in the middle east and europe and elsewhere. while the united states is undergoing a thorough review of our force posture around the world, i have ordered the halting of withdrawal of american troops from germany. i am also lifting a cap imposed by the previous and administration on the number of u.s. forces able to be based in germany. i know the past two years have strained and tested our transatlantic relationship, but the united states is determined to reengage with europe. to consult with you. to earn back our position of trust and leadership. earlier today as was referenced, i participated in the first meeting of the g7 leaders, where i spoke about the dire need to coordinate multilateral action to address covid-19, the global economic crisis, and the accelerating climate crisis and so much else. achieving these goals is going to depend on a core strategic preposition, and that is the united states must renew america's enduring advantages so that we can beat today's challenges from a position of strength. that means buildi

-- situation in europe. president xi jinping warns beijing will go after so-called platform companies. the latest on china's tech crackdown live from con tong -- hong kong next. this is bloomberg. ♪ mberg. ♪ annmarie: this is "daybreak: europe." i am annmarie hordern with manus cranny. xi jinping warns beijing will go after so-called platform companies as china's tech crackdown widens. the president is ordering the oversight of internet firms, crackdown on monopolies, and promote fair competition. they allegedly have their sights set on tencent after cracking down on ant group. thank you for joining us. pretty strong language from what we hear on china state media. what is your take on what is coming out of china today from president xi? >> as you mentioned, china kicked off its tech crackdown at the end of last year and it is the first time the top guy gave a d killed comment on the situation. -- detailed comment on the situation. xi jinping mentioning beijing will go after tech companies. they didn't m

than in other parts of europe. and you're showing images of vaccination rates of fully vaccinated people, you see the gradient here. and of course that explains part of it. tom: that explains part of it. how are the health care systems holding up in these countries? >> again, that's quite different, in part because the organization of healthcare is quite different. so for instance in my country, it has been quite tight, we don't have much spare capacity and that is a problem in a crisis like. this when you just need more capacity. so that's one factor. plus the duration of the pandemic is bearing down on health care workers. we see quite a few people leaving their jobs, the amount of capacity, the flexibility of the system is further reduced by that. tom: the burn utah of medical professionals, facing and fighting this pandemic is evident. in terms of efficacy of of lockdowns at this stage, do lockdowns -- can they still work and can they prove a catalyst to boost vaccination rates? are we seeing evidence of that?

we are done in europe. europe certainly hit by some of the stocks we've been talking about or affected by some of the stocks we've been talking about over the last few minutes. richemont giving the luxury sector a massive boost. that is help the cac 40 out. these are the final numbers. the ftse 100 being hit pretty hard by astrazeneca. you get a day like today where astra is under significant pressure. down we go. alix: also we are talking about the last day of cop 26 and are lots of questions as to did it work? did anything come of it? currently delegates in scotland are hustling over the temperature, the carbon tax, that is all in the cards. we will talk more about this after the break. dan jorgensen's denmark minister of climate and energy. he joins us next from scotland. this is bloomberg. ♪ ritika: this is the european close. you're looking alive, the prince will room. coming up, liz shuler, vfl cio president -- the afl cio president at 12:30 in new york. this is bloomberg. let's check in on the bloo

a double-dip recession in europe? as you can see, they continue that spread, it continues to track lower and lower. joining us from london is jane foley, head of fx strategy at rabobank. we've got $1.2030 on euro-dollar at the moment. the data out of the states is sensational. europe is struggling to catch up. do you think the euro deserves to be at $1.20 in the near term? jane: i have been looking for one dollar 20 cents, but to be honest, i think the euro has had some good news as well. we have draghi at the head of italian politics, and that is certainly something that the european markets will welcome. yes, the vaccine news we have had today from europe is good news after all. we have had germany announced earlier in the week that it will be opening up some of those restrictions, and some of those numbers, with respect to covid cases, they are not as bad as the numbers we have presently in the u.k. either. we have a much more rolled out vaccination program. so it isn't all bad, but i do think that we are going to

what you europe's strategy be -- what should europe's strategy be? min. blumel: it is a double-edged situation. we have to ensure co2 emissions are going down, which is mainly done by emissions, which means increasing prices on energy. on fossil fuels. to a certain extent, states are driving those costs. on the others, we have to ensure people can afford heating in winter. when i take a look over the european development of energy prices, i can see in some countries like spain or france, there is still a highly regulated energy market of price. in austria it is rising, but it is not a big problem at the moment. what we have done is to implement in our co2 pricing scheme and inflation break, meaning if energy prices are rising over a certain percentage , then we will not implement the full increase of pricing for the next year. also if energy prices are falling, we will increase the co2 pricing. to make sure there is some kind of an inflation break on energy prices. alix: thanks a lot. gernot blumel, austria's finance minister, pleasure to speak with you.

