fact that transitory is a dirty word, despite the fact that treasury secretary janet yellen says it is in effect, and this is transitory. jonathan: the atlanta fed making headlines yesterday, lisa, thank you. tom, what is in store in washington? tom: damage control at the imf. they have been doing this for decades. it is not going to jump the shark. it is a different meeting. yesterday, all eyes were on the managing director and how she is going to come out of the uproar that she has had at the world bank and her 90-day tenure there a number of years ago. i will say, jon, the jury is out. jonathan: looking forward t

shares continue to fall as the social platform's whistleblower meets with lawmakers in europe and the facebook oversight board in the united states. what this could mean for consumer trust. everyone is talking about it. "squid game," the south korean phenomenon, makes waves and could be the biggest original hit for netflix. why foreign films could be there streaming service's secret weapon going forward. we'll get to that in a moment. let's get to the markets. kriti gupta, welcome. kriti: carolyn, thank you. a lot of red on the screen today. if you look at the numbers you wouldn't think the day started that way but it did. you saw tech outperforming for most of the session. until the last 30 minutes, a nailbiting last 30 minutes until apple, amazon, microsoft dragged the market down. look where we wound up. the s&p 500 down 0.7%, the faang index down half a percent, taking related even some of the chinese adrs, flat on the session. they actually wound up doing pretty well during the entire trading day. i want to show you a terminal chart. one of the highlights of today was a pretty in

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

what would he be speaking today if you weren't leaving for europe? hard to say. lisa: hard to say, or no. this is the issue, all of these false deadlines that have been created. kailey brought up the progressive wing. does it at the senate, does it get the house to a vote on bipartisan infrastructure, which really a lot of people say is the main goal heading into year end right now? josh: and heading into this weekend, where funding measures are set to expire if there is no deal on infrastructure. at last count, no. progressive has said they will not take they will take a framework or deal in lieu of an actual vote, and they are not going to let the house bill go forward on that interceptor bill until they do, so right now, these two are locked in tandem. whether they both get off the ground remains unclear, but biden will try to give it a boost today. lisa: to dovetail this into the question of the audience president biden is speaking to, there is the domestic audience and the international audience as well heading into g20. is the united states united? how much

bob: we have been focusing a lot on energy prices in europe, the jump in gas prices in europe. i think we shouldn't forget that gas prices in asia have risen to higher levels than those in europe. you know china, which has been scaling back on coal production is now facing an energy shortage. so, in response to that, we have seen this announcement that coal production has to be ramped up again. that has serious negative implications. but does china have any alternative in the short term? the answer is no, but i think it does accelerate the investment in alternative energy in china. china has got a serious energy problem here. this is a short-term fix. it is not a known long-term fix. tom: switching focus to the u.k. . the rally has peaked out. there are questions about stagflation, questions about sterling. what is your view on assets in the u.k.? bob: well, i think the first point to make is that the ftse very much fits into the category of a lagging market. this is a very cheap market. i think the first point to answer your question is that it is discounting quite serious neg

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,

to europe. at the moment they are using existing capacity up to just how much people would want to supply. what we think is if they use all their capacity and they certainly have the gas for it in the winter is relatively normal in europe, we do not think europe will have an issue in meeting demand. the question is whether the winter will be called. that is a different outcome. guy: what is the best case and worst-case scenario for europe? massimo: the best case which is the normal weather condition across europe and also across asia. we think under that condition the market should end the winter in a situation where storage will be below a normal winter but still in a relatively comfortable position. if you get a cold winter in your -- in europe and a cold winter in asia, that could reduce input -- imports to europe. additional demand for the winter in europe and less energy imports. that is the worst scenario. that is only additional russian gas that can save the markets. alix: that is the wor

