tom: good morning from bloomberg's headquarters, this is "bloomberg daybreak europe," these are today's top stories. e.c.b. calls for an end to crisis mode as inflation rises to 3%. in the u.s. consumer confidence hits a six-month low. opec meets, groups expect them

to stick to planned hikes. president biden defends his withdrawal from afghanistan saying it saves american lives. we bring you our interview with the nato secretary general. inflation very much front and center here in europe. the chart we're about to show you points to that 3% rise. you look at co-inflation of 1.6%. imported inflation in countries like germany, imported inflation into germany 15%. this triggers the kind of talk you got from the dutch and others for the end, starting to enthe crisis support from the e.c.b. as we look ahead to the meeting on september 9. inflation in europe front and center. now the noises from e.c.b. officials having impoongts the

market. the german bund picked up. as things stand the asian session, chinese technology back in focus, some strength there three days maybe the tech selloff in china has reached something of a bottom that'll be the argument from sun. across the benchmark, gains of .4% despite some weaker day tai across the region. in hong kong, gains of .8%. question marks about the trajectory of growth and consumer confidence. the 10-year yield has edged up 1.32, just think about it, 24 hours ago you were look at a 10-year yield of 1.27. that yield trajectory on an upward path it seems in the u.s. asian stocks gaining as traders evaluate theout look for bank stimulus.

it follows remarks from the governing body who said it may allow for a slowdown in european central bank monetary so support. joining us is will em, c.e.o. of the bank. should we be looking, should investors start to price in more sustained inflation in the euro area? >> inflation is an issue around the world, less of an issue in europe than the u.s. in part because of the currency moments -- movements but it is a global issue related to the supply chain bottlenecks which we are told by all the business surveys that inventories are still low so that will take some time. then there was the comod toy ty price. the good news there is that those basics should start to fade. now we have also a third

element, wage pressure is picking up to some extent. more so in the u.s. than europe it must be said. it's a bit of a double, we think it is a temporary phenomenon, those base effects will fall out, the bottlenecks will be resolve. the risk is that we don't know the timing of. this it could take some time before those inventories are replenished. what we expect from the e.c.b. is a doveish stance and start to look at purchases there. tom: do you think that's what the austrians and dutch are looking for? they are starting to be concerned about the trajectory of inflation. they think the economy is on a surer footing and are calling for this discussion come september 9. should the market which market assets or which assets will react most significantly do you

think to something that looks slightly more hawkish from the e.c.b.? >> i think all central banks of the big central banks and developed markets will take a gradual approach indeed because there is such an -- a low visible as well. you can look at all the data, but ultimately it's an unprecedented period. so therefore gradual approach is probably the right one. that the markets will continue to like that you are in a mid cycle economic stage where growth slows but is still positive, earnings continue to be upgraded ends with a gradual approach from the central bank. should be a good mix for equity markets. therefore we have a broad overweight on the u.s., europe and asia, asia more from a valuations perspective but more focusing now on large caps, on dividends and on quality as we enter that mid cycle stage. tom: you touch odd then dividend

play. where is the opportunity in europe to get exposure to dividends and yields? >> to a large extent, europe is a market that's left by people who are looking for income even from a broad -- from abroad compared to other markets. of course within europe comparing it to the yield you can get on government bonds or investment grade. there's a big differential. that continues to be an attraction. they are starting to pay out some more dividends. this is an area that we like from a global perspective, it's a sector that also continues to benefit from the continued recovery from the provisioning that they have done. some of it is being written back. defaults that actually continue to decline. that's where one can find dividends in the bank sector. some other companies as well starting to pay more dividends.

