tom: good morning, this is "bloomberg daybreak: europe." i'm tom mackenzie in london. chinese stocks selloff on more concern over the country's indebted property sector. treasury yields extend declines as the u.s. makes a surprise cut to its borrowing estimate, using worries about a flood of debt. european data deluge. we bring the latest reading of the french gdp this hour and look ahead to germany's print. europe's largest economy may have shrunk 0.3% in the latest quarter. the wider euro area is also expected to show contraction. plus, will the magnificent seven live up to their name? we look ahead to the crucial earnings from microsoft and alphabet. both companies reporting today. let's check in on markets as u.s. markets hit another fresh

record yesterday. we have the news crossing the line from saudi aramco that they have been told by the ministry of energy in saudi arabia to maintain their output at 12 million barrels per day. they said back in november, they planned to move towards 13 million barrels a day, today just in the last few minutes the redhead crossing the terminal, the ministry of energy in saudi arabia telling that major state-owned energy provider that it should maintain the output level at 12 million barrels per day. we saw a pop to oil on the back of that news. we will get to the energy sector in a couple of minutes free let's reflect on the futures given the fresh records coming through for u.s. stocks yesterday. a lot of that was down to this change of estimate in terms of the funding needs of the treasury. we look ahead to the earnings story. currently european futures building on the gains of yesterday, pointing higher 0.4%. ftse 100 futures in the u.k. pointing higher 0.5%. energy will be a factor for the

u.k. open. s&p futures currently flat after fresh records yesterday. nasdaq futures pointing to gains of 0.1%. let's look across asset. oil in focus given the lines from saudi aramco. brent with gains of 0.5%. the saudis making this announcement when the geopolitics is very front and center. the next reaction from the u.s., which promised retaliation to those iran-linked to militias. currently $82 a barrel, closing on $83 for brent. i wanted to highlight bitcoin. you are closing in on five straight months of gains. the longest run since that pandemic fueled era of gains for the cryptocurrency. today looking at gains for the crypto of around 0.4%. the etf story with the likes of blackrock and fidelity has been consequential as our expectations of rate cut from the fed. euro-dollar up one point 08 ahead of that data with an eye

on french gdp on the next 30 minutes. the benchmark 10-year's at 4.05, just two basis points lower, after yields came in about seven basis points yesterday on the back of that treasury news. just recapping that aramco news. align the last few minutes. they have been told by the ministry of energy in saudi arabia to keep their daily output at 12 million barrels a day. not to move it ahead to 13 million barrels. they sent back in november that was there longer-term plan. that has implications in terms of capex spending for saudi aramco but the ministry of energy wants to put a floor under this oil price at a time when we continue to monitor inventories in the u.s. that is the story given there was a pop to brent and wti. let's get to the asian session with avril hong in singapore. what is next for china's property sector? it seems the concerns about that

sector are back in focus given the liquidation news around evergrande. we're seeing property stocks selling off once again today. avril: absolutely, that is a key concern for investors in the region and on the mainland. this is the world's most indebted property developer. and we're seeing how this is a cross strait project underway to divvy up its assets. the question remains whether the liquidation order from a hong kong court will be held up by the mainland. amid all these questions swirling, i don't know if we can pull up some of the property names that are listed in hong kong. because there are concerns that not just this sako with evergrande affecting the investor confidence, it is also perhaps affecting what we're seeing in home sales. that could have ramifications

for funding for these builders. and a negative spiral there. it's not just that. we have the likes of longfor and kaisa among those that face liquidation hearings in hong kong court next month. there is the risk of litigation. whether they will face similar demands from creditors, as they try to resolve their debt issues. certainly very negative sentiment in real estate seems to be the key concern for the broader markets, tom. tom: avril hong with a check on asian markets, with a lens on concerns around the property sector in china. treasuries rallying as the u.s. indicates it won't need to issue as much debt as affected. the treasury estimates federal borrowing will be at $760 billion for the first three months of this year, around $50 billion less than previously thought.