the europe has -- europe has pulled back just a fraction. what we have seen a break in movement, technology shares. tom: absolutely. yesterday, chinese technology stocks listed in hong kong remaining closed. they hit a record low. today, there are gains. in terms of technology shares, we are seeing some fairly solid gains for big companies. the video streaming company is gaining more than 8%. what we have not heard from regulators are any new initiatives when it comes to the swedes on technology. this is likely -- given how the stocks have fallen low yesterday. some gains across the tech space in hong kong. anna: there are the hong kong listings, we will keep an eye on them as things open up in china. sticking with china, president joe biden is planning on holding a virtual meeting with china's president. before the end of the year. on the agenda, trade and rising tensions over taiwan. secretary of state antony blinken has criticized beijing's actions towards taiwan saying they are provocative and destabilizing. he spoke to bloomberg's franc

supply chain in europe. the second thing is the labor market the other element of the inflation equation. the labor market has been quite sluggish. they were asking for 5% rate and it looks like it may not go through. you've got a lot less pressure in the ecb, the economy came out behind the u.s.. they will watch with the fed is doing. >> talking of inflation into labor pressures, we have caterpillar earnings crossing the terminal. they beat it by 2%. i'm looking through the press release and they talk about manufacturing cost because of higher labor costs, higher material costs. they were able to offset that or withstand it to some degree. have we grossly underestimated the ability of companies to do that? >> i think that is a company by company decision. you have rising costs on one side and i think we are overly focused on those rising costs. companies can handle rising costs. i think that's what you are seeing with caterpillar. they had those rising costs. what construction worker doesn't want to have a

david: you grew up in various places in europe, the united states. then you went to the college of smith. phebe: yeah. david: did you study aerospace defense? phebe: [laughs] no. david: what did you study? phebe: i was a government major and philosophy minor. i got a superb liberal arts background and education. so i learned to write and think in college, two critical values. david: most people that graduate from smith probably do not wind up in the cia, would be my guess. phebe: most yeah. david: when you were interviewing for jobs at the end of your college career, did you tell people, i want to be in the cia? how did you happen to get in the cia? phebe: i had a sense of service to my nation, and it seemed a good place for me. so much in life, as you and i have talked about before, is finding place. and the agency was opening its doors to women, so it was a good opportunity for me. and i really enjoyed the service i was able to provide. david: how long were you in the cia? phebe: about four or five years. david: were you a cia agent, a spy, underco

in europe, they asked the coal plants to come online. in indonesia, the dirtiest coal price has now stored. matt: we make some of the dirtiest coal here in germany, or mine it. we have also just finished a huge pipeline, the nord stream 2 pipeline with russia. is this good for vladimir putin? is he able to take advantage of the situation and make more money from his gas? alix: he already is taking advantage of it. i think the real way that russia will win from this is -- europe was transitioning to more of a spot market so it would buy lng on the spot market versus long-term contracts which is typically 10-20 years. the reason why the suppliers like long-term contracts as they lock-in nice and juicy prices and use the money to build facilities and supply the gas. in the spot market, the suppliers do not get that easy money basically. so one take away from this is you have to lock in the longer term contract --s. maybe not 20 years -- longer-term contracts. maybe not 20 years. maybe five or 10. that is where a country like russia could re

let's talk about the gas price in europe. there is all kinds of factors and it's hard to get a sense of what's happening. what is your assessment of the picture, is the market overpricing the demand story and the supply story and how much russian gas we will get? are we at the point of maximum pain? >> for gas we would say so. we are constructive on oil but also on natural gas. this is not so contradictory. the gas prices rallied so much more and gas is so much more expensive by any metric. inventories are low that has created a degree of concern in the market. we would say they are not so low that it would really threaten outages even in case of a cold winter. we are very close to the level where natural gas prices in europe is sufficient step over the last couple of ways, they are filling in at better rates. there is some demand destruction taking place even today. it is also our expectation that once russia fills up its storages, more supply from them will be forthcoming. alix: what's the potential downside if we are almos

