but he acknowledged increasing concerns about rising tensions between the two nations. president biden: we are not seeking a new cold war, or a world divided in the region blocks. united states is ready to work with any nation that steps up and pursues peaceful resolution to shared challenges. mark: the president also said the world must move quickly and cooperatively to address the ongoing issues of covid-19, climate change, and human rights abuse. mr. biden. saenz a border patrol agents on horseback's intimidating haitian migrants were horrific and horrible, and the white house says he was committed to the department of homeland security investigation into the matter which took place as migrants try to enter an encampment on the banks of the rio grande in texas on sunday. video from the site showed

migrants shielding their heads as the agents appeared to usereins as whips. fires in north america & beer resulted in the highest level of carbon emissions from wildfires ever recorded in the summer in the western hemisphere. a new report from the earth observation agency says the blazes released a record 1.3 billion metric tons of carbon dioxide into the atmosphere in july david 1.4 billion tons in august. nearly a third of the emissions came from wildfires in russia. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ matt: and is 1:00 in new york

7:00 p.m. in berlin, and 1:00 , a.m. in hong kong. i'm matt miller. welcome to bloomberg markets. here are the top stories we are following on the bloomberg and from around the world. the fomc kicks off its two-day meeting today. we will discuss with scott minerd. mna and the state of the banking industry when bruce van saun, citizens financial group ceo. and we will go to the greenwich economic forum to speak with ares capital ceo kipp de veer on the state of the credit market. let's get a check on the markets right now. we have had the s&p 500 balance this morning and then drop into losses, now back to a gain, .3%. 4370. the u.s. 10-year yield doing a whole lot of nothing right now, although earlier we did see investors comfortable enough to

sell this debt, pushing the yield higher. the bloomberg dollar index coming down a little bit 1 to153. nymex crude also little changed at 70.45. regional banks in the u.s. are seeing a wave of deals. one of the most recent was citizens financial buying jmp. that transaction was the latest in a string of takeovers by the nation's fifth largest regional bank. let's bring in the ceo and chairman, bruce van saun. thank you for your time this afternoon. let me ask you about these acquisitions. there is the jmp deal you have done, you also bought up my former bank branches, hsbc, about 80 branches there. what is the endgame with this

building and regional spread you are doing with your footprint? bruce: when we came through the pandemic in good shape, we decided this year was the year to shift to offense. we wanted to address the hole in the doughnut where we had a strong presence but we didn't have a strong presence in the new york metro. when hsbc put up their bid, we were successful in acquiring that. that led to buying investors bank, headquarters in new jersey. the combination of those two gives us 200 branches in metro new york, top 10 deposit franchise, good base for us to do our thing in this market, turn it into what we have in philadelphia and boston. that was a consumer play. jmp really helps us continue to build out our commercial bank.

we end up with four verticals, equity capital markets capability. we have built out who we cover with some depth, and now we have build on our products. matt: and you also have reach out to the west coast'with jmps presence in san francisco. what are you looking for now, what may fit the bill in terms of your next target? bruce: we are still focused on bolt on acquisitions. there may be another industry vertical play in the capital markets, investment banking. we are still looking at well. we did an acquisition earlier with a great franchise. we are not at the scale we want to be in with wealth. we want to make sure that we integrate well, execute well, but i think we have the capacity to do a few smaller transactions. matt: are you just looking at

traditional banking assets, are you also interested in the high tech plays? bankers like yourself compete a lot more with fintech. bruce: we have a great network of fintech partners. typically, we've been able to work nicely with them, incorporate some of their offerings to deliver to our customers. from time to time, we will also look if it makes sense to buy something. there's a lot happening, for example, in the payments space, which we are monitoring closely. for the most part, those tend to be partnerships. matt: you are not the only one on office -- offense. u.s. bancorp closing at a billion-dollar deal. what do you think of that play, what do you think of the environment? bruce: i think it makes a lot of

sense for u.s. bank, and it's been rumored that they wanted to deepen their west coast presence. what we have seen is foreign-owned consumer banks have had a trouble making a go of it in the u.s. bbva pulled out earlier in the year. it is not surprising. i think the bigger u.s. banks have broader product sets, invested in technology and the customer experience, so they can leverage the bigger customer base to do more photos customers and deepen relationships, so the markets generally have been favorably disposed to those types of transactions. matt: what are the biggest headwinds right now, in terms of the banking industry, financial conditions have come down drastically, ever grant sending ripples globally across credit markets. what are the biggest headwinds

