♪ dani: good morning from bloomberg's european headquarters. i am dani burger. this is "bloomberg daybreak: europe." no shutdown. biden signs a stopgap funding bill but the house postpones its infrastructure vote. the democrats failed to agree on the white house's economic agenda. stocks begin the quarter in the red after equities suffer their worst monthly selloff since march of 2020.

a fight for power. china orders its top energy firms to secure supply at all costs and another tailwind for european energy prices. happy new month, happy new quarter. it is a precarious start to this new quarter. we have a host of risks. let's get away from the doom and gloom this friday because we have a very special treat this friday. usually, manus cranny starts the weekend on friday but we are very lucky. manus cranny is putting in the long, extra hours this weekend at the dubai expo. good morning to you. you have such a great lineup of guests and some really interesting conversations. what are you most looking forward to? manus: dani, this is a roll of the dice for dubai. welcome to an infrastructure build a year late but this is pretty spectacular. this is the pavilion where the opening ceremony took place last night.

it is the size of 600 football pitches. i've walked about 450 of them to get here. there is 190 pavilions. the chinese have a spectacular building. the swiss are claiming a little bit of land as well. this is one of those moments, i would say, it brings me back to 25, 30 years ago when i came here. they made a statement to the world that they had arrived. this is the emirate saying to the world, the expo is open, it's six months, many different themes. it is broken down into sustainability, mobility and opportunity. i will leave you with this thought. as you flight into dubai, there's a video that played. chris hemsworth is on the video. i cannot say whether i was offered the role. if i work harder in the gym, i too could have the role. it's a little bit hot. dani: the resemblance is

uncanny. sounds like you are getting a pretty good workout. i tried to convince the bosses that i needed to go to dubai, stay at the four seasons. that did not go down too well. i would love to. i am so looking forward to live vicariously through you and listen to those fascinating conversations. i know supply chains probably going to be a big topic there as well. manus: absolutely. we have the chairman of dp world. he arrived on the balcony, we had a great chat. we will get his insight in terms of the supply chain crisis in the shipping industry. what is it to go great for shipping? can he tell me what's happening in the flow between the hub of the middle east in dubai and china? we have the l'oreal ceo. 80% of the population are vaccinated. you need to show your vaccine card or a pcr test within the past two days.

dubai, it is ready to welcome you. they've got the emirates line, the u.k. opens on october 4. there's been a lot of work done out a global level to make this, to make this the 25 million success in terms of people they want to flow through here. dani: we are going to stay there and check back in with you later in the show. that is manus cranny at the dubai expo. let's get a quick check on what these markets are doing. it is a rough start to the month, to the quarter. european stocks selling off significantly. futures index down more than 1.5%. it mirrors what we are seeing in asia. china is closed for a holiday. in that context, it is an outperformance from the u.s. bond buying coming back in. the dollar stronger come about the strongest in a year. a pretty classic risk off day. a lot of this has to do with

what is happening in the d.c. nancy pelosi sent lawmakers home last night without a vote on a $550 billion infrastructure build with plans to try again on friday to reach an agreement with fellow democrats on the rest of president biden's economic agenda. let's dig into the details with ritika gupta. there's a lot going on here but what is the current state of play when it comes to biden's economic agenda? is it still on track? >> there's a lot going on here so let's break it down. that infrastructure vote being rescheduled. nancy pelosi delaying that vote to today. press secretary jen psaki same progress has been made but they still need additional time. this speaks to the risks we are seeing in the democratic party between progressives and moderates. progressives wanting to tie this to the reconciliation bill. we got one government vote yesterday to avert the shutdown and that did go as planned, as expected.