tom: as we look ahead to the next round of earnings pricing power becomes more central particularly in this inflationary context. european equities have that power. >> it's the reason why we like quality that pricing power that margin power, also the ability obviously of those quality stock, those managers to look at the supply chain around the world potentially, reorient to continue to have that, you know, earnings growth, to continue. i think actually it's more a question of looking within each of the sectors which are the companies that are best positioned and the ones that we continue to like are the ones that use technology to their advantage. when you buy tech it's not just buying the stocks that are classified as such by the msci or other index providers. it's really those companies that

use technology to their advantage in their markets and inventory management and processes. top player, top 5%, which we call superstar farms. you can find them in any sectors. tom: what's your view on u.k., how are you looking to allocate between the u.k. and europe? >> we used to see the u.k. was stronger in the euro zone in part because of the progress u.k. had, the advantage that the u.k. had of vaccinations compared to europe that advantage has declined. in the u.k., the local market therefore, to 50, had outperformed the ftse100 which is more of a global index. we have now taken away that bias. we are now preferring the larger cap, the 5100 -- the ftse100.

which is a cheap market. we also allocate a bit more to the euro zone from the u.k. so those two allocation, becomes more difficult to foresee the u.k. outperform relative to europe. it's still the cheaper market of the two, we think the euro zone for the moment actually has a little better momentum than in the u.k. so the two offset each other. tom: reallocation from the u.k. to euro zone. within the context of concerns about the delta variant, about inflation, about the trajectory of growth. what's the process? what are you looking at doing to ensure that there's some strength around the portfolio. what are the hedges you might be assessing at this point. >> because of the lack of visibility on the economy, because of the fact that central banks are starting to make that turn and there's execution risk around that, then you have the

delta variants which continues to lead to some volatility even though we have those positive underlying factors of continued growth and low rate, there is a likelihood of volatility. there is -- and that likelihood of volatility comes at the moment where we are expecting those equity returns to be still positive but somewhat slower than before. as you're seeing, therefore you need to make it more resilient. we look for quality and look for global diversify case, process as well and that's especially important because bonds and equity markets are more correlated than ever before so you need to look for diversify case wherever you can and use alternative methods. tom: the importance of portfolio resilience, willem stays with us. let's get the first record from simone. simone: good morning, tom. president biden declared an end to two decades of u.s. military

operations in afghanistan, offering and impassioned defense of his withdrawal plan. speaking from the white house a day after the last american forces left the country, biden called the airlift of more than 120,000 people over the last month unprecedented and he said he was not going to extend the war forever. president biden: we succeeded in what we set out to do in afghanistan over a decade ago and stayed for another decade. it was time to end end this war. simone: morrow will tell all its employees to not smoke in -- on company time even if they're working from home. there will be no punishment. the top holdings are largely

tech and consumer firms like microsoft, nike and tesla. if it's approved it would be the second e.t.f. that the firm launched this year. global news 24 hours a day, on air and on bloomberg quicktake powered by more than 2,700 journalists in more than 120 countries. this is bloomberg. tom? tom: thank you. coming up, u.s. consumer confidence fell to a six-month low ahead of the august jobs report due late they are week. more on that next. this is bloomberg. ♪

tom: welcome back, this is bloomberg's "daybreak europe," concerns are back after u.s.

consumer confidence fell to a six-month low, ahead of the key august jobs report late they are week, on friday, which is expected to show a deceleration from the rapid employment gain in the prior month. wellem sels is still with us. how do you position around the erosion of consumer confidence in the u.s.? >> actually the reading from the conference is not a surprise. we obviously had the michigan university reading last month that already showed that decline. also above the neutral readings as people feel improvement. nevertheless the market doesn't seem overly concerned at this stage. consumer discretionary stocks are improving somewhat. they're not leading all the other sector, they're improving somewhat. so obviously you're going to have your ups and downs in that consumer confidence as you know,