joining for the context with mliv strategist mark cranfield. why did treasuries rally on the back of this refunding announcement? >> as you correctly say, it was a slightly smaller amount than the market was expecting. that was already a boost. people got scared going into this quarterly funding just how big wasn't it going to be? you had a series of times where the number was getting bigger and bigger over the past few months. it also takes away pressure off the ratings agencies. if you think back to august last year, when fitch downgraded the u.s. offer in, one of the things they highlighted was the u.s. fiscal deficit was on an uncontrollable path. there didn't seem to be any sign of stopping, and that was negative for the sovereign rating of the united states. this indicates maybe it is not as bad as we originally thought. there is a sign of hope. but yellen and the treasury are

getting things more under control. that may give comfort to the rating agencies. and investors can now look forward to the fact they might not have to suffer the sudden shock of the u.s. being downgraded again which would send treasuries into turmoil. reducing some of that long-term risk puts a better spent on the outlook in the near term. tom: and how is the fed decision tomorrow likely to play into the broader outlook? >> it's still a very important. whatever the guidance from the federal reserve. of course, if they surprise and are hawkish, if they push back hard on the rate cuts we have priced in the market, that will be negative for the treasury market and would undo most of the work we have seen the past 24 hours. that is unlikely. since there dot plots already talk about three rate cuts this year, they probably will endorse it. they may give a stronger hand. march may be a little too close, but they may give hints that the

may meeting is the one where they can seriously consider a rate cut. the treasury market will probably take the fomc reasonably well. it looks as though we're in for a decent run. you can see the appetite for long-term bonds especially is very strong in the united states. we still have the inverted curve. a big part of that is people assuming that rate cuts will come through this year and into next year. tom: and the u.s. 30-year currently at 4.28, to your point. mark cranfield with the analysis from our markets live team p let's get a preview with big tech earnings kicking off, with a focus on micro soft and apple both reporting later. the two companies are the best position to benefit from the ai boom, after investing heavily in the field for years. apple is the biggest drawer on thursday one amazon, and facebook owner meta also report.

matt, what are you looking at when it comes to alphabet? there is the advertising and ai and cloud part of the business. >> everything for google. i'd say the advertising business is the biggest part by far of their revenue. it will reaffirm acceleration as the advertising market picks up again. important that that core of their business is performing well. they have been lagging on the cloud side, so people were looking whether they have picked up momentum in cloud as a broader set of companies look for demand to fuel their ai projects. google has been discounting some of its cloud offerings recently. chatgpt has been seen as a perceived threat to their core search business. the extent to which people are sticking with the google product. the way google has put ai into its own offerings, whether that is keeping it in prime position

in search-based advertising. tom: chatgpt is a product of openai, which has the partnership and investment from microsoft. is microsoft becoming more of a pure play around ai? >> the way investors look at it, it is. that microsoft 365 copilot, although it is a small part of revenue right now, is an important part of future growth and that pivot towards ai. cloud business is an important driver for them. also, this expected pickup in the pc market, with the microsoft suite of software really important for microsoft too. there is a number of facets that are driving the microsoft growth story. read accelerating 16% topline growth this quarter. a lot of the focus will be on their generative ai pivot. how that's coming through in revenue, but also that openai partnership and what they see next for that. you have things like the activision m&a which is playing