we got the house voting 254-174 for that. the question about the debt ceiling still remains, with big questions between the democrats on the publicans. janet yellen -- democrats and the republicans. janet yellen giving that deadline of october 18. dani: you will stay on top of that for us. on to china. we have more details emerging from the severe energy crisis in the region. government officials have ordered top state owned energy companies secure supplies this winter at all costs. let's bring in bloomberg's juliette saly. what are we hearing from china? is that having any impact on energy markets? juliette: it certainly is. we have been seeing that really fueling a lot of rallies in commodities markets. let's get to the details. we heard from the vice premier, who supervises the nation's energy sector, calling an

emergency meeting of companies and state based owned energy companies really telling them that blackouts will not be tolerated, and really just underscoring how critical this moment is. you can see on my gtv chart here , we actually saw chinese coal futures surging to a record thursday ahead of the october long weekend. prices have more than doubled it this year alone as we continue to see demand outstripping supply, particularly as you've got a lot of mines closed. we've heard from a lot of economists saying you will continue to see volatility in these commodities markets. a raft of commodities from fertilizers to silicon and wing in to what we are expecting in china's growth. goldman forecast you will see 0% growth for the third quarter. they have cut their 2021 forecast, adding to the likes of nomura, morgan stanley, who have

all downgraded china's growth. you have what is happening in europe competing with china for these supplies. a note was put out saying this perhaps will be a gloves off bidding war for a number of these asia spot prices. dani: a big impact to europe forget that bidding work. thank you so much -- bidding war. thank you so much. there's some happenings on wall street overnight. that includes j.p. morgan saying it has been shut out of underwriting municipal bond yields in texas. jpm out of the municipal market in texas. what more can you tell us? >> dani, you remember that jamie dimon, the jp morgan ceo, earlier this year told a congressional hearing that the bank will not finance gun companies that make those to -- military style weapons for consumers? texas has passed a law that bans

government work with banks that limit business in the firearms industry. jp morgan has been shut out of the bond market in that state -- municipal bond market in that state. texas is only second to california when it comes to muni bond issuance. issuers borrowed about $58 billion last year. jp morgan itself arrange about $3.5 billion of muni bond deals in texas last year. what's interesting is that it is not very clear yet exactly how this law applies to these banks. remember that citigroup, which was also a target of this legislation, in june said they will not be affected. jp morgan is taking a cautious stance. they have said to us that the legal risk associated with this ambiguous law prevents them from bidding on most business right now with texas public entities. dani: interesting. before we let you go, there was

a lot of wall street news from overnight from blackrock to jeffries. what else has caught your eye? >> jeffries has turned in a record quarter for their investment banking division. they have doubled revenue from this time last year to $1.18 billion. this has been fueled by dealmakers who are enjoying an unprecedented deluge on wall street, which has been in turn fueled by the economic recovery. very good news for jeffries, but also very good news for the wall street banks that are yet to report earnings. jp morgan, bank of america, goldman sachs report earnings a little bit later and jeffries has always been considered a -- no like blackrock is saying that it would like most employees back in the office at least three days a week from november 1. they are trailing a pilot

program to see how well u.s. and european colleagues collaborate, while still working two days remotely. we will see how that goes. we are collaborating pretty well from asia to europe, so hopefully they will figure it out, too. dani: exactly. it does not look that promising considering wells fargo for, what is it? the fifth time this year? that they will delay work from home. thank you so much for joining us. let's get over to the first word news with juliette saly. juliette: china's central government has ordered top state owned energy companies to secure supplies for this winter at all costs. bloomberg sources say the order came directly from the vice premier, who supervises the nation's energy sector and industrial production. the order was issued during an emergency meeting earlier this week and says like outs not be tolerated. incoming japanese prime minister is set to name a new finance minister. he has held the post longer than

anyone else in the country's modern era. former olympic minister has been tapped for the post, according to marie -- media reports in japan. he has also asked his -- he is also a brother-in-law and the son of a former permit. australia is moving to ease its covert travel restrictions, finding a seven-day home quarantine for fully vaccinated arrivals. it currently mandates a 14 day hotel stay regardless of inoculation status. the new system could be introduced as soon as november but only in states that reach 80% vaccination rate. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani> dani: thanks so much. juliette saly in singapore. we got a ton of data from the u.s. out today so let's get a look at what you need to watch today. 1:30 p.m. u.k. time, you will get personal income and spending and the pce deflator. a few hours later, university of michigan sentiment is expected

to come in at 71. at the same time, ism manufacturing. that is estimated ever so slightly at 59.5. we will see if that can have any impact on these markets today. speaking of which, markets off to a rocky start for the fourth quarter. we are going to look back at the last quarter and talk what to expect for the last quarter of 2021. and we are also going to be discussing the latest reporting on the gender pay gap in australia and how it compares to the rest of the world. that is today's big take. you are not going to want to miss that one. this is bloomberg. ♪

