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 week it is natural gas prices in europe. but today, the ukraine is negotiating with russia to provide a big discount to pipe natural gas into europe, to provide supply. so the markets will find a way, supply will eventually come online. i think the surprise will be how quickly supply and demand adjust. years from now, we might be talking about disinflationary trends coming back. jonathan: you say if we get to 2%, back up the truck and add duration. what about 1.75? mike: there is a lot of value in the long rates. the 30 year, we have loved it. i was looking at my notes from being here years ago, a yottabyte of 2% on a 30 year treasury would be a museum piece. and here we are all the way back to 2.10. today, you are seeing the price action. the front end is selling off and the back end is rallying hard, because of the fed hikes too aggressively, they will shut down the global economy and inflation will the rule of law. jonathan: i remember the cushion that led to the answer, i asked how you will look back on this bond market

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

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

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

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

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

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

this is bloomberg. ♪ ♪ >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: friday the eighth, 30 minutes of the close. european stocks just drifting as u.s. job growth disappoints for a second month in a row. the euro tracking a little bit higher, still around or below 1.16 against the dollar. ireland abandoning its 12.5% corporate tax rate, removing a major hurdle to an oecd deal that could deliver a minimum tax rate of 15% for global multinationals. we will talk about that in a moment. the eu is set to explore joint gas purchases and storage as weather forecasters worn that temperatures and wind speeds are set to drop in the near future. exports continue to china despite a major fire at a processing

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

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

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

many parts of europe, what you're seeing in the united states, we may change the label here. we've got foreign policy for the middle class. but the -- is pretty similar. tom: when you wrote a world in disarray you could not imagine the fiscal chaos. jonathan ferro was describing the debt ceiling. how do we prosecute whatever foreign policy with our domestic front in such disarray. >> the short answer is can do it well. we are not predictable, we are not reliable. those were dependent upon security, they look at us and there is a wise choice. you mention some of my previous books. the book i'm writing now is on america's domestic turmoil, on the threats to american democracy. i think the greatest threat to our standing in the world to our standing at home is not china or north korea or iran or russia, it's ourselves. it begins here. tom: how do the moderates take the high ground. looking at the zany us of what it's done every day. how do we rediscover the middleground of american politics. >> by the answer to that i put it out there. we talk about redoing civics education, ame

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 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

, 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

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

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

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

from europe to asia, supply restraints from the world's top producers, it could spell an energy crisis that could upend the global recovery. the post-pandemic rebound collides with colder months in the northern hemisphere. avoiding a winter of discontent, governments warn of blackouts.

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.

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

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

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

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

vaccinated travelers for most of europe will be able to enter thailand without quarantine. they are among 46 countries to be added to the quarantine free travel list and that's starting next month. china is expanding its booster shot program to people who will participate in the upcoming winter olympic games in beijing and surrounding regions. at risk groups include those participating, organizing or working at facilities involved with the games which are set to start on february 4. bts is ending its distribution deal with sony and will go to universal music. it had been pursuing them for years and universal interscope has had a deal for three years with a girl group which is -- which is winning over western audiences. global news, 24 hours a day, powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. ♪ >> it's everyone's individual right to choose but it's also every oilers individual right -- every employers to best check aaron way so if an versus the best way for us to protect our wheeze is to mandate the vaccine, then employees have a

putin talking about gas in europe. what is important to me is the asymmetry of the united states with jp morgan and what we are seeing in europe over any number of things, including energy. the distinctions to get to these banks between ecb and fed at the meetings here in washington has never been wider. jonathan: jp morgan and the premarket positive 0.6%, rallying into the numbers and doing ok coming out of them, up 0.6%. tom: i want to point out carmen reinhart, you just heard from, is a little bit front and center here in washington at these meetings. she has taken an elevated responsibility at the world bank because the two word phrase here is data integrity. the uproar at the world bank, they need data integrity, and the imf is trying to reaffirm data integrity. jonathan: those reports need some credibility. they've got to redo some of them. tom: they've got to rebuild it. there's no way better to do that. this time is different. you do it with carmen reinhart. for bank earnings, you bring in alison williams, bloo

>> the countdown is on in europe. this is "bloomberg markets: european close" with guy johnson and alix steel. ♪ guy: friday the first, 30 minutes until the close. eurozone inflation hitting a 13 year high with industry warning supply chain problems last well into next year. european gas prices hit a record 100 euros of megawatt hours. russian gas flow into germany apparently down nearly 80%. french utilities and energy surge as paris takes action to shield consumers from this energy price hike. that feels like -- let's take a look at what this means for markets. equities on day one of the new corner, the new month down. we are down around .5%.

