a fake it's fascinating that europe's investment arm is using the investment chain to issue bonds. amy: what's important about it is the technology that matters and makes sense. when you talk about bitcoin, i will say i don't believe the world central bank will not own the crypto space. they will create digital currencies which is why i question. matt: you had me at this intermediate -- let's move on. as the -- as it embarks on an overhaul. charles lowrey joins us now. we really appreciate you joining us. let me ask how these incredible volatile situation that we are in, with the reopening and inflation and spike in growth affect your strategic plan. it's difficult to navigate such a change in current. charles: thank -- thanks for having me. i'm excited to be on your show. we had a very strong start this year and we are focused on our plan. and our plan is to, we have three parts to that plan of transformation. the first part is to prevent our products. the second is to focus on cost efficiencies. those are all within our control. we can execute on those. we are allen seen that wit

the autos are getting hurt in europe today. the other interesting story this morning is euro-dollar. we are up by around 0.5%. recently, you get trouble in these markets, the market it's the dollar and hits it hard. that has not happened today.

bit more risk, with economic optimism and we got this climb coming through as well and equities in europe and indeed over in the u.s. as well. this against the backdrop of the global covid-19 case is going up. these other asset classes, having a look at the dollar with the price in crude, and there we have it, we have the 10-year yield at 1.62 and one point 63% -- 1.63%. wti coming back, and people looking for a haven. gold adding to its gains that we saw a bit earlier on. we have the drop there, being at the moment, raise to some extent at 1/10 of 1% to move. let's tell you about what else is going out there. haslinda: president biden has raised the stakes in america's competition with china. he promised to outspend on innovation and infrastructure in order to keep the crown as the world's most powerful company. -- country. biden acknowledged the relation with beijing remains challenging. pres. biden: we are not looking for confrontation, although we know that there will be deep, steep competition. we will have a strong competition but we will insisted that china plays by the internation

coming up, energy prices surging in europe and the world. we are going to be speaking to the managing director of the nigerian national petroleum company. ♪ annmarie: welcome back to the open, less than 20 minutes away from the open with futures pointing to an open stronger by 0.8%. the gas tech convention agenda will be dominated by global prices and the transition to net zero and the use of hydrogen. let's get over to manus cranny, joined by a guest. manus: good morning to you. it is great to see you to get your opinion. you told me, don't get excited about an ipo that is years away. what is top of your agenda? you have just been confirmed as the acting ceo. >> we are going to lead a company that will become the biggest company in africa. a company that will lead the transition to renewables. what you have to do is focus on gas development as everybody else is doing. you need to -- make this company completely commercial and profitable. it will lead a very big transformation. manus: keep me abreast of when the assets get readjusted. are

and over in europe, competition from vw as well. these stocks may have rallied last week on this infrastructure plan, hitting a bit of a snag on this news today. kailey: they've got to compete with the hummer ev suv we were talking about. on the subject of infrastructure, president biden has set aside money to grow the ev industry in the u.s. how big could the use of ev's become an eventuality? ritika: $174 billion grown in the ev space, in this infrastructure plan. if we look at it in the broad context, ev sales as a percentage of u.s. car sales just 2%. that is expected to grow to 25% by 2030. if you compare that to china, if these estimates are anything to go by, that would be half of what they are producing. in the broader context, u.s. still has a long way to go to catch up and get parity. kailey: thank you so much for that great report. on a programming note, tune in later this week for a special on the chip crunch. that is at 5:00 p.m. eastern time this wednesday. still ahead, we will discuss the u.k. prime minister boris joh

cannot wait to bring supply into europe. the question is time. i look at it as all the pent up supply in pennsylvania waiting to come this way. it is a matter of time. overly we don't have a cold winter but if we do that will be a bit of a problem. alix: i wonder what positioning is like. bank of america is looking at diesel at 100. lng prices trading at $190 a barrel for brent. our investors and hedge funds guys going on on commodities or staying out? how clean are we? mike: the shorts are getting stuck out. -- stopped out. making the calls typically when i hear that, that usually means a longer-term eke coming in. -- a long-term peak coming in. it happened in lumber, beans, i look at brent staying around 80 and supplies coming back and u.s. shale coming back and curtailing demand. we just hit and now there will be a gap in the way down and it is a question of how high it goes and that is the hard part. amanda: one piece that is different is china saying secure your energy supply at any cost. how does that factor in? mike: it is amazing how chin