♪ dani: welcome back to "bloomberg daybreak: europe."

i am dani burger in london. let's get a look at these equity markets because it is continuing to trend lower on the first day of the fourth quarter and first day of october. we are looking at an ugly session in japan with the nikkei down more than 2%. china is closed. perhaps fears about the energy crisis being played out in the market. europe, again, that is an epicenter of the energy crisis, down more than 1.5%. s&p futures down not significantly, but still indicating a lower open. let's talk about that and inflation with investors bracing for wind down stimulus by the fed. fears are mounting about a slowing economic growth and that inflation, the consequences of a rising. asian stocks and u.s. futures starting in the red in the fourth quarter. we are showing those pretty rough gains. the s&p 500 has just capped its biggest monthly selloff since the start of the pandemic. joining us now is the cohead of public markets at --

thank you so much for joining us. thanks for waking up early on this friday. we have a host of central bankers speaking yesterday and earlier in the week. it is continually this mantra don't be worried about inflation, it's going to be fleeting once the supply chain issues sort themselves out. you see stickier inflation. what do powell and lagarde and team, what are they getting drunk? >> good morning -- what are they getting wrong? >>, good morning what they are gettingdani. they pinned it on covid and the delta variant. it is because of short-term measures that the government has taken. once we are pastor this, we will get to the other side and the supply shocks will subside. the way i see it is a little bit different. there are so many other factors involved and it's more of a structural supply-side change.

that is clearly, the delta and the pandemic triggered something. some of the labor does not return. that is clearly an issue. we have seen many of the lower paid and less educated jobs that were carried out by older people, they are not really replaced by younger people. as the older workers are going, they are retiring, not coming back to the labor market, you don't really have the supply of younger labor taking on these roles. that is clearly driven by our educational -- and diminishing really the people who are taking those jobs. i think we are seeing something -- starting to see the consequences of that. the other clearly is the transition. we are in the transition period with regards to trying to reduce carbon emissions. on the back of that, we are moving to different sources of energy.

clearly, is an indication. the third is, in terms of inflation, that the effect of climate change that we see already. this could definitely be seen in terms of food prices. here we are. there is many factors that are here to stay and that will keep inflation high. dani: so, a lot to unpack from that. i do wonder, though, given those dynamics, does growth keep up? does the word stagflation start to creep into the conversation? >> it has crept in. i can see why. it definitely has its merits. that is clearly, there is continued supply shocks -- if there is continued supply shocks, it will have an impact on growth. there may be demand for certain products. if it cannot get delivered. we can see that already also how conflicts of supply chains are -- complex the supply chains are.

one that has been with us for quite a while already is the semi conductor shortage. what impact that has on the secondary markets. we can see that in many ways how complex it is. clearly, here in the u.k., the fuel shortage. we have enough fuel. we cannot deliver it to people. that of course has impacts on growth. because, as i said, demand cannot be fulfilled, prices will continue to go higher, as we see now with china competing with europe for energy resources. prices go higher, they are very inelastic. [indiscernible] we won't be able to deliver. so yes, stagflation is a real concern. and then the concern is also, what will central banks do

about? they are so used to fighting deflation, but now we are starting to have a different problem. dani: definitely a change in mindset. about the fight for energy resources, jeffrey haley calling a gloves off bidding war between europe and asia. we have much more to cover. you are going to stick around with us. coming up, both houses of congress passed a bill with just hours to spare to avoid a government shutdown, but failed to resolve the threat of a u.s. default linked to the debt limit. we will have more on that next. this is bloomberg. ♪