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

trans action prices are just lower than they are in the u.s., and the same for europe. but to be able to expand margins as transaction prices get lower and lower, the same thing will happen as global legacy automakers start to scale production of electric vehicles. lisa: do they clear that hummer? that has to charge for three weeks to get you to the upper east side for one night. when you talk about that, tesla shown that actually, they can make it more profitable, with their margins going up pretty significantly. how much is this a seachange for the likes of general motors that is very much investing in this game? kevin: it is, but the other thing you have to think about is it is happening on internal combustion now also. some of the transaction and pricing data we are seeing any third-quarter is unbelievable. in the u.s., typically we average about 6.5% discount from msrp, meaning you could walk into any dealership and expect on a $43,000 vehicle about $2700 in haggle immediately, and the dealer won't blink. in september, that number was $70. that discount was 0.1 5%.

the move is expected to ease europe's supply crunch. global news 24 hours a day on gloom -- bloomberg quicktake. i'm mark crumpton, this is bloomberg. ♪ amanda: welcome to bloomberg markets. we welcome both our bloomberg audiences. here are the top stories we are following from all around the world. bank of canada accelerates a potential climbing of rates. we give you the market follow. we will talk with ceo of hydro quebec on the plans of providing renewable electricity from canada to new york city. gm shares are tumbling. the company hit by global semi conductor shortage. amanda: that is just one of the stocks that is trading lower on these markets today. interesting day on the markets. we have many of these groups on the s&p 500 in negative territory. you could see it is modestly higher and the nasdaq is the real star. the nasdaq at a record high. powered by the record names -- many names like out this market where it is today. the big tech stocks. microsoft, alphabet is moving sharply higher as well. when we are seeing some compan

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

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

for europe. the real mover here is btp's and bunds. it is inverted, the 20-30. why? i have no idea. is it technical? is something going on with the 20 year? or is this portending something not so great within the economy? so keep your eye on that, francine. francine: we are also getting a little bit of data at this time of day because you can see at have an impact on lot of the yields. it goes back to inflation, the strength of the u.s. economy. because it is september, it is a little bit backward looking. however, they spawned 72 point sent -- 7.2% compared to the previous year. it is a little bit backward looking. we did see a bit of weakness for the month of august and september. u.s. mortgage rates also jumping to 3.1%. i know we will have a full breakdown with michael mckee. alix: this is usually when i say something like, yeah, i got my 30 year at 2.75%, and guy would make fun of me. we want to focus on d.c. president biden currently on capitol hill, speaking to house democrats, poised to a

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

europe is struggling to find enough: gas. -- enough coal and gas. according to an interim analysis of a late stage trial, -- another hurdle for the global economy. a metal used in everything from car parts to phone chips is scarce. global news, 24 hours a day, i am ritika gupta. this is bloomberg. >> you have acted to make our banking system laissez and that -- less safe, and that makes you a dangerous man to head up the fed. >> you are thoughtful, deliberate and transparent, the antithesis of dangerous. >> our country will be better off with your leadership. jonathan: a dangerous man the quote of the week! good morning. tom keene, lisa abramowicz and jonathan ferro. we are pushing 150 again. at 100 49.44, we enter a dangerous -- 149.44, we enter a dangerous period in washington dc. tom: what you call it " relative gloom," jon? lisa: relative gloom -- i like that. tom: house democrats our caucusing at 10:00 a.m.. what is a caucus? do they meet at starbucks? >> we are good at caucus here and by that i mean talking to each other -- at each other rathe

>> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: thursday the seventh of october. what do you need to know out of europe this hour? energy prices continue to fall after yesterday's comments from vladimir putin suggesting that russia is ready to deliver more gas. at the iea saying today that moscow can do much more. the energy price rises will continue. yields dropping broadly across the euro zone, particularly in the periphery. this is the ecb is looking at a new post pepp bond buying program. we will hear from the governor of the greek central bank. let's talk about where we are with markets. equities