in, too. very complex story for microsoft and similar to google. tom: we will unpack all of that when the earnings come through later today. matt bloxham from bloomberg intelligence and the preview around the big tech earnings story. we will hear from the ceo and chairman of baker hughes lorenzo simonelli. that's at 6:40 a.m. u.k. time live from florence.but first our interview with amrita sen. founder and director of research at energy aspects, talking about the oil outlook, moments after saudi aramco announced that it would keep capacity at 12 million barrels a day on an order coming through from the ministry of energy not moving that higher to 13 million barrels a day. the saudi effort to put a floor under these prices. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." it has been reported that u.s. forces failed to stop an attack on a based in jordan due to confusion over the identity of a drone. according to several reports, an american drone was returning to the outpost near the syrian border at the same time as an enemy drown. confusing air defenses. the attack, which the u.s. blamed on iran-backed militant groups, killed three american service members. qatar says negotiations to free hostages taken by hamas during its october attack on israel are making progress. the prime minister says talks are moving to a place which could lead to potential permanent ceasefire. qatar is the key mediator between israel and hamas. >> right now, i would describe the progress we are making in

the last couple of weeks. we are in a much better place than where we were a few weeks ago. tom: secretary prime minister speaking. oil giant saudi aramco has been ordered by the saudi energy ministry to not raise capacity to 13 million barrels per day p let's get the context and bring in alix steel in florence italy where baker hughes is hosting its annual energy meeting. alix standing by with a great guest to talk through the ramifications. good morning and thanks for joining us. alix: tom, don't hate me because i am in florence paid i'm joined by amrita sen, cofounder and director of research for energy aspects a literally the best person to talk to right now. the news that saudi aramco won't increase capacity to 13 million barrels a day, what does that mean? amrita: we have to ask over what

time line. short-term, we don't need 13 million barrels per day. there is ample spare capacity because opec-plus cut production. saudi arabia producing 12 million barrels per day could bring back three million barrels per day, therefore there is no rush. i don't think this statement means never. alix: did we learn anything about opec+ compliance with the announced cuts? did we learn anything about how they view demand? amrita: not the compliance bit because compliance has been very strong. people in the market were skeptical. demand yeah, it is saying demand growth is continuing but is lower especially given what's going on in china. they don't necessarily see a rush to bringing that additional million barrels per day. they have plenty to play around with if required. i don't think the statement means never, it just means not right here, right now. alix: let's move to the other part of geopolitics. that's what's happening with iran and antony blinken talking

about the most dangerous conditions for the middle east since 1973. is that reflected in the oil price? amrita: the reason it is not reflected is because the israel and gaza situation has been going on for some time. we haven't seen any losses to oil supplies as a result of that. because that region in itself, palestine and israel, is not a big oil producer. since then, we have seen the houthi attacks, but the impact has been on rerouting of ships rather than lost supplies. it is creating mayhem by the way in the shipping industry and for oil products and refining, those prices have gone up because you have to go around the cape of good hope. but it again is not lost supplies. the markets are looking for, ok it is rationing higher, but there is not supply losses. you can't also say the risk of escalation is zero. alix: especially over the weekend with the loss of lives of u.s. troops. when you talk to people, no one seems to be talking about it,

which is crazy. amrita: it's all about u.s. lng. alix: why? what is the risk of material escalation? amrita: honestly, nobody was to get drawn into it. in some ways, even when we have spoken to people yesterday, is almost like, let's not talk about it. people don't even want to think about what it could look like. to be fair, the u.s. doesn't want to get drawn into it. saudi arabia and uae have tried to stay out because otherwise their ships are under pressure. so everybody is trying to de-escalate. of course, the houthis aren't. that's where the risk of escalation is high. alix: who is the key maker, is it china talking to iran? where is the balance of power? amrita:, saying to china look, this is hurting you as much as anybody else because all your exports will be rerouted. they are talking, but again, the

houthis, whether they are funded by the iranians or not, are not directly controlled by the iranians. i think that's where a lot of the risks live. that even if none of these parties want escalation, the houthis can continue because they want to be recognized in the region. alix: what's positioning like in the oil market? if there was material escalation, how fast could the rewriting of the price be? amrita: the cta's who are effectively algorithmic traders are the daytrading. the discretionary hedge funds, who i would call people, they are either short doubly ti, or a little long in brent. there could be a massive increase in positioning because of short covering. if you look at longs versus historical levels, they are nothing. alix: does it look like 100 plus? amrita: it depends on how much positioning comes back. whether the macro community comes back because then you get the other side.

