manus: good morning from middle east headquarters in dubai. dani burger alongside me in london hq. daybreak europe with the stories that set your agenda. president biden: after 20 years i have learned the hard way that there is never a good time to withdraw u.s. forces. manus: president biden strikes a

defiant tone, defending his policy on afghanistan. the u.s. is in talks of ending cobbles airport. a record for u.s. stocks, the s&p doubles from its low point last mark -- march, the futures and asian stocks fall. sec chair gary gensler warns there is a lot of u.s. investors not knowing about chinese companies and says beijing could change the rules in the middle of the game. we have doubled the bubble from the bottom last year. can it endure. can u.s. exceptionalism endure it's tearing ahead? the question is, can anything unseat this rally? dani: it would seem to be equities are the only asset

class where you are not seeing it creep in. you have an fx base where havens are the ones that have led. of course this bond rally just seems to be invincible at this point. manus: i'm drawn to the warning over at citigroup. he said the market could drop over 10%. you and i both looked at something more malevolent. let's have a look at it. in other words, the options of volatility. everybody has gone to the south of france, in theory. let's have a look at the v vix and the vix, the differential is widening. this is what causes nerves to jangle. when you have this kind of implied volatility over the cash , there is only seven times we have seen it this wide, and it was a pretty good marker to a ratchet and volatility thereafter. dani: yes. typically this relationship cannot last. one or the other needs to river,

and there's a good chance it ends up being the vix, especially given the seasonality and this tends to be the most volatile time because no one is at their desk, everybody wants to be out somewhere sunny on holiday. manus: probably even more so this year than ever before. we will come back in a moment, but i like what they are saying, they are warning on infrastructure of the $550 billion that you've got coming down the pipe. only 25% of the infrastructure. i think there are a lot of markers of risk to come in this backorder. dani: i think that is certainly right, but at the same time we see the all-time highs per let's get a check on where we stand at the moment. the u.s. might've been at an all-time high, but europe pulled back yesterday. both are fractionally lower. maybe just a bit of a pause after the market action yesterday. at the same time you have yields

moving lower. in its most in a month, more than 1% after just one covid case in new zealand. they have the decision tomorrow. questions abound of what that means for the path of tightening from that central bank. but let's turn back to the geopolitical pressure. president biden has defended the u.s. withdraw from afghanistan. the american exit has caused a political firestorm. it follows the taliban's rapid events, ending with the taking of the afghan capital. manus: biden for bank the criticism that he faced across the political spectrum. president biden: this did unfold more quickly then we had anticipated. so what has happened? afghanistan's political leaders gave up and fled the country. the afghan military collapsed, sometime without trying to fight. if anything, the developments of the past week reinforced at any

u.s. military involvement in afghanistan now was the right decision. manus: the fallouts continue around the world. we have our team standing by our senior government reporting in doha aware talks on a former hand over as parts of the taliban may take place. simone foxman is there. the pressure on biden's mounting . what has evolved over the past 24 hours after he spoke in the white house? simone: the thing that really unites democrats and republicans here is the failure of u.s. intelligence to foresee how rapidly the taliban would move through the country, would get to kabul and ultimately take it over, overstating the afghan army, and then failing to get out of the afghan partners that were in the country on any quick

basis. and that may be intensified today by a report coming out from the inspector general. this was written before the events of the past couple of days, but it pointed out that they have been telling the u.s. administration for 13 years at the afghan government, the afghan military forces were being overestimated. and in one province, 70% of those forces were fictitious. they were both soldiers. that said, we have seen a situation in kabul stabilize. we have seen the situation at the airport stabilize. evacuation from the pentagon has restarted. so that make well some of this pressure that biden and then team has been facing over the past 24 hours. dani: china shares the border with afghanistan, 47 miles. where has been the chinese

reaction to the scenes unfolding? >> i think there has been a lot of gloating on chinese social media. lots of people pointing out that this is what happens when the u.s. is caught in a difficult situation. they are going to cut and run. china was one of the first major powers to come out, even as the taliban were making grounds militarily against the afghan government, and actually recognize the taliban as an important political force. they held meetings in beijing. that gave them a huge boost of international legitimacy, just on the verge of them walking into the capital and getting prepared to make their own administration, which is what everyone is watching for. china has quite a few interests in the situation of afghanistan. they have been pretty circumspect about the situation unfolding, but they are interested in a couple of economic investments in

afghanistan, including oil block and compromise. the main thing they are looking after is making sure what happened in afghanistan can go over the border into pakistan where they have more than $50 billion worth of investments in infrastructure. power plants, railways and the china and pakistan economic corridor. the other thing top of mind for them is making sure afghanistan has not become any sort of haven for what they say are separatists and that she should region. who in the past of gotten support from the taliban and the taliban sympathizes with the movements. so they are looking to make sure it doesn't come to be unstable. manus: the trillion dollars worth of natural resources to get its hands on in afghanistan. let's get to the heart of the great standing by for the immediate ramifications. it's interesting that boris

johnson wants to call a g7 meeting. maria, the latest. >> that is because europe is really facing what is a political but humanitarian migration crisis. the tone coming out of the european union is very different to that of the biden administration. angela merkel said it was a bitter moment and it had serious misjudgment. she also spoke about taking steps backwards in the region. let's take a look at angela merkel. >> things have really sped up. the afghan army has failed to provide any resistance or very little resistance, for whatever reason. on this we all made an incorrect assessment and this was not just a misinterpretation on the parts of the germans, it was widespread. >> that's chancellor angela merkel speaking of the very serious misjudgment on the

international scale when it comes to afghanistan. the positive news coming out of the country today is at the rescue mission from the european union does seem to be on track. we know a german plane landed at the airport and they will repatriate european hospitals and afghans who have worked for european institutions throughout the year. dani: thanks to simone foxman and argus for giving us the reaction from the fallout. let's get to the first word news with juliette saly. juliette: the chair of the u.s. security commission has issued his most direct warning yet on the risks of investing in chinese companies listed in the u.s. he says he ordered the sec to pause green lighting ipos and shell companies that chinese firms use to list shares. the agency wants to improve the disclosure, including warnings that beijing's may change rules unexpectedly.

malaysia is reported to have called the latest of four political parties for a meeting, following the resignation of the prime minister. they will stay on as caretaker prime minister until a successor is named. the investor made famous by big short film has taken aims at kathy woods already investment management. according to filings, is asset management again shares of the ark innovation etf in a position valued at almost $31 million. it is also banking heavily against tesla as a topic. u.k. business secretary wants to unlock 4 billion pounds of investment in hydrogen production by 2030. a strategy being launched today will aim to use similar incentives to those that boost offshore production. the government believes hydrogen could provide as much is 35% of the u.k. energy needs by 2015.

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts and more than 100 20 countries, this is bloomberg. manus: we had it in the market check. but looking at the kiwi, it really has taken a back. one covid case equals 1% drop in the kiwi this morning. there you go. there is the new zealand dollar down. the marninr cover. we were up with a rate hike will it come? dani: almost a 1% pricing out of a rate hike. one equals one equals nearly one in this case. you can see the gmm. for both foreign-exchange and sovereign bond. new zealand assets show how tightly wound the markets were heading into the decision. manus: i think column b shows you the dollar. the dollar is rising this morning. the effects complex really has a

reflection of where we are with regulatory risks, covid risks, and that is dollar rising, and the rest of these markets are just under a little bit of pressure from the singapore dollar to the pound. the pound is down by 2/10 of 1%. dollar rising on a risk aversion tomorrow. dani: it might be dollar rising on risk aversion, but we will talk about something rising on some bullishness. it's another day and another record for the s&p 500. the index has now doubled from its pandemic low of march last year. now investors are looking ahead to a town hall talk from jay powell later. we will have the details and what the market is likely to do next. this is a. -- this is bloomberg. ♪

manus: it is daybreak europe

with dani burger in the seat in london with me. manus cranny in dubai. another day, another breathless movement on the s&p 500. benchmark doubling from the low in 2020. and the jay powell address. the fomc minutes at the table on wednesday. what level of unity do we have? jackson hole symposium comes at the end of the month. let's get to the global market strategist of jp morgan asset management. great to have you with us this morning. you see this, it's the most triumphant u.s. equity market up 100%, storming ahead, europe is in the catch up lane, outperforming europe, outperforming asia and e.m.. does u.s. exceptionalism and triumphal to lose him endure? >> that is something which of the start of the year we did not necessarily expect.

we felt the market would give a better time to shine with the u.s. remaining central. behind the record that you just mentioned is quite striking in how quiet the market has been. we have not seen such a quiet market for years. very below volatility with movement. a lot of optimism. and exceptionalism. but the u.s. is prized for perfection. we have seen this perfection among others in the earnings season. filipe: in response to that -- dani: in response to that, i would take you to the chart that manus loves this morning, the v vix rising of volatility versus the vix itself. the manus point, does that show that the calmness in the market that you are pointing to is unlikely the last? >> definitely, such a low point in volatility.

we have only some ways in i have heard news discussing this morning. and definitely, we will see more volatility. jackson hole is probably the one that could bring volatility in the market as the investors assess communication and the investors brace themselves for a possible differing of fed stages at the start of 2022. we had the spread of the delta variant, which was contained from their perspective so far. but we could also weigh on consumer sentiment. so many that could ignite more volatility going forward. in looking for hedges in the portfolio. we see something we are doing a jp morgan asset management at the moment in the portfolio. manus: is interesting that you focus in on jackson hole and

danny is a lot better with skews than i am. it suggests that it is around the jobs report relative to the job over jackson hole. this go to the countryside. what level of clarity do you hope for jackson hole? do you hope for a timeline on taper? do you hope for a speed of taper to be delivered? because, if we don't get something around that, then we are off to the races. a lack of clarity delivers a more pronounced voll environment. >> jackson hole is probably not the right place to come with such level of detailing in terms of future u.s. monetary policy. that is not something -- that is more something we would expect from the september fomc meeting. we would expect jackson hole to provide an opportunity to defect and clarify its intentions.

and already give some to the investors ahead of the september fomc meeting. to me, this is an intermediate step towards the september meeting where more clarity should be provided. questions for the investor to judge just -- digest. dani: i want to take you over to webb's happening in new zealand. the kiwi dollar is down more than 1%. you have some movements in bond because of one covid case. what do you make of what's happening in new zealand and a potential for the rate hike coming tomorrow? >> as i look at the market priced in, the new zealand would not be the only central bank globally to raise rates. we have seen many examples, especially in the emerging markets so far. but i guess for investors, what

could happen in new zealand could soon happen in the u.s. . it's the need to prepare for a world market environment where monetary policy would be slightly less supportive going forward. so maybe the urgency in some places no longer required. i don't think it's for the financial markets, but the second derivative in terms of monetary policy in new zealand to the u.s., maybe at some point in the u.k., will be less. manus: that's all one covid case has done enough to frighten a 10th of most people who are along the kiwi, because it absolutely tanked. one case of covid can do a lot to global monetary policy. you stay with us. do not hang up the zoom, the same as last year. jp morgan asset management guest this morning.

he warns on china. more risks. the sec chair sees amid the countries volatility. this is bloomberg. ♪

>> i have asked staff that we take a pause, for now. when such listings associated with china-based operating companies. i have asked the staff to ensure that the companies provide full and fair disclosure that what we are investing is is a shell company in the caymans. that means disclosing what money is flowing between the caymans in china. that means disclosing the political and regulatory risks that the government of china

could, as they have done a number of times recently, significantly changed the rules in the middle of the game. dani: the chair of the fcc warning of the risks of investing in chinese companies. still with us is our guest from jp morgan asset management. we had this morning from him and he said americans don't really understand what they are buying when they buy these chinese adrs . is that a fair assumption that americans don't really know what they are getting into? >> i would say the role of the active manager is to try to estimate, and anticipate regulatory move. the same in the u.s., the same in europe, the same applies for china, is true that a lot is going on in china at the moment. but chinese regulators are making sure that their local markets are the first place for china ipo in chinese listings instead of overseas markets.

but clearly, that's the role of active management. and i would reiterate the message in a new market like china. it is new for many investors. the active manager is probably more important than anywhere else. manus: you said the long-term chinese stocks remain compelling. black rock. they say it's time to live large and take a little bit more exposure. when you see the market moves, the scale of the market moves, how does jp morgan asset management navigate that? do you say, we need to look for opportunities and set some criteria on what defines an opportunity? >> the long term opportunities in china remain very attractive in our view. not only on the equity market, that's the reason we are more on the fixed income market, and our

view. this you measures have raised a few worries on the financial markets. it is taken by china and continue to open the economy. in bringing the investor to their market. clearly we see long-term opportunities in china onshore equities in china on shore fixed income. as to a global portfolio, really improving its operation. manus: thank you so much for sharing your thoughts this morning. be brave and have a little bit of china in your back pocket. global market strategist at jp morgan asset management. always something for the weekend. president biden strikes a defiant tone defending the policy on afghanistan. the u.s. is in talks with the taliban to end the chaos at the airport. these images went viral across

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dani: good morning. we are just gone 6:30 in the city of london. i'm dani burger alongside manus cranny live in dubai. this is bloomberg daybreak: europe. >> i stand squarely behind my decision. after 20 years, i've learned the hard way that there was never a good time to withdraw u.s. forces.

manus: president biden strikes a defiant tone defending his policy on afghanistan. the u.s. is in talks with the taliban to end the chaos at kabul airport. another record for u.s. stocks. the s&p 500 doubled from its lows last march. futures and asian stocks fall. the sec chair warns there is a lot europe investors don't know about chinese companies and says beijing could change the rules in the middle of the game. a lot of the action happening over in new zealand so far this morning. kiwi dollar dropping with one case of covid in the region. now, nearly one rate hike getting priced out of the market. manus: absolutely. this is when you begin to see the unease over delta. i would encourage everybody to go and read james mcintyre, his new zealand preview piece. the assumption is that you still get this hike. could they change the rhetoric?

i really like what james is indicating here. he says that they did this -- inflation expectations are at a seven-year high. the kiwi down over 1%. 2014, they reversed 12 months later at the expected inflation that did not arrive. with the infamous policy mistake be repeated? this is a critical moment for global central banks. dani: yes, you can tell just how tightly wound markets were in response of what you are saying. that they would have such a reaction. so prepared to see the central bank policymakers be much less hawkish than they were just a day ago based on where expectations were. manus: but it also shows you the from rally of some of these markets. let's put it together. we have gmm on the board. go straight to the forex.

let's hone in a little bit on the forex with the camera work. this is where you begin to see column two is where the kiwi is taking a bath. you are seeing the aussie under pressure. this is the dollar. i'm not saying it is flying, but covid rising, regulatory risk in the u.s., are we in for a jolt in the dollar? that is the bigger question now. dani: the dollar affects certainly screaming that there is a haven play. quarter to date the best g10 currencies are, you do have the dollar really strong, you have the again really strong, you also have the swissie doing well too. you have fx joining in the bond space saying there may be underlying risks. we also have the s&p 500 at an all-time high. manus: yes, and swiss and yen were the two big players in this quarter. they were the big out performers. the fx may be a bit more

prescient, boys and girls. i never forget the medium bond traders. dani: never, manus. president biden has defended the u.s. withdrawal from afghanistan. the u.s. exit has caused a political firestorm. you are looking at chaotic scenes at the kabul airport following the taliban's rapid advance, ending with the taking of the afghan capital. manus: indeed. biden fought back against that criticism he faced across the political spectrum. >> this did unfold more quickly than we had anticipated. so what has happened? afghanistan political leaders gave up and fled the country. the afghan military collapsed. sometimes without trying to fight. if anything, the developments of the past week reinforce that any u.s. military enforcement --

ending u.s. military involvement in afghanistan now is the right decision. dani: we are joined by a senior lecturer in the department of war studies at king's college. thank you for joining us this morning. given the scenes that we have seen unfold at the kabul airport, given some of the backlash to the biden administration, what needs to be the number one priority for this administration and global governments as we deal with the fallout of the exit from afghanistan? >> think on the first step, the first point, the immediate is about evacuation. it is not just evacuation of the americans or the brits, but just about every other embassy leaving kabul. i believe as of this morning, it is only the russians, iranian, and chinese embassies fully functioning inside kabul today. the prior concern is getting everybody out and i'm quite sure that there are background negotiations with the taliban

physically on the ground to make that happen. on biden's remarks, one point is that this is clear that this administration had a determinant political narrative. they are unwilling to empathize in many ways by way of narrative shaping when it comes to afghanistan. the second point that biden made, he said that afghan leaders have left the country. he is wrong. the former president is inside kabul at the moment. they have created something called the transitional council. they are trying their best to patch things together and keep some continuity going. i would appeal to the international community and the u.s. government is that you have high value afghan leaders inside kabul at the moment. day by day, their lives will be in jeopardy and that is where the focus needs to be. manus: well, we understand that the u.s. are potentially back channeling with the taliban in terms of what the new

composition of government might look like. i want to understand and draw on your expertise. game theory is a critically important part of how and where we end up here. you talk about those countries which are still present and still functioning inside of afghanistan with a presence. does that say something about the shaping of the narrative when it comes to the game theory of who the winners in this awful , awful carnage that we are seeing unfold before us? >> thanks. two points, the first is to say there is now a significant crack between the taliban in doha and tell a ban on the ground. when we say officials are negotiating with the taliban, what is becoming increasingly unclear every single hour is which taliban?

i can give you numerous examples of people trying to get out, guarantees being provided to them, and then they have been betrayed on the ground with taliban pickup trucks outside their house. the second point when it comes to who has won and who has lost, that is a longer question. it is clear that pakistan believes it has some kind of an advantage. china and russia have expended incredible political capital and engaging with the taliban over the last five or six years. they clearly have some guarantees. the only hope is with the international community that they can get the taliban to actually commit to the promises they are making in doha, women's rights, no looting, stability and governance, and most importantly an inclusive government. china and russia need to hold them to account, just like the u.s. security -- un security council did this morning in new york. dani: how likely is that?

is this taliban different from the one we saw 20 years ago? >> it is definitely a very different taliban, also this is a global taliban. we are really only talking about 15-20 individuals, largely english-speaking, have their passports stamped with all kinds of visas. the key point is do these 20 individuals who have lived outside the country for a very long time, will they have any amount of authority when they are actually inside of afghanistan? we are seeing a crack in the system. we are seeing kabul divided into four or five different factions. the fighters that have come into kabul. we are seeing rumors of a network taking certain parts of kabul. i'm afraid we will see a lot of disintegration and the guarantees that have been made by the taliban spokesperson,

that were sold to the biden administration, we need to do everything possible with russia and china to make sure that they can agree to a certain extent to hold up to those guarantees. manus: thank you for being with us this morning. senior lecturer of the department of war studies at king's college in london. let's get your first word news. juliette saly is with the team. >> the number of people dying with covid-19 in u.s. hospitals is hitting previous highs in hotspot states with lower vaccination rates. in florida, the state's november peak is being matched. louisiana, arkansas, and missouri have also seen fatalities sort in recent weeks. malaysia's king is reported to have called the leaders of four political parties for a meeting following the resignation of the

prime minister. he will stay on as caretaker prime minister until a successor is named. the u.s. has opened a formal investigation into tesla's autopilot system after almost a dozen collisions at crash scenes involving first responder vehicles. an estimated 755,000 tesla models from 2014 onward are under scrutiny. the regulator has the power to dean cars defective and auto recall. 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. this is bloomberg. dani: thank you so much. coming up, the infamous investor or rather famous investor made famous by "the big short," one of hollywood's biggest stars, this is bloomberg. ♪

manus: this is daybreak europe. i'm manus cranny in dubai. dani burger is in london. let's get to juliette saly. i am blown away by this. 1% tank on a one covid case. >> yes, exactly. it is an extraordinary move we see. we heard one confirmed case of the virus in a nation that had been covid zero and relying on that strategy. we will hear from the prime minister later today in terms of how the government plans to deal with this, but it is scrambling for what it means to the royal bank of new zealand meeting tomorrow. some economists are saying perhaps it will be in question

in terms of what it means for rate hikes for the rest of the year because the market had forecast three rate hikes, so 75 basis points, by the end of 2021. you can see that coming through in our gtv chart, how that is forecasting that we will only see two 25 basis point hikes. you are seeing pressure over at td securities saying that the rbc will hike tomorrow. and we have our own james mcintyre suggesting that there will be a hold tomorrow. this is even before we heard this covid case coming through. he is saying that a hike would be a policy hike -- would be a policy mistake and undermine the case for how the economy is rebounding. he said he is looking back to 2014 when markets looked to an imminent hike and then a series of rate hikes started to get unwound just a year later. it will be interesting to see. james mcintyre from bloomberg economics, he said a hike

tomorrow would be a policy misstep. dani: how much of this writing was on the wall? to the point that this would be a policy mistake, does this extend to global central banks dealing with the fallout from delta? juliette: it certainly pays into question how much of an unknown variable this is and how much it is changing the overall global recovery and we have seen that with a number of forecast downgrades, as well. downgrading their forecast for australia's economy. we have houses downgrading their forecasts for china's economic growth, too. it is an unknown as we continue to see the spread hampering the global economic recovery at a point in time when we thought we would be much further along. you do have to take into account and consider that some nations like australia, like new zealand, are lagging behind on a vaccination front, too. dani: all right, thank you very much. we will stick with the story as we continue to see, as juliette

was pointing out, the kiwi fallen more than 1%. that is juliette saly. $1 billion, that is how much facebook and instagram plan to pay their creators over the next year, must be nice, in a massive bid to woo more influencers to the platform. manus, i know you are already planning your next move to the instagram hall of fame. [laughter] incentives were discussed with bloomberg's emily chang. >> one of the most important changes is this explosive growth to create mobile video. we want to lean into that. it won't be able -- mean you won't be able to post photos. that will always be part of instagram. it does mean we need to lean more into mobile first video, because that is driving growth across the entire internet and social platforms. it is one that we feel like we have been out of position on the last few years. >> you are investing in creators, you are trying to simple if i the experience for

creators. what exactly do you think it is. instagram has a scale. what do you think else -- what else do you think is going to woo creators? >> i think we have a relatively unique combination of being a global top performer in reach, but also being a platform for a whole variety of types of creators. we are seeing power shift to individuals across all sorts of industries. journalists and editors are becoming more relevant in building up their own brands outside of the publications they work for. it is a great place for video creators, photo creators, even for writers and politicians and athletes. we think we have a unique combination of global reach and a wide variety of tools for a wide variety of types of creators. >> the goal is innovation and facebook has been facing major antitrust screwed because of its acquisition of instagram.

instagram has been hugely successful for facebook. will the scrutiny tamper facebook's ability to make acquisitions and innovate? >> it is going to be more difficult to make acquisitions then it was a number of years ago and the amount of scrutiny we are under does affect us. there was a lot of compliance and regulatory work. there are a lot of people who work at instagram and at facebook and they can become de -motivated under certain amounts of scrutiny or question. in question -- in general, what i try to do is make sure my team is focused on what matters most, which is creating value for the people who use our products every day. we have teams that try to focus more specifically on compliance or safety and integrity. in general, we want to make sure we are innovating and making sure that the people who use instagram can connect with their friends and be entertained. so the creators to use instagram can make a living and do what they do best.

i try to make sure my team is focused on that is much as possible. >> apple also getting antitrust scrutiny and their new ad tracking software has heard facebook and instagram. meantime, there is this controversy over new software features. they are integrating to protect children. do you think apple is taking its own power too far? >> i won't say they are taking it too far, but i will say they have an immense amount of power. not only over facebook and instagram come of it over anyone who relies on ios or the app store to do their business. they also have a lot of access to a lot of personal information. in general, there is tension here and i want to recognize it's important for any organization to do it it can to protect people, particularly children. there is a real tension between safety and privacy and these questions are important and they need to be discussed and argued about in public, because it is

one of the most existential debates of our generation. manus: that is the instagram ceo. i would very much like his telephone number and about an hour's help on instagram. greg helps make a great deal with instagram. [laughter] you've got to have your filters. i'm going to look younger and thinner on thursday morning. [laughter] let's have a look at the risk off event which is aussie-yen. money is going into yen. regulation rising. this is aussie-yen. this is a manifestation of a concern about geopolitics. what does it mean for taiwan? what does it mean for taiwan? that is the next question people are going to talk about. aussie-yen on the move.

begin has been one of the strongest in the quarter. dani: exactly. fx certainly saying something different than equities. there is deteriorating survey sentiment between the new york empire manufacturing index and the survey beneath the surface. dani: indeed. we will keep our eye on that. will it be a policy mistake for the rbnz to hike? we will see whether it carries through. the stock market is saying it is not 100% guaranteed for a hike tomorrow for the rbnz. tomorrow is going to be tantalizing to watch. what have we got stacked? dani: it is all about the commodities coming up. bhp wants to accelerate its exit from fossil fuels. it has confirmed and talks of a potential merger of its oil and gas unit.

we will have all of that up next for you. this is bloomberg. ♪ ♪

dani: welcome back to bloomberg daybreak: europe. i'm dani burger with manus cranny alongside me in dubai. the quick look at your commodity markets. copper falling yesterday. more steady today after some disruption in china boosting copper. you have brent ever so slightly lower. let's go to bhp, which has aimed to accelerate its retreat from fossil fuels. earnings out in a bit. joining us now is our correspondent. what are we expecting out of bhp? >> good morning. speculation about bhp's exit from oil and gas has had fever pitch in the last couple of days and local media are very much on

top of the story that they sold oil and gas business in the price tag could come to $15 billion. it is quite possible we get some sort of an announcement in the next hour or so with the result that they did acknowledge the exchange yesterday the talks were in progress on that. of course, the interest in bhp doing that would be to clean up its portfolio. they are very much under pressure from investors to meet tougher climate guidelines and in the context of the ipcc report, countries worldwide with big commodities groups like bhp are under pressure to be more accountable for how they are coping with the environment. manus: we will spend a little bit longer the next time we catch up. it was those neighbors of yours. it was the kiwis but stole your airtime. no offense to the q. weeks. -- kiwis. dani, good to have you back in

the seat with me this morning.wow. that q. week took all the news -- kiwi took all the news, did that? dani: the european open up next with francine lacqua. this is bloomberg. ♪

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francine: good morning and welcome to bloomberg markets: the european open. mark cudmore joins me in singapore. cash trading just less than an hour away and here are your top headlines. >> i stand squarely behind my decision. after 20 years, i have learned the hard way that there was never a good time to withdraw u.s. forces. francine: