the other, let's not forget europe relies in a very big way, nearly 1/5 of europe's energy comes from renewable energy. based on climate change, which remains front and center, we have had a number of renewables sources such as wind and solar power that have essentially not been able to fill in that gap when it was needed the most. so that again beckons the call for more infrastructure, more technology and infra-structure investment. guy: how do you play that? in my buying investments? how do i actually play that story? aneeka: the interesting way to play it is actually via battery technology. the companies that are really focused on infrastructure into the grid, whereby you can actually harness and store renewable sources of energy, and then release them when and is -- when it is most required. the third way we are trying to play the new narrative egging place in the markets is via high dividend paying stocks. right now, given the fact that we've had a better-than-expected adp print, investors are cementing the fact that they are very likely to see the fed taper next month. now inves

kind of gas in terms of the volume europe once if europe agrees to long-term contracts? maria: all current -- has its own electronic asked platform to supply on a spot basis. the position of gas promised to supplies in the long-term contracts is understandable. have the predictability or our investment decisions. for emergency, russia will be ready to supply additional gas volumes on a spot basis. guy: in terms of the risk for vladimir putin, there is a perception that he is taking advantage of a difficult situation. he is saying europe is to blame but nevertheless the perception is he will take advantage of it. is there a long-term risk in pursuing this? i'm wondering how you think europe will be seeing what is happening here and thinking about how it uses different forms of energy, does not rely on russia. what is the long-term consequence of what is happening? maria: starting a discussion about gas [indiscernible] the gas supplier for the european market. [indiscernible] the market is almost 50% of worldwide cash trade. all of the additional volumes trade on a spot ma

you end up with all of these strange dynamic swear in europe, -- strange dynamics where in europe, europe needs investment in industrial batteries to increase storage of electricity, but europeans won't buy those in asia because the factories that produce those batteries are powered by coal, so you end up with a shortage of batteries in europe, which means you can't have the electricity you need to power electric vehicles. so there will be sequencing issues where if you take the purest approach where you don't want to have any exposure to coal, you don't build the infrastructure you need to allow this transition to happen. i think that is a challenge which we are in right now, wher it ise a sequencing issue. you do need a lot of energy to transform the system to a new one, but how do you power that transformation? renewable alone won't be enough to do that. alix: how do you make money off of this? bilal: the way to make money is to understand that in the end, paradoxically, there will be a lot more demand for fossil fuels then people would initially anticipate. there has been chronic unde

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

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

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

that 4% inflation figure is for europe. the market does not leave it when she says she will not increase rates next year. this is the breakdown of the markets. i want to show you what europe has been doing. we are almost at a record. focuses on what we saw in the last couple of days. there are about 1% from the record high after 4% in october. i know in terms of the industry groups, we have some of the other ones. we have insurers, zero point 5%. insurance and banks, you will see technology stocks. this is on the back of amazon and apple. we thought this might grow under pressure because they do some of the things that are used in some of these big technology companies. this is a big bank here in the u.k.. they came out same they were disappointed on the fee income. they are worried about some of their markets and how they will perform in the future. the other when we are watching out for is -- they came out with some encouraging figures. this is the maker of ray-ban. i don't know if we will buy sonny's to go anywhere becau

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

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

they could do that in europe. the chinese starting in expects -- an inspection of regulators and state banks. to try to root out corruption. we had a number of news lines out of china. tom: that one is important. the arm of the government that is pursuing this is very powerful. it is going to be looking at state owned banks and financial businesses within china. the other line we are hearing from president xi, flushing out a little bit their plans around carbon neutral by 2030. that is the overall aim. he said they will also illustrate unpublished plans to various different industries and sectors of how they are going to meet those goals. that has been something people have been waiting for. we don't have the details yet. the other announcement from president xi is that they will have a 100 gigawatts renewable energy buildout in the desert. fairly major in terms of wind and solar. anna: looking for more details from countries all over the world on their national plans and what they are going to commit to. that is

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

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

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

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

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

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

is getting squeezed is energy prices in europe. you have russia withholding additional gas supply, sending gas prices through the roof again. we are waiting for the pipeline from gas diplomacy, how much will they be sending next month into europe? >> they seem to be dominating the european gas markets. the gas year to date output and secondly is a precipitate in the november monthly auction for sending capacities to europe. so far this month, production has hit nearly 95% of peak winter capacity demonstrated last winter. everything is tied to experts. it is at least through thousand 14. just a fraction of the capacity. it declined additional capacities to europe. where are the extra cubic meters going? they are staying at home. it is giving the priority to the domestic markets to serve domestic clients and feeling the domestic -- fueling the domestic gas inventory. guy: it puts more pressure on european regulators. thank you. ventas winning us on the energy story. -- thank you for joining us on the energy story. we are looking at w