as well as in asia and europe? >> they had a good quarter as people came back to some of their bigger parks. there has been a lot of demand for the parks. this is very strong. they are also expanding their cruise line activity. the delta variant at this point, doesn't seem to be impacting them. in the short-term, the strength of the parks business and the appetite for consumers to get back and enjoy them is for sure. tom: what about the controversy around the direct streaming versus cinema releases? are they able to work through the kind of contention that scarlett johansson has brought to the fore on this issue? >> they have not mentioned her by name but they have said that a lot has been going on in the last 12-18 months involving the way they pay talent. i think it is clear from the comments yesterday that streaming will continue to be a priority for them in terms of releasing new content. cinemas were struggling before the pandemic anyway. they will come back and play a role but i think the mindset has shifted

thomas: we have a focus on europe, europe is working for us at this time. we focus on that, but the mission is to go global and over the next few years we will expand. which countries and when is something we do not know at this point. anna: thank you very much for your time. thomas plantenga, the ceo of vinted. laura: the largest gasoline pipeline is returning, they began to renew around 5:00 p.m. eastern time, but it is unknown how long it will take to get to normal to help with the shortages. there is a push to end the clash between israel and gaza. president biden spoke to the president yesterday and defended it the attacks. the violence is resulting itself. so far, 60 reporters are reported to be killed. the judge overseeing the high-stakes trial between apple and epic games is hinting at a compromise. the idea is to let app developers inform their users that the iphone maker's virtual store is not their only shopping option. it could quell at least some of the concerns of "fortnite" maker epic. global news, 24 hours a day, on-air and at bloomberg quic

or europe. and the advantages and this case of being swiss is you are not a flashpoint in terms of your nationality as a company. mission-critical technology has had a lot of research which differentiates you from your competitors. anna: what is the long-term structural trend you are investing in at the moment? eleanor: for us, that is going to be a continuation of focus on health care. and more personalization of health care. that means we are of the crowd that considers the diagnostics growth will be refined. we also look at the restrictions in the capacity for manufacturing pharmaceuticals. we think that is going to be continued strong growth for that sector. other sectors, we are interested in seeing how some of the challenges of trying to make the planet more green will play out in some companies. some companies have had a disappointing year. we still think there is a long-term positive trend for hydrogen. tom: eleanor taylor jolidon on some of the themes to be considered. she will stay wit

who is seeing europe is who we are concerned about, the variant is spreading rapidly across europe. they are worried about europe. the u.s. is hitting record highs. it's not going well globally. >> there's likely concern out there that this is going to out run the vaccine. people are getting vaccinated at very slow paces, it's not helping in the transmission. >> the vaccination rates are not yet helping with the transmission, because we know you don't really get any protection whatsoever until at least two weeks after your first dose, and you are not fully protected until two weeks after your second dose. that takes a month between the two. are looking at a month and i have, we are not seeing any benefit from that. we are narrowing the vexing to people who are high risk -- the vaccine to people who are high risk and elderly. not everyone is getting that. in ourd news, it is control, if you social distance, where a mess, stay away from other people, you are not likely to become infected. mask, stay away from other people, you are not likely to become infected. it is your choice. >> b

across the pacific and elsewhere to europe, chinese exports are doing very well. in fact, better than expected. exports in october of 27.1%. the forecast for a 22 point 8% rise. it was the 13th straight month of double-digit gains for experts -- exports. throat tober, the exports have already surpassed all of 2020 -- throughout october, the exports have already surpassed all of 20/20. we are back to pre-pandemic levels. so, there is the export story. that is the external demand story. internally, there is a lot of stress. imports were up, but not as much as exports, 20.6%. a lot of that is due to: boards doubling because of the power crunches. -- two coal imports -- to coal imports doubling because of the power crunches. we had a couple of coupons do over the weekend. we are still trying to figure out whether those payments were made reaching out to bondholders. that was worth $82.5 million. there is a 30 day grace. period. december 6, we will check back in. this coming thursday, we have coupon payments where the 30 day grace periods will be expiring. that total i

this 35 year banking veteran has to show he has the right choice to run the largest bank in europe. >> let's be honest, if you want to be an international bank