if there is escalation, given the economic backdrop, growth might be weaker. you couldn't get both effects but absolutely, 100 plus can't be ruled out if there is outright escalation. alix: not to get too nerdy because it is early in the morning on the u.k. if i was look at the entire oil market and you mentioned prices moving because of how the tankers have to be rerouted, where will we see more of the risk? in products, spreads, the type of crude? amrita: that's right in terms of how you are framing it. it is not an outright supply lost. it's really physical brent, that data curve is super backward dated. ultimately it is refineries. the cost of operation for a refinery, wherever it is, mostly in the west, has gone up dramatically now. you now need to have ships tied up in water for longer. how does that get reflected? you undyed now have to pay more at the pump. alix: how is demand right now?

amrita: demand is ok. the west has surpassed expectations. u.s. and europe despite the macro economic backdrop, is holding up. alix: any recessionary signals from oil demand that all? amrita: europe has been in recession, i think that's been showing. globally no. china is where the growth numbers have been slower. again, it doesn't mean china is not going to grow. we are still expecting half a million barrels per day from china which is still a very solid number. but the property market is definitely a drag. that's where you won't see china do over a million again. alix: to that point, we get gdp figures for europe and germany, etc. central banks on the verge of cutting rates. do we need that? based on your window on the energy market, do we need cuts? amrita: there are sectors in the u.s. that have felt the pain from higher interest rates already. especially lower income households.

you could argue, and i'm an economist by trade, so let's not get into what the fed is doing right or wrong. is not the rate itself, but the pace of increase the fed came through with was very quick and high. that would have impact if they don't unwind a little bit. it doesn't have to go back a little way, but a little bit just to get some equilibrium into the market would probably be warranted. alix: everyone is talking about bidens moratorium on new lng products. does it happen? amrita: i don't think if they actually do the testing, it will show anything in terms of higher costs to u.s. industry, or that it is emitting versus coal in asia. it shouldn't happen on a fundamental basis but we can't deny the fact that there is politics involved. alix: what? politics, that's crazy. appreciate you joining me here. amrita sen from energy aspects. tom: so timely. alix steel florence for us alix have plenty more

energy focused interviews ahead. eqt's president and ceo at 7:30 a.m. u.k. time. at 8:40 a.m. bechtel's president of energy. we will hear from baker hughes' chair and ceo sitting down with alix steel in florence, lorenzo simonelli. stay with us. this is bloomberg. ♪

tom: welcome back to "bloomberg daybreak: europe." says the first human has received a neuralink brain implant. i'm a post on x, musk says the patient is recovering well with the patient showing what he calls promising neurons spike detection. the startup aims to create a

computer brain interface that will initially enable people with paralysis to control external devices with their thoughts. it's raised more than $500 million in venture capital since 2016. norway's $1.5 trillion wealth fund added to bets in the biggest tech companies last year. thanks to interest in artificial intelligence. gorgeous bank investment management, the world's single biggest owner of publicly listed stocks, raised his holding in apple, microsoft, alphabet and amazon. it updates stakes in -- upped its stakes in that valuable to firms nvidia and tsmc, as well as chip equipment producer asml. the fund reports results for the full year later today. talking of what else is on the agenda today, we will hear from the ceo of norges bank investment management at 710 and u.k. time -- 7:10 a.m. u.k.

time. also on the agenda, u.k. mortgage approvals at a time where a number of high street banks are lowering their rates on mortgages. you are seeing a tick up in terms of the property sector in the u.k. for december. those mortgage approvals seen coming in at 53,000, up from november. we get a slew of euro area data. specifically, gdp data. we will break the french data in the next few minutes. that will come out throughout the day. the expectation is quarter on quarter will be flat across the euro zone. alphabet and microsoft both reporting earnings later today. we will look at the ai component of those earnings. french farmers use tractors to block roads around the capital as unions threaten a siege of