you face right now? bruce: for banks, seeing a pickup in loans would be nice, and then for the fed to look to rates once the economy gets solid footing. delta variant has caused a plateauing in the recovery, still good, optimistic about next year, but we have to fight through this. we are still very bullish and think next year will be a great year for banks. matt: is powell going to be able to enact the taper this year? bruce: i think he will. there will be mixed views on the committee, but in general, they want to set the taper in motion, so it gives them the flexibility in the later part of 2022 if they need to lift short rates because inflation is proving stubborn, they want that flexibility. we will see tomorrow. matt: one thing we will not know about tomorrow is the

infrastructure bill, whether it gets passed, what. size it is. how important is fiscal spending to you? we have focused on the monetary side. since the pandemic, the fiscal health for economic growth has been an immense. does that matter if that tapers off? bruce: up until now, the federal government has done a good job making sure there is investment in the economy, recovery. all of those bills, particularly things like ppp, which were targeted, have had a salutary effect on bolstering the economy. the bipartisan infrastructure deal makes sense. we have been shorting the pot on infrastructure for a while now. some of the blowout spending in this latest bill will likely be dialed back. we don't need to have significant increase in taxes in many directions.

hopefully, there is a process they go through to skinny that one down and avoid some of the big tax increases, which could sap strength from the economic recovery. matt: bruce van saun, citizens financial group ceo and chairman. more headlines from president biden. we saw him earlier in front of the united nations general assembly talking about a reduction in the u.s. military presence around the globe, increase in u.s. funding for developing nations, funding to fight climate change, and funding to fight hunger as well. he also talked about the donations that the u.s. has made so far of covid-19 vaccines. we are learning the biden administration plans to donate 500 million shots of the pfizer vaccine. that will be doubling the goal it had previously announced.

the biden administration planning the donation of 500 million pfizer shots to countries in need, adding to the immense funding effort this administration wants to pony up for the rest of the world. coming up, speaking to guggenheim partners cio, scott minerd, about what he expects from jerome powell, and his take on what is going on in these markets amidst the evergrande concerns. and what happens when we step off the fiscal cliff. this is bloomberg. ♪

matt: this is bloomberg markets.

i'm matt miller. the fomc kicked up its two-day meeting today, and joining us for a preview is scott minerd, guggenheim partners chief investment officer. there is so much going on in the markets, especially in credit. everyone freaks out about evergrande. i cannot tell if it is sensationalist because it is an exciting story or it is tied to the bigger, and prosperity issues we've been seeing in china, or if it is really a big problem for global credit markets, if we just cannot see how much it matters right now, how deep it is, counterparty risk. what is your thinking on evergrande? scott: i saw a story on bloomberg the other day that i thought sums it up well. is this a great financial crisis or long-term capital? i think it is long-term capital. there is a problem in asia.

china is a much bigger part of the global economy than it was 15 years ago. the repercussions to their property market are huge. a lot of people here are not familiar with the fact that real estate is like the only alternative asset class. you either own bonds, stocks, or real estate. a lot of people have been buying real estate just as a portfolio. to have evergrande to perhaps liquidate its real estate is going to cascade through the chinese economy. real estate accounts for 15% to 20% of their gdp. when you have the second largest economy in the world hit with something like this, the repercussions are going to be global. matt: let's just focus right now

and what you expect to happen in china. i can understand president xi with the common prosperity push, wants to try and reduce the inequity that is caused through property investment. on the other hand, he doesn't want to crash an entire class of people. do you expect the pboc to step in here? scott: at some point. the problem for president xi, he has himself painted into a corner. he has made this big deal of common prosperity. the government will not help the fatcats. all of a sudden, he has this major real estate company in trouble. if he steps in to save it, it seemed like he is contradicting himself. they don't really know what they are going to do right now. maybe a little bit like what we

were trying to figure out prior to the lehman crisis, and that is do we step back and let it go, or do we take our chances and intervene? my guess is they will ultimately intervene, but it has not played itself out yet. there is a lot of politics still to go in china. matt: you say this is more long-term, less like lehman. some say that china is not investable, even government debt is on investable. ? do you agree scott: i think that is a little bit too far. there are a lot of opportunities still in china, the growth story is fantastic. hostility toward capital coming from the west is not a good

long-term plan. at the same time, xi needs to consolidate his power. he wants to be reelected as premier. he has to appeal to the broad public. in a lot of ways, he looks a lot more like mao than xi jinping -- matt: in that case, you wouldn't want to invest because you could expect nationalization of private assets, have -- and they would have less concern for the rule of law. scott: that goes back to alienating the capital of the west. there is a point where you go too far. i think they are trying to figure all this out. things are unfolding right now.