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

guy: one cannot diverge europe from the other. in the short-term europe faces a number of different challenges. france still relies and imports a lot of russian gas. france and germany imports even more. what is that leave europe and european security? france has made a huge bet on nuclear, tumor and he walked away from that -- germany walked away from that there is a patchwork in terms of energy need and demand. particularity if you are putting a green light over that parent europe relies on russia. tough place to be. alix: takes the reins? macron is trying to do that to some extent but elections are coming up that will prove difficult. germany working on their government with merkel stepping back. who is going to be that person to unite and lead? can macron and schultz do that together? what if he does not win? there are political relays that are going to make things more complicated to get something cohesive done. guy: there is a name you are missing which is mario draghi out of italy. he is not elected. does that change the na

guy: what does that mean for europe? europe relies on russia for energy, china for experts. what does the situation look like for european growth? freya: it is a combination of a lot of volatility, but i think the gravitational pull is by china because this is the ending of an era for china, and it is a cyclical slowdown that has to take us to a completely new structural environment. that probably dominates the direction of markets, and then you get a lot of volatility caused by the supply-side disruptions which are ongoing. but it opens up bonds as a portfolio hedge. alix: really great to get your perspective. thank you very much. coming up, you've got turkey cutting rates yet again. the lira weakening against the dollar yet again, as the central bank moves. more on that next. this is bloomberg. ♪ ♪ alix: turkey's central bank chief delivering a bigger than expected rate cut. want to bring in bloomberg's simin demokan. a rate cut, that doesn't make sense. s -- simin: it is no secret that turkish president erdogan hates inflation, and he has been pressuring central banke

hannah: for us looking in europe specifically, luxury goods could advance. they have come back around 15%. you locate the likes of lvmh, l'oreal. they have had worries about inflation, which we have managed to show through the strong pricing power. there will pass sectors without impact the margins come that exposure to the end consumer in china which people are worried about because of this wealth distribution now, if you look at a company like lvmh, they have had about a 15% pullback, which has impacted valuations. it is still expensive. that said, if we are looking at a company that is growing, we reckon 8% compound growth forward, 4.5 percent free cash flow yield. it is two yield -- two years forward. it is not as impacted by these inflationary concerns because they have brands, so not having these pricing pressures. we are very positive on that going forward. guy: this speaks to one of the things that has been taking place in the market. that has been the rolling rotation. the luxury names got hit a few weeks back on china. we see it in the state with t

big bounce here in europe. this is bloomberg. ♪ guy: we are wrapping up the session in europe. the thursday session positive. i huge bounce back. hard to pin down exactly what is driving the individual assets. broadly the market feels like it is being driven macro. energy, looks like that is getting better. the debt ceiling in the states, that is getting better. all of the stories are being kicked down the road but the market is breathing a sigh of relief. the european markets up strongly. nevertheless, positive performance being driven, the ftse up 1.26%, the dax up 1.8%. the stoxx 600 looks like this. we have been in on upward trajectory. it takes us up 1.61%. we are still below 460. we were 475 not that long ago. climbing back to this. a topsy-turvy week in terms of the price action. one day up in one day down. r.o.e. wrote is what we used to talk about the -- risk on, risk off is what we used to talk about during the financial crisis. i mention the fact the energy story seems to be easing up. u.k. natural gas down 10%. huge moves. the move on the downside for a smaller perc

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

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

(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

the same level at the heart of europe. so yes, it is a very tough entry for most of the rest of the world. alix: guy always says this to me. you guys are fine. you are going to be energy independent. but we are not actually producing it. so why do you think that price signal is so broken? ed: it is partly broken. it is not fully broken. it is the discipline of the publicly traded companies, the privately owned companies are really ramping up their drilling activity, and i don't know what the production number was from the eiea today. we are getting the return of everything shut down from hurricane ida, and we are well above the low point. so i think we are about to see a year ahead which is going to look more like 2019 than 2020 or 2021. we are going to see an order of magnitude of u.s. production growth if you include ngl's, along with crude oil. so i think the drilling has kept up enough that it is going to continue to increase, and we will soon see the public companies adding to what we have already seen from the privat

. ♪ 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

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 of fashion was investors as management shakeup sees the ceo stepping aside. supply chain issues. getting slammed on the back of that one. equities flat today, going nowhere. the bond market is closed stateside. alix: wti up over 2%. i want to highlight energy and the bank index because cyclicals are in charge. energy outperforming over 1%. the kbw bank index up 40% this year. what is priced in? the raise and beat model will go by the wayside if we try to take into account demand and input costs. this is the 10-year bond futures index. a little bit of selling. yields pushing higher. we will be talking

does that make europe easier to park money in? sharon: i think these inflationary impulses are global, really. europe is also seeing tight supply, tightly per markets, in some cases seeing gas prices go up. european equities are quite interesting because they have large sectors that gain from where inflation. the commodity sectors, banks, financials, etc. those types of sectors will do well. europe has no weight in tech and long-duration high-growth areas. alix: i am back, by the way. i have not seen you all morning, guy. we both had different expenses talking to different investors. i was talking to jonathan gray and he still likes the u.k. even though they might have some short-term problems. they like the rule of law, they like the opportunities. what do you do with u.k. assets now? you still have high inflation and potential rate hikes. sharon: i completely agree in the near term. maybe take a step back as well. one of the reasons they have higher inflation is because the recovery has been good in the u.k. and europe. he recov

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

and europe 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

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,

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

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

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

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

i think it will be a tough session out of europe. dani: i'm glad you are here for that emotional support to get us through that open. that's go ahead and turn to asia and hong kong where carrie lam has outlined plans to deal with the financial hub while delivering her annual policy address. for more on those plans and carrie lam's address, we are joined by stephen in hong kong. what are some of the big takeaways for you? stephen: housing, housing, and housing. since the handover firm britain, home -- from britain, they tried to tackle and equities in housing and income, in a city with the least affordable housing market, and they have not been able to break what some would say is the monopoly by the big property tycoon. you have that scenario meshing with what is happening across the border, the common prosperity pushed by xi jinping. i'm not saying it is coming to hong kong, but this gave the opportunity to chief executive carrie lam to push her initiative to rollout low income housing in a massive new urban center on the border wit

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

what do you need to know out of europe this hour? u.k. inflation staying above 3% and now expected to climb to 4% or higher. we will discuss that in a moment. jens weidmann quitting the bundesbank. the surprise move for personal reasons comes after he was passed over for president. angela merkel saying within the last few minutes that it will be up to her successor to pick his were placement. covid cases continue to climb across europe. the u.k. secretary will hold a conference, expect it to urge the elderly to get boosters. his government is still ruling out lockdowns for now. let's talk about where we are with the market. equity markets bid in europe, up 0.2%. we are just continuing to push higher. the stoxx 600 got up into the mid-for 70's not long ago. crude is negative, but very much off the floor that inventoried that we broken the last half-hour, certainly pushing crude prices back up again. brent crude, $85 on the nose. alix: in the u.s., we are seeing a sixth straight day of gains for the s&p. haven't seen that since about mid ju

relative to performance in europe, and what we have had is europe continuing to underperform. so i think what we have seen over the last couple of weeks is what seems to be a bigger impact on europe in terms of the increase in prices, supply chain bottlenecks, exposure to china that are driving down european equities across most sectors in a way that is not hitting the u.s. despite a bigger increase in real rates. jonathan: you've got a follow-up tom. tom: no, i don't have a follow-up. jonathan: people have really increased their exposure. i am trying to understand from your perspective where they should reduce it. where specifically? daniel: our current allocation is underweight european large-cap versus u.s. anyway. our over weights in europe are two european small caps, so we see the potential there primarily in the recovery story that you pointed out we thought would start in september and hopefully will come up towards the end of the year instead. but in terms of the exposures you see in europe, i think it really is going to be a function of the flexibility of the labor m

you see selling across the board in europe. here was to have selling in the long end, but a little bit of buying in the front end. a teeny bit of a reversal there within the bond market. it does feel that the path of least resistance might be higher yields, but no doubt, there is really weird stuff happening in the bond market. francine: there is weird stuff because it is repricing, not on the back of much. i have a note saying there was nothing new in the ecb in the october statement, and yet you can see a little bit of movement on the euro-dollar, $1.1681. when it comes to stocks, it is all about earnings. anheuser-busch and nokia following the sentiment because they came in with estimates that beat. we have a couple of m&a. one thing i am looking at the downside is royal dutch shell. the ecb keeping monetary policy loose, and the president christine lagarde facing pressure to push back on markets petitions that the ecb will need to start tightening like other central banks. she spoke about the decision to keep stimulus on tr

however, i would suggest that europe and the u.s. are still in two very different positions from this point of view. the recovery started earlier in the u.s. the fiscal stimulus was higher than in europe, which means the output gap in the u.s. is probably close to 0 right now, so that the fed talks about removing qe entirely, find that some members talk about hiking rates, fine, but we are not there in europe. and the risk is that the market tries to create a bucket where every single central bank would find themselves. it is true that inflation is rising everywhere, albeit to a lesser degree in europe, but you can feel the pressure. if someone moves or talks about hiking a rate somewhere, it is creating mood music everywhere. europe is not in a situation where we need to think about that right now. jonathan: we still have central bank like new zealand, like the bank of england. gilles, you are right to point out the ecb. the opportunity to push back is the december meeting. president lagarde called it an important one. permission to