♪ dani: welcome back to "bloomberg

daybreak: europe." i am dani burger in london, where it has just on 6:23 a.m. a government shutdown has been averted with just hours to spare. both houses of congress passed a bill allowing for a nine week stopgap about failed to resolve the threat of a u.s. default linked to the debt limit. our guest is still with us. i was looking at some of these metrics about how worried people are about the debt limit, one of them being indirect bidders for those of short-term bills. do people want to park their cash in some of these key bills? bids for those t-bills hit the lowest since 2015. i wonder how you approach the debt ceiling. is this something you worry about? are there markets you avoid given we could possibly get a breach of the debt limit? >> so, first of all, this is clearly good news that the debt ceiling question, so to speak, has now been postponed. that is because there were too

many issues that were convoluted into one, the debt ceiling, the infrastructure belt, the reconciliation bill. it's way too messy. for having a temporary price i very positives. this allows the market and politicians to now focus on this infrastructure bill, reconciliation bill, where there is -- they are still a long way apart. there is anything from the 3.5 trillion that was originally proposed to no, we only agree on the infrastructure bill if we lower it to around 1.5 trillion. good first start on the debt ceiling. clearly, the timing would be bad if they struggle again because of the lack of liquidity around christmas. dani: right. not to play pessimist over here, but beyond that, it might be good news for the market, there

is still a lot of risk here. we've seen a pretty significant move in some of these government yields. if all these risks are floating around, what we were talking about earlier when it comes to inflation, the energy crisis, we are still seeing the u.s. high yields market behaved very sanguine? we still see then spreads, they don't seem disrupted. why are we not see more volatility in that market? >> ok, we have not seen any volatility as of yet, as you say. the market has behaved very nicely so far. in the equity market, we have seen very little widening in high-yield. it is very micro issues to it. that is because actually when you look at the health of companies, so far, it has been considered very strong and improving. that is all part of the narrative of we have strong growth and we are coming out of this covid.

that also means that. you see a lot upgrades there has been lots of raising upgrades over the last few months and those are expected to continue. with this new narrative setting in of high inflation, lower growth, if that is something to really settle in, then high-yield will feel some of that impact also. it tends to be a little bit delayed. it clearly is much less volatile than the equity market but it is considered a risky asset class. it would move equities into riskier asset classes. if you see a continued selloff in greece, high yields be infected by. dani: thanks so much for joining us this might. a real pleasure to have you on to round out the week. want to bring you another quick check of equity markets as a get closer to the european open and further into the asians trading session. nikkei down more than 2%.

some of those losses easing. your stoxx 600 down one .5% in this start to the fourth quarter. this is bloomberg. ♪

♪ dani: good morning from bloomberg european headquarters. i'm dani burger. this is daybreak europe, here is what you need to know. no shutdown. but in signs a no stop funding bill but the house was bones infrastructure vote as democrats failed to a great on the white house's economic agenda. stocks in the red after u.s. equities suffered their worst monthly selloff since march, 2020. and china orders top energy

firms to secure supplies at all costs. now, good morning. it is friday. we made it to the and of the week. is an autumn storm brewing? let me show you the set up for what it is this quarter. what we saw last quarter, we had an s&p 500 game in the last quarter, sixth consecutive quarterly gain. however, it was very slim, less than 30 basis points. that makes this gain the thinnest since 2007. i'ts not just stocks setting us up. you also have yields near a three month high when it comes to benchmark 10 year, the dollar on a tear, highest since november, 2020. is it time to pull back on risky assets, seeing the dollar move higher today? of course, the story at the end of the month has been capturing the attention, commodities,

gaining 43.5% for the third quarter. you can also see s&p 500 stock in one year, the yearly price moving higher, your yields right below 150, as well. bloomberg otter spot for the year is down, for the quarter much higher. now, let's stick with the energy story because it's had a big impact when it comes to the inflationary story, how these markets are trading. we're only one month away from the start of the world's landmark climate change conference. and carbon emissions near record highs in europe. european gas prices have pushed demand for sources like coal. now, bloomberg's energy reporter rachel morrison joins us now. can you break down the price dynamics between the different commodities? gas, carbon, coal? in the recent price moves?