the last thing xi months to do is lose access to western markets. have a capital war with the west. i think it is a treacherous place to be as an investor today, but on the other hand, i think it is a little bit too early to say it is an uninvest able country. matt: where do you go looking for returns? scott: it is tough. i hate these markets. these are the most difficult markets to invest in because everything is so richly priced. we have been reducing risk. we were heavily invested into below investment grade bonds, bank loans. we had been paring that risk over the last month or so. when you look at the stock market, the breadth and the

divergence that we have seen over the last month or two is now playing out. the selloff yesterday was a clear crack in the uptrend. a lot of people talking about it is not that big of a deal, it's a buying opportunity. actually, when you look at the technicals, the charts, the prospects that we will disappoint on their earnings front because of covid slowdown, we are ripe for a correction. i like to remind people, september and october are historically the worst months for the stock market. we are kinda pulling back right now, sitting on the sidelines and waiting for an opportunity to pick up assets at a cheaper price. matt: i was sharing with kids on twitter today the seasonality function on the bloomberg, proving september is the worst month for the s&p 500. i also saw a great chart this morning.

they have been testing the 50-day moving average all year without really piercing it, and then all of a sudden, going down through the 100-day moving average. what kind of correction do you think we could see? scott: the work i did last night shows i would expect the s&p to get to around 4050, just above 4000. then the next question we have to ask ourselves, how much further could it go, if we get there? we have to assess the information then. you cannot rule out the prospects, if we get to 4050, that is a 10% correction from the top. if the news continues to be uncertain out of china, if the economy and earnings are disappointing, we could

ourselves down almost 20%. matt: if we get that kind of plunge, what happens with the fed, is the plunge protection team in place? scott: it will be interesting, this meeting because of the doves and hawks. i have not seen the fed this divided i think since 1980's. the meeting today and tomorrow, the fed will basically compromise and say, let's make an announcement here about how tapering will work. are we going to reduce purchases by $10 billion a month? whatever the formula is that they come up with. and then they are going to leave the tapering date to be determined. i think they would like to see at least another month worth of

employment figures, maybe two months. it's interesting, the employment figure comes right after the november meeting. they may not be making the announcement of when the tapir is implemented until december. i don't think they will tell us today. i do think they will give us an outline of how it will work. matt: you think they will taper. they will at least reduce the speed to which they add to it. will they ever raise rates? scott: someday. [laughter] at dot plots are too aggressive, the people talking about a rate increase in 2022 -- it is too much. when you look at the fiscal side of the equation, we are going from having a lot of fiscal stimulus to know a fiscal drag. there are a lot of questions

around what kind of legislation will get through the house and senate. i don't expect to see a 3.5 trillion dollars spending program by any stretch of the imagination. given that backdrop, the prospects for 2022, we are not talking about a recession, but we are not talking about the economy that would continue to overheat. someday, we will address the supply chain issues and prices will start to stabilize, even come down again. i think a 2022 rate hike is a little too much. i think late 2023 or 2024 is likely to be the time the fed can actually institute one. matt: what about the fiscal cliff you are talking about, do we ever again see the fiscal impulse we had during the pandemic?

or is not normalized and we continue to see trillions of dollars in spending? scott: eventually the printing press runs out of money. the reason for that is the inflation pressures it causes. the reality is, the amount of stimulus we got during the pandemic is unprecedented. we are not likely ever to return to that unless we are in another crisis. i am not really looking for washington to provide a lot of support. and if we do get these massive spending bills, there seems to be a willingness to raise taxes and various classes of society and corporations. history shows that raising taxes actually reduces output and productivity over time.

i think that would be a mistake to try to tax ourselves into prosperity. matt: great to get some time with you. appreciate it. scott minerd, chief investment officer at guggenheim global, talking head of the fed tomorrow. we will hear from kipp de veer, ares head of credit management. it will be great to get his take on what is going on in the markets right now and what he expects from jerome powell. this is bloomberg. ♪