better in europe. the indications now in europe are cheap to the rest of the world, so i thing that is going to continue for a while. thank you for mentioning it. [laughter] guy: one final quick question from me. when is the bank of england going to raise rates? erik: that is a tough call. here you have this problem, i think, that the treasuries are actually on a path that is much more austerity bound than even continental europe. that would be a fight between downing street and the treasury, but i think they are still some way away from it. but they are still sitting a little but on their hands and seeing what happens, so a good long way out. alix: really good to catch up with you. thanks for joining us, eric nelson of unicredit. as we had to break -- erik nielsen of unicredit. as we head to break, you are looking at the 30 year at its lowest level since february 26, down by about eight basis points now. a total reversal from what we saw yesterday. guy: i think that is totally logical, isn't it. the f

what we see for europe is not just good for europe and italy and greece, but it is also good for the markets. guy: is this industry better positioned after the pandemic then it was before the pandemic? >> i think what we are seeing across the many industries is the investment in the multichannel, c had a real pickup in e-commerce, and we are seeing it here in this sector. the fact that they are transitioning away from going into the store and buying at their and she being able to get the same experience online, that expands the market. they don't just have to have people buying things that are close to the store. they can expand it to other geographies. i think that is good for the sector. kailey: what else do you want to be buying? >> i like airbus, and obviously from a competition perspective you are looking at -- boeing is on the back foot at the moment. you've seen airbus increase. obviously the delta. it is a bit of a concern, but as we like at a longer-term basis, and that is how you have to invest, you have to look forward, we are positive on airbus. guy: in terms of the chall

next, "bloomberg europe." -- bloomberg markets europe. ♪ this is elodia. she's a recording artist. 1 of 10 million people that comcast has connected to affordable internet in the last 10 years. and this is emmanuel, a future recording artist, and one of the millions of students we're connecting throughout the next 10. through projectup, comcast is committing $1 billion so millions more students, past... and present, can continue to get the tools they need to build a future of unlimited possibilities. ♪ anna: good morning. welcome to "bloomberg markets: europe." mark cudmore, our markets live managing editor, joins us from singapore to take us through all of the market action this hour. here are your top headlines. german covid cases hit a new high. the government announces no restrictions for the unvaccinated. powell or reynard -- brainard? joe

and central europe. joining us is our reporter in brussels, maria tadeo. she is joined by a guest from the ebrd. maria? maria: yes, anna, good morning. 21 billion euros in loans to help combat the coronavirus. it is also worth putting out that the european bank for reconstruction and development has an explicit mandate. they already hit their target of 40% of refunding. we are joined by its president, the first female president, odile renaud-basso. i know you care a lot about equal access and equality. that is the goal of the institution that you lead. how much do you worry that coronavirus will set everyone back on that quest for equality when it comes to investment? guest: thank you very much. i am happy to be with you this morning. indeed, the covid crisis has setback economies. countries that spend more on tourism have been harmed, as well as countries relying on oil and gas. the impact of the covid crisis on the different economies is quite different. the impact of the crisis is very different. [no

europe is a capital-like model. the medical business in europe, it is absolutely legal in the eu, so we don't have to build these operations. we can build a centralized operation in portugal and spain, which is where we are, to distributed through europe. romaine: once you get the distribution level, you're not worried at all about impediments with regard to member states deciding they want to set their own parameters? you're certain we will have that blanket rule coming out of the eu? >> under the united nations charter, medical is legal and the eu has taken the position you can cross borders with it. there is no impediment today on medical. it can go from germany to italy to spain, to france, and to israel, so there is no impediment in europe. but i don't use, as you have heard recently, switzerland and holland announced adult use pilot programs. the reason they call it pilots is because of the u.s. charter. recreational and adult use cannabis is not yet recreational, but if you can -- if you call it a pilot, you

>> the countdown is on in europe this is -- is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: what do you need to know about the market action we are seeing in europe? negative is the main story. you see red across the main european continent. the driver of this is what is happening in place is like austria and germany. the austrian index down by 3.2%. germany down by 0.5%. austria is the epicenter of the action right now, as we see a lockdown being imposed there, and talks that germany could follow. the ibex down by 1.8%. the u.k. down by about 0.5%. broadly, the stoxx 600, after peaking midweek, looks like it is going to have a negative close on the week. it is going to be a really tight call. we will check in 30 minutes as we get it to the close. alix: volume pretty solid in europe, as well as in the u.s. a negative day for some equity market. s&p energies off free .5%. exxon having a huge gap down as you have oil really falling out of bed. part of that is definitely lockdowns in europe.

