♪ >> good morning. in new york this week it's 6:00 a.m. in the city of london. here's what you need to know. uscpi surges and another big miss for forecasters. bond yields stabilize after being rattled in the aftermath. bit coin takes a dive after elon musk says it will stop accepting

it. colonial pipeline resumes fuel shipment. bit could take days to fully restore supplies. good morning to you. after that blowout inflation figure the highest on -- since 1982. what john authors is saying this is not just base effects. what's happening with the inflation figure. you see it reverberating around the stock markets around the world. msm asia pacific down 1.04. and wiping out of all the gains yesterday. nasdaq closed out more than 2%. futures are in the green in the united states. but we are in the red over in europe. bringing board number two, taking a look at what's going across ace set yields. 10 year treasurey yield 10.8%. brent crudes, and colonial

pipeline, they're going to be restarting that. we are inching ever so closely to $70 on brent. and bit coin this morning down about 7%. elon musk ditching bit coin when it comes to tesla accepting environmental concerns. a very brief or transitory love affair with the crypto currency. and that sent shock waves around that universe. the big story the c.p.i. report here's some of the reaction of that data. take a listen. >> under my baseline i expect it to return to or run perhaps our 2% longer run goal in 2022 or 2023. this is a time when i would expect to be a fair amount of volatility in inflation.

>> we need to expect some surprises because the economy closed down in a very synchronized manner. but it's reopening in stages. >> there will be more bumps in the road. >> the markets are challenging to the presumption that inflation is trans yent. >> we're at a bigger turning point that the fed has been describing. >> they have re-ed a lot on inflation expectation being anchored. this is the type of thing that's going to start to move those inflation expectations. >> the big question now, everyone will be asking, how much of a c.p.i. increase will be sticking around. danny burger joins us to break down the contributors to the leap in prices. danny, i think we need a new word, transitory, fugacious deep, trans transitory what, do you think? >> i love fugacious. i feel that the aggregate isn't that useful because some of the contributors that make up about 13% contributed a lot more to the price increase this time around. and they could be due to as you say more temporary, dare i say,

contributions here as well as things that are quirks from the worlds getting back to nor match the obvious one is air travel and hotel and lodging. it rises 10%. still not back at its normal level. a lot of this is the u.s. getting back to normal. more people are traveling, going to hotels. they're picking up the car and going on a road trip. but another one that looks like it could, indeed be transient is this idea of -- of road travel in autos. so this is used cars, rentals. and we've seen a really, really big uptick in prices. this is id yo sin catty, emory. this is because we had car dealerships that had liquid dated -- liquidated their holdings during the pandemic. now at the same time we have a chip shortage which means new cars aren't as steadily available. all of those supply issues means

that prices are higher. i want to leave you with one more and that's the pickup prices in restaurants. we have fast food and normal restaurants as well because not only is this about higher food costs but it's also about higher labor cost, emily. emory: what's the take in london? i know outside dining is it starting to pick up more? here in new york people are out dining inside, outside. it's very overwhelming in and different than what i find than what's going on in london. >> speaking from personal experience, i have put on my gigantic jacket to try to sit outdoors but there's this idea that everybody is waiting if the 17th of may when we can finally eat indoors again. maybe people are going to forego one weekend to get inside to a warm place because it might be may in on don, lu it's still cold here dani, marie. emory: we're yoined by -- joined

by derek. dani brought us the details. give us your initial reaction to the c.p.i. report yesterday. >> for sure, it was a shocker. the entire market is braced for this period of transitory inflation, the impact of the reopenings of -- of economies. i think what's changed though is that investors' expectations of the levels of this transitory burst of inflation is going to be poe tenly considerably higher than what investors were originally thinking. i think that's what they're going to have to have adjustment and therefore i think certainly over the short-term we're in for a period of increased volatility, and a lot of sensitivity information in relation to inflation. but having said all of that, i

still think the bigger picture is still correct in terms of this transitory burst. and when you look at the extent of the moves yesterday, i still think the overall take is yes, we have to adjust our -- our risk profile based on this data, but the extent of the move suggests that investors are believing the fact, you know, the short end of the curve for example, attend of 2023 moved higher -- implied rates moved higher by 3.5 basis points. the two-year yield is relatively stable. all in all there hasn't been a dramatic shift yet in terms of expectations on fed action. emory: we spoke about the transitory forces in play. but he said he was surprised if you believe that if transient, how do you define that, derek?