rachel: morning, yes, it's a really interesting dynamic between high gas prices and divisions. so, the extreme increases we've seen in the gasp race has actually made coal more prop -- gas price has actually made coal more profitable. utilities by more allowances to cover the generational gap. but that has a different environmental story. we're now burning more coal than we have been previously, so germany, italy, spain are all burning more coal, the u.k., and we're even hearing some utilities are looking to switch on old coal stations to meet some of the demand, and that's all because gas is so expensive. so, having that sort of counterintuitive effect on emissions and on the environment. dani: what is that environment of impact? could it be minimal if this is short-lived?

or will there be significant scarring because of this period? rachel: well, anything that takes a step backwards towards more coal generation is obviously not what the talks are going to be about. those talks are going to be pushing nations to move away from coal. and so this energy crisis raises questions about the progress that leaders can make towards climate goals. if energy security is an issue, what do they put first? do they put first having power supplies and heating for people at home? or do they put the climate first? an obvious leak, it will be a mix of the two, but there are concerns and questions as to whether this crisis slows the pace that those decisions will be made at. dani: i mean, at some point, rachel, do policymakers have to step in here? do they let industries fight it out for themselves? rachel: at a national level, there may be things for

governments to do. in the u.k., there are quite strict thresholds for how expensive it can get, so the government prices are high for three months. they may put more supply into the market. where that's not possible, we have the eu's cornerstone package to climate goals for 2030, which expands the sectors that the eu trading system covers. some countries are using this as a chance to say let's not expand that. let's keep it where we are because in the end, this makes energy more expensive for people. and that's difficult for politicians. dani: all right, rachel, really important topic. thanks for joining us. let's dig into this even further. also joining us today is an driest and awful, bloomberg's european power analyst, who joins us. thanks so much for joining us. you know, it's really easy to

look at these charts of power prices and just be really caught off guard. the moves are parabolic. but i'm wondering if you can give us a reality check. just how dire is this energy crisis? >> thank you for having me and good morning. i think the situation is not necessarily dire, some people say in the sense of we've seen these prices before. what's really different is how they are happening. we're used to having high oil prices in the winter. the right now, we are seeing prices spike as a direct result of the gasp price as a direct result of the imbalance. dani: we were just talking to rachel morrison how this has been driving people towards sturdier energy towards coal and amid all of this also, it's been easy for people to criticize some of the renewals, winds

saying the prices are too volatile. does this have long-term consequences and the push to renewables if those arguments are starting to emerge? andreas: so, from an economic perspective, it shouldn't send the price higher. we look at wind and solar right now, they are significant lee cheaper than -- significantly cheaper than coal and gas. however, as you point out the criticism that people make and some of the points being hurt could turn opinion against wind and solo -- solar in a way they for further -- they further disparage them. people don't want to see winter venture out. so this could turn into a further argument against, but it would be a wrong one because wind and solar would bring a type of long-term price difference. dani: will this then drive more

investment? or what will it take to drive more investment in those renewables? andreas: i think right now, from the cost perspective, we need to see this crisis sticking for longer to try the investment, but at the same time, i think politicians need to make an effort to present this as an opportunity and to push in this direction. it turns out that what people think matters as much as what the economics have to say. and in that sense, it's really important right now arguments such as coal, wind induced volatility are downplayed by experts, accordingly, in a way people can understand that the real culprit her ei -- here is high-class -- high gas prices. dani: andreas, thank you so

interview coming up on a special interview with "leaders with lacqua. let's get to bloomberg first word news with juliette saly. juliette: disney's scarlett johansson has settled the lawsuit over "black widow. terms were not disclosed. the decision to release the film online reduced compensation, tied to movie ticket sales. both parties issued statements, saying they look forward to working together again. australia is moving to ease its covid travel restrictions, planning seven-day home quarantine for fully vaccinated arrivals. it currently mandates a 14 day hotel stay regardless of inoculation status. the new system could be introduced as soon as november , but only in states that reach 80% vaccination rate. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. dani? dani: juliette, thanks so much. now, coming up, democrats provided, the progressive and moderate wings of the party entrench their position that threatened to derail the president bodies economic agenda. more on that next.

-- on president bidens economic agenda. more on that next. this is bloomberg. ♪

♪ dani: welcome back to bloomberg daybreak europe. i'm dani burger in london. let's get a quick check on the markets. we're looking at equities heading lower today, a classic risk off day, asia taking the brunt of that selloff, concerns about secure energy at all costs. you also have a bloomberg dollar spot, as well, higher by .1%, dollar continuing to had higher, as well. now, let's head to our big take today. you can check it out on and i

big take go, gender equality data show a paradox that might be costing the economy billions. while it topped the world in terms of women's entertainment, it rained the worst for female per dissipation, behind kazakhstan and serbia. for more, we're joined by nabila ahmed. a really fantastic story here. what did you find when you were looking into this about australian companies when it comes to gender equality? nabila: dani, it's a little bit of depressing reading if you are a woman based in australia. as you say, a starley as women are the highest educated in the world. however, when it comes to participation in the economy, they are ranked number 70. when you compare that to the u.s. and u.k., australia is definitely lagging behind. those two countries are ranked at 40 or above. when it comes to overall, cost

-- the u.k. is doing the best out of those three, ranked at 23. u.s. is at number 30. when it comes to female ceo's who are being represented revisiting the corporate world, the u.k. is doing the best, and that's at about 8%, while the u.s. is improving at about 6%, and australia is going backwards and is around the 5% mark. dani, obviously no country has got it figured out exactly how to handle this issue and nobody's perfect, but the point that we were making in this story is that australia seems to be going backwards, and that is a big concern. dani: definitely really troubling. you say the u.k. is doing the best, still 8%. there's probably important lessons to glean from australia if it is moving backwards to prevent other nations from doing the same. what did you find about some of the drivers behind that widening

gender pay gap? nabila: very interestingly, the gender pay gap and australia, which has actually risen in the past year, now stands at 31% when you count full-time, part-time, and over time for all workers worked. and the biggest reason that i'm hearing from experts for this is discrimination, so flat out sexism. that makes up about 40% of the gap. another 40% is made up of the fact women have to leave work to have children and take care of children, and the cost of childcare in australia it is so high and actually higher than the u.s. and u.k., that often it makes more sense for the woman to stay-at-home and take care of the kids for a few years rather than pursue her career. so that's a big issue, as well. and then you also got gender segregation in the workforce. so, australia has a very highly

segregated workforce. what does that mean? it means men work in jobs like construction and mining. you've got women working in industries like nursing and health care, and this female dominated industries tend to get paid less, so that's where the big gap comes in. dani: such an important topic, really fantastic story. i encourage anyone to check at out. that's bloomberg's finance reporter in sydney. thank you so much for joining us. from sydney over to d.c., where democrats remain deeply divided over president bidens spending bill, threatening to derail president bidens economic agenda. we're joined by ritika gupta. what is the current state of play when it comes to bidens economic agenda? rikita: we have the infrastructure vote being delayed, nancy pelosi rescheduling to today, the white house press secretary saying progress has been made, but you

still need more time, and this speaks to the division within the democratic party between progressives and moderates, progressives wanting to tie it to the reconciliation bill, but you have the likes of senator joe manchin, who says these government programs are fiscal insanity. it will be interesting to see if that eggs on progressive more. dani: i can't help but notice you've got some infrastructure stocks kind you. are they reacting at all to this? ritika: yeah, i have indeed, and we had the likes of some of those heavy machinery companies and material companies. we can see those really rally on into the summer here. this is on the idea of more spending on bridges, roads, but we really have started to see that momentum starting after they august. so it's interesting to see where

these stocks go from here. it could be a lot of this was priced in or that spending original bipartisan bill to lindell to $550 billion. but it could also be, on the other hand, how bloomberg international -- intelligence is looking at it. they say the vote today could be critical, but they still expected to be made law in the fourth quarter and that will provide momentum for these stocks. we will have to wait and see how that plays out. dani: she is on top of it all. coming up, we are at the dubai expo, more specifically, manus cranny the dubai expo. much delayed, much anticipated showcase of the very best of human ingenuity and creativity. we are going to be speaking with manus again on what you can expect stay with us. this is bloomberg. ♪

♪

dani: welcome back to bloomberg daybreak: europe. i'm dani burger in london. let's go to manus cranny, still with us for the weekend at the dubai expo. right to talk to you on this friday. it is a rare chance and a great time when we get to. you were there for that opening ceremony, really spectacular. but set the scene for us. what is at stake with this by expo? manus: i think what's at stake here, dani, is an economic role of the dice. $7 billion has been quite literally sunk into the ground here at the expo site. they're expecting 25 million visitors. and that's a blend between virtual and physical. they have literally pulled out all the stops at a geopolitical level. 80% of its population is vaccinated and you have number six on the world ranking of

vaccinations. they really are pushing. it's $7 billion in total on this site. that's the stage where it -- i must be truthful and honest. i watched it on in a scram -- on instagram. it's going to be 190 pavilions. it's going to be sustainability. it's going to be in the first couple of weeks. so, there's a lot at play here, dani. this is about representation to the world. employees of the government are getting them to fill up. the borders are open to america. the borders are open to the u.k.. the uae is open and ready. dani: of course, though, manus, we got afresh warning from the imf over the uae and their economy. manus: yes. nations in a hurry to reform. well, this is a report from the

imf, where they talk about a drug will -- gradual recovery from the uae, and stimulus targeting skilled professionals and the private sector. i just want to contextualize the stimulus that's at play. we're looking at $15.8 billion this year. that's $3 billion less than in 2019. but this is a government which is, i would say, moving with quite apace on reform. just 10 days ago, i caught up with the economy minister, targeting a pivot to asia with trade. i will talk to the chairman and ceo in terms of what's happening with trade. that's a pivot on trade. but this is a nation that is reforming socially, in terms of how you can live here. the economy minister isn't just bringing people. he wants to bring people, money, capital, and businesses to the uae. while you might get wealth from developed nations in the north

because of the tax, it's all about grabbing the worker and indeed, delivering an environment, which is on a benchmark on par with the rest of the world. this is a nation in a hurry to reform, 50 years of independence. we celebrate that here in just four weeks. dani: manus, i'm so looking forward to your conversation with the chairman and ceo, manus cranny on the ground at the $7 billion world expo in dubai. fascinating conversations and coverage for all of us there. that's manus cranny in a very sunny dubai. now quickly, before we head into the european open, which is just over an hour away, we're looking at an equity market that is sinking further in this start to the fourth quarter. the smallest gains for u.s. stocks in the past quarter since 2007, they're starting out down .5%, not as poorly as your, down 1.4% europe, -- europe, down

1.4%, china creeping through those markets. that's it for bloomberg daybreak. we have the european of next. francine lacqua and tom mackenzie will walk you through it. this is bloomberg. ♪

the comfortable way to work out. -that looks fun actually. -it looks fun? it looks comfortable and fun. it looks like something i would put by the pool -or something. -looks like a paisley. -hey, a paisley, we'll take it. -yeah. oh my god, i could do this and watch tv at the same time. -exactly! how do you feel? -it feels good. feel my heart racing a little bit, ya know, gotta catch my breath a little bit, but it's good. oh yeah, i can definitely feel it. fantastic. oh yeah, i can do this. this is easy. yeah, that feels great and definitely better than the floor. treadmills, you've seen the bikes with clothes hanging on them, but people don't use it. what's the point? the aerotrainer, people want to use it. -wow, this is easy! -absolutely! it feels good. it feels sexy. i love this, aerotrainer, i want one. i like this. like, i can do this. i want this in my house. (host) wondering if the aerotrainer is tough? you bet it is. (upbeat music) ♪ (engine revving)

>> good morning and welcome to "bloomberg markets: european open." happy friday to everyone. the cash trade just less than an hour away. stocks slump at the start of the fourth quarter after u.s. equities for their worst monthly selloff since march 2020. biden signs a stopgap funding bill. the house postpones its infrastructure vote.