what about in europe? is there any movement from governments in europe and aiding vaccines for federal workers? naomi: europe is never monolithic. there are different discussions in different places. in greece, there have been some mandates that have not happened here in germany, where i am. i think that politicians generally speaking are starting to warm to the idea of nudging people towards vaccination a little more strongly. it is also worth noting that after a slow start due to lack of supply, europe has actually caught up to the u.s. in terms of first doses of vaccine. alix: 100%, while we are really hitting a wall in the u.s. thank you very much for joining us, bloomberg's naomi kresge. coming up, let's take a look at how this all impacts the market. it is a very busy week of earnings in europe. a lot of the regions big banks -- the region's big banks. this is bloomberg. ♪ >> if you look in the second quarter, you will see volumes going up. you should look everywhere in europe as well. look at fran

europe. it seems the positivity around the u.s. data picture and european earnings is overcoming our fears this morning. we are think the for the u.s. data -- thankful for the u.s. data. here in europe, we have had better earnings coming through. the euro is probably a dollar negative story, the dollar down after four days of strength. we do not have treasury markets open today, so we will see what happens when they reopen. i have put in here the hungarian currency. we have south korea hiking rates overnight. we have the hungarians increasing interest rates more than expected for the third time in two weeks, and underlying illustration of what kind of move we are seeing in terms of central banks' interest rates. it is taking other emerging markets in europe with it as well. let's take a look at the day ahead, plenty to talk about this morning. we have a few items on the agenda to keep in mind despite it being thanksgiving. the ecb legal conference begins. the ecb president is due to speak at

so what we really need from europe is what the united states needs from europe, a creative way that europe can still benefit from china, but stay in sync with the u.s. striving to bring them, to bring turnaround. it is going to be difficult. tom: we are looking at the top risks that eurasia sees for 2021, and of course that is an international field. but i've got to turn to the german election this year. it is a huge and important and original election. chris reiter of our berlin operation tells me very simply that this could be your conservatives and the greens together. that is unusual, to say the least. how do you get a coalition developed in the new germany? the future germany? i would say the coalition between conservatives and the greens is something which should have happened four years ago. if you look to the german society, this is the coalition, the majority of the germans want to have. it was not able because they needed, and the liberals had the theing that they would be fifth wheel on the wagon, so they decided not to join the government, and that only was the reason that we h

europe is respected. it is triggering tensions over this, especially if we see flagging affects -- of exports. annmarie: thank you so much. maria tadeo in brussels. they may say it's actually not a race, we know that those who are coming in with the vaccines are able to get their economies back up and running. there's a guest in asia talking about the fact that in the developing world, it could take three years to reset herd immunity. six minutes after 6:00 in the city of london. quick check on where we trade this morning. asian equities, a mixed trade. the msci asia pacific and the read most of the session, turning around now. still green on your screen. s&p 500 futures are lower. the stand out in the future market is the nasdaq. the only ones that are up this morning. the dollar flagging. a little bit of dollar strength. we will talk about this changing trend for the dollar. is it time to sell at the richer levels? the dollar and focus today as it is fed day. manus: absolutely. microsoft boosting that t

this is "bloomberg daybreak: europe." president biden and president xi speak on the phone a med u.s. frustration over dead-end talks with china. global stocks tick higher. the ecb slows the pace a bond buying but christine lagarde insists it is not a move to wind down emergency stimulus. biden's vaccine mandate, he calls the unvaccinated a threat, and requires shots for federal workers, and pledging new rules for larger private firms. the presidents of the largest economies in the world picking up the phone for the second time to talk things through. there has been an impasse on how things are progressing with conversations at the highest levels. we have a chart showing what is happening on the trade front. xf:when president trump was in office, they wanted to reduce china's surplus with the u.s. that has not happened, the export machine in china firing on all cylinders. you saw that with the august data. almost $295 billion of exports, the biggest market remains the united states despite tariffs on hundreds of billions o

and europe, market cap gdp is three times higher than europe. we lack capital in europe, and there are concerns -- my appointing partner share the vision to bring capital come and we chose naturally the -- francine: the world has capital in abundance. many people are starting spac's. why -- what would set you apart? jean-pierre: there are two strategy point concerns. with two partners, while they focus on financial sectors, when we will do, what we can bring to a company is experience of the financial sector and digital transformation, regulatory, and long-term vision and the ability to work with -- francine: which areas of financial services do you now consider undervalued? jean-pierre: within the financial services, the -- that has been taking place than it been actively directed by the crisis, you can see in subsectors insurance, pin tech, and financials, that the need for all of them to reach critical size on one side, and traditional asset management need to reach the critical side of asset management in europe. [indiscernible] concentratin