>> again, dani went through some of the figures that are month sustainable. an increase in used cars and trucks. it's very, very obvious that's not going to continue at that type of level. and that -- that factor alone used cars and trucks which makes up just 2.67% of the entire baskes accounted for 1/3 of the month on month change in core inflation and then if you take lodging on top of that, airline fares you're talk about 9 percentage point games. those are small influences on the overall change on a month were very, very significant yesterday. it's clear that those will be transient. the other point to make is that experience tells us from last year that economists' ability to

forecast days and month to month is next to impossible. these are unprecedented time. i think we should expect the same. >> we do need to remember that we are living in a once-in-a lifetime pandemic. yesterday the dollar take a leg higher. is long dollar becoming part of the inflation trade? >> well, i don't think so. obviously the shocker that we had yesterday is potentially disruptive. and of course, could result in an increase in volatility as the level of expectations start to shift investors are less sure about the outlook on inflation. so therefore, i think short-term given the market, i think is perhaps short u.s. dollars, there is, i think the potential for the carry-through on the

dollar that we got yesterday. if the fed is successful, what's most important for the u.s. dollar is the interaction between phenomenal yields and the inflation expectations. the reason why real yields are so negative in part is from the success of the forward guidance from the federal reserve. we're assuming that will continue and therefore ultimately real levels of interest rates will remain very, very negative and therefore the scope for a sustained rally of the u.s. dollar, i think is still quite unlikely. >> all right, derek, halpenny stays with us this morning as break down all this data. let's go to anabel. hey, anabel. anabel: the largest pipeline in the u.s. is returning to service. colonial pipeline began to resume fuelshipments yesterday eastern time. it's unclear how long supplys

will get back to normal. the u.s. is temporarily relaxing rules to let foreign tankers trance port to fuel start part of the country. the diplomatic push to end clashes between israel and gaza is intensifying. joe biden spoke with benjamin netanyahu. he defended israel's rights. and he believes the violence is ve resolving itself. 60 have been reported to be killed in gaza and six in israel. go to quicktake with 27 journalists and analysts in 120 countries. this is bloomberg. emory: the c.e.o. is suspending purchases over reports of polluting fossil fuels. it sends the digital coin tumbling into a musk meltdown that story coming up next. this is bloomberg.

note --

>> people, they are still excessively high. we're looking at demand increases in the u.s. economy from 8% to 10%. some of that will pull from real g.d.p. but some of that will reat shortages. so we're looking at significantly higher inflation than the fed expects when you look back a year from now. >> that was greg jensen, the co-chief investment officer for his expectation of inflation in the coming year.

bit coin tumbling after elon musk announced the car manufacturer will no longer accept payments in the crypto currency. musk cited environmental concern. he said bit coin is too carbon intensive. he said kit be a boom for renewable energy. joining us is reporter from hong kong. good morning, eric. how is the industry reacting to this? quite a bombshell. in february they said they were going to accept bit coin for tesla cars. >> initial reactions maybe not so great. there's a lot of confusion and some anger in the industry from this. you know, certainly there's some confusion over why this is coming up now, the whole issue with the environmental concerns with bit coin is a long standing one. it's come up in the past. so there's nothing specifically indicating why he decided to talk about this today. and also, tesla still hanging on