>> good morning. this is bloomberg jay baker. these are the stories that that your agenda. more concern over the country's indented property sector. treasury yields extended clients as the u.s. makes a surprise cut as they ease worries about a flood of debt. we will bring you the latest reading on french gdp. let's look ahead to help germany's largest ryan connolly may have shrunk in the latest quarter. the world also expected to show contraction. will the main absent seven live up to the name? we look ahead to crucial learnings as microsoft and alphabet report today. let's check in on these markets and then we will bring the lines crossing the french gdp.

currently you are looking at european futures in positive territory. as we said, it was a positive session. part of that was down to the reduced funding needs of the treasury as yields move lower. stocks are higher. maybe the fed will signal a cut in the coming months. s&p futures currently flat. the contest is april through 4900 yesterday. a fresh record of most of the estimates coming through from wall street strategists. the nasdaq future is flat as we look ahead to those crucial lines coming in from alphabet and microsoft. let's look for the cross asset then. saudi aramco is being told it saudi arabia to keep capacity at 12 million barrels per day and not increasing to 30 million barrels per day. another sign that they're trying

to put on these oil markets. geopolitics remains in focus with the u.s. response to those attacks. a key? . 43,000 gain 3/10 of a possession. that is the longest winning stress for bitcoin since the pandemic era. the u.s. tenure at 4.0. let's check in on the data moving in from france. gdp stagnating. this breakdown the numbers for you. flat is expected. the previous month you had seen the previous quarter. the data, the numbers year on year slightly marginally better for france, year on year. the surveys had flagged 6% year on year. marginally better than fourth

quarter gdp figures. let's cross over to oliver brooks standing by for us in berlin. what are you expecting today for some of these gdp figures out of germany? how blazing hot challenging is a picture likely to be? >> i am ashley go to go to this little french number for a little silver lining. they came in a little bit about it. they actually revised it in the last quarter. the flatness out of france is flatness. no one could be too excited about that. spain, a little bit of growth at 20 basis points. the big problem child of europe is germany. we are expecting contractions of 0.3% in the german economy. that is enough to drag the

eurozone figure down to 0.1% which would technically be a recession for the resident because the last quarter was also a 10 basis point contraction. the question is on the outlook. we are expecting europe to grow at 0.5% this year. the downside risk exists because of the german economy. you're already trying to adjust their growth forecast lower. international industrial demand has not reached the bottom. they are not seeing evidence of that. there is still quiet a bit of downside risk available for the german economy. and as a consequence, the european economy. >> and they have been putting this question to lawmakers in germany. i know that response is eyebrow raising. is germany the sick man of europe? >> we have to give them some credit. they have come up with a lot of creative euphemisms for ways of saying that germany is not the

sick man of europe. have a listen to what he said over in dallas. >> germany is not the sick man, germany is a tired man after a short night and we will have a good cup of coffee between structural reforms. >> the third man of yours who needs a cup of coffee in the form of structural reforms. it doesn't take his ff and it does not taste good going down. the one way in which germany is certainly the sick man of europe is that a lot of people calling out sick last year. a record number. there was contraction in germany rather than growth. because 26 million euros in output as a consequence of people calling out sick. from now on they will have some difficulty in disputing that. >> 26 billion euros.

not a big chunk of the proposed budget. thank you very much indeed with the context. as we look into the gdp -- tv data. bva has higher interest rates as they continue to boost lending revenue. this is a share buyback program as a spanish market met estimates. they came in slightly below expectations. tokyo has maintained its ground as the world's biggest carmaker for the fourth consecutive year. mobile sales hit a record 11.2 million in 2023. that is up more than 7% from the year before. it easily moved into second place. uid earnings rose on the back of

soaring ev sales but short of analyst expectations. that is due to a price war in china hitting the bottom line. sales have offset the decline on global demand. renault has scrapped plans for its little vehicle business. a appetite for shared sales. listings fell about 35% over the past 12 months. now, staying on france but brought in the picture. they blocked major highways around paris and italy protest.