in the europe -- in europe, gaining 0.2%. we are looking at infineon, the chipmaker expects another left to revenue profitability as it benefits from strong demand for semiconductors. dani: i'm checking out the oil majors. this civic sector story. you have brent crude above $81 a barrel. wti hovering around the highest since 2014. it stands to reason that in terms of what sectors outperform, we could see some of those big oil companies, royal dutch shell, bp, total, there is a lot to choose from. tom: in terms ofpeople's favorite sandwich choice and sausage roll stock, greg's. indicating momentum. investors raising it to buy. earnings estimate of 6.5%. that is the u.k. chain of sandwiches and sausage rolls. dani: for what it's worth, vegan sausage rolls, not that bad. i will have one again. we will see if it does move on their earnings. futures pointing slightly higher. we are going to have the open for you next. this is bloomberg. ♪ dani: a minute to go until the start of cash equity trading. i'm dani burger in london alon

can london beat the green finance capital of europe and the world? david: i think there is a real -- we heard clearly from the prime minister real sense of trying to spur on in this economy an opportunity to create less regulatory structure and more incentives to spur more of that investment. i am optimistic the u.k. will play a part, but when you think bradley about these issues, this is global. it is particularly so in the developing world. we are going to have to help get capital focused -- focused on the technologies that can move this transition. francine: china, exciting news from global -- goldman sachs. how committed are you to china? david: we take a long-term view. we take this view largely in the fact that we have many clients that have been doing business in china for a long time. they want our support. we are extremely pleased that after a long period of time we have ownership and control of our joint venture in china. we have a long-term plan to continue to grow in china. we have recently announced a joint venture. no question that the

the countdown is on in europe. this is "bloomberg markets: european close" with guy johnson and alix steel. guy: monday the fourth. 30 minutes to the european close. what you need to know out of europe -- markets are down. let's talk politics. the u.k. chancellor says his government will not pursue reckless borrowing, but with the economy hit hard by shortages, is growth already starting? we will be live. the energy crisis dominating the energy financer -- energy ministers meeting. and also a warning that the airline industry will lose up to $200 million, wiping out nearly a decade's worth of profits. let's talk equities. gathering

energy prices in europe have extended their blistering rally. the regionwide supply crunch showed no signs of easing, and that has prompted the european union to promise swift action to protect the economy. dutch and u.k. natural gas futures have jumped 60% in st a few days. in hong kong, chief executive carrie lam has outlined plans to develop a border with china into a major metropolitan area. more than 9000 homes would be built to ease a housing crisis. lam wants to develop the area into an information technology hub. on monday, snape saw a 23% boost in time spent on its android app, compared with the same day the prior week. telegram and signal also reported a big surge in usage. 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. i'm ritika gupta. this is bloomberg. ♪ sen. warren: i can't support jay powell for riemann nomination -- for renomination. my view is he ends his term, we put somebody else in his place, and i think the fed will be better of

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

alix: here is everything you need to know from europe at this hour. it is pub time time. alcohol duty rates are cut for lighter drinks. germany's growth scare. the company downgrade its growth cast to 2.6% as the company is squeezed by raw material shortages and rising energy prices. we will speak to christine mcwilliams. analysts say the results from deutsche bank were reasonable while still searching for the growth driver for the bank. in the midst of these headlines, noris moves in the bond market in the u.k., spreading to the u.s. and has now catapulted with the bank of canada being more aggressive with their rate hikes at the front end of the yield. francine: the u.k. budget, a lot of earnings, and inflation concern. central banks around the world will be hawkish. this goes back to supply chains but the bank of canada repricing not only the loonie but a lot of bonds we are seeing across the world. i was looking at the german 10-year yield because it is a little symptomatic of what we heard in germany. downgrading their overall forecast for growth. stoxx 600 down .3%.

>> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: tuesday the 12th, 30 minutes of the close. -- 30 minutes to the close. the eu debut green bond issuance producing record demand. 135 billion euros worth of orders. will rising energy prices knock the sustainability target off course? we will talk about that throughout this hour. u.k. brexit minister lord frost has been speaking within the last few minutes, indicating that he things do northern ireland protocol is broken. he thinks that we now need --

i think europe overall has lagged in its recovery coming out of covid. i think people underestimate the strength as we come out of this around the world and i think it will be positive for growth but challenging on the cost and inflation sides. i would be remiss if i didn't get your opinion on the energy crisis. the idea that as we go into this green energy transition, there are some problems that weren't really addressed or known. opportunity or risk? >> both. the good news is we are investing less in hydrocarbons exploration and production. the challenge is for society, that means we rely on hydrocarbons for 90% of our energy today and as we bring supply down we have to bring the supply of renewables at the same pace and we haven't done that. part of that is technology related but part of that is our own regulatory framework. we got approval to lay of the 340 mile transition line that will provide enough energy for million homes in new york city. it has taken us 12 years to get selected and approved and it will take another four or five to build and i

. ♪ >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. guy: tuesday the 19th. 30 minutes to the close. boris johnson unveils his plan for green britain, but tells bloomberg that tough negotiations lie ahead. russia says europe won't get extra gas until it gives the green light to start supplies via nord stream 2. what does it tell us about the winter ahead? the warnings on supply chain shortages continue as the european it earnings season rolls on. let's talk about where we are right now. we are bouncing off section lows -- off session lows, up 0.3%. the recovery has been fairly

and europe, so i wanted to look at that. the yellow line is natural gas prices in euros. the white line is coal prices. you talk about how coal is expensive but nowhere near the six times increase we have seen in natural gas prices. even carbon permits have barely budged in comparison. let's look at some of the longer-term effects of these soaring gas and power prices. at this week's bloomberg invest global conference, we talked about the fact that these high energy prices are here to stay. >> high energy prices, high fossil fuel prices is not necessarily a bug of esg -- >> accelerant? >> by design. you will promote transition to cleaner energy. while not the cause here, when we look forward, this will be the new norm where you see spikes in energy prices, something that we have to get used to. alix: joining us now is a bloomberg analyst covering natural gas. if we have to get used to these prices, do we run out of gas? >> great question. there have been fears of the u.s. running out of gas over the last couple years. the short answer is, no, the u.s. does not run out of

we have seen pullback globally in asia and europe. there are ipos that are not pricing or delaying the deal, but we are also seeing deals coming forward. so the activity is not as strong. -- bake off activity is not as strong. caroline: i love that you worked in bake-off. romaine: at some point they usually come back to the table pretty quickly once market conditions improve. is there a general sense that the longer-term outlook for a lot of these deals is intact? >> the pipeline is still very strong. the deals that have filed and the companies that have hired banks, there are so many, we need more than the remaining quarter to go through. we are seeing some deals facing challenges, but there are even bigger deals that are still in the market waiting for investors. we are still seeing activity. it is probably like pullback on valuation. caroline: you are going to get your deal done if you're committed. are you having to reduce what you previously put on? >> the discussion with investors is more difficult, they are getting more selecti

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:

francine: perhaps --erik: perhaps europe moment has indeed -- europe's moment has indeed come. thank you for joining me. that is anne dias, ceo of aragon global management. i'm erik schatzker. this is bloomberg. ♪ john: it is time for the bloomberg business. i'm john hyland. pent-up demand for the first u.s. bitcoin exchange traded fund has driven assets in the investment vehicle to more than $1.1 billion in just two days. the proshares bitcoin strategy etf ended wednesday with $1.1 billion under management, according to a press release. data shows that it the quickest and etf has reached the $1 billion mark. oil dropped amid a broad-based intrigue -- broad-based retreat in global commodities. the structure of the u.s. crude market was soaring as stock aisles continue to drain at the hub in cushing, oklahoma. there had been talk of global oil hitting $100 a barrel. that is the bloomberg business flash. alix: thanks so much. and speaking of commodities, today is "commodities edge" day. we will talk about the oil market. so, i will talk to mark mcguire about the company's new d

