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

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.

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

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 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

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

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

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

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

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

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

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

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

>> 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

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

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

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

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

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

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

-- 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

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

i agree with it more so in europe. the reason for that is if you look at the projections, ecb is essentially expecting around 2%. clearly, the weakening effect of the season. there was a bit of loosening pressure on the wage front. obviously, you've seen rising wages. a lot of that was due to the fact a very large chunk of the workforce was not there. all of these we try to abate. guy: you talk about the ecb. i am wondering it, how the divergence is going to play out between the ecb in the fed. we get the bank of england's week. we are going to get that division laid bare very clearly. the euro is responding to this. we have a 112 handle on the euro. some think we will get to 110. is that a headwind or a tailwind for european stocks? aneeka: we at wisdom tree, we wouldn't be surprised if it hits 110. i wouldn't say it's a headwind. i think it is just a repercussion of the way you are going to see essentials across europe. the fed is definitely on track to normalize policy. the rumblings are coming from the ecb board me

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?

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

. ♪ alix: we are 30 minutes from the closing over in europe. here are all the headlines you need to know from europe at this hour. bye-bye, dollars. hello, gold. russia is going to cut dollars from its wealth fund in the middle of sanctions threats from the u.s. and move into euros, yuan, as well as gold. the u.k. now takes portugal off its green list, according to people familiar with the matter. travel stocks get hit over in europe. and it is the price frenzy. global food prices nearing a decade high. european services pmi's soar. draghi driving a spike in input prices. let's break down the market here . similarly europe, you saw the u.s. bounce off the lows of the session. the ftse 100 is still the underperformer, down by about 0.6 percent, despite the fact the cable rate was also rolling over. skip the ruble for one second. we will come back to that. you're seeing a minor higher yield. i'm going to put that in quotes. -- holding onto those higher prices. copper still around $10,000 a ton, so all of that feeding into those higher input costs

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.

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

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

in europe down. u.s. futures lower by 1.3%. that is the state of play as investors way up this new variant and the implications across these risk assets. ok, let's switch back to the consumer story, the strength of the retail and households. today, of course, is black friday, when the shopping season reaches its peak in terms of that shopping frenzy. in person shopping has returned after a long pandemic induced hiatus. it could boost sales to record levels. but a series of uneven reports are feeling concerns about the sector. for more, we are joined by charlie wells. charlie, black friday major retail event, what do we know about how sustained the spine is going to be, a lot of footfall, that retail is going to profit from this? charlie: interesting you mention freefall here. black friday has been here for about 10 years, very much and american import started by amazon. and what we know is consumers here today in the u.k., for instance, 29% of them plan to shop in-store. compare that with 45% of amer

mix in europe. having those cargoes taken away and sent to asia, which the markets are telling people to do , has left europe tight. with the threat of a longer, colder winter than people would probably typically expect, then yes, we are repricing in europe to reduce demand for gas. guy: that was the ceo of vitol speaking to me edward. -- speaking to me earlier. anna edwards joining me now. what is it driving the gas market? is it just a super cold weather? anna: what is driving it is asian buyers, the biggest consumer for lng in eurasia, and the warnings that this winter is going to be colder than normal. a lot of people remember very mild winters recently. [indiscernible] so lng has to go a longer route, later than when it is needed, and that drives the prices up. finally, as we just heard, supply outages at some production plants are continuing to limit supply in the second half of last year. alix: there were a ton of analysts all upgrading their lng prices due to this rally. if we wind up seeing

moving onto europe. finance ministers gathering in lisbon for the first person euro growth meeting since september. optimism about a strong economic recovery is growing. take a listen. >> i believe the optimism about the prospect for the euro area are justified. we have over 30% of european businesses who have received a vaccine. i believe we will deliver our target of a large majority of participants receiving their vaccine by the summer. this combined with really good and sensible economic decisions mean that we should be optimistic about our prospects for the second half of 2021 leading into a strong start for 2022. therefore, i believe it's possible that we will see further revisions in our growth expectations as we move through the year. >> minister shao, in the case of portugal, the central bank is saying we could see an uptick in growth. we are seeing you reopening for tourism. it's a key factor for your economy. how optimistic about you -- are you about the prospects? >> we are becoming very opti

it's daybreak europe. jay powell holds the line on inflation as williams says any talk of tightening is a way off. we bring you an interview this hour. hong kong starts the first trial under its new national security law, raising questions of whether the city's independence and the future. the cohorts at the fed. it is about the cooing of the doves. that is why equity stabilized. good morning. dani: all this back and forth, but if you look at markets, did we need to live through the past week? we have done a complete roundabout on the 10 year. i could have slept all the past week and been fine. tom porcelli always the sober us to voice on macroeconomics called yesterday a snooze fest from powell saying that is an hour of my life i can never get back. the one thing he points out is the fed speak over distortion saying nonconventional monetary policy has the potential to increase the risks to financial stability by spurring search for yields behavior, eroding lending standards, and increasing leverage. that