to bit coin. so you can make the argument that holding bit coin and transacting in bit coin if you're concerned about the environment that's true for either arguments. and also remember, that elon has been a rallying point or hero for the industry with his support of bit coin over the past few months. and that's really helped bit coin surge to its record highs earlier this year. reporter: so what's next for bit coin and the others? >> yeah, so this is interesting because in his comments he noted that they're on the hunt looking for an alternative crypto currency that maybe can do the job with less energy demands. and, you know, if you're looking for candidates, one potential one could be ether which is currently transitioning to a -- a new format that's -- does not depend on mining which would meet its demand. it's the largest crypto currency after bit coin. it has that liquidity that is

necessary if you're looking a that kind of mainstream adoption by a company like tesla. >> thank you for joining us on this shock wave through this space. i want to focus to europe. banks are lobbying e.c.b. to release capital release granted during the pandemic. lenders want to exclude deposits held at central bans when calculating their ratio. derek, what do you make of this and the outlook for european growth in euro? derek: yeah, well, you know, certainly, we had some good news yesterday. we had a noticeable upgrade in the g.d.p. from the european commission that based in part on much more information in relation to the usage of the e.u. recovery funds. just like elsewhere, we're going to have this kind of reopening of the economies, plus,, fiscal

stimulus hitting the economy. so, you know, it is a reminder after what happened yesterday that, you know, this whole flow of positive information that we're going to be getting over the next couple of months is not the u.s. focused. it is going to be happening in europe as well. so that should limit the downside for the euro on the burst of any u.s. dollar strength. >> it wasn't as bad as many expected. what's your outlook for cable? derek: yeah, we're quite -- we're quite positive on it. the data was exceptionally good in terms of the march g.d.p. figure up 2.1%. so from the starting point of q. -2. another wave of the easing owe restrictions on monday. and looking at the -- at the high frequency mobility data, we

think the -- the markets might be underestimating what's coming in terms of g.d.p. advance. indeed the bank of engelland in terms of its projections for g.d.p. could be underestimating what's coming. that's going to feed through and rates moving higher and certainly performing. it's been one of the best effect performers year to date. >> they're betting on that hike by september of 2022. do you agree with that? derek: that might be a little bit early. but it's becoming -- it's coming into the zone of possibility. you know, i think certainly as i said, there is an underestimation in terms of what's coming. so certainly if the g.d.p. rolls over over the next couple of

quarters is as positive as we expect, then i think the latter part of 2022 does become feasible. >> a sharp turnaround from the second half of last year. derek, you also have a new conviction call on. short dollar ruble. explain to us why? >> yeah, of course, first of all, we put this on towards the end of the last week. so the dynamic in the market has changed obviously following the inflation data and we could be in for a period of volatility. this type of carry trade may not perform as well as we're anticipating. but the argument we put forward last week was the ruble has been -- has been lagging in the emergent market space. now, we do know, of course, there are these specific factors related to the u.s.-russia risk for example that has resulted. but when you look at for example the central bank and russia and

their rates op two occasions that signool the marks that more is coming and therefore just on a -- on a macro scale, we feel the underperformance that has been there, that underperformance could close somewhat not withstanding those risk in relations to -- to -- to -- to the u.s. so just some catch-up in conditions that were -- that were quite favorable. obviously, we would like to see how the higher inflation data from the u.s. plays out in the next couple of days. if there isn't any follow-through we would stick with this view and it could catch up somewhat. emory: i know it's not your wheelhouse but we started to talking to eric lamb about the crypto space and musk ditching his love affair. is now the time to buy if you haven't been exposed?

derek: well, yes, when the price is correct, there's potential there. you know, all i would say is the data from one of the digital currency managers for first quarter which showed a record in flow $4.5 billion. it's clear from the flow data that bit coin is becoming more integrated into the broader financial markets and institution investors are starting to buy into the idea. therefore, when we get developments like we're having now with this price correction, it does have the potential over time to start influencing market conditions. we're certainly not at that point yet. we've got a bit to go, yes. but the data does suggest that as a class it's becoming much, much more integrated into the broader financial marks. emory: thank you, derek halpenny. thank you so much for joining us

this thursday morning. now, just ahead, air strikes pound gaza overnight as the u.s. president urges israel and hamas to deescalate tensions. that story and more. this is bloomberg.