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mark: i'm mark crumpton with bloomberg first word news. president biden is urging the

world to turn from conflict to cooperation against the threats of climate change and covid-19. during his first speech to the united nations general assembly as president of the united states, mr. biden pledged u.s. would double its financial support to help low income countries adapt to a warming climate and shift to clean energy. in april, the president committed $5.7 billion. the british prime minister boris johnson is also in new york for the u.n. gathering and weighed in on the need to combat climate change. >> this is a moment where the world has to decide whether it wants to grow up or not, make a crucial change or not. we cannot keep trashing the planet in the way that we are. mark: prime minister johnson government is hosting climate talks in glasgow, scotland next month. u.k. is deliver -- focused on promising --

that poorer nations were to receive 100 billion dollars each year from 2020 to help them cut carbon emissions and adapt to the effects of climate change. house democratic leaders plan a monday boat on a senate passed infrastructure bill. it's a move that risks deepening divisions in their cosco's and dooming president biden's economic agenda. the vote will almost certainly come before a decision on a broader tax and spending package. the white house is putting pressure on democrats to stay the course on the president's economic plans. a company that operates the dakota pipeline is asking the u.s. supreme court to reverse an appellate ruling, offering additional environmental review, saying it put the light at risk of being shut down. a federal judge ruled earlier this year that the pipeline may continue operating while the u.s. army corps of engineers conducts a review.

the pipeline began operating in 2017 after being the subject of protests during its construction. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ amanda: i'm amanda lang. welcome to bloomberg markets. matt: i'm matt miller. we welcome our bloomberg and bnn bloomberg audiences. here are the top stories we are following for you from around the world. we will go live to the greenwich economic forum and speak to kip devere on the state of the market, and prime minister justin trudeau wins a third term in canada snap elections.

what that means for the economy up north. and the latest on the energy crisis in europe, as it is set to worsen in the u.k. as a grid operator delays the start of a key power cable from france by almost a month. amanda: certainly a better day for the markets today, coming off of that huge decline yesterday. we even saw in the last 30 minutes of trading, you often have big bounce backs. you are not see momentum move hired. moves are small but they are broad-based. we got the faang groups in the middle of the pack today. interestingly, the subgroups that are doing the best today, albeit in a muted fashion, are the right sensitives that were doing the best yesterday. there may be a mentality of watching the yields. 1.31 on the 10 year, so we argue -- seeing a giveback on the bonds.

we continue to watch evergrande, concerns about what comes next. bond payments are due on thursday. we are seeing a slide in both equity and credit markets. the big question is, how much contagion might there be? it is the main topic at the greenwich economic forum. nouriel roubini talked earlier to tom keene, about his concerns over debt. >> compared to a decade ago, the level is about -- much higher than before. 20 years ago, it was 20% of gdp. right now it is 360 and rising. in china, 330% and rising. my concern is we are in a debt trap. not just fiscal dominance. central banks will eventually

want to phase out conventional monetary policy. given that ratio, there is a risk of a crash. they will be in a debt trap and will be unable to normalize policy. >> so honored that you are here. i am pleased to announce that barry eichengreen's new book on debt is my book of the year, and this is the guy to talk about it. how do you interpret the outcome of this buildup in debt, which is life at the zero bound? >> we are in a situation where in normal times we are not reducing deficits. whenever there is a crisis, we backstop the financial system, more buildup of public debt, build up a private. with zero or negative rates, quantitative easing is cheap. in good times and bad times,

debt ratios are rising. eventually, central banks are in a trap. with these levels of private and public debt, there may be a market crash and economic crash. amanda: some pretty interesting insight. two different threads. another example of something that could be an isolated case. the question will be, do you need to worry about spillover, is this evidence that we don't always know what is lurking out there? he is pointing to the bigger overlay. at some point, we will see the universe be not as friendly to creditors, and what happens then? matt: it is interesting to hear him get a little bit bearish. he is so optimistic normally, but great to see him with a dose of realism. i thought it was interesting that tom keene did not have his boston red sox hat on.

there was a hat on the table and it was not a major league baseball team from the united states or canada. not sure what it was. evergrande seems to be the flavor of the month. it is definitely problematic, but almost everyone we have spoken to, everyone i have seen on surveillance, has said this is not a lehman brothers moment. i don't know why we need to compare it to some other colossal failure. if you want to, long-term capital management is the one that people chose, and that did not lead to huge reverberations in the global market. amanda: we know this is a topic at the greenwich economic forum. we are going there now. sonali basak has kipp de veer, of ares capital. >> thank you so much.