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

on europe, and i think it is because europe realized too much on low interest rates -- europe relied too much on low interest rates, and low interest rates are not helping them. alix: i wonder if saying the word significant, even though there is no definition, is that enough to keep on yields low enough to wait until we get that fiscal zone at the end of 2022? david: i think europe is going to recover as the pandemic comes to an end. this is a guaranteed recovery all over the world as the pandemic were seeds. you never get -- pandemic recedes. you never get that, but we are getting at this time around. they will borrow and make investments ahead of rising rates. monetary policy is most powerful when people expect rates to go up, not when rates are low and people expect them to never go up. i don't think it does one ounce of good for stimulus. i think the ecb ought to be working more closely with european governments on trying to figure out ways of accelerating a reopening and vaccination program for europe, but also perhaps they could take a leaf out of the u.s. book on low inflation

let's talk about what is happening here in europe. you talked about what we are seeing in the united states. it is pronounced in europe. we got through 480 yesterday. we are starting to see that come through a little bit. we are headed toward the european close come about half an hour away from that. we have considerable pressure on the u.k. government, about to make an announcement when it comes to working from home. he's it about to make an announcement on covid -- is it about to make an announcement on covid? and gas prices continue to move higher. we will talk about all of this. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term c

guy: europe in many ways is geared to that cyclicality. if you are a u.s. investor, or a dollar investor, let's take -- you would make 16% but if you are a dollar investor, you would make 8% so the currency has hurt this year if you are a u.s. investor. the money has been pouring in your direction. >> last year, you didn't hear anyone talking about an off year for the dollar. sanali: thank you both, this is bloomberg. ♪ kriti: time for the bloomberg business flash. angel: find a jp morgan 200 million bowser breaking rules involving employee communications. bank executives were supposed to make sure that workers were compensated but even the rules they were supposed to enforce didn't happen. amazon's customers in the u.k. will now be able to pay monthly installments as a result of a new tie up between the online retailer and barclays. purchases of $133 or more on amazon will be eligible for the new payment method. buyers will spread out the cost for three months to four years. shares of rivian automotive are tumbling afterwards earnings report as a public

it is a bid in europe, as well. we have new forecasts. probably going to be adopting negative rates, perhaps as an official tool. looking later with andrew bailey we have been seeing sterling. sterling a little bit ahead of this meeting taking place. [indiscernible] that two day meeting. reporting later on on what they are going to be doing. nothing specked it in terms of changes. also with regards to all of this, we have the u.k. government bond yields steady. looking at all of that. what have we got with trade? yvonne: you start to see the central bank diversions you are talking about. you have the hawks and the doves. the tightening cycle seems to be coming through to an end. what the traders are pricing and right now is that they are expecting the taper announcement could be coming pretty soon and rate hikes could be coming as early as may of 2022. they are pricing in at 15 basis points hike here. we have been talking about bloomberg economics. they are still going to talk about inflation is transitory. you still have delta to worry a

. >> we are moving to exchanging the best practice close to countries which we are running, such as europe and japan. also, we aim to expand the rollout such as asahi super dry and the ale to all of the areas in each country -- a class all over the countries. i have the experience in australia. i increase -- 2012 to 2017 and i am confident. two other countries, globally. >> you have given this very ambitious goal of making asahi's super dry beer as a top brand by 2030. can you speak about which countries will be most important to reach those goals? >> every big city in every big country, but especially, we aim the super dry in london and shanghai, beijing, and some big cities, and europe and paris, and bangkok. >> the olympics are set for july and you guys are a sponsor, however it is going to happen in a much scaled-down event with spectators. what impact do you think that will have with asahi and how are you feeling about the liv-ex overall -- the olympics overall? >> so far, we have been enjoying substantial benefit. we are satisfied with partnership of olympic games. haidi: asahi ceo s

we had some data out of europe. business confidence out of france and germany, pretty strong, pretty decent. in terms of trajectory, expected to get better. the news on foreign exchange, that has been muted. of almost .2%. -- up almost .2%. lisa: that pretty much sums up at all. it is so boring out there. jonathan: taylor riggs is falling asleep. what did she call it? taylor: a slow death. jonathan: lisa, we are done. lisa: you mentioned the fed speak and how nobody seems to care. he put out this comment, "i think we should move to 24 hours a day to keep us updated. the more they say, the less they actually say." david blanchflower joining us now. we were talking about how there is not much being said that is new. however, we made -- may hear something from the bank of england when they release their rate decision. you are looking for a potential policy error. can you explain? david: both the fed and the bank of england are struggling in the dark. we have never seen anything like this. the best thing is to simply wa