they are trying to block major motorways. most of them stayed overnight this morning. at least five highways trying to block this high-speed access to paris and we are watching the situation developing this morning as detractors are converging toward the wholesale market. this is where all of the parisian restaurants and shops get their food supplies. some police are trying to stop

them out of paris. they are trying to keep the access to the airport. we are seeing some clashes between those farmers and the police. there are major demonstrations. blocking highways between major cities. some of them had signs saying earnings are as little as 400 euros. clearly this is a protest with rising costs for those farmers, devising regulation, especially coming from brussels and the competition from foreign food products. france imported about 50% of their food products and even the it remains the biggest agricultural producer in europe. quick the french government has said they will be looking to

address some of these concerns. what is the government response likely to be in the hours and days ahead? quick today, the new 34 your prime minister is going to put this in front of parliament. this was supposed to be a major thing to really a kick start this new government. he was named two weeks ago to replace the bond. clearly they have taken the spotlight and will be overshadowing this. everybody is lending for new measures. everyone knows this series of measures including the phasing out of subsidies for nonroad fuels. also, some pharma sectors. we also found out from a group of sources that the president has actually spoken with the commission president in order to

try to block the trade agreement. we will be watching over the next few days some new measures -- on the spotlight goes to brussels on thursday. they will be with the eu counterpart while facing this demonstration across europe. quickstep is the latest on those protests. >> we will be hearing this letter. we will hand him back to florence, the ceo and chairman of baker hughes. that is a conversation you will not want to mix. stay with us. this is bloomberg. is it not

>> welcome back to bloomberg

daybreak europe. the biden administration is facing backlash from international business groups after announcing it has altered approvals of new lng plant licenses. the decision was made while the energy department looked at have energy exports affect climate change. who better than to cross over to other than alex still? and with a very special guest, here is alex. >> that is the conversation here. i am joined by the ceo and president of baker hughes, lorenzo. great to see you. i want to start with the news of the day. that is saudi aramco not ramping up its capacity of 30 million barrels of oil per day. what are your thoughts on that? quick it is early in the

morning. we have not had a chance to get the latest -- get the latest on what was communicative. at the same time you look at the market dynamics and the situation at the moment. you can understand that they are assessing what is required. honesty in a change from a long-term perspective and i don't think they will move forward with the capacity increases they have said. to reassess timing and look at the situation is clearly understandable and as i get more information, we will work with them and understand what it means and as you look at international markets, we continue to see international markets be positive for 2024. >> i wonder if it some ways speaks to how hard it is to get stuff done right now the conflict in the red sea, shaping things around, moving things around, getting things done, are we seeing this rising cost and pressure on that front?

quick there is a lot of volatility and people are assessing that volatility. i would not say it is impacted us in anyway at the moment. we are obviously monitoring the situation but as you go forward and assess what you have to do from a capital investment plan come this factors into it. we will wait and see what happens. we know that from a long-term standpoint, they will continue to invest and i think if anything, this is just a temporary aspect of looking at what the situation is. >> what do you think about the geopolitics right now? particularly over the last few days with the rhetoric coming from the u.s. and iran? how do you think the situation evolves? >> i think it is very uncertain. >> as a ceo, you can't like uncertainty. >> no. i have said before we are probably one of the most volatile -- in one of the most volatile geo political time that we have seen.