ray dalio told everyone here, don't buy bonds. what are you telling your clients? kipp: in our fixed income business, what he is referring to is different from our assets. most of our credit is corporate and asset-based, higher-yielding, a lot of it illiquid. what he was getting at, not seeing the interview, was telling the same thing that we are telling our clients. with such low yield, it is difficult to be in cash, difficult to be in low yielding government mortgage bonds, and probably high-grade corporate's, because of the duration, outlook for the fed. it is difficult to earn any return at all. sonali: how sensitive are parts of the? credit market to what the fed says kipp: they tend to be less sensitive. the rate influences a lot of the

shorter side of the curve investments. that is not where we spend our time focusing on alternative credit and other areas. what we do is more fundamentally driven. a lot of the fun that we manage are taking longer term bets. we feel less sensitive to maybe a change in policy tomorrow or even a short-term coaching from the fed about where rates may go. sonali: any concerns seeing the junk bond market has come back so fast about what the longer-term impacts of these low interest rates are having on the markets and? asset prices kipp: the key is we are seeing investors want to earn some sort of durable premium yield. a play into the junk bond market is saying i don't want to be in the short side of the fixed income market. i am willing to take more credit risk. the question is are you taking it responsibly? are you doing a good job underwriting potentially future defaults. inherently, with the amount of

debt, that is there, but that is our job as a manager. that is why you pay for active management. sonali: you want told me that you spend a lot of time saying no. a lot of folks have said it lately this default cycle is too good to be true. do you agree, there is risk under the surface, that investors are not being paid for? our not being accounted for kipp: that is always the risk. trying to see if you are having quality and strong underwriting. for illiquid credit investments, we have these origination teams that allow us to see a ton of opportunities. we do say no a lot, that is the hardest part of our business. your hit rate is about 5% of what you are seeing. being in solid companies, investing with the right management teams, in particular because we have large

portfolios, playing off of your incumbency positions, is how we have an advantage versus others who are purely in the market. sonali: one of the hottest things in private credit is this melding of credit. we have seen a deal as much as $3.5 billion. is there more of that in the market, how big can they get? kipp: what has happened over the years is there is increased size where the banks see easy, syndicated leveraged transactions, where you can write them, sell them, etc. for us, it is building the capital scale so that we have an interesting alternative, whether through a private equity buyer or family or entrepreneur, or even outside of the corporate credit space. we have sold the tool to do these bigger deals. but it is 10-plus years in the making. this was invented to do

transactions like this years ago. we have marked different levels. 100 million dollar deal, $500 million deal. we did the first billion-dollar deal seven years ago, and that it is commonplace the market supports multibillion-dollar transactions. sonali: not too far from the next 4 billion-dollar deal? kipp: there are folks like us and our competitors who can hold a billion dollars on a single transaction basis. putting a club of those folks together to do a deal is not that complicated anymore. sonali: a club? you are partnering with banks these days. are you partnering with banks moore's on lbo's as they get bigger? kipp: banks are achieving a lower rate of capital by -- not originating the paper, buying

from the banks. we have tremendous relationships with the banks. the way they tend to access us in our middle-market business and our asset business, they lend us substantial capital. we use modest leverage to make our investment. the way they have reorient it themselves over the years is to partner with folks like aries as a lender and wholesale financier of what we are doing. sonali: we have to leave it there. thank you for your time. matt: thanks to both of you, should ali bassett, and kipp de veer from aries management, very interesting stuff. we will continue to cover this. this is bloomberg. ♪

amanda: this is bloomberg markets. i'm amanda lang. canada had an election, some mail-in ballots remain to be counted, but it looks like the 44th parliament will look at off elect the 43rd. justin trudeau winning but with a minority. doug porter is the bmo capital markets chief economist. we didn't expect a whole lot of action, we don't get a lot of reaction generally from elections. this is a real status quo, but it leaves a lot of big spending items on the table. what is your reaction to what will happen now? doug: first off, i want to give a shout out to the pollsters who did a fabulous job. that is one of the reasons we are having next to no market reaction because it was largely baked into the cake.