think towards europe -- how damaging or risky could this impact the way investors think towards europe? fabiani: it is damaging because you see the difference in gross -- in growth between the u.s. and europe. and also with u.s. stimulus and the vaccinng better. i think in the short-term it will hurt european equity markets and we have shifted some way more towards the united states. we are not always on the cyclical side. and i think europe really needs to get back on track with the vaccination program. annmarie: i imagine with this export halts, that is what they are trying to do. fabiani fedeli, thank you so much for joining us this monday morning. just ahead on daybreak, the credit suisse ceo says he considered selling off the asset management arm in the wake of the greensill issue. that is next. this is bloomberg. ♪ annmarie: good morning. from bloomberg's european headquarters, 6:30 a.m. in the city of london, i am annmarie hordern. this is "daybreak: europe." stocks mixed at the start of a busy week. inflation data and testimony from jay powell and janet yellen will give inves

you can see the impact on the trade in europe. big losses across europe. alix: big losses here as well. coming up, rebuilding venezuela's oil industry. bloomberg's exclusive interview with venezuelan president nicolas maduro. this is bloomberg. ♪ ritika: this is the european close. this is bloomberg. alix: venezuela is home to the world's largest crude reserve. the oil industry has collapsed due to sanctions on president nicolas maduro's regime. president maduro insists the industry can recover. he spoke to bloomberg's erik schatzker this week. pres. maduro: venezuela can achieve up to 5 million barrels of production. we have the infrastructure. what we need is the investment. we have been pursued. they do not lend as a single dollar to invest in oil. they do not lend money to any private venezuelan company. that is substantial investment. furthermore, an absolute blockade was imposed on us for the sale of venezuelan oil. we lasted 14 months without being able to sell a single drop of oil. 14 months. now we are reconstructing the investment. we were cove

recovery when it comes to the stock market has been significantly more aggressive than europe, but europe is starting to play catch-up. we have been talking about the vaccine program, talking about the fiscal programs in the -- in europe. has peak pessimism in europe been reached? what is the market narrative, and will that valuation gap start to close? karen: i think that is an aspect of the story, but to me a great component is how the sectoral changes are really what is driving regional movements. the reasoning we've been making to clients is if you get the sectors rice, you're going to get your choice, given that the u.s. is much more heavily weighted towards tech and growth stocks and europe is so much more heavily weighted towards financials and value stocks. i think that is the key story of what is going on here. it is not so much about the macro. it is about this rotation we are seeing from last year's winners, which was clearly tech and online e-commerce, and those losers last year, financials, energy, industrials, and that rotation we are seeing. that's why think europe has pull

in europe, it is 8.3%. this is a market that is perpetually undervalued, so bernstein making the argument with this data, don't buy u.s. value. go in and buy europe value. let's get more on the story. joining us is luke hickmore, aberdeen standard investments investment director. thank you for joining us today. bernstein says you want to own european value over u.s. value. would you agree with that? luke: broadly, i would. we have seen so much coming through the tech side of things in the u.s., and people think europe really hasn't got much in the way of that area. i think they are wrong, by the way. i think if you delve down into the mid-cap and small-cap stuff, there's really good growth in europe, as well as value, but you end up having to look for it a lot harder. value stuff, absolutely, the consumer growth right now is coming through in your nestles of this world, and volkswagen, as you were talking about. there's lots of value there. from our perspective in credit, we are finding great value all over

europe is doing well. participation of women in the labor market has risen in the last does of decades. -- in the last two decades. in all the prime work years a woman is more likely to work in europe than the u.s.. that was not true 20 years ago. europe has made great strides at utilizing more resources women have. at the corporate level, women are contributing more. there is now about a third of board members across europe are women. the disappointing factor is while that has moved up a lot, a huge gain in just a few years, we see very few women at the very top levels. the executive directors, the cio, the cfo level. i still think there is a lot more to go. in terms of how women can contribute to performance, my view is greater diversity is good in itself. i find the companies with the largest portion of women on their board about performed -- have outperformed. guy: is that a reason to invest in europe? if you look at the long-term trajectory, most people are investing for the long term. what impact doe

biggest economy in europe, the engine of europe's economy in germany, is christine lagarde going to have to rethink tapering of that bond buying program? jonathan: you don't enjoy those ecb presses? does that not do it for you? matt: no. i've gone to way too many. ever since the woman poured pink powder all over mario draghi -- jonathan: i remember. matt: they've increased security to the point where it is not fun. jonathan: i think it was confetti. 1.1280 nine on euro-dollar. euro weakness. good morning. romaine: whatever the ecb and other central banks decide, investors have decided l to airlines setting up for a fourth straight day of declines. we've seen weakness all week long in travel stocks in the united states while the lockdown chatter is still over in europe. there is concerned it could feed into the u.s. markets. zoom, pellets on, netflix -- peloton, netflix all higher as people bet as we head deeper into the winter season we could be hunkering down. zoom shares up 2% on the day. got to applied material earnings. the ceo talking about supply chain issues and quantified the imp