we are very sad to see some of the events and we don't condone any type of violence. we are monitoring a pragmatic approach and really assessing if we can de-escalate some of the situation. nothing at the stage and we will continue to assess. >> this is not the talk of the bite in administration and the moratorium on lng export products or the penny once, that would be huge for the globe. they had a note at about energy technology business which could represent 12 to 60% of your order book. it is material. what could happen if this continues and goes through 2024? >> from a baker hughes standpoint, i can reassure you

that we don't see any impact in 2024. also, we are very confident in the outlook from a global energy and natural gas being both a transition and destination fuel. it is disappointing that the u.s. has decided to pause. i hope that after their assessment process they will reverse their decision but it does not stop the aspect of the low point natural gas and elegy continuing to increase. we have several projects we see going forward globally and i think it is part of the energy mix of the future. so the fact you cited i think that from a baker hughes standpoint, no impact in 24 and we will see other projects that actually come in and accelerate to overcome some of the u.s. projects. >> when would you see an impact? you are just very exposed. if this days when you see it, -- >> as is common, this is a lumpy

loan cycle business so what has to happen is projects come, projects go and there is a long pipeline and we have a global view to these projects. cp two that you referenced, we still think it will go forward. and that this is just a pause. at the same time, we are monitoring global projects that would come in that haven't been communicated yet. you will see a balance on the global scale. >> that is why you're global. is there a time that by 2027 you say if this does not happen, we are in trouble. is there a moment i could really start impact you guys? >> no. we don't -- we run a diversified portfolio. we are not just in lng. we are across a number of sectors, offer production, pipeline and last week on the earnings school, we referenced the diversification portfolio we have. we are very confident we will continue to grow and we have

plenty of opportunities in multiple sectors. >> part of the reason you can make an argument for the fact that we have not seen any material rise in the oil price is because of guys like you. your rates get really efficient. i am wondering how long using that -- you see that. how efficient can you make those guys? >> as an energy technology company, we are here to drive efficiency. one of the key themes of this conference is around energizing change and this being the decade of efficiency and that is through technology innovation. the application of digital software, artificial intelligence, the upgrades we can make on the equipment. this industry has proven time and time again that technology can continue to advance and we see efficiency increases going forward. yesterday i mentioned that

fields. as you look at mature as a solutions, think of this. a 1% increase in the mature asset performance of an oil or gas bill will naturally provide two or three years of the consumption that is demanded. that is significant efficiency. >> what kind of recovery rate is that? >> if you look at that mature field, they have utilized either 50% of their reserves or they have been around for 25 years. just 1% improvement to drive two or three years of increased consumption. >> not the only reason but one of the reasons you still see a cap on oil prices even though you have others geo political risk, thank you. i have a million other questions but i will get to you, it was great to see you, thank you for hosting us. there was the chairman, president and ceo of baker hughes. >> a great interview, thank you very much indeed. plenty more from alex throughout the next few hours.

two more energy interviews included in that mix. it is a reminder of toby rice, the president and ceo of eq. they are finding investment opportunities within the energy space. that is an income 14 a.m., u.k. times. stay tuned. more to come. this is bloomberg. is it

>> welcome back to bloomberg daybreak europe. it is tuesday morning. you look to the minors at the open and yes, pricing event i at work can be volatile but look to the property sector in china and the way investors are taken about the liquidation of ever grand and the risks underscored as those property developers sell off and the iron ore price

is falling. a little over 2.5%. closer to 2% i should say. this pressing on iron ore, link that to the minors and you could see that. reflect on the fact that you have s&p above that record high. a first record about 4900 and just reminding you, the average estimate polled by bloomberg had set the end of your target for the s&p at 4867. already above that. top-of-the-line in terms of the most bullish. j.p. morgan says he will get down to 4200 for the s&p. let's put the board and have a look at the treasury stories. that was a big lift in terms of euros lower, equities higher. in terms of the refinancing that came through, all this funding needed for the treasury.

we look ahead to wednesday. yes, we have the federal reserve decision. the rules will be getting the quarterly refunding announcement from the treasury. he says that could be more market moving. more than that for a decision. just bear in mind as you will get a bit more -- after this, more with deborah kerr on the back of the earnings story there. that will be equal in 30 a.m. on u.k. time. markets today is up next. stick with us. this is bloomberg.

>> this is bloomberg market today. i am an edwards.