and europe, or the u.s. and other countries that have traditionally been more democracy, more aligned on these questions can find common ground on things like digital privacy, industrial policy, and regulation of internet platform companies. haidi: eurasia group geo technology director kevin allison there. it is going to be interesting few weeks coming up in the next four years to see what difference there is when it comes to that with china. tokyo and surrounding areas embracing for a state of emergency which could be declared later today. we will get the latest from tokyo. we are continuing to watch any of the latest developments from washington, d.c. this as we have some semblance of security and calm being support -- being restored on the capitol after a few hours of violent protests. trump supporters storming the capital, resulting in the death of one woman according to washington, d.c. police in these riots, in these protests. we have also heard that twitter and facebook have removed content from the p

with massive feats and i imagine we will see even more in europe because europe is a more cyclical market. we will see -- the banks should see good inflows on the macro level. and the industrials, financial industrials a larger part of the european market that are cyclical. manus: good morning. good to have you back, congratulations on the move. good to have you back on the show. i was beginning to worry. you say overall it is 10 to midnight on equity markets. lucy, clarify that for me. what are the risks on the 10 to midnight on equity markets? lucy: we are late cycle, we know that. some people are taking the rebound from last year is the beginning of a new full market -- full market -- bull market but we all know it is because of valuation. there is still good support. the earnings we were just talking about, but valuations, it is really only on the extra risk premium you are seeing support from valuations. it is a late cycle markets. you are looking down the various bubble, signs of doubles. there are some signs of bubbles. it is not everything and certainly is not extreme. but it is q

that is not as much inflation in europe as we have in the u.s. we believe the ecb is in a much more wait and see situation than the u.s. is. tom: have you and the team at barclays made any changes to the portfolio to hedge for the omicron risks? emmanuel: we did. we published our outlook for 2022 three weeks ago. we took some risks off the table, closed our lungs on banks. we think banks in the short term might -- yes, we have a hawkish fed. as you said, the virus is bringing back downside risks to -- and the european economy. we want to have a bit more balance in the portfolio. it's a sector which can defend their valuation, which can benefit from a strong economy in 2022. we like industrials, we like energy. tom: the support from negative real yields, to what extent does that continue to be a key factor for equity investors into next year? emmanuel: the support is still going to be here. but obviously, real yields will be less negative. if our fears are right, the terminal rate is around 2%, you should expect real rates to still be negative and

>> this is europe. we have a lot of convincing to do with member states. if we can get them to agree with us, we can meet the goals. >> how will the eu's plan affect different industries? >> it would be difficult to ask more of a company of our size and scale. >> the battle to become the first carbon neutral cop them. we speak to joe biden's climate czar about america's net zero.

policymakers in europe are being urged to act quickly on their own digital efforts. global news, 24 hours a day, on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. i am vonnie quinn, this is bloomberg. >> sources say a consortium led by alibaba are nearing a deal to bail out the retail arm of the conglomerate. this is the latest him not to fall invasions effort to clean up its corporate sector. tom mackenzie joins us. what do we know about this? >> this is one of the biggest retailers here in china. alibaba teaming up with the local government there as part of this consortium we are hearing to buy a major stake in suing -- in this -- in suniing. we know that details of the deal may come later this week. it may be confirmed this week. we also know the founder of the company will ultimately use control if this goes through. that is quite a fall from grace for a man who was the head of one of the most accredited conglomerates here and is one of china's musto profile -- most high-profile. they w

. ♪ david: you could argue classical music came from europe, and you could argue that other parts of music came from other parts of the world. but jazz was invented in the united states. and it's a classic american kind of invention, i would say. but why is it so hard for some people to understand? you've written a book about it. and you make it, in your book, sound like it's almost a religious experience to play jazz and understand jazz. it's important to be an individual who can play well, but also to play with a team. can you explain why jazz is almost like a religion to people who care about jazz? wynton: well, jazz is our national art form. and as such, it objectifies a lot of our basic principles. and, if a group of people are blessed to have an art form, which you can have a civilization and a society and you may never create an art form that does that. it's a blessing. so america was blessed with a group of musicians and a social condition that produced this music. the music has three fundamental elements. the first is improvisation, which is our kind of individuality and wha

goldman recommends staying overweight on europe and japan in the next three month, with more bullish positioning for japan in particular. haidi: softbank putting a big bet on latin america's tech industry. adding billions for investments as a gains population among foreign venture capitalists. softbank international's ceo marcelo cluare spoke with caroline hyde. >> what has surprised us the most is it is as good as any part of the world. the business models deployed in china, india, and the u.s. are booming in latin america. it gives us a competitive edge that we have seen the art of the possible markets, and now we see the high quality entrepreneurs launching these great companies. so far, we have deployed -- as of last quarter, $3.5 billion in capital. returns have been exceptional. 105% iri on a growth basis. so it makes us one of the best-performing funds in softbank, and a lot of the venture funds. based on that, we have seen the need for venture capitals, as we like to call it, vision capital, is needed in latin america. that is why we have decided to double down in the region,