♪ emory: 6:25 in london. this is "daybreak europe." the u.s. president has spoken with benjamin netanyahu and other leaders to urge a de-escalation. we're joined by ross mathieson. ross, are there any signs at all that this is going to start to calm down relatively soon? >> no, exactly the opposite. you had another night of

violence on both sides. in excess of 1500 missiles. you have tit for tat air strikes and rocket attacks and what you've got real violence on the ground in israel. you've got clashes in arab and jewish neighborhoods. you've got some looting and burning and synagogues. so what you've got people is living in close proximity fighting with each other and the israeli defense officials accusing militants of using gaza of human shields. it's gotten ugly quickly. and no signs of it de-escalating. even if you get a cease-fire, it's very hard to diffuse the situation in place like jerusalem. anmarie: why is it so important for the u.s. to have this diffused?

what's their strategy going forward? >> well, the interesting thing is, of course, that benjamin netanyahu is one of the leaders that joe biden called. and joe biden has seemingly had other priorities getting the iranian nuclear accord back off the ground. and that's something that israel is very opposed to. and causing the war in yemen and so on. but now, he's been been -- on this. it's in the u.s.'s interest to get this resolved. what we've seen is a real soaring of ties between israel and gulf arab states. and it's an incentive to have that continue for the region and prosperity. if it's a full-blown war all of that process may get slowed down. it could muddy the waters in

getting the iran nuclear deal done. anmarie: thank you for joining us on the latest on what's going on in israel and what's going on with hamas. just ahead, the biggest jump in u.s. consumer (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that and more in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you to maintain comfortable, correct form. that means better results in less time. you can do an uncomfortable, old-fashioned crunch or an aerotrainer super crunch. turn regular planks into turbo planks without getting down on the floor. and there are over 20 exercises to choose from. incredible for improving flexibility and perfect for enhancing yoga and pilates. and safe for all fitness levels. get gym results at home

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anmarie: good morning. this is "daybreak europe." u.s. c.p.i. emerges. stock futures stabilize after being rat nled the aftermath. bit coin takes a drop after elon musk says it will stop taking

bit coin. and the colonial pipeline resumes fuel shipment but it could take days to fuelly restore supplies. 90 minutes away from the european open trading. asia pacific, another leg lower. .1 lower. wiping out of the gains it made in 2021. this is the inflation anxiety. yesterday, c.p.i., it was the highest jump we've seen since 2009 on core c.p.i. the highest since 1982. you had s&p 500, the nasdaq closing more than 2%. we are in the green. euro stock 50 down .8 of a percent. yields spiking yesterday. 10-year yield stabilizing at 1.8%. amend strong demand in that 10-year auction. colonial pipeline will be restarting that fuel.

that's much needed along much of the east coast an bit coin down 6.5% this morning. elon musk short lived love affair with bit coin and tesla. that's sending shock waves in the core universe. the reaction of the aftermath. many were surprising including richard clarta. >> i expect inflation to return to or perhaps run somewhat of a 2% longer run goal in 2022. and 2023. >> this is a time when i would expect there to be a fair amount of volatility in inflation. >> we need to expect some surprises because the economy closed down in a very synchronized manner but opening in stages. >> there will be more bumps in the road. >> the market is challenging to the presumption that inflation is transient. >> we're at a bigger turning point than the feds will be

describing at this moment. the fed and others have rested a lot on inflation expectations being anchored. this is the type of thing that's going to start to move those inflation expectations. >> joining us now for a deeper dive mark cudmore. there isn't just based effects. explain. what's happening when you look at the c.p.i. data? >> yeah, it's very far from base effects. is a lot of people have been watching this have been hearing that we're going to get high inflation print and it's all because of the pandemic. but this wasn't just about high year and year in month the month on month numbers were phenomenal. you mentioned the c.p.i. was the highest. that was on the month on month numbers. it was .9% on core. this is core c.p.i. so a lot of people say oh, it's just about the energy and about the move in food prices.