and europe trading hours. guy: are you basically saying that this announcement is part of the evergrande response? meltem: there is certainly a linkage. they are concerned about stemming. guy: great stuff. thank you very much indeed. the coin shares chief strategy officer. alix steel got it right. i got it wrong. alix: that never, ever happens. i will take a moment and do a victory dance. [laughter] guy: you have done the dance. this is good. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. guy: we are wrapping up a week in europe like we started but not quite so bad. europe is tradin

this is day break europe. a mixed picture for stocks as investors shrug off rising inflation and focus on a global shakes campaign. jay powell joins david reubenstein today. don't miss it. jpmorgan is expected to report the strongest earnings growth in more than 10 years. it kicks off first quarter results for the backs. goldman sachs and wells fargo follow. and ton cent is said to hold off on a dollar bond offering over concerns over the distressed debt manager, huarong. manus, good morning, 66:30 in london. we are slugging off the inflation -- shrugging off the inflation, a little hotter, although it didn't send off worry snippings. what everybody was focused off was j and j suspending the shot in europe. will it be a set back in the global inoculation campaign? manus: yes. i have taken one side of the trade and you have taken the other. my fact of the day, you know what i am like with a fact. i am dangerous. calvin johnson is 4% -- johnson & johnson is 4% of what the united states needs of the 190 million s

annmarie: what about europe? is it caught in thed my snl >> i think it's in isolation for the moment, the vaccine rollout is better than what was expected a few weeks ago, i think growth is starting to re-emerge where it was late before. so europe has been going fine for the last week and obviously in comparison to u.s. stock markets, european marks are more tissue less highly valued. i think there's a nice trade there which could be the benefit for the euro and stock market. annmarie: what did do you expect from the e.c.b. this week. do you think it's time they start drawing it down? >> i think it will remain relative in the discussion. they have different tools they can use. the balance sheet, the yield control, they have a lot of things they can do to keep yield at the level which is accommodative because the growth in europe is more fragile. what we could see is some friction between different countries in europe which will have different growth strategies, typically germany being advanced compared to other c

in europe, brazil still a real mess? how does that factor into your outlook? robert: well, it is factored into our outlook. trade is largely driven by gdp growth, and our estimates incorporate different scenarios for vaccine rollout. you will see we have an upside scenario that would add another percentage point to our baseline scenario, which is 8% for 2020. -- for 2021. so we would draw up another 1% of things go badly, and the variance had a bigger impact on the global economy than we expect. guy: how much of the positive surprises you're getting at the moment are driven by what is happening in the united states? robert: a fairly sizable amount because of the large stimulus and aggressive monetary and fiscal policy we see in the united states. it has really helped with the global recovery. many countries around the world have also taken aggressive fiscal and monetary responses which, compared to the great financial crisis, that has helped mitigate the downside impact of the pandemic. alix: part of that is going to be

or europe has. anna: what is the path to recovery going to look like during 2021 for european economies? how much certainty do you have around european recovery story given the weather first quarter has already started? a little worse than some have anticipated and uncertainties attached. see,ic: well, as you can the big issue is the stringency of the lockdown in europe's economy. the european economy is on very different pathways because of the variance. because of the vaccination campaign. matt was not nice to make fun of the french. i know we are very bad at vaccinating right now, but we have strong states and weak states. the vaccination campaign is going. the structures of the economy are being revealed. tourism related economy, france or spain, you will have a bad q1. if you are an industry in manufacturing economies, like germany, it may not be that bad. it could actually derail growth in q1. we think it will get worse before it gets better in europe. we will have a wonderful q2. people will

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

leave most of europe off-limits. and prince philip, the husband of queen elizabeth for more than 70 years, has died. we are seeing a selloff in the bond market. we will come back to that story. much of the action following that very strong, hot inflation data we got out of the united states in the former ppi. alix: -- in the form of ppi. alix: exactly. in the u.s., we are focusing on that breaking news amazon. they do win over the union. they reached a majority of ballots cast, with over 1600 votes. . this could have been historic if you did have a union formed in the region. that would have been huge for the beginning of what we might see in terms of union fights against amazon, but it looks like that is not following through their. also within the markets, we are taking a look at what is happening with yields, with inflation. in terms of the overall market, we see safety still being on the back foot. you have industrials, energy all leading the way, but it is a pretty flat market overall. you're just looking at ama

this is "daybreak europe." i am annmarie hordern in europe with manus cranny in dubai. astrazeneca is planning to deliver an additional 9 million doses as they try to get the chaotic vaccination drive back on track and it brings the total to 40 million, half of what the e.u. had expected to receive from the drugmaker by march. ursula von der leyen last night called it "a step forward on vaccines." she added that astrazeneca would deliver the doses one week earlier than and. esty dwek is still with us. i want to get into your thoughts on the e.u. vaccination campaign. the numbers say the e.u. administered 2.6 doses per 100 people, compared to the u.k.'s 12.5 and the u.s.'s 8.8. we know the u.s. is talking about a big stimulus plan. you were addressing that earlier. what does this mean for the european union? they are the last in line out of these three big economies. esty: absolutely. we are talking fiscal stimulus, talking about biden's. you know he has two packages in mind. as we move on from this conversation, some of the european countries, there's talk of starting t