in line with the delta variant and how people feel, whether there are additional measures. so we do think it continues to be a big engine of economic growth in the u.s. obviously you have the infrastructure as well and the manufacturing companies that need to replenish their inventory. so we have a longer term, medium term outlook on the u.s. economy and u.s. market. tom: something came through from the survey is concerns about that edell ta variant. we have seen that reflected around high frequency data around hotels and flights but also consumer goods with some saying look we're going to hold off in purchases. that's concerning in terms of inflation expectations whether that view becomes ingrained. would you need to see more to change that ultimate longer term view on the economy? how closely are waugh yao watching ingrained veufs inflation expectation? >> with -- we are with the feds to consider this short-term or

temporary issue. i think the market currently is as well. inflation expect fraition a longer term perspective are well-anchored still at this point. we think that will remain the case but the question is, when exactly inflation will fall because you have these effects from commodities that come down, you have wage inflation that accelerates to some extent. so you know, it could take until the first quarter or second quarter until inflation readings come down. we expect low yields, volatile yields. and therefore that potentially to leak through into equity markets but shorter term because again from a fundamental perspective we do think we're still in a positive equity market. tom: what are you doing with u.s. technology at this point? >> u.s. technology for us, structural growth there. you know, facilitated by that,

to some extent the investment from the government but also the 5g evolution. lots of investment there. we are overweight on u.s. technology. actually technology and financial being two overweights because we think the yields are neither here nor there. we are also balanced between value and growth. which are on the two sides of that spectrum together with financial and you know i.t. so loss of opportunity there. i think that when you are, you know, looking at the delta variant coming back or there's consumer variance -- consumer confidence being slow, i think the working from home and online economy will continue to see support from the short-term but also continue to see support from the longer term. again as i said in the element, in the previous section, technology, you can find it

across sectors not just in how providers classify it. tom: looking beyond the u.s., the dollar will come into play, but whether valuations are attractive enough in emerging markets to lead you to reposition? >> from a global perspective, with valuations, look at the earnings, the dividend yields, the bonds yields and look at that as sort of an equity risk premium. that's above average. these are attractive relative to bonds and if bonds don't move much, our central bank policy doesn't move and that continues to be a good argument for equity. on the emerging market side they have cheapened. we have a neutral allocation currently to china as investors maybe a little overweight, the approach from a longer term perspective we see lots of possibilities there, investment

possibilities in 5g and the industrial upgrading and those types of themes. and indeed it is an allocation that one needs to continue to have. because the bulk of the growth over the good part of the growth, a third of the growth comes from asia alone. people are underallocated especially foreign investors. if anything from a medium term perspective it's a question around timing. if you can adopt a valuation approach and longer term approach it's a market that one wouldn't want to sell at this point in time but would want to have. tom: that seems to be a view that investors are coalescing around. short-term maybe pause on china but longer term there's opportunity there is. will em, thank you for your time. coming up, germany's election race tightens again as merkel's

party touts a new potential finance minister. we look at the latest polling. this is bloomberg. ♪

tom: welcome back, this is bloomberg "daybreak europe," i'm tom mckeb see. the former caucus lead ore they have conservative block is being unveiled as a potential finance minister in the future cabinet. the former manager said they're fighting a very hard campaign in the leadup to election day on september 26. he spoke to bloomberg's maria. >> the key issue now is we are really fighting for the majority in parliament and opinion polls show we are far behind this goal.

so we have to fight and now we are having the key persons on board and rashad is show he's not the only one fighting. i am part of the team. this does not means this something as a decision for the future government. >> that means you can still win, you are confident? >> i am confident and i'm absolutely sure we are having the chance to win these elections and winning means becoming the strongest, biggest parliamentary group. >> you say there's a plan for the middle class and jer minnesota industry, i wonder about the finance minister that think he is has the economic credentials. >> that is fair. this is only part of the duty. the truth is that this parliamentary group of social democrats including the greens will become much more far left than we are seeing them in running parliament. this is the difference. these are the guys behind

annalina bevok. we are seeing a parliament with a left wing becoming very strong that's the reason we are starting a hard campaign. >> you say you want to create a modern economy for germany success story, one includes climate neutrality going to net zero, but you also said you're not going to increase taxes, so how do you pay for that? >> the key point is how do we regain growth for our economy? we are lagging behind our potential. that's the reason we are pointing out that this is not just a question of green deal or environmental policy. this is industrial policy, this economic policy, this is social market order and these are instruments of a free market order for implementing the climate goals and that is something which fits together and in our view that's the right

answer. tom: that was the council head, frederick merz, speaking to maria, who joins me live from berlin. playing up the fear card, we heard that in that interview. that you had with him. in terms of a red, red green coalition. is this going to work for him -- for them, this strategy? maria: yesterday when we went to this event to talk about the economy, we were there for about 10 hours. and i have to say i did not hear a lot of content on -- or substance. but i did hear a lot of attacks from the c.d.u. to the s.b.d. and that potential coalition. that does seem to be the strategy for the christian democrats in germany. to make this almost a binary choice, with the c.d.u. you know what you get. he may not be the most energetic or charismatic but we're a team. merz expressed that and said

it's not just about him but the c.d.u. as a party. on the other side you have the guy who may be the finance minister but he's in the going to govern by himself. he has to take in the green, the left of the left party. this will be a radical coalition that will be bad for the german economy. we'll also see taxes go up. that is a fear factor, fear card, whether or not that works with -- works with voters remains to be seen. whether that translate into the c.d.u. doing better in the election, remains a question mark. but it does seem to be the strategy they're going for right now. tom: we'll have to continue to watch the polls to see how that works out. playing the fear card, not the first time that's happened. marie ark thank you for joining us. let's check in on the data and markets before we get to break, in terms of what's happening in asia, gained .2%, some tiny tech stocks performing better, that's from thing through into the hang

seng in hong kong. the 10-year yield 132. coming up, opec, stay with us. this is bloomberg. ♪ in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities.

tom: good morning from bloomberg's european headquarter, it's 6:30 a.m. here in london, i'm tom mckenzie, this is bloomberg "daybreak europe," here's what you need to know. e.c.b. calls for an end to crisis mode after euro zone inflation rises to 3%. in the u.s. consumer confidence slides to a six-month low. opec delegates expect the group

to stick to planned output hikes as they see global markets tightening this year. president biden defends his withdrawal from afghanistan, saying it saved american lives. we bring you our interview with the nato general. there's a minor selloff stateside, some optimism when it comes to chinese technology share ush brushing off concerns about some weak p.m.i. data across the region. hong kong gains .4% led by the likes of tencent and ali because ba. the yield has climbed rather precipitously in the last 24 hour, 1.27 to 132 right now. let's switch focus to the oil complex then. traders are counting down to the first opec meeting since july. the cartel is preponderated to hike output to 400,000 barrels a

day in october. crude prices have mostly recovered from their mid august slump. that's as demand in u.s. and china prove red sil yent to global economic uncertainties caused by the delta variant. joining us now, bloomberg commodities editor will, what are the highlights that you're going to be focused on? will: looks like it's going to be a straightforward meeting. there were concerns earlier in the summer that the delta variant, especially, its spread in china, would limit oil demand in a way that opec might think again. but since then in the last couple of weeks demand seems to have bounced back. china seems to have got on top of those outlooks. when opec's technical advisory committee met yesterday it was interesting, they said they expect stockpiles to continue to draw down which will give the delegates confidence that they are to stick with their plan and add that 400,000 barrels a day

of extra production. tom: what's the iran component of this? there was an assumption iran would be coming back on. will: some people thought there'd be a deal to bring iran back into the nuclear pact and allow more oil experts. that's the process that's taking a lot longer than people expected. there was some talk yesterday it might be another three months before a deal is naild down and that oil can come back into the market. that's another factor that i think will give the ministers confidence that they can increase supply into the market without risking a fall in prices. that's another factor, i think, pointing toward a fairly straightforward meeting this afternoon. tom: will, thank you. joining us now from copenhagen, thed of the commodities strategy at s achs bank. does this sound like a fairly straightforward meeting for opec

plus? are they going for the 400,000 barrels a day as will was outlining for us? >> good morning, tom and will. i think they will because we have got a price in the low 70's, we did have a bit of a scare early in the -- in august but we recovered quite nicely from that. i think a level in the 70's to mid 70's, a price which is not too hot, not too cold, we won't see complaints from consumers prork deucers are content as well. also basically riding out the -- this last leg of the covid storm that seems like the delta virus is starting to loosen its grip at least some places around the world and also chinese imports are starting to pick up again. all in all not really any reason not to stay the course. also i think we have to remember, even though they agreed to 400,000, the question is if they can deliver. we've seen some of the opec

members struggling during the past few months to live up to produce their quarter and that means even if we get 400,000 we may not get all of that, they'll increase the compliance rate we see within opec. tom: that is possibly where the greatest answer lies, the ability for the members to get production back up. part of that down to a lack of investments during the pandemic period. which of those members are most under pressure when it comes to upping production. >> we're seeing nigeria and angola and iraq. they have been increasing. they are still below what they're actually allowed to produce. that's all adding up to a market situation where i think they'll have to agree the 400,000 because oafers they have to start to change the composition of the 400,000. we know that saudi arabia and some of the other countries can

increase production in line with what they agreed. some of the others might be lagging. i think they will go ahead and expectations as they also put out yesterday in their outlook for this year, they're seeing a deficit into the autumn. so if they don't trust their own numbers i don't know what they should trust. they will based on that increase production and expectations that there'll be devastating market. tom: when it comes to the dynamic, is there another demand risk that investors in the oil space need to be factoring in? >> that will come over the coming years because we're getting into the budget season now. now we start to see governments put their money behind their words. the battle against climate change, trying to speed that up. that process. that's probably one that will eventually have an impact.

it's not going to be any time soon. we'll see demand continue to slowly climb higher over the coming months before we see that peak. it's still something that potentially could rattle investors and keep them away from the market. that could drive the exploration to levels which are not -- where we can't meet the actual demand in the medium term. and i think also, we've still got -- the virus has not gone away. it's popping up in different varieties. that means something like international intercontinental flying jet fuel, demand for that is probably still going to be a lag over the coming months. we're not back to full strength yet and that will take several months before that happens and that's why it's also -- it also makes sense that opec and opec plus do this gradual increase. tom: what are inventories

looking like? >> they are coming down. that's to the satisfaction obviously, that shows the medicine is working. especially in the u.s. where we have seen both crude stocks come down in the past few months. the hurricane now is going to have an impact there in the short-term, oil stocks probably will go up. gasoline stocks will go down. but generally stock levels are about much more acceptable levelsest herbal -- especially from a production perspective. tom: i want to get your views on pricing. we have a chart that w.t.i. is testing its 100-tai moving average, you talk about the goldilocks price of $70. what's this stelling you about the forward trajectory of prices? >> you can see the loss of momentum in the oil marks has

triggered, especially since july, has triggered some productions from money managers, speculators as we like to call them. they have cut their net length by a combined a bit more than 30% and that indicates that they are not really that aggressively getting back into the market at this point. i think from a price perspective, we know that some of these markets, these speculators are driven by outside macroeconomic developments, deflation trade, or reflaition trade has deflated somewhat and others purely based on the price. the price is not really telling much. it's telling that -- we need to see it break about 75 for for them to start to increase positions. i don't think we're going to see that any time soon. we are probably going to sort of dig around the $70 with the excursion in either direction. tom: over the horizon, looking at 2022, i want to focus on the