so this really was a phenomenal shock even for those who believe inflation is coming in a big way. this has shattered all the expectations. >> you saw a quick move in the market. nasdaq down .2 of a percent on the close. s&p on the future .2%. are we going to see lower for a longer in that sense or are we going to start to hit potentially a bottom? >> i think we've got some more pain in the next couple of months. so whether inflation turns time-out be transitory and we're not exactly sure what that means for that period of time, we know we're not going to get a conclusive answer for a couple of months. we know we've got an inflation problem to think about for the next few months. either it's a macro problem in

which case inflation is really running away and we need higher yields and that's going to squeeze equity or a problem for equity. they're worried about passing it on because it's not sustainable growth behind it. there's going to be more pain in the next few months. i expect lower prices the next couple of months. anmarie: we did see the dollar get a jolt higher strengthening. is long dollar now part of the inflation trade? mark: i'm not convinced. i think this is more of a short-term gut reaction. we're seeing some risk aversion and deleveraging. that means we're turning back to the dollar still. i think this is a bit more of a short-term strength in the dollar. ultimately, what we're seeing here is inflation expectations are rising much faster than yields, which means we're seeing a decrease -- or an increasingly

decrease in the yield in the dollar. all that said, the short-term strength may persist a little bit long fehr we do see some more risk aversion in the next week or two. i want to ask you quickly. you actually think it's a turning point this morning what elon musk is -- >> everyone's known about the environmental impact for a long while. but one of the main reasons why it hasn't hurt bit coin too much is elon musk and supposedly that company is obviously exceptionally strong on the scientific front not just with tesla but with spacex as well. because he's ignored the environmental fierce and it's given some kind of tacet endorsement that this could fuel renewable energy and this is not a problem. many people just miss the

environmental aspect for bit coin. now, it's going to be a hard door to close. many crypto currencies aren't an environmental problem. this might surge even greater. but it is a severe problem for bit coin and it's going to be very hard for them to shut that door. bit coin is an environmental problem at the moment and it might bring regulatory scrutiny. we're going to see this idea of bit coin underperform some other crypto currencies. do you think because we're down 6.5%, that this is a buying opportunity for some people? mark: i mean, certainly many people are going to be seeing it that way. i've been look at the red did boards and you can see they say tast great dip to bifmente but overall, i expect bit coin to continue to underperform the broader crypto space on a medium term, longer-term horizon.

it's so volatile. but i think bit coin is a sustainable currency all over the world. >> now, over to hong kong. >> we'll stick with that story. elon musk says the electric carmaker is suspending using bit coin sending it tudge. he's signing concerns about the rapidly increase in use of fossil fuels for mining bit coin. if they're much less energy intensive. the judge overseing the high stakes trial between apple and epic games is hinting at a compromise. the idea to let ad developers inform the users that the virtual store isn't their only shopping option. it could quell some of the concerns from epic. a new record says that the world health organization should be

overhauled and given more authority to investigate global disease threat. the study is looking into the response to como vid 19 and stops short of assigning blame but links it to failure by government, the who and other international organizations. global news 24 hours a day on and. quicktake powered by more than 1207 journalists in more than 127 countries. anabel in hong kong. the biggest pipeline in the united states is returning to service. almost a week after cyber attacks, they saw gas stations run dry. colonial pipeline resumed shipment around 5:00 p.m. eastern time. u.s. energy secretary did say earlier in the week that it could take days to fully restore the supplies after the restart. let's bring in aaron. what's the state of affairs with the pipeline?

aaron: you know, late wednesday they were resuming operations after that five-day outage. they weren't clear about how long it may take to -- to get that massive piece of infrastructure back at full capacity. you know, given how big it is, you know, that could take a day or two. and then you've got to, you know, there are quite a bit of fuel stations from florida to virginia that have already run dry in the u.s. south, i think 3-4 gas stations has no fuel as of wednesday. so you're going to have to start, you know, resupplying those fuel stations. and consumers will see a difference over the next few days. but it could take longer to get, you know, restore supplies to where they were before. >> right, and we saw florida and north carolina declare a state of emergency. how soonl might drivers get these fuel supplies?