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

any markets, but the europe market. we saw the markets attracting the interest in many investors, particularly u.s. investors when there was no stimulus by the european union and other european banks. it is more from a sentiment perspective that europe can once again move forward as a bloc and having no internal disputes. anna: thank you very much for joining us. bibiana carretero, senior portfolio manager at efg asset management. let's get a bloomberg first word news update. laura: the european union is escalating with the u.k. -- a spat with the u.k. over vaccines. they are ready to start blocking the administration of astrazeneca to great britain until the drugmaker fulfills its obligations to the e.u.. both sides are blaming the other for vaccine nationalism. u.s. defense secretary lloyd austin made an unannounced visit to afghanistan this weekend. washington is weighing the future of u.s. troops in the country. the former administration made a deal to bring the 2500 personnel home. president biden says the deadline

what do you need to know out of europe? what we are watching is energy prices continuing to absolutely shoot higher. gas and electricity prices surging in europe. power prices in the u.k. hitting another record today. benchmark german price is trading above 100 euros, the first time that has ever happened. u.k. regulators recommending 12 to 15-year-olds get a first shot of the pfizer vaccine. the latest polls out of germany. we will be live in berlin with a breakdown of this weekends debate. let's talk markets and show you what is happening. keep an eye on what is happening with that gas price around europe. today another 5% higher. take a look at the long-term chart. it has gone parabolic. stocks a little bit positive today. we had five days down. we are buying the dip a little bit here in europe. it was a little while before people stepped back in again cautiously. maybe some buying coming back. alix: same thing in the u.s. five down days for the s&p, now higher in part because of energy, up about 3%. all of the best perf

is any investment in europe their issei transitory? -- europe dare i say transitory? [laughter] rebecca: that is your favorite word these days. there are some structural constraints around europe that are incredibly important and suggest that, to the degree we have europe outperformance -- and we have -- europe has actually modestly outperformed the u.s. since late last year despite that top-down story i just painted. but for europe to continue to do well, some of those structural constraints do need to change. it is always going to be hard to get all of those countries to agree on policy, so they will have a slower reaction function. what is more important is the fiscal constraint. central banks are running out of ammunition. europe has aged -- has its hands tied behind its back. one of the things people want to watch going into the fall is the german election. if the green party were to come to power, and i know a lot can change between now and then, but their platform is pushing for a different fiscal profile for germany and for europe. i don't know if that would b

do you want to avoid domestic europe and buy international europe? john: i don't think so. i think what you're looking for are the same type of trades we are seeing coming through, that cyclical rotation, that value rotation that is accorded by better global growth. i think the situation we saw during the 2010s, where europe had a banking crisis which obviously caused a second recession, we are not seeing the same kind of set up at the moment. so while it may be that the u.s. is in the driving seat for growth at the moment, i wouldn't write off global recovery. when it comes to currencies, yes, the euro has rich end up relative to the dollar. it has obviously weakened a little bit in recent days, but one thing i would look at is it is still well below what we would consider fair valuation, which would be well north of $1.30 to the dollar. in currency today, while at the margin it could be a headwind if the euro does strengthen, by and large, we feel that europe is quite well set up with a currency below what we consider its fair value. alix: what country has the potential t

on that front, europe has done quite well. we have over 70% of the adult population that is completely vaccinated in the euro area, and some countries are in excess of 80%. that has been a significant boost for growth and has helped governments not go back to these stringent containment measures we had seen previously. david: during covid, were you working remotely, 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 department during the first wave of covid. the very sizable package we put together for monetary policy purposes was engineered around my kitchen table. subsequently, when things were more flexible and we could move out, i went to the office a bit. but the by default solution is remote working still today, and probably until the end of january, and then we will see. david: you should take that kitchen table and move it to your office. it was very productive, right? post-covid, do you expect europeans will

europe does not have much of that. today we are going to see the rebalancing of the dax which could pull in some of that growth and make it less cyclical. they will expand the dax to 14 and pool in some of those names. at the margin it may give europe an opportunity to talk about growth. we will see what happens later on. we will get the announcement later this evening. the performance looks good. tech has been the dividing line between the united states and europe. kailey: let's get more insight into that rebalancing. we are joined by bloomberg's jp barnett. talking about the growth we could see in the dax. what name specifically will bring that? jp: there are a couple of them. two i like our technology stocks and that we have food delivery stocks. we also have different kind of technology companies coming in and the server -- in the form of siemens health. technology and health care equipment. that is something that could enrich the index which in germany's very industrial heavy with big companies like siemens and al

this is "daybreak: europe." ecb policy makers sparring over ending stimulus amid a rise in inflation. stocks are mixed as we position for the u.s. jobs report. chinese taxpayers some gains as ride-hailing companies come under criticism. we will hear from president xi jinping. opec plus sticks with plans to supply hikes. perspective from -- of energy aspects. i want to bring your attention to the positioning of two of the biggest, most important central banks. a terminal chart showing what is happening, in terms of a yield differential narrowing between the pboc and the fed. when it comes to the benchmark, the u.s. 10 year and chinese 10 year. chinese 10 year 280. the u.s. 10 year at 130. not near the 70 highs we got earlier for the u.s. 10 year. but those of you coagulating coming to the idea that 150 is what you get come the end of the year. china is different. pboc pumping about $40 billion to $50 billion into its banking system to support sme's. that is playing into the bond space. 280 on the u.s. benchmark.