opec data that you're potential lie li looking at, as early as january of 2022, a surplus. what kind of challenge would that pose to opec, do you think? >> it depends on whether demand continues to grow back toward where we were from before the peak of the pandemic set in. if we get back to those kind of levels, above 100 million barrels a day, i don't think we have much of an issue. we're still seeing slow growth trajectory in the u.s. and that slow growth probably going to stay in place as long as we have prizes around these -- prices around these levels. we have a backward market. they're looking at what prices they can get for 24 months out. and those prices are still lower than where we are today in the stock market. as long as we stick around at these levels i don't think we're going to see any acceleration in

production and the problem will be in dmoofnld peck knows this full well. that's why there's no need, no need to risk the recovery by tightening the market too much, thereby setting prices to levels where everyone gets interest in adding barrel into the market. i think -- we've got to have a balanced mark but again the demand outlook really is the uncertain one. now we've been through the delta virus, we thought everything was all well and good back in union and then suddenly we had this virus popping up and with more people getting vaccinated that should have an impact. again the virus has not gone away. that probably is the major concern still for the foreseeable future. tom: ok. oli hanson on that, we preview the opec plus meeting later today. let's get first word news with simone.

simone? simone: thanks, tom. president biden declared an end to two decades of military operations in afghanistan and offered an impassioned defense of his withdrawal plan. speaking from the white house a day after the last american forces left the country biden called the airlift of more than 120,000 people over the last month unprecedented. and said he was not going to extend the war forever. president biden: we succeeded in what we set out to do in afghanistan over a decade ago and then we stayed for another decade. it was time to end this war. simone: wells fargo may fes fresh sanctions over the pace at which it's compensating victims and shoring up controls as it attempts to clean up scandals two. u.s. agencies warn they're dissatisfied with its progress. the bank asked for more time to get the work done. it isn't clear when the

watchdogs might proceed. shares dropped on the news. a texas law barring abortion after the sixth week of pregnancy took effect. the u.s. supreme court deliberated over a bid to block the measure. the high court took no action on tuesday night. if it remains in effect the law will be the strictest in the nation prohibiting abortion before many know they are pregnant. in the coming months, the conservative-controlled court is expected to hear an appeal that seeks to overturn the landmark 1973roe vs. wade ruling. news on bloomberg and on quicktake powered by more than 170 jowrchlists. tom: morgan stanley boosting salaries for the second time in a month. that story next. this is bloomberg. ♪

>> there was a worry ry there might be competition but so far

the cannabis sector seems to be holding up very strongly. tom: this is bloomberg "daybreak europe," future pointing to upslide in the u.s. section. after closing lower on wall street. the c.s.i.300, the benchmark for china, posting its biggest jump in more than a month. optimism around tech share there is as well. that's the futures complex in the u.s., optimism creeping into these markets. morgan stanley boosted salaries for the second time, second time in a month, raising stakes in a wall street bidding war for new talent. base pay for junior -- they bumped base pay for junior bankers to $110,000, that will cover staff in the trading division. our managing editor joins us now with ed ill it's a.

what's the latest on wall street's bidding war for junior bankers? good news for those entering the ranks. >> certainly good news that keeps going, right? you're seeing bank after bank, day after day, announce they're going to take those salaries up. trying to keep up with each other. morgan stanley the latest to join the fray, $110,000, second years $125,000, according people we have spoken with. this brings them in line with goldman sachs but ahead of other competitors like deutch, citigroup, lar barrclays, morgan. we've seen them all raising starting wages in the last few weeks as they try to stem defections in a booming business. you mentioned at the start, one yardstick to how intense the

competition is, is that it isn't one hike, morgan stanley makes its second increase in a month. so yes, it's -- if you're the right kind of candidates this great. tom: seems to be across the board. maybe some envy for some of those wall street bankers as they look across to china where some are paying close to $300,000. >> that's right. never mind wall street when you have chinese hedge funds willing to shell out that much. that's how much one company that manages about $800 billion, a top chinese hedge fund is offering to labor coming out of college in fields of artificial intelligence and computer science. they are responding to the same kind of stiff competition for the right kind of candidate. these are people with a world of opportunities open to them. popular course over the years

