we had a real sense of what the united states had done to save europe. david: your father was a serbian immigrant to the united states. phebe: my father's family suffered from totalitarian regimes on the fascist and communist sides and they were fortunate enough to escape during world war ii. it was their dream to come to the united states because you treasure democracy and market-based democracy and a key -- he is an avid patriot as is my mother and they imbued me with that same sense of patriotism. david: you grew up in various places in europe and united states and went to college at smith. did you study aerospace defense at smith? phebe: no. i was a government major and a philosophy minor. and i got a superb liberal arts background and education. i learned to write and to think in college. those are two critical values. david: most people that graduate from smith do not wind up in the cia would be my guess. phebe: most definitely. david: when you interview for jobs at the end of your college career, they do tell people i want to be in the cia or how

(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

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

david: so you grew up in various places in europe, the united states. and then you went to college at smith. phebe: yeah. david: so did you study aerospace defense at smith? phebe: [laughs] no. david: so what did you study? phebe: i was a government major and a philosophy minor. and i got a superb liberal arts background and education. so i learned to write and think in college. those are 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. i suppose. david: so when you were interviewing for jobs at the end of your college career, did you tell people, i want to be in the cia? or how did you happen to get in the cia? phebe: well, 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 it was -- the agency was opening its doors to women, so it was a good opportunity for me. and i really enjoyed the service that i was able to provide. david: how long were you in the cia? phebe:

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

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

europe it is much worse. 153 63. you are not seeing a big move in nominal yields it in compared sin -- in comparison to the nominal yield. we are in today. session lows are at -5.6%. we are just about holding on to 150. tom: everybody goes to the fx market which is the deepest market here. they look at emp. we'll have a guest up by later. but before we get to joe mathieu, this market is different than the last number of days. you have nasdaq down 8% now on correction. that is beginning to get to where there is tension. i do not see it yet in the fix. needs more prints. jonathan: heavily weighted to the euro. the highest since september 2020. that is a week euro. tom: we are pulling an all-nighter. a xiaomi from boston -- a gentle move from boston joins us after a wonderful victory. joe biden needs a victory badly. he is adjusting for 3.5 trillion to whatever he can get. what is the whatever he can get. >> that is a great question. they will tell you not to pay attention to the top line number, of course, and an inter

, 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

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

francine: you have a pretty big market share in europe. how is it going with covid cases up and in the u.k.? >> we are doing fantastic. we are growing double digits across all of our markets and all of our clusters. not only 2020, but 2019. it is a great market for us. francine: anything on the horizon in terms of, and day? is there anything you are eyeing and which market? >> we are scouting a lot, we are digging a lot. not until they are done. francine: is there a region you want to beef up? a good value to bring into the campari group? >> our thinking remains unchanged. we are looking for premium spirits brands with a high on premises share of business, ideally with strong sales in the u.s. and asia. and obviously, that is not the simplest puzzle to put together. francine: no, i'm sure it is not. i love the asian countries going forward. zero -- a lot of the asian countries are going forward with zero covid tolerance. how does that change your strategy or what kind of drinking dynamics do you see? do people still drink at home? or is th

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

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

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

-europe divide kumar -- divide? marvin: the prospects in the u.s. are stronger. we are still looking at above trend gdp numbers, even though we are bringing them down, speaks to the strength in this economy. when we worry about job shortages, it is because the demand is there. earnings estimates are continuing to increase. my equity colleagues are pointing out margin expansion is still in the cards for next year, even if the growth of margin is slowing. jonathan: interesting. marvin, thank you. marvin loh. euro-dollar, stink short. to turn this one around saying we need the ecb to get hawkish and talk about rate hikes, probably not going to happen or we need the fed to get more dovish, unlikely. tom: i believe the barbell of u.s. and europe and also noted the yen dynamic as well. i have dollar-yen. help me here. 113.30. that is two standard deviations, weaker yen and an indication but also an indication of the tension with europe. jonathan: fx, crude 83.63, unchanged this morning. 80.50 right now. this is from raymond james, above 80 he says, it will be a combina

europe is in the midst of an energy crisis. for example, the u.k., terrible scenes to a large extent, a perfect storm when it comes to petrol and gas prices, they are turning to greener energy. is there a risk there is a negative feedback loop in the transition is not being handled well enough, because you can't just flip a switch, move from oil, nor should we overnight, but how then ensuring the transition remain such that we don't have any energy crises going forward? >> that is a good point. in the electricity market and overall the energy market, people tend to be conservative. when something goes wrong, it goes very wrong. you mentioned the u.k. as a recent example. what needs to happen quickly, and it is hard for governments to vocus on -- focus on the long-term energy policy when they don't have a crisis, but not something that can be solved quickly. it is one of the things i have worked with in the government here has worked with. we work with folks around the globe in terms of setting yourself up and looking at how you

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

or europe. it looks really strong to us. we think that is something that is perhaps not being talked about in the market at the moment. understandably. there's the supply chain issues and things going on around china. those are the things that people are fretting about as well as inflation. underlying the positive use, really strong story from. it's different from what we saw in the last recovery. anna: thanks very much. stay with us. gareth witcomb. he stays with us on this program. let's get a first word news update from juliette saly. juliette: the warning from the international energy agency. they say that investment in green energy like solar and wind is lacking what's needed to meet climate targets. fossil fuel spending is also insufficient to meet current growth in demand. the house has approved a short-term increase to the u.s. government debt limit, sending the legislation to president biden days before the treasury was set to run out of borrowing authority. it delays another partisan confrontation for less than two

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

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

but at the same time, western europe was exactly that way. the drought in brazil, the drought in china, it is a wild wide phenomenon -- worldwide phenomenon, and it continues to consume energy in the world is for energy. prickett storm -- the perfect storm so to speak. j.p. morgan chase global head of commodities research, and strategy. coming up, light sciences beat estimate read we will speak exclusively to the ceo on why it is an excited time to be in the space, this is bloomberg. >> this bloomberg markets. i am matt miller with amanda lang. it rose 11% after earnings beat estimates and the company raised its forecast. joining us for an exclusive interview is the ceo. michael, tell us about the drivers of your quarterly earnings in your rates forecast. what is behind it. >> thanks for the opportunity. we have it's from a dismount in her business, we have another quarter of double-digit organic growth, and we evened out our merchants more than a hundred basis points and it continues to generate significant cash flow. all that momentum has e

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

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

united states and europe. third step, come back to some public. otherwise, you render it killing growth. the best response to a crisis is more growth, sustainable growth for all the people. >> we are seeing the bills going through the roof. governments have announced how to ease on households. are you willing to work with russia? >> nuclear energy is one of the best solutions. you should want to be dependent on russia -- that's your choice. that's not my choice. investing more in renewable energy so we can have a mix which makes europe fully independent from the other countries. >> more french, less german at least on energy. >> yes. >> i hope the meeting goes well. thanks so much. tom? >> maria from the embassy of the republic of france in rome. the international relations piles on us, you wonder to weeks from now at the end of scotland what will be accomplished. >> i wonder, i am trying to, but hopefully it will be something that will be a little more concrete. i think was interesting the conversation about supply chain disruptions. what kind of

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

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

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

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

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

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

and 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.

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

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

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

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

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

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

europe wants to engage china. there is a difference of view. we need to discuss that because this is clearly a strategy question. >> bloomberg has learned china is loosening restrictions on mortgages at some of its biggest banks, adding to signs of growing concern by authorities about contagion from the evergrande debt crisis. financial regulators told some banks last month to accelerate approval of mortgages. lenders will also commit to sell securities backed by residential mortgages. president biden says the number of unvaccinated americans are manes too high. he is calling on more businesses to impose mandates. speaking from the white house, biden said u.s. health officials will decide soon on pfizer and biontech vaccines for children aged five to 11. >> we are going to continue. the food and drug administration and the fda is reviewing data on moderna and johnson & johnson boosters. we expect a final decision from the fda and the centers for disease control and prevention, the cdc, in the next couple of weeks.

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

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

looks a much better place than europe does. europe is going to rely, it looks like come on vladimir putin. the u.s. doesn't have to make that decision. alix: no, but look what happened in texas in february with the deep freeze. we had natural gas, we had wind, and look at what happened? we are still feeling the repercussions are that. so we are not totally immune either. guy: texas feels like an idiosyncratic story. texas is a big place, but nevertheless, it is isolated. alix: but look at california. they have a lot of alternative energy, but i still have to import natural gas because of their environmental standards. yes, it is idiosyncratic, but it is going to be messy. the energy transition is going to be messy and expensive. we are definitely learning that. guy: absolutely. and if you are interested in a 40 foot container box coming out of shanghai to los angeles, $12,172 is the amount. alix: we are burgeoning like diane i didn't how are you look at these indicators before this all went down. coming up, dream big. that's th

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. investigators seized more than 31.6 million dollars in cash and virtual currency as well as 45 guns. risks related to covid-19 and the economic havoc it has wreaked across the world are keeping corporate execut

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

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

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

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