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

what do you need to know out of europe. within the last hour astrazeneca's ceo said his firm will deliver 40 million doses in q1. moderna saying that his firm will start human trials for the south african variant. e.u. leaders discussing how to get the urine -- union out of the pandemic. pressure to speed up the delivery of shots and to escape -- except vaccine passport. angela merkel saying that that could be possible. the ecb's chief economist attempting to push eurozone yields lower. philip said that the central bank will buy bonds to prevent undue tightening. let me tell you what has happened around that. we have seen yields continued to rise and prices continuing to sell off. stoxx 600 is also down. look at the move that we are seeing in terms of the btp market in italy. you are seeing a huge move in greece. the market is not listening and yields are rising sharply. alix: in the u.s. is a similar story, can we handle it in the u.s. or elsewhere like in emerging markets? that is a different question. 10-year yeilds up b

just very briefly, i know you much like europe and are overweight europe. does a slow, sluggish vaccine rollout scare you at all? fabiana: you know, that will definitely create volatility. there are two things we have to observe in markets at the moment. one is the rollout of the vaccines with the lockdowns. what happens from that point of view, and when we get out of those lockdowns. and then obviously the second one is stimulus packages, the biggest one obviously in the u.s.. vaccinations in europe are just too slow. that means it will create volatility. but we are closer to the end of that process than the beginning, and we see lots of valuations still not being discounting that, that's why we still like your. at some point -- like europe. at some point, we're going to get out of this. annmarie: happy friday. that's all the time we have for today. thanks for joining me. coming up, a company catering to women and led by a woman, has made the female found a billionaire. our conversation with whitney hurtful next. this is bloomberg. ♪ ♪ annmarie: good m

it's day break europe, your top stories this morning. go into a national lockdown which is tough enough variant.n this that means the government is to again instructing you stay at home. plunged back is into a full lockdown in a bid to cases.oronavirus pandemic fears weigh on european and u.s. features. exchange rk stock scraps plans to delist china as in a u-turn with little explanations. and joe biden and donald trump ahead of al rallies runoff's critical senate election today. anne marie, you're living in the a lity of lockdown, but on broader global market stage. if we take the idiosyncratic the united kingdom going back into lockdown, what governments globally are prepared to take this pretty drastic action. had not omething we assumed despite vaccine morning. good annmarie: we're seeing the markets play out is what is happening in everyday lives in sense that many have thought that we would be well ahead in terms of vaccine process. not. that's taking slower than expected and of course here in he united kingdom, it's the third nati

francine: this is also part of the political attraction of europe right now. going onto the french elections, could it come more difficult to attract international money to funds depending on who wins or how the primaries go? emilie: yes, that is an interesting point. depending on the political opinion one might have, it is business driven, and it is understood what is at stake. i think the digital transformation is key. whoever wins the election, we will understand that is carried on, the trend will keep on. we hope the next person will understand what is at stake. so much has been done around this ecosystem at the level of the ministry of finance, it is quite important to see that going on. tom: some fascinating insights into what is propelling investment into european tech. emilie jadat o'shea, head of equity syndicate, societe generale. coming up, bitcoin steady after dropping further from its november all-time high. down 30%. will central bank stimulus hurt demand? that is next. get the details. this is bloomberg. ♪ tom: welcome back to the open, 42 min

equities outperform the likes of europe, even though europe has a little bit more value to it? anna: in the near term, we like the u.s. because we have a little more clarity on it. what will be very important here is where different nations are in their tightening cycle. as you start to see growth divergence or different timing on when people are hiking versus when that accommodation is coming off, that is going to have a big impact not just on equities, but really the underlying here, which is the currency market. these other kind of things we need to consider going into next year, and there may be more opportunities that open up later in the back half of 2022 depending on where we are in our tightening cycle. tom: anna, thank you so much. anna han with wells fargo, greatly appreciate that this morning. i look as we go from anime hunt -- from anna han to chris gersch sandy -- chris croissant a -- chris grisanti. the dow up 17% year to date. the nasdaq topped up 18%. double digits. lisa: a lot of people are saying this can't really continue, so they are stepping back to 10%. to

senior fx analyst at my next europe. -- monex europe. ecb officials seem unlikely to spring any surprises over stimulus at today's meeting, but there could be a lot of interest in talking about how the ecb does eventually unwind policy, and the latest forecast coming through from the ecb. all that going to be in focus, and also the german political backdrop and the digital euro. we wonder if they will be asked more about those topics today. ♪ >>>> we are certainly not at a level where inflation would be a danger in europe. >> i do believe there is now a significant inflationary danger. >> it is hard to imagine a big wage inflation spiraling at this point in time. >> this is very much the healing of last year's artificial stock, but it is wrong to think of the environment as the new normal. >> inflation is a lot lower in the u.s. and the recovery is behind. >> when it comes to 2022, we expect headline inflation to drop down around 1%, a significant drop. >> we are watchful because we could never experience in the past a relation that wa

is that only going to hasten the idea that we get a carbon border tax in europe? let's talk about the markets. stocks are down pretty hard. the tax in particular is

alix: where is all of at least priced in at this point within europe? john: one of the things we've got to look at is we do have some concerns coming into the guidance. there's concerns being cited around inflation. there's concerns being cited around the margins not having yet really moved in a positive direction. concerns being cited about rings like inventory gaps. all of these are things which sort of reflect the uneven nature of the recovery we are seeing around the globe. but make a mistake, if we look at growth data, jobs data, fiscal support, all of that is coming through. where do we think we've got potential upside? we believe still it is the cyclical sectors, the financials, those that are geared to this global growth recovery. the recovery is perhaps a little uneven around the globe at the moment. the u.s. and the lead, and other regions looking to only now come back in, europe in particular. we do foresee a period of above trend, reasonably synchronous global growth developing through the back end of this year into next year. with that we g

and europe's. those are the issues, but unquestionably, there's regulatory risk in china. they don't have the rule by law set up we have in the west. they are coming up with the laws today and doing the rule of law, but they don't have a structure for how to deal with these companies, the profitability of these companies. that is happening on the fly and is messy, but if you look at that, a lot of that is price standard. the same asset in china relative to the u.s. is at a 40% or 45% discount. maybe that should be worse. our point is, you are still better off having a diverse mix of assets with chinese assets. that has always been the case. stephanie: the bond market has certainly done well. the wild card, which could overturn the analysis you've given, is this potential for u.s.-china relations to deteriorate. you've got the chinese authority discouraging chinese companies from listing in the u.s. you headed the comer secretary gina raimondo saying the u.s. needed to rally its allies to slow down china's rate of innovation. this feels like potentially a difficult situatio

it is "daybreak: europe." with the stories that set your agenda. the delta variant pushes back into lockdown in the central bank signals what is to come. treasuries are little changed with the declining outlook on yields. the u.s. freezes government funds held in the u.s. in the bank accounts. good morning, a phrase that comes to mind, we will talk about risk, which is the world central banks and customers are all held hostage to delta. central bank policy has done a u-turn. the bank of about tina turner, paying amash to her in 1985. dani: bank of america gets a red card for that pun. i have had proud mary stuck in my head for the last 48 hours. there is no alternative. it's remarkable to see everyone walking toward equities but there will be lower returns for equities in the second half. so maybe don't load up on them. manus: that comes through when you look at the positioning. health is number one, tech is still the most crowded trade. growth is back at 27%, you are looking a real rewriting of risk. it cannot be said enough, the other thing that

. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: european equities are down. the stoxx 600 is trading for 65, down by over 1%. we have really struggled to gain traction since then. we also had some weight added to the market this session, when we saw oil coming down sharply in response to what was happening with opec. since then, that opec move has faded. we've now got brent crude trading by 1.8%. despite that, we still have a stronger dollar. the norwegian currency heavily exposed to the oil narrative. despite the move we are seeing in crude, it is still down. the dollar is still on the front foot. the dollar up 0.4% against the norwegian currency. 29 minutes to go until the end of the day. midway through the day in the united states, approaching that point. over to you. alix: what is happening in europe is definitely not what is happening in the u.s.. yields are lower, stocks are lower. here, stocks are higher and yields are higher as well. i've

jonathan: next month, it is europe. the president with his first overseas trip to the continent, his first overseas trip of the presidency. he will be going to brussels. i believe he will be going to the u.k. as well. deere in the premarket up more than 1.5%, adding to the 30% gain we have seen so far year to date already. lifting the profit outlook, surging for the team at bloomberg. tom: what is so important is the guest we've got coming up, you look at the boom economy where he lives, and he is screaming. it is big. lisa: big. jonathan: but not too big. let's get to jim paulsen, standing by patiently, leuthold weeden chief investment strategist. we had the market in some places absolutely ripping. you can have huge price gains but still have a valuation, a multiple that comes in because profit and profit expectations are up even more, and the profit numbers have been incredible. the earnings through q1 quite fantastic. jim: i agree. the numbers in the first quarter for the s&p 500 have come in at the $200 annualized