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

anna: coming, europe's energy. governments get ready to step in as prices keep breaking new records. ♪ >> this is going faster than we thought, to the point where we will have pre-covid-19 levels before the end of the year, 2021. we anticipated it would be early 2022 at best. anna: christine lagarde there. more from that conversation throughout the day. europe is in the midst of an energy supply crunch as prices spiked to record highs. low fossil fuel inventories and weak winds have pushed gas prices to unprecedented levels. incredible charts around the gas market. italy, france, and spain are all considering ways to ease the impact on consumers' electricity bills. for more, bloomberg's energy reporter. good to have you with us given how much focus there should be and probably will be on the story. european gas prices have surged to record highs, but this might not be over. can they go higher from here? >> as you say, we are seeing almost every day and new all-time record high being set. european prices have surg

and europe is going to be. there's europe owing to be six months behind -- is europe going to be six months behind all the way along? mark: we are looking at growth 7% '21 having declined by 2.5% last year in the u.s. if you do the math, it puts the u.s. in a situation where it has closed its outlook cap by the later part of this year. eurozone, we don't think you are closing that outward gap until the end of 2022. a year behind in this. certainly, there is a sense in the u.s. there are further plans beyond the current covid package to spend on infrastructure and green technology. we could well see over a number of years a period where the u.s. is going for it on fiscal policy and the big question in europe is -- is there enough budget reform after the elections are out-of-the-way in september so that further fiscal initiatives can mirror those in the states? alix: pretty staggering assessment, considering eight months ago the narrative was europe would outperform. they had their handle on the virus battle. how

or europe. the outlook is beyond the control of the ecb and the governing council and christine lagarde. is the vaccination effort in europe lagging behind the developed world? is that a crucial issue for you? michael: pretty much every country. you have to get people vaccinated, to the point of herd immunity. rough start everywhere. that is not unexpected. it hasn't been done on this scale before. in the u.s., the biden administration has to be able to put its plans in place to move forward and get that going. europe's got to get going with their program as well. the only ones moving fast are the brits. they started off on a tough scale. it is the question, as jay powell and others have said. the viruses running the economy right now. jonathan: mission-critical. great to catch up. looking down to washington dc, ecb in frankfurt, europe and the world and lisa, europe, day by day, week by week, if that program doesn't pick up in germany, europe is getting worse. lisa: one reason you pointed to th

jonathan: europe doesn't want a stronger currency. europe doesn't want higher yields. the chairman is comfortable with what he sees at the moment. when do we start to thing about the feedback loop if this continues? tom: it could be a deflation spiral or a feedback spiral. jonathan: don't get lisa started. lisa? she's letting ago. lisa: carry on. jonathan: all right. coming up in the eight a clock a.m. our, -- in the 8:00 a.m. hour, david malpass, world bank president. this is bloomberg. ♪ karina: in new york with the first word news, i'm karina mitchell. new research says the pfizer/biontech vaccine could help end the pandemic. the study was published in the latest edition of the new england journal of medicine. meanwhile, capitol hill, the fate of the democrats' proposed $15 an hour minimum wage maybe in the hands of the senate parliamentarian. it is part of the $1.9 trillion stimulus bill, but the parliamentarian needs to determine whether it is allowable under the rules of debate. the president has revoked a series of executive orders and memos issued by paul for

what do you need to know out of europe this hour? the belarusian president of exec or lukashenko threatening to shut down a key pipeline that moves gas from russia into europe. unsurprisingly, prices rise. u.k. growth data slows and the third quarter, leaving a rate hike for the bank of england a finely balanced this is in this year. the european commission warning that it will actually slow sharply in 2023. in the luxury sector, burberry shares rose sharply. what will the trenchcoat maker's new ceo do to turn things around? we will check out that story a little bit later in the program. it's talk about where we are with the markets. equities bid. we are back to 485. one of the reasons for that is the dollar is also on the front foot. euro-dollar with a $1.14 handle. people are talking about a one dollar 13 since handle sometime soon. alix: the reason why it is funny guy could not prance that, he was given me so much trouble on the brake about not prancing names -- about ms. prancing names -- about mispronouncing names. disney has th