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

alix: wrapping -- guy: wrapping up the tuesday session in europe. it looks like there's not much price action. we are off our lows and it could be worse. the ftse is up .2%, the dax up .3%, the cac 40 is being held back, it is flat. you have to take a step back. we are very close to record highs, even here in europe. let show the stoxx 600 is. the stoxx 600 is re-approaching the 270 level, the 470 level, up another .4%. we got into the 475 area before we had a decent downdraft. maybe the recent lows are in. let's talk about where we are for the sector story. the earnings season is having an effect. the inflation debate is taking place. food and beverage at the bottom. the supply chain story come everything coming together. it has rippled into other areas off that sector space. food and beverages down. nestle is a hugely heavyweight company and they are dragging everything down. utilities up, media is up. feels little defensive. also on the downside, telecoms, the car sector, the chemicals, some of the banks as well. the ripple effect -- the french y

and in europe. go look at how this is done as a financial etf here versus the bank financial in europe. it's doubled the return. to me i would rather bet on cyclical recovery in the u.s. then on europe. >> the language changes but it's the same. the vogue is gam a squeeze. it's a greek letter for an accelerated second derivative movement in this case up typically. andrew: i'm not smart enough to figure all of that out. [laughter] tom: should we join some form of tesla catharsis will be set us up for the big drop? >> there are stocks that are beloved stocks. i'm very wary to take a market in that picture. if a look at my portfolio stocks , almost every company in our portfolio so far has beaten and raised numbers. i think the earnings fundamental are validating, and i can point to specific stocks. it's a crazy market. and that's true. don't miss out, fundamentals are good. tom: liz and saunders was good on that. tesla is not the market. jonathan: it's just the two of them. thank you sarah as always.

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

for europe, these prices are a big deal. tom: $200 a barrel, i enter blake that to $8.42 -- i interrelate that to $8.48 a gallon. what is the political ramification you read about in the zeitgeist of higher oil prices? lisa: it only makes negotiations in washington that much more tenuous when they are trying to figure out how to position for the midterm elections. the democrats are going to be in the hot seat if you have oil prices climbing above $100 a barrel heading into the midterm elections. you have to wonder what they are going to get done, even now. i wonder how much stems from the policy uncertainty and the feeling that nothing will get done, and we are going to bump up against the debt ceiling debate and the limit there. tom: anthony emails and. he says he loves how my bowtie looks on radio. this is the red sox baseball diamond tie. jonathan: that's where you want to go? you want to annoy everyone in new york? at least most people in new york. we have a mets fan with us this morning. lisa: thank you. jonathan: treas

in europe. this is "bloomberg markets: european close" with guy johnson and alix steel. ♪ guy: thursday the 14th. 30 minutes to the close. stocks bouncing quite strongly. earnings outweighing inflation and growth fears. another bounce and commodities driving miners and energy stocks. a european electricity prices jumping sharply. grids are being forced back to gas and coal. you can gas up 9% right now. germany slashing growth forecasts but bottlenecks throttle growth. ikea is falling. both sides of the atlantic up. gas prices rising very sharply. electricity prices doing strongly as well. we are fading the putin move we saw earlier on in the week when he said, you know what? we will give you whatever you want. the market question he that a little bit. alix: i am stuck on the ikea thing. as if it was not traumatic enough now it is going to get worse. let's look at the equity market. green across the screen. health care and materials both way higher. materials are copper, zinc, aluminum with the

europe having to play a little bit of catch-up. we got the s&p 500 outperforming, nasdaq outperforming, then eventually having asia outperform, as well. tom: delivery hero is one company gaining. it is investing in a german grocery delivery company. that sector has been pushed higher by the pandemic demand for groceries in those deliveries. erickson did beat estimates. the warning in of the supply chain going forward, a potential drag on sales. wise is another company in focus coming out with their second earnings report since their direct listing in july. currently down. credit suisse warning investors may be surprised to the downside on this -- price cut. dani: price cuts definitely bucking the trend for companies hoping to increase their margin at a time when prices were high. u.k. prime minister boris johnson says the city of london will prosper outside of the eu, noting job losses and disruptions have been lower than feared since brexit. he told bloomberg's editor-in-chief john micklethwait that far fewer bankers have been mov