on that front, europe has done quite well. we have more than 70% of the adult population that is completely vaccinated in the euro area, and some countries are in excess of 80%. -- some countries are doing better than that, in excess of 80%. that has been a significant boost for growth and has helped governments not go back to the stringent containment measures that we had seen previously. david: during covid, were you working remotely? i mean where you running the bank from one of your homes or from a home somewhere, or were you going into the office? ms. lagarde: i spent quite a few weeks stuck in my frankfurt apartment during the first wave of covid. actually, the package we put together for monetary policy purposes was engineered around my kitchen table. subsequently when funding was more flexible, and we could move out, i went to the office a bit. the by default motivation -- solution is remote working still today, and probably until the end of january, and then we will see. david: well, you should take that kitchen table

what is the latest travel picture in europe? >> momentum is definitely building in europe. data on seat capacity supports it. in china, passenger data at the lowest level since february. the bloomberg america's airline tells you it's at his lowest since february this week. the momentum in europe, when greece unilaterally opened their borders to vaccinated tourists. the traffic light system in the united kingdom. the european union welcomed american vaccinated tourists in june. since and, transatlantic travel between the u.s. and eu has reached 50% of what it was pre-pandemic. what is most important was the launch of the eu digital covid-19 travel pass. it has helped generate momentum traveling europe. tom:tom: we heard from the qantas ceo, how are european airlines doing? >> there is a clear divergence. my next chart will show you. carriers like air france, ryanair, it is the clear standout. you see the chart normalized over the pandemic, their stock price is higher than it was pre-pandemic. passenger data shows it is -7% this week in august, compared to the same week in 20

>> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to go until we break for christmas here in europe. we do have a little bit of trading tomorrow morning, but i think a lot of people have made decisions basically to bailout already. the stoxx 600 is up by 1% at the moment. we are up by nearly five points here in europe. travel and leisure is having a really solid day. the market definitely looking through omicron. the news around omicron getting significant leak better versus the beginning of the week. the pound is also bid. we are repricing the bank of england, and there is an omicron factor in all of this. the other story you definitely want to focus on here in europe is the massive drop we have seen in gas prices. gas prices have been rocketing higher, now starting to see some lng carriers crossing the north atlantic, bringing some welcome relief. from london, i'm guy johnson, with my cohost in new york today, sonali basak. alix steel

and europe, we still think europe has got some way to run here. alix: before i let you go, really quickly, how do you wind up looking at infrastructure? if you have $1 trillion coming from the u.s., how does that configure your allocation? john: ultimately, this is additional potential boost to growth which is further carrying that. but bear in mind, this is going to take rather longer to push through than the stimulus bill that recently went through. there's a lot more on the table here in green initiatives, how it gets funded, whether it is from taxation or from other forms. that is going to take a lot more negotiation. it is one of the reasons why the market maybe is not taking this in the same way it has taken the $1.9 billion stimulus bill we saw recently. this is a slower burn negotiation. but i think what is crucial, and this implies -- this applies in europe, the corporate sector, we are seeing a very different approach to capital spending and investment generally in this cycle, and that potentially points a light on productivity having so

we like europe. manus: i am curious, we are showing the government bond yields, and dramatic repricing in bond yields in germany, france, spain, portugal. no more so than perhaps in the bund market not yet at zero but nearly there. we've seen a structural shift in the yield story in europe. is it too soon for you to take a short position? jp morgan saying he is increasingly uneasy holding longer dated bonds in europe. supriya: there is a bit of a catch up as the economic picture has caught up. there -- bond yields have moved higher. the spread in some of the peripheral countries, you have seat spreads widen. that is a little bit of a different story, related to a little bit of speculation of a view by the hawks of the ecb gaining the upper hand and perhaps scaling back the pandemic on buying program. that would have the most impact on spreads. that is playing out there. i think it is getting to the point where it probably has gone to file and there is not a clear-cut argument from the ecb for investo