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

(engine revving) guy: we are coming into the close in europe. things not particular pretty but better than the united states. technology is the laggard. a big impact on the dax. names like infineon and delivery hero acting as a break on that market. the cac 40 down .6%. the ftse fairly flat. energy stocks doing fairly well. brent crude up nicely. the mining stocks doing relatively well. it is insulating the ftse from the wider market mayhem. let show you what is happening in terms of how we progress. we've been rolling over quite sharply. you can see the effects towards the back end of the session in europe. that is the move out of the s&p. we have been tracking sideways but not by that much. we are on the precipice. we are not that far away. in terms of assets affecting their their -- assets affecting the narrative, the pond -- the pound responding sharply. we have seen an earlier move in u.k. net gas fade, but we are seeing brent crude very well bid. 81.60 on the back of what is happening with opec. you wonder whether the sale will come under

how will europe approach this? will there be any conversation about this at this finance ministers meeting? maria: there are two things -- one is that this is about the european economy picking up. it is a demand and supply issue. russia has been running a tight ship. this is still a very political story for the political unit especially when you look at germany and the nord stream 2 and vladimir putin. there are calls in europe that there should be less dependency on russia. when you look at the green transition as we switch from fossil fuels into the greener economy, there are concerns at this is showing some of the limits of this transition. the transition costs money but perhaps we need more time. it feeds into the debate. can we reach the targets when it comes to green and should europe be more diversified, maybe even nuclear when it comes to energy mix? francine: thank you to you both for joining us. howling in london and maria tadeo in luxembourg. jobs paid on its way. a jobs plan as a country faces a cost o

as well as europe more broadly. the central bank in europe, the ecb and the bank of england, maybe not quite as dovish, but generally speaking still on the dovish side, has allowed real interest rates in europe to remain extraordinarily low. contrast that with what's going on in the u.s., with real interest rates having risen, we are seeing this decoupling that we have been expecting between real interest rates in the u.s. and those in europe. the investment buyer meant -- investment environment in the u.s. looks more attractive from an interest rate and growth perspective. those factors do raise the attractiveness of the u.s. dollar as a currency with which to ultimately put your money to work in. we think that's why the dollar has been appreciating of late. jonathan: that raises some questions about how any move to the upside would be on 10 year yields in this market. in terms of foreign participation in treasuries. your thoughts on that currently? matt: i think all year, we have been expecting interest rates to r

announcer: the countdown is on in europe. this is "bloomberg markets: european close" with guy johnson and alix steel. guy: monday the 11th, 30 minutes to the close. what do you need to know out of your? traders betting the bank of england will hike by the end of the year. over the weekend, highlighting their concerns over inflation. we will be joined by the ceo to talk about the partnership and returns scaled down. it falls out o

we save the world and world war ii and rebuilt europe on $4.7 trillion. we have spent $5.4 trillion and we will have a heck of a lot more. dani: that was senator joe manchin with david rubinstein. it is interesting to see how the next few days pan out and also we have earnings from alphabet, microsoft and then deutsche bank tomorrow. it has been a really busy 24 hours. dani: we have u.s. durable goods and there is so much out there, a lot that can shakeup the markets. coming up, senator sherrod brown will be joining "balance of power." this is bloomberg. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an

europe is leading the regulatory charge. i had a chance to sit down and talk to a leader in this particular area at bridgewater. i was speaking with the coat cio of sustainability at bridgewater associates. take a listen. karen: i think it's fantastic. you get the interplay between investor saying they want to move in this direction, and before you know it, the tools proliferate. you can have a million people asking me through a million reports, it's got to be consolidated. how do we make one standardized thing? what is fantastic is that it's becoming clear, it is a feedback loop, reporting on them, caring about them internally, and in particular, europe has said were going to speak broadly about social and environmental issues. i think that's the way of the future. caroline: when you're looking at the investment opportunities out there when it relates to sustainability, is there enough transparency out there? are there things that can make a real impact? karen: the data today is radically better than it was two or three yea