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

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

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

not just in america, but in europe as well. emily: is it something for the rental car companies to do? reporter: i think so. the question is where to get the cars from? other automakers are still selling ev's at a low number. particular for business travelers. maybe their business partners will give them an incentive for the next time they travel. emily: here we are now at a $1 trillion market cap. what does tesla have going for the rest of the year? where does that number go? reporter: up, probably. [laughter] you know, tesla still has risks. like nhtsa is still investigating the autopilot. the ntsb is not happy with a policy recommendation. this is a company now going into several different markets. fleet sales, insurance, energy, factories in berlin and austin. moving the headquarters to texas. emily: we are looking at the chart of facebook and tesla, both at the trillion dollar mark. sort of the tale of companies, the question is, what is big tech? reporter: they just keep expanding like octopuses. emily: what is going on w

caroline: what you also need is transparency around the measuring of -- we see interesting moves by europe trying to understand data and set some guardrails of what investing in environmentally friendly companies mean. the social and governance is almost harder to measure. are we starting to see more agreement across the investment sphere as to what social and governance investing is? jennifer: i think we are starting. a real way to push that forward is make it economic and about returns. we are using material data. you are looking at it in an economic returns oriented framework. if i am exxon, my emissions are pretty important. if a company employs a lot of workers, then how they treat those workers, whether they pay more than a living wage, worker retention, those are material issues for the company. if there is a company that has huge emissions, that is a material issue. really look at each company and look at the business they are in and use that data, and then it becomes integrated. romaine: this message is resonating at milken? jennifer: it is definitely resonating, how you make mone

jonathan: is that another stop on the tour, from europe to indiana? from new york, this is bloomberg. ♪ ♪ (announcer) looking for a better way to lose weight and feel good? how about the one with a 98% success rate and a more affordable weight-loss solution? that's golo. there are no monthly fees and it's guaranteed to work or you don't pay. no stimulants, no starving, just results, results you'll keep for life. with over 2 million satisfied customers, golo is the new way to lose weight. go to golo.com and get your life back... -with golo. -golo! jonathan: live from new york city on tv and radio, this is "bloomberg surveillance." i'm jonathan ferro. your equity market is up. yields on the basis point -- earnings from 3m, from ge, and the numbers from them and ups so far so good. that is the equity market story. foreign-exchange -- euro-dollar is unchanged, 0.05%. 8421 -- tom keene in nebraska, 330 on saturday. ask management if we can expense the trip. it will be less than your daily uber's. that is the official response. i thought that was kind.

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

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

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

and parts of europe. a study found bitcoin's ownership is still concentrate traited in just a few hands. the top 10,000 individual investors control about 1/3 of the crypto currency in circulation. the biggest 10% of miners control the mining capacity. the u.s. lender said it will continue to provide services for exesing contracts. citi is refocusing its asia presence on singapore, hong kong, the u.a.e. and london. facebook shares gained in late trading. in the earnings, mark zuckerberg called negative pres around facebook a coordinated effort to paint a false picture about the economy. i spoke to one investor and for him it is ewell act the structural shift for online advertising. business that were formerly brick and mortar stores have shifted online. tom: thank you very much indeed. laura wright in london. joining us is our markets reporter. earnings really joining that momentum. more optimism around data that has come out around u.b.s. can this momentum continue on the earnings front? >> exactly, tom.

i look about where you talk about europe and japan outstripping american earnings. let's go back to the s&p 500 whiz -- which is multinational. can you give us a new s&p number and of 2022? as an investor on the sell side, i don't have to give point estimates but i try not to look so far ahead to the end of next year. i'm trying to figure out the next month or so. we will see how the economy and earnings layout and the second half of next year. i think it might get trickier as we returned back to trend growth. over the next few quarters, we are still going to see a really nice pickup in the u.s. economy but the global economy. vaccinations will go to emerging markets and there is a strong fiscal impulse in europe and japan. the near term trend i think is still quite right. tom: i'm looking up coca-cola. coca-cola is like north america is half their sales. the spx is a multinational index that benefits from this optimism. >> i completely agree. u.s. stocks will do very well in this environment. the sensitivity of the european index or japan's index to global growth i