europe it's not a laggard on stimulus that europe is not a lack art on stimulus -- europe is not a laggard on stimulus, but they have not put in as much. caroline: the ecb has been talking about listening more to the fx rates, concerns about where this is going. what are they thinking about sending pat, is particularly since fed chair powell? tom: there will be a meeting coming up in june. the first question for them, how is the recovery going? if things are moving in line with our forecast and the vaccinations are rolling out, that's going to embolden the hawks on the ecb board. even so, we think what we are going to see is the pace of ppp , pap purchases, coming back later in the year. we think the european central bank, if the recovery is in place, if there are new concerns about bond yields, they wie confident to pull tack little bit. joe: when you think germany, cars, we know the global situation with cars is not going to be resolved anytime soon, and that's the way semiconductors are hampering production. how big of a drag is that, the industrial disadvantage due to all the things we

duty dempsey of carnegie europe and editor-in-chief of strategic europe. jp morgan sinking to session lows, down 1.6%, as jamie dimon says that the banking system is going to be in tough shape, and jp morgan is going to have to fight really hard against tough competition from things like square, saying banking is just not inventive enough to come up with something like that. guy: this is not the first time he's said something like this. jamie dimon pointing to what is happening in terms of the threat coming from fintech. the last time he did it, it felt like he was pushing for more regulation. now i think this is clear, he's basically making the point that we are in a real fight there. alix: also talking about net interest income for the year. seems to be right in line with estimates. we will follow that story as well. now let's get some market reaction here. eleanor taylor jolidon, ubp cohead of double equities, the story in the u.s. is going to be looking ahead to the fed meetings. the story in europe is still are going to see inflation in europe and par

we are looking at europe walking down. i listened to president biden last night, make it clear it is not going to happen in the united states. just in terms of the outcomes from a monetary and gross point of view, how big a gap are we going to be looking at as we work our way through the next few months? kathleen: the monetary policy is huge. believe that we will see continued widening of sovereign yield spreads between europe and the u.s. in particular. in the u.k., we are worried, just like your previous professor mentioned. there's huge havoc played in the last few weeks in the economy because of some new people getting omicron. they can't go to work. they have to stay home. restaurants shutting. people isolating themselves and locking down themselves. that is going to have an impact on q4 definitely. but the outlook for q1 we are slightly more positive about, particularly if we see omicron become not necessarily less infectious, but it will over time. in terms of monetary policy, we think there are huge challenges ahea

protests in europe. some violence as new lockdown measures come into force in some places amid rising covid cases. the treasury yield curve near

battle lines drawn in europe. finance ministers diverge on whether spending limit should be imposed. u.k. growth grinding to a heart as the delta variant hits the reopening and consumer spending stories. today we are down a little. we are down by .2%. it has been a flat week, that is the best way of describing it, in aggregate, with a lot to talk about europe outperforming we already have seen that. crude caching a bed. up by 1.8%. alix: all metals catching a bid. we were talking about national gas, aluminum, getting a pop and upgrade. nickel moving higher helping the s&p materials sector, the outperformer. when -- after that you get infotech, consumer discretionary and communications doing well within the s&p. the overall indices lose a little bit of steam and it is basically one area that is helping to uplift the market. bond yields are moving a little bit higher. i do want to highlight the golden dragon index, that is the china listed adr's in the u.s. up point 3%. the headline that just crossed is that the bid

europe is cheap, it is how you -- it is value. >> we do expect that cyclicality in europe to provide stronger returns over the next six to 12 months. >> but we have seen is certainly the interest in and the flows into european equities have been reasonably strong as of late. >> that catch up trade potential could be quite lard. -- quite large. >> with the improvement in the european economy, competence from investors, consumers and so forth, i think you will see an uptick there. the question is how much of that has already been priced in. >> the challenge for europe is that when growth is firm in europe, that doesn't necessarily always mean that equities will do well. you could still believe in your catch up trade, but it is not necessarily an equity story. alix: i really don't thing i say the word catch up -- the word catch up -- the word ketchup, but ok. joining us now is lucy macdonald , jp morgan managing director. many are saying it is the catch up trade. when does that timing happen? lucy: even though you had quite a nice band, there is still more potential in the medium-term.

if europe is able to overcome this, europe will start to kick in. it is going to be an interesting point as to where the equilibrium level of interest rates really is. we do sort of worn our clients to be a little cautious. the market is in flux and it could move higher as well as lower. annmarie: from northern trust asset management, he is staying with us. we are going to talk about tech next, facebook and google blasted for their impact on children. and twitter taking some responsibility for the organizing that led to the capital riot. this is bloomberg. ♪ >> do you agree that this he goes, as the ceos of major tech companies, you should be held accountable to congress and the public? mr. zuckerberg? >> i think we are accountable to public -- to congress in the public. >> do you think you should be held accountable? marx i am not sure you -- >> i am not sure what you mean. >> should you be held accountable? >> yes, and we are. ask mr. dorsey. bikes yes, accountable to the public. >> i said accountable to congress and the public. we represent the