even though it was completely as expected, the reality is, some things did unfold during the campaign that are significant for the economy going forward. you touched on one of the biggest items. almost every party unveiled a significant new spending plans, on top of what had already been a heavy budget that we saw earlier this year. the other changes we saw, a number of fairly aggressive proposals on the housing front. some of which could have a big effect, some may not. but a number of items that many of us could not have dreamed was proposed as recently as a couple years ago, aimed at trying to cool what has been an extraordinarily hot housing market, even hotter than the u.s. i do think the number one take away is we are likely looking at an even more aggressive spending program in the years ahead. if anything, that can put more upward pressure on what is

percolating inflation. matt: the issue that really interests me is the housing issue, not just in canada but everywhere. it is interesting that trudeau, as well as his opponents, have floated the possibility of banning foreigners from buying property. is that expected to happen, how do you think it will work out? doug: that is a good question, and everything that we see has to be seen through the lens of this is a minority government. it is interesting that everyone of the major parties was proposing a tougher line against nonresident buyers. to me, the real john dropper was that proposal to outrightban nonresident buyers were couple of years. i don't think that will have a huge effect on the market. there was a time in the past

when nonresident buyers were drying -- driving the upper end of the market. there are a number of other measures. the liberals also proposed a speculative tax, which didn't get a lot of attention, but that means if a house is sold, it would be subject to a tax. that is a pretty heavy stop. they have also talked away with doing away with blind bidding, which some suggest have added to the fraud in the housing market. our view is all of these things are potentially important, but ultimately it will take an interest rate increase to heal this market. relentlessly strong population growth, robust income growth, and incredibly low levels of interest rates that everyone is dealing with. particularly running up against a tight supply situation in canada, it has driven prices up faster than almost anywhere in the world. about the only comparable major

economy is new zealand in terms of the home pricing nation we have seen. amanda: there is also tax increases likely ahead. corporate taxes were raised as a likely source of revenue. should that worry us in a competitive way, or does canada have enough going on for it that it? will remain attractive doug: what enters into the conversation is what happens in washington. we have seen these proposals of large corporate tax increases, drawing the map that was drawn in 2017 on u.s. corporate taxes. if that ever sees the light of day, that gives ottawa more cover to begin edging up some sort of orbit taxes. i would say, in the current environment, the 20 tax reform put canada on the wrong side of the competitiveness ledger. for years and year, canada depended on a low corporate tax

rate. canada now has a slightly higher tax rate. that will not be the single driver of investment decisions but it played a role. it used to be a strong card that canada used to have. ottawa needs to be careful not to get out of line with what happens in washington. there was a lot of symmetry between the ndp and liberal proposals on that front. certainly there is a risk that corporate taxes are going higher. amanda: so good to have you with us. doug porter, bmo capital markets. we are watching an energy crisis brewing in europe. in the u.k., the price of natural gas could cause many small players to go to bankruptcy.

matt: the u.k. grid operator

delayed the start of a key power cable from france by a month, potentially deepening the nation's energy crisis. for more, let's bring in will mathis, who has been covering the run-up of gas prices and the real hindrance to getting more of it there. what is going on? will: like you say, there is this epic gas crunch that is sending up gas prices and power prices, which are largely reliant on gas. there is not really any sector relieve anytime soon. maybe when prices come back down. amanda: we have the potential for some players to go bankrupt. will: you have a lot of these power suppliers in the u.k., gas

suppliers, and some of them have teams of traders who are buying contracts in the futures, so they can deliver at a steady price. also other smaller ones that don't do that. they have been basically selling power at fixed prices, but then they have to buy the electricity and the gas in the spot market. that price is now three or four times higher than it was at the beginning of the year, and they will not be able to afford to buy enough energy to deliver to their customers. their only option really is to go bankrupt. matt: boris johnson says they will not be bailing them out as of yet. will mathis, thank you for covering this. for amanda lang, i'm matt miller. this is bloomberg. ♪

mark: i am mark crumpton with bloomberg's first word news.

president biden wants to turn against the threats of climate change and disease. mr. biden is in new york city today where he gave a speech to the united nations general assembly as president of the united states. pres. biden: in april, i announced the united states would double our public financing to help the nations tackle the climate crisis. today, i am proud to announce we will work with the congress to double that number again. mark: the president described climate change and the coronavirus pandemic as "urgent and ruling crises." iran says talks at reviving that landmark nuclear deal are likely to resume within the next few weeks. that follows modes of delays that raised tensions in the persian gulf and left oil traders wondering when the islamic republic's crude is likely to retu t