>> i think, you know, the return will be uneven. what will likely happen is that major branded retail stations that have longer term contracts with suppliers, they will probably get the first shipments. after that, you'll see the others when there's a surplus. we spoke to the president of the virginia petroleum marketers' association. they said they should start to see a difference by monday. he's not saying that things will return to normal. i think you're looking at, you, no mid to next week -- mid next week some time before things start returning to -- to where they were before. >> yeah, certainly not normal. we had seen hoarding. the safety commission last night was telling consumers not to put

fuel in plastic bags. that's something that seemed to be taking place. what's going on here in the east coast. thank you so much for joining us. alibaba is set to reveal their results later tonight. this is bloomberg.

♪ >> we're at a bigger turning point than the fed is going the go describing at this moment, which is that you've totally embraced what we call monetarily policy three but the merger of fiscal and monetarily policy, and it's purposefully trying to drive the inflation rate up and it's being successful. you're seing in the numbers, the c.p.i. numbers catching up with

what everybody measuring on a bottoms up pricing is seeing. this is a real phenomenon when you have this much demand without that much supply, this is the natural kind of think that we face. in a lot of ways that's a good thing and a necessary thing. >> do you need to hedge it then? and how would you do that? >> yeah, well, mostly, we think that most portfolios are too exposed to long durations, assets where the cash flows are very far along in the future and places that require continual fed liquidity. shipping those portfolios that will benefit phenomenally with that growth and won't be too affected in liquidity. you need to hedge them with bonds. normally, a traditional portfolio you think about you want to be long bonds. but in this world, you have to

hedge against the stag -- where zpwrothe not that great. you need to hedge with bonds. that's the opportunity that there are cash flows better than bonds. but they're extremely vulnerable to a rise in bond yields. it's really important to get that hedge. >> political pressure not to supercharge this economy even more has to be growing at this point. do you think the biden administration is going deliver everything it promises right now? >> the past fiscal policy still hasn't flowed through because of the pent-up demand due to the pan dem take that is still there. they are still excessably high. they're going to come down. you're looking at demand increases in the u.s. economy from 8% to 10%. a lot of that -- some of that will pull from real g.d.p.

but some of that will create more shortages and more inflation. so we'll be expecting, you'll be looking at significantly higher inflation than the fed expects. >> greg jensen and his expectations for inflation in the coming year. alibaba is set to release its results later today. they hope to ps fight investors after handing out a $2.8 billion trust fund in april. alibaba's shared have largely paired losses from the fine. joining us is steven. what do investors want most to know about after it's been a tumultuous few months? >> yeah, it has been tumultuous for alibaba until the hammer came slamming down until the last second scuffering of the

i.p.o.'s roughly $35 billion for a $325 billion company. that's about .10 now. no i.p.o. in the cards and five, six, months -- four, o five months of regulatory scrutiny. question 1-10 for daniel jong and co-founder jack tie. later today, 7:30 p.m. eastern time thursday is when they have the conference call. after the earnings after the hong kong market closed today, one through 10 of those questions are going to have some iteration of regulatory outlook. i mean, joe ty, the co-founder said we're happy to put this behind us. is it really behind us? is it behind alibaba. maybe on the anti-monopoly fund. they're going to write that down in this current quarter that they're going to report later today. but then there's also the other issues with what's going to happen to their data.

there are other nonanti-monopoly issues that alibaba has to perhaps rectify in addition to curving their anti-crediting behavior. the giant arm that the i.p.o. has suffered too many questions to forecast what's going to happen to that company. it's likely to be folded into aholding company with oversight by the pboc. it's going to have to curve its expansion. and it's going to be regulated by a bank not a think tank. lots of questions going forward on ant. >> what are we going to expect when it comes to alibaba's fourth quarter results, though? >> good numbers because it's coming from a base effect. re, the first calendar quarter of last year which is the fourth fiscal quarter was a disaster in china. everything shutdown. the pandemic, china was the first major nation to get hit with this pandemic. and alibaba suffered like everybody else. this is a comparison quarter. sales are expected to be about

58% year over year gain in sales. however, because of that i in part because of that 2.8 billion fine that they're going take on the chin in this quarter, net income growth is likely the tail that blistering sales growth outlook. but generally speaking alibaba is still the big leader in china. they've been knocked down a peg. and now analysts are starting to come out and say maybe it's time to look at alibaba and the valuation of being fairly cheap on a p.e. value base and some j.p. morgan, mcquarry, diiawa saying maybe now is the time to buy alibaba. $260 million since october. thank you for joining us in that look ahead. just ahead, the biggest jump in u.s. consumer prices since 2009 when it comes to core c.p.i. biggest jump since 1982. we discuss the inflation threat

and what it's meant for stocks around the world. this morning eurostoxx 50 down 1% in the futures market. this is bloomberg.

>> under my baseline i expect inflation to return to or perhaps run somewhat above our 2% longer run goal in 2022 and 2023. >> this is a time when i would expect there to be a fair amount of volatility in inflationful -- inflation. >> it's reopening in stages. >> there will be more bumps in the road. >> the market is definitely challenges to the assumption that inflation is transient. >> we're at a bigger tonning

point. >> the feds have rested a lot on inflation expectation being anchored. this is the type of thing that's going to start to move those inflation expectations. >> the big question now and everyone will be asking how much of the jump will be sticking around? dani burger joins us. dani, what was hot and what was not so much? dani: i do think it's important to do this because in the aggregate level that were hot that might not last. there's this question about whether it's transitory. he fears system of it is not. when you look at airlines, so this is airlines and hotel booking. this is a world getting back to normal. but one of the big contributors this time around that's due to a weird querk is used karen talls.

we had all these dealerships who completely qi dated their -- liquidated. that means we've had these prices really rise here. this is something that doesn't seem as sustainable. but to drive home this point. i want to show you one more chart about how much these are contributing to the core c.p.i. because usually these are a fractional contribution but this time around hotels, used auto, awe oren talls as well. you can see their droiks the core c. pimplet i. jumped around 10%. usually it's hovering around zero. so it's contributing more than the other categories which an nmarie tip: is not the case. if you want a reason to worry

you might worry about restaurant prices and fast food prices that are on the rise. >> thank you, dain burger for giving us us those inflation numbers. u.s. p.p.i. will be released. we'll get the initial jobless claims. and beginning with mexico, three latin american central banks post interest rate decisions within the face of five hours along with chile and mexico expected to keep benchmark rates at record lows. walt disney is set to record third quarter earnings. if you're up for it, you don't want to miss that. let's take a look at where we trade this morning. we're about an hour away from the start of the equity european trading. u.s. equity futures are green though. yesterday after s&p 500, the nasdaq closed down more than 2%

retreating as we have this blowout inflation figure as we've been saying it's a transient brief whatever word you want to say. whatever s that it? anna and mark will continue that debate on the european open. this was "daybreak." this is bloomberg.

>> we're now in the early stages of a sustainbility revolution. >> it may be the biggest unsolved problem in all of technology. >> every time the united states has some great transformative things there has ban partnership between governments and the private sector. >> with a willing partner to insure competitiveness and drawing investment in the united states, canada is going to be able to be more ambitious. >> the object siv to keep that 1.5 degree temperature rise within reach. >> the train has left the station. investors care about it. people who work inside corporate america care about these issues and we see that with the broader community. there's not enough tax in the world for private sector to pay for all of this.

it's going to have to be a pie vat, public partnership, ♪ >> good rnmog, welcome to bloomberg market, the european open. i'm anna edwards. our managing editor joins me in singapore to take us through all of the job market this hour. here are your front headlines. the u.s. c.p.i. surge and another big misfor forecasters. future and bond yield stabilize after being rattled in the aftermath. bit coin takes