really the epicenter in europe. in days past, maybe europe would look to the u.s. for a little bit of help. at least the energy industry here is in no position to actually really do much of anything. taylor: friday at 1:00 p.m., our long-awaited breakdown, but i know you are itching. every time it comes out. it sort of brings up a bigger issue, which is how can the u.s. bailout other people when we ourselves have not quite figured out the correct supply and demand dynamics as well. oil and gas rig counts as well, it has been on a slowly long-term projection a little bit of a decline. let's do all of this and more with campbell faulkner, the chief data land -- the chief data analyst. he formally worked in data analysis at jp morgan. equipped to help us address maybe risks on the horizon and how are you thinking about the u.s. as an lng, nat gas exporter. but already a pretty low count here to begin with. campbell: it is tough. the rig count has been trending down. we have replaced rigs with more efficient rigs but we are just not really drilling. we had 99 last week

what do you need to know out of europe? europe picking up speed. u.k. retail sales surge, as do services pmi data from the eurozone. german manufacturing data, however, showing some evidence of supply chain crunches starting to bite. a deal down under? report suggests that britain could offer a terra free-trade deal to australia -- a tariff free-trade deal to australia. let's talk about where we are with the markets as we come to the end of what has been an incredibly volatile week. european equities outperforming a little bit. alix: -- services manufacturing, orders super strong, prices very strong. but the market responded positively. then bitcoin rolling over by 6% as china continues to vow to crackdown on the mining and trading system. that has reverberation effects throughout the market. the dollar climbs around the highs of the session. the nasdaq 100 gets hit because we were up quite positively before, now down 0.1%. amazon falling below its 200 day moving average. the s&p giving up a lot of its gains now, only up by about 0.4%. usually we see a

it is the end of trading in europe. it appears we have settled out. it was a risk on day in europe. global stocks at records. the stoxx 600 at a record as well. the ftse up a solid .7%. more of a mining story. also better growth coming out of the u.k. in april as some lockdown restrictions were eased. the dax one of the outperformers along with the cac's -- along with the cac 40. germany is not going to extendable lockdown. they made that call and that helping the optimism. we will get to the impact on the u.k. as they try something different. let's get to some sectors to show what outperformed. this is five-day. basic resources and auto parts. reflation narrative is outperforming. overall, travel and leisure is the second-best performing sector. the story in europe is you do have these passports that do not require quarantine. definitely helping the travel and leisure sector. you also have technology higher is rates come down and you financials, banks, not doing particular well as you have the yield curve with people flatten or. the long end curve continues to come down. let's talk

in europe, controversy from the beginning with astrazeneca, how do we restore confidence in europe? oksana: yes, again, incredibly important to emphasize the risks from covid, a known risk is much higher, not only from a hospitalization and death, but we are only one year into this to see what the disability burden will be versus anomalies around blood clotting. we will hear more about it tomorrow. the regulatory expertise has been pooled together and data scrutinized further. in some counterintuitive way we can see these regulatory bodies in germany and other countries are scrutinizing the data. they are doing their job, but to an extent when we are in the middle of a pandemic. we have heard from the who the more that we allow community transmission to carry on, when we suspend vaccinations, other countries do not have vaccines in their hands -- that is another issue -- this promotes the variants. we have to be extremely cautious around this, and i feel the damage has been done. manus: should europe export the astrazeneca vaccine that they are left with that people do not want? if

and europe. there is some easing happening towards the end of the second quarter and structural easing of capacity. by all accounts it takes a good two years to normalize the capacity with decisions that are economic -- it would be unwise to remain dependent on japan and taiwan for supply. discussion on how to build capacity in u.s., in europe, and how much it will cost. how much subsidy they will pay. guy: certainly sing a big impact in terms of the stock story across the entire auto sector. always a pleasure. the dax is where the action is on this. a little bit higher during the settlement. ftse 100 still down, but playing catch-up after yesterday's close. the dax down 2.5% today on the back of the infineon and that feeding into what is happening with the auto sector. alix: in the u.s. it is a story of tech weakness. it reaches across the board but tech is now down 2.7%. within that is at across the board. apple down. it is also the recovery trade like american airlines. united airlines lower.

to europe. i think that will be more subdued than normally because of the ongoing asset purchases of the ecb. then you have the asset purchases and how the influence spreads, which has been a pretty successful story thus far. the strategizing of the btp's may be in respect to this, when the pepp will change. we are in strong growth acceleration mode, so this is not an environment where investors would become overly concerned about debt sustainability because normal gdp growth will improve, and i think they will be very happy to seize the opportunity to pick up some yield if the btp-bund spreads would move up a little bit. alix: we really appreciate your time today. i also really like your curtains, by the way. william de vijlder of bnp paribas. guy: you are in the market for curtains, aren't you? alix: i already bought my curtains, but i do like that design. [laughter] coming up, a dispute over fishing threatening u.k. finance. we will get the details on france's push to delay access to eu finan