in europe, broad gains. the french car parts maker vallejo reported results last night saying semiconductor supply constraints have heat and will gradually ease by the end of the year. they also reported even -- ebit da ahead of estimates. the ceo of vallejo joins us now. very good to speak to you. your stock is up very strongly, by more than 7% today. how much visibility do you have about the future performance of valeo? >> the market lost 10% production in the first half of the year because of the semiconductor shortage. for the longer term, we are positioned very well. market signals have been growing very fast. anna: you talked about your expectation the chip shortage will ease by the end of 20 21. what gives you the level of assurance to make that statement? have you had conversations with suppliers who have indicated this? >> we are in daily conversations with suppliers, of course. what happened in texas, the fact they semiconductor factory closed, and the lockdown in indonesia the last few weeks. befo

those types of exposures are cyclical and stronger in europe. we do expect to see that some of those economies and markets can perform pre-well. we continue to be positive on the u.s., but there are opportunities outside of the u.s.. >> do they include china? when investor says what my supposed to do with china, what do you tell the? >> china is an enormous market, important for the global economy. within our broader allocations we like the growth prospects, and we do think that pockets of asia will be very attractive. we are getting concerns about the regulation area risk. we see the impact on the u.s. listed names and a number of those large chinese entities. there is more on the corruption and control of our companies. we are watching. jonathan: we will leave it there. it's good to catch up. thank you very much. this is from bank of america, saying we no longer see further upsides for the euro zone pmi for the 20 year high as the delta variance spreads. lisa: we have seen the patchwork of different vaccination rates and opening and reopening

we are seeing spikes in eastern europe all over. south america there are concerned. so we still have, we are still in the midst of an emergency. i think, however, the idea, i think it is very dangerous to say, let's just go back to 20 years ago and give up on all the gains that have been made, in establishing the credibility of central banks, and maintaining a stable environment, which is very important for the households that don't have the ability to hedge against high inflation. kathleen: you mentioned debt servicing just now, and last week he wrote a piece where you talk about a quiet crisis in the financial sector, gathering momentum. when we put this in the context of borrowing, pandemic related borrowing. it has pushed up total outstanding debt in the developing world to 25% of -- 250% of countries'combined gdp. how does that constrain what countries can do? what does it mean in terms of this quiet financial crisis? >> but, i think as we have been discussing, there is a lot of focus on what fiscal policy is doing, and what monetary policy is doing. but where d

she is from eastern europe, where climate change is incredibly important. for those of you on bloomberg radio right now, prince charles speaking to those gathered in glasgow, scotland. all sorts of symbolism there. but right now, our francine lacqua with the managing director of the international monetary fund. francine: thank you so much. we are delighted to be joined by kristalina georgieva of the imf. thank you for joining us. i know the imf has been instrumental in helping climate finance and giving aid to public-private partnerships to make sure we deal with sustainability. are you confident that cop-26 will achieve meaningful change? kristalina: i see three reasons to be confident. one, finally, net zero by mid century is agreed by a vast majority of countries, 135 and counting. two, because this time, more of these beaches are about what we can do, not what about you should do, and they are taking responsibility. three, keep your eyes on finance . just to give you a number, we are proud that climate finance last year jumped by 50%, but jumping by 50%

europe ramps up its fight with carbon. reducing emissions by 55% by 2030 and neutral continent by 2050. one of the architects of the plan, frans timmermans, outlined that tough road ahead. >> we still have a lot of convincing to do of member states. if we can get them to agree with us, we can meet the goals. alix: joining us now is our green reporter. lots of stuff in this plan. what is the most significant part to you? >> the biggest difference you'll see is in carbon prices. the european trading emissions system was laughed at when it launched. it has really come into its own. prices are at 55 euros a ton now. they are going to rise rapidly. the eu will expand that, not just cover the industries it covers now but also include airlines, shipping, which should make a dent in the emissions and lead to a higher carbon price. alix: within the actual borders of the eu, what was most significant? akshat: one thing we need to realize, this plan comes with a mechanism called a carbon mechanism, a carbon tariff. if you are exporti

or europe. that is primarily because of a few reasons, in our view. one is, for example, t he social distancing measures are very well implemented. people feel comfortable. that in turn has led to people willing to come back to the office. there is also a relatively small size of people working from home as a permanent option. last but not least, there is also the cultural importance of meeting in person. all these set the asia-pacific office market apart. david: i was just going through your report. we were just talking about how this is a stop and go story of people returning to the office. to a larger percent -- larger extent it is better in the asia-pacific. based on your research, when do we actually start seeing some growth compared to our baseline at the start of 2020? elysia: in some commercial real estate markets, we are already seeing increase of net absorption rates, office demand in particular, also in the multifamily and logistics sector. it has been outperforming the overall commercial real estate market. to some extent, the endemic has

does that mean, in very stark terms, that europe sells more of what it sells into china? does that mean an emphasis on less conspicuous consumption and we sell yes into china? how does is play out for european business? randeep: the chinese government is intervening at a time when business got ahead of itself. they need to help the government out by helping out the common good. if we look at it longer-term, look at the stocks that have been hit hard. it's the french and italian fashion labels. a disproportionate amount of their profits coming from china. longer-term, the chinese government, it's a way for them to tell these companies to get into line. as soon as they realize how the government wants them to operate, it goes back to business as normal. i suspect that will be the case across all sectors. the one that will suffer the most is the private education sector. they think there's undue pressure on children. it's creating a big disparity gap. they think prices are too high. once the companies react, they will adapt to it and be back operating quite well. mark: do yo

europe is the only place where so-called vaccine passports are used. european carriers are now adding more flights. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> the goal is to get as many people out as fast as possible, and why we are glad to see the numbers we got yesterday, we are not going to rest on a laurels. the focus is to do this as best we can by the end of the month. tom: john kirby with the pentagon, managing the message as well. there's juxtapositions in the messaging from washington and the images we see from washington as well. not that we are taliban or afghanistan worn out, but i thought we would lead with the debate in washington. we do that with annmarie hordern. i look at the calculation of the moderates, and i've made a project of this over the recent weeks to actually look at why they are moderate. let's look at the blue dogs and what they have done from the 1990's, when they became evident. t

at that time i decided i went back to europe. i lived in paris for a few years, then i came back here, and then by then, my brand was really, like bad. it was in discount stores. everybody had done everything. that was a difficult time for me, to see, because everything until then was great and wonderful, even when it wasn't great and wonderful, it was still exciting, but then coming back, i mean, and seeing the grand and the people in charge of the brand, they did not care. there was no spirit. there was no messaging, nothing. that was really difficult. and, i don't know if it is a result of that, but at the same time, i also had cancer. i had a cancer at the base of my tongue. i think it has something to do with the fact i could not express myself. anyways. i dealt with that, and i also dealt with taking back my name and starting again. david: you started all over the company is dvf, your initials. that company began to re-create some things you did before, including the wrap dress, and it turns out it was more popular than bef

corporate america, corporate europe, or finding themselves largely at a negative real yields, and, by the way, there were so much money in the private markets now, they are waiting for an industry or company to go through restructuring, so they can step in, so recovery values are coming out at 100 cents on the dollar, a golden era for investing corporate's. i would love to buy yields at 8%, it will not be there for quite some time. jonathan: winnie, is it a golden era? >> i would say it is in terms of fundamentals, absolutely. all of those things that bob highlighted are spectacular, but, does that come at the expense of the long-term? if we have ultra low borrowing costs at negative real yields, does that mean you're going to start borrowing, may be private transactions, although degradation of corporate? at 2% ig and 4% high-yield, it is not feel like a compelling table. you cannot argue with the sidelines. that is a reality, and corporate credit right now a very significant cash practice for a lot of investors. in that scheme, i much prefer high-yield investment grade. at least the

pmi's in the united states and europe on expansion territory. asia, the situation being compounded by some of the world's worst covid-19 outbreaks. haidi: one of the big companies that has been squeezed by the supply situation in asia is the world's top carmaker toyota. we are joined now fire transport reporter in tokyo. it shocked the market when an announced it would be cutting production 40% this month compared to previous plans. we had seen this company manage supply-side issues pretty well. what has happened and why are these cuts having to happen? river: that's right. it was a big shock. toyota had really managed the semiconductor shortage that is hammering other automakers relatively well up until this point. that being said, we are seeing with more clarity what happened to toyota's supply chain that caused the cuts this month in his global output. toyota and japanese automakers in general have a really strong presence in southeast asia. that has been a source of cheaper labor for them and also a supplement to their china operations. that