has been moving to top universities, then to wall street or silicon valley. but now a lot of those people because of pan democrat rick staying home in china, giving local funds an opportunity to get them in the door and then hopefully keep them there but they have to fight off the likes of china's own tech companies, or the thriving startup scene, to which a lot of these people are now headed. tom: all right, thank you. following u.s. exit from afghanistan, nato's secretary general said the alliance remains committed toed acing anyone at risk in leaving the country and has the capability of conducting long-range strikes against terrorist groups there. he spoke to bloomberg's tom keane on bloomberg surveillance. >> to ensure that afghanistan doesn't once again become a safe

haven for international terrorists because we have to remember that the reason why nato allies joined the united states going into afghanistan in 2001 was a direct response to terrorist attack on the united states and hundreds of thousands of canadian, european, nato soldiers and partners have served alongside u.s. sole disbrers 20 years. for those 20 years we have prevented afghanistan from being a safe haven for international terrorists. we need to ensure that is also the case in the future. so we will follow monitor the new rules for the kabul very klose closely and continue to ensure terrorists are destroyed if they try to re-establish themselves in afghanistan. >> because of time constraints, i want to focus on the important resolution support mission, the idea of the italians in the west of afghanistan, the germans up

north where the northern ilicense is and then there's a turkish flag in the middle providing support, nato support to afghanistan. now turkey is in a unique position. explain nato's relationship with mr. erdogan and the new afghanistan. >> nato has ended its military presence in afghanistan as the united states has and i would like to thank and praise and commend all those men and women who have served there for so many years. and their efforts and their service was not in vain. turkey has played a key role in operating the airport and has offered to continue to continue to support the airport and the airport is -- in kabul is vital, a vital link to the world to get humanitarian aid in but also to enable safe pass fj -- passage for these who want to leave. nato allies have strongly stated

we will not forget all those who are still in afghanistan who supported us, who are at risk, and we will can't to work to ensure that they can leave afghanistan. tom: the nato secretary general speaking to tom keane there. more ahead, this is bloomberg. ♪

tom: welcome back, this is bloomberg "daybreak europe," more restrictions on u.s. travelers may be another blow for business travel. a survey of 45 large business travels shows that 84% plan to spend less on trips. the last 18 months have already shown companies that a lot can be done without getting on a plane. joining us from paris is tara, transport editor and one of the authors of today's big take.

what did the survey reveal? >> good morning to you. the survey of 45 very large users of business travel revealed overwhelmingly that the plans by these companies and organizations is to cut back on corporate travel after the pandemic. and most of them said that this could be up to 30%. so the trend for airlines could be that they're facing after the pandemic less corporate travel, which is the most profitable end of their business model. tom: bad news for those airlines, as you said. you spoke to some large company heads. what did they say about the rationale for cutting back? >> some of the c.e.o.'s we spoke to described situations where during the pandemic they were facing, you know, challenges of starting up remotely big industrial machines, very, very

basic needs by top executives to visit siting rely, some of these company we spoke to that the company has factories all over the globe. they were saying that they were finding that they were able to do a lot of really nitty-gritty things and very detailed company visits remotely using technology like augmented reality headgear and other remote ways that meant that executives no longer had to make these trips that were sometimes going to australia from paris, for instance, for a couple of days. tom: ok, thank you. today's big take, the decline of business travel. let's check on the markets before we let you go. optimism coming thru from asia. also the u.s. futures pointing up as well. looking ahead to the opec meeting later today, whether or not they'll stick to that plan

of an additional 400,000 targets in terms of bariums. asia pacific up .3%. plenty more ahead the european open is next. this is bloomberg. ♪

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to bloomberg markets, the european open. i'm anna edwards. mark cudmore joins us from singapore. the cash trading's less than an hour away. ecb policy makers call fernand to crisis mode after the euro zone inflation rises to 3%. europe